The Government of India (Union Cabinet) has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and India’s final position to the same.
On 13 June 2019, the Ministry of Labour and Employment, Government of India, issued a notification (Notification) amending Rule 51 of the Employees’ State Insurance (Central) Rules 1950 to reduce the rate of the contribution required to be made under the Employees’ State Insurance Act 1948 (ESI Act) from 6.5% to 4%. The Notification declares 1 July 2019 as the date on which the reduced rates of contribution would become effective.
The Reserve Bank of India (RBI) issued a revised prudential framework for resolution of stressed assets on 7 June 2019 (Revised Circular) in supersession of the erstwhile circular on Resolution of Stressed Assets dated 12 February 2018 (Feb 12 Circular) which was struck down by the Hon’ble Supreme Court on 2 April 2019.
On 25 May 2019, the Government of Karnataka (Government) issued a notification(Notification) extending the exemption granted to knowledge-based industries – including information technology (IT), information technology enabled services (ITES), start-ups, animation, gaming, computer graphics, telecom, business process outsourcing and knowledge process outsourcing (together referred to as Exempted Establishments)– from the application of the Industrial Employment (Standing Orders) Act 1946 (IESO Act) for an additional period of 5 years with effect from the date of the Notification.
The Hon’ble Supreme Court, vide its order dated 29 May 2019, while refusing to interfere with the order of the Bombay High Court, has held that the position regarding the arrest provisions under Central Goods and Services Tax Act, 2017 (CGST Act) and the corresponding state goods and services tax laws (SGST Acts) will be clarified by a three-judge Bench of the Supreme Court before whom all similar matters shall be placed.
With effect from 24 July 2019, the Industries, Energy and Labour Department of Maharashtra (Maharashtra Labour Department), revised the basic rate of wages prescribed for employment in shops and commercial establishments in Maharashtra. The basic rate of wages for different class of employees has been reviewed and revised nearly after a decade.
In Cargil India Private Limited v M/s. M.M. Oil Enterprises(Notice of Motion No 1107 of 2019 in COMIP No. 425 of 2017), the Bombay High Court (Court) has once again passed a notable order whereby the Court imposed a sentence of 8 weeks simple civil imprisonment upon the proprietor of M/s. M.M. Oil Enterprises(Defendant) who was found in contempt of the orders passed by the Court.
The Government of Kerala has introduced a cess as per clause 14 of the Kerala Finance Bill, 2019 called the “Kerala Flood Cess”. Effective Date: The Kerala Flood Cess would be effective from the 1 June 2019 and will be in effect for a period of two years.
The Hon’ble High Court of Orissa, vide its order dated 17 April 2019 (Order), in in Safari Retreats Private Limited v Chief Commissioner of Central Goods & Service Tax [W.P. (C) 20463 of 2018], has allowed availment of input tax credit (ITC) on goods and services used for construction of immovable property and used in the course or furtherance of business.
