The Telangana AAR in the case of M/s Duet India Hotels (Hyderabad) Private Limited has held that, the electricity and water charges collected by the applicant-lessor from lessee will constitute a composite supply and will be taxable at the rate applicable to principal supply of leasing services.
In the present case, the applicant contended before the AAR that the reimbursement received from tenant is not a supply as per section 7(1) of Central GST Act. It was also contended by the applicant that they have entered into an agreement with the lessee for collection of electricity and water charges on an actual basis which signifies that the they are acting as a ‘pure agent’ of lessee as per rule 33 of the Central GST Rules.
The AAR however rejected the contention of the applicant on the ground that one of the main conditions to qualify a taxpayer as pure agent is that the payment should be made on authorization of the recipient of services and in the present case, the applicant missed to justify this requirement in their advance ruling application. The AAR further held that the applicant is supplying a bunch of services in which the leasing of premises is the main supply and provision of utilities would be in the nature of incidental/ancillary activity. Therefore, the AAR held that electricity and water charges collected by the applicant on actual basis from tenant is liable to GST.
CBIC has recently issued a circular no. CBIC-240137/14/2022- dated 28th October 2022 vide which it has clarified that the payment through GST Form DRC-03 is not a valid mode of payment for making pre-deposit under section 35F of the Central Excise Act, 1994 and section 83 of the Finance Act, 1994. In this Circular, CBIC has stated that there exists a dedicated CBIC-GST integrated portal, http://cbic-gst.gov.in which could be utilized by taxpayers for making payment of pre-deposit under the old Central Excise and Service tax law. Detailed procedure to make payment of pre-deposit is explained in Circular no. 1070/3/2019 dated 24th June 2019.
Further, the Circular also clarifies that GST Form DRC-03 is not the valid Form under GST law also to make a payment of pre-deposit for filing GST appeal. In this regard, the Circular advises taxpayers to use GST Form APL-01 to make payment of pre-deposit.
Now there is a device as powerful as a computer, easy to carry around in your pocket like a wallet, and with the most user-friendly interface that anybody could handle. The entire business infrastructure changed to accommodate these newfound technologies. And, just like that, smart phones changed the way people work; yet, it feels that security policies haven’t kept pace with the growth.
There is no device out there that can tell your story more accurately than your smartphones. Not just your formal and informal emails, but also your habits, the applications you use that provide an insight to your interests, internet browsing, and many sensitive/confidential information too. Therefore, it is important to understand the threats relevant to the mobile devices, like it or not, it is now a part of your daily business practices. So, we can’t wish this complication away, however, we can take steps to amalgamate this device safely with our infrastructure.
In specific security-oriented scenarios, it is as important to provide employees with smartphones as it is to provide them with a system to work with. That being said, before issuing smart phones or tablets to your employees, be clear to establish a device usage policy. It is paramount that the employee understands the security risk posed due to the violation of the security measures put in place. Well informed, responsible users are the first line of defence against security breaches.
If employees are allowed to use their personal devices, make sure that you have put up a bring your own device policy in place. You should have security plan for:
An approved list of apps available for download
Software updates to mobile devices puts up patches for security gaps, recent vulnerabilities, and other security threats. You need to establish endpoint security software and antivirus software to make sure that your ware is protected. Many of these programs will monitor Short Message Service (SMS) texts, Multimedia Messaging Service (MMS) and call logs for suspicious activity. They can use blacklists to prevent users from installing known malware to their devices.
Just as you backup your computer data regularly, you should backup data on your company’s mobile devices. If a device is lost or stolen, you’ll have peace of mind knowing your valuable data is safe and that it can be restored.
This would feel like a redundant message you hear on every lecture on security. But you should know that a single email could be associated with more than a hundred applications and email id may remain as a username credential for any SaaS software that you may use daily. This eight-character string is the strongest wall between your information and a malicious hacker. Therefore, it is important to follow the below steps a good password policy practice.
Because of the great convenience it offers, smart phones and tablets are vital tools in modern business. While it might be difficult to fully control mobile devices in your organization, there are secure ways to integrate them into your business processes.
On 30th September 2022, Accounting and Corporate Regulatory Authority (ACRA) released version 3.4 of the BizFinx Preparation Tool (Preptool) and the Multi-Upload Tool (MUT).
Companies can prepare, validate, and upload their Financial Statements using the latest version of these tools from 1st October 2022 and are mandated to do so from 1st December 2022.
The updated Preptool and MUT include the following improvements:
The ACRA press release sets out instructions on how those with an older version of Preptool/ MUT installed in their computers may update the software.
ACRA advises that to facilitate the transition, all Excel / XBRL.zip files prepared using an older version of Preptool / MUT can be opened and edited in the latest version without any loss of data.
On 4 October 2022, Accounting and Corporate Regulatory Authority (ACRA) implemented new requirements to strengthen Singapore’s corporate governance regime, and reaffirm Singapore’s commitment to combatting money laundering, terrorism financing and other threats to the integrity of the international financial system. The following requirements will take effect from today, following the passing of the Corporate Registers (Miscellaneous Amendments) Act 2022 by Parliament on 10 January 2022.
Companies (including foreign companies) are required to maintain a Register of Nominee Shareholders (RONS) at their registered office or at the registered office of their appointed Registered Filing Agent. The RONS will need to contain prescribed particulars of the nominator(s) of the company’s nominee shareholder(s). Companies must set up their RONS by 5 December 2022.
To assist companies in the setting up and maintenance of the RONS, ACRA has developed and published a new guidance document for the RONS.
Companies and Limited Liability Partnerships (LLPs) which are unable to identify a registrable controller who has a significant interest in or significant control, are required to identify individuals with executive control as their registrable controller(s).
Companies and LLPs which were previously unable to identify a registrable controller are now required to record the prescribed particulars of individuals with executive control in their existing Register of Registrable Controllers (RORC) by 5 December 2022. The same information must also be lodged with the ACRA central register (ACRA central RORC) within 2 business days after any update(s) to their own RORC.
On 18 October 2022, the Monetary Authority of Singapore (“MAS”) published a consultation paper to seek feedback on proposed changes to the Payment Services Act 2019 (“PS Act“) to:
The consultation is targeted at all licensees and regulated entities under the PS Act, financial institutions and other interested parties (including members of the public and payment service users). Feedback must be submitted to MAS by 25 November 2022. This Update highlights the key proposals in the consultation paper. Proposed Revised Caps on Personal E-Wallets Current Caps Presently, an MPI is required under the PS Act to ensure that:
To facilitate specific user needs, the Caps are subject to the following exemptions:
Proposed Revision to Caps For better customer convenience and to support innovation in the e-payments landscape, MAS proposes to increase the Caps as follows:
MAS considered the potential impact of revising the caps on the stability of the Singapore financial system. This is because these Caps are relevant to mitigate potential significant outflows from bank deposits to non-bank e-wallets. After considering scenario projections based on historical consumer usage statistics, MAS has taken the view that the financial stability objectives can still be met even with the higher proposed Caps. As raising the Caps also means potentially increasing the funds held or transferred through e-wallets, and therefore exposure to greater potential losses from scams involving e-wallets, MAS has also advised that e-wallet issuers should be aware of this risk and consider whether they need to enhance their anti-scam controls. Proposed New Exemption from Aggregate Caps Requirement for MPIs Under the PS Act at present, an MPI that issues two or more e-wallets to any user is required to aggregate all the e-money in the e-wallets issued to that user and apply the Caps to the user (“Aggregate Caps Requirement”). MAS proposes to exempt an MPI that enters into the following arrangement from the Aggregate Caps Requirement where the MPI:
(Referred to as the “white-label account issuance arrangement”). This means that for the purposes of applying the Caps, the MPI will not be required to aggregate the e-money in e-wallets issued to the same payment service user under the white-label account issuance arrangement. For clarity, if an MPI issues two or more e-wallets to a payment service user on behalf of a single e-money issuer, the MPI needs to aggregate the e-money contained in those two or more e-wallets issued to that payment service user for the purposes of applying the Caps.
On 26 October 2022, The Monetary Authority of Singapore (MAS) has published two consultation papers proposing regulatory measures to reduce the risk of consumer harm from cryptocurrency trading and to support the development of stable coins as a credible medium of exchange in the digital asset ecosystem. These measures will be part of the Payment Services Act.
Trading in cryptocurrencies (also known as digital payment tokens or DPTs) is highly risky and not suitable for the general public. However, cryptocurrencies play a supporting role in the broader digital asset ecosystem, and it would not be feasible to ban them. Therefore, to reduce the risk to consumers from speculative trading in cryptocurrencies, MAS will require that DPT service providers ensure proper business conduct and adequate risk disclosure.
The proposed measures cover three broad areas –
Not with standing these regulatory measures, consumers must continue to exercise utmost caution when trading in DPTs and must take responsibility for such trading. Regulations cannot protect consumers from losses arising from the inherently speculative and highly risky nature of DPT trading.
Stable coins have the potential to be a medium of exchange to facilitate transactions in the digital asset ecosystem, provided they are well-regulated and securely backed. The current regulatory framework, which primarily addresses money laundering and terrorism financing risks, and technology and cyber risks, will be expanded to ensure that regulated stable coins have a high degree of value stability.
MAS will regulate the issuance of stable coins which are pegged to a single currency (“SCS”) where the value of SCS in circulation exceeds S$5 million. The key proposed issuer requirements relate to –
Banks in Singapore will be allowed to issue SCS as well, and no additional reserve backing and prudential requirements will apply when the SCS is issued as a tokenised form of bank liabilities given the existing rigorous capital and liquidity frameworks applied to banks. For non-issuance services, DPT service providers can offer all types of stable coins provided that they clearly label the MAS-regulated SCS to distinguish them from the unregulated ones. This will help customers make informed decisions on the risks involved in using unregulated stable coins.
On 31 October, 2022, the Inland Revenue Authority of Singapore (IRAS) published the fourth edition of the e-tax guide (the “Guide”) on country-by-country (CbC) reporting.
The e-Tax Guide provides taxpayers with guidance on:
The purpose of CbCR;
The e-Tax Guide has been updated with the following main changes:
On 31 October, 2022, the Inland Revenue Authority of Singapore (IRAS) published the sixth edition of the e-tax guide (the “Guide”) on Income Tax & Stamp Duty: Mergers and Acquisitions Scheme.
The e-Tax Guide has been revised to provide clarity to the additional conditions to claim M&A tax benefits based on the 20% threshold and reflect the enhancement to the M&A scheme as announced in Budget 2022: