Corporate Updates – 08-08-2017


SEBI had made amendments in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The amendment was made to enhance the transparency as earlier there was no specific disclosures are required in certain matter such as delay in payment of the Interest/ principal amount with respect to the loans etc. Now, the listed Entity shall make Disclosure of defaults made on payment of Interest/ repayment of principal amount on loans from Banks/Financial Institutions etc. The circular shall be applicable to all listed entities which have listed any of the specified securities (equity and convertible securities). The disclosures shall be made to the stock exchanges when the entity has defaulted in payment of interest / installment obligations on debt securities (including commercial paper), Medium Term Notes (MTNs), Foreign Currency Convertible Bonds (FCCBs), Loans from banks and financial institutions, External Commercial Borrowings (ECBs) etc. The entities shall make disclosures within one working day from the date of default at the first instance of default in the prescribed format. This circular shall come into effect with effect from October 1, 2017. This is to enable listed companies to put appropriate systems in place for prompt submission of disclosures as stipulated in this circular.


GST Council at its 20th GST Council Meeting held on Saturday has taken various decisions w.r.t the tax rates on various products. The council has decided to cut the tax rate for job work for the entire value chain of textiles sector to 5 per cent along with reduction in rate for tractor parts to 18 per cent from 28 per cent. Also, the Council gave in-principle approval to the e-way bill rules, which envisage a technology-driven tracking of movement of goods worth more than Rs 50,000 and for sale beyond 10 km in distance. The e-way bill rules are likely to come into force from October 1. The GST rate for government work contracts, for both central and state governments, was also cut to 12 per cent with input tax credit from the earlier decided rate of 18 per cent. Under the proposed e-way bill rules, the exempted goods under GST will be kept outside its purview. The permits thus issued would be valid for one day for movement of goods for 100 km and in same proportion for following days. The Council also gave in-principle approval to anti-profiteering measures and proposal to set up a Screening Committee in 15 days to see if tax reductions after implementation of GST have been passed on to consumers. The Council also decided to exempt import of goods and services related to FIFA Under-17 World Cup, which will be hosted by India. For agriculture services, tax rate of post-harvest and storage has been brought down to 12 per cent from 18 per cent. Also, tax rate for entry into planetariums has been reduced to 18 per cent from 28 per cent. In case of “rent a cab service”, GST rate will be 12 per cent without input tax credit and 5 per cent with input tax credit.

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