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Showing posts from July 20, 2015

Updates of the Day !!!!!

1. Admission of assessee u/s 132(4) of the Income Tax Act would suffice to initiate necessary proceedings. [Delhi High court in the case of JRD Stock Brokers (P) Ltd. vs. CIT].

2. While classifying a product for excise purpose primary use prevails over the incidental ones in classification of goods. [Holostick India Ltd. vs. CCE- Supreme Court].

3. Act of non-payment of service tax after its collection cannot be claimed to be done under a bona fide belief. [Indsur Global Ltd. vs Additional Commissioner of service tax, Vadodara (2015) 59 taxmann.com 15 (Gujarat) tribunal].

4. RBI has issued circular on "Issue of shares under Employees Stock Options Scheme and/or sweat equity shares to person’s resident outside India.

5. Entertainment tax in Delhi increased from 20% to 40% w.e.f. 20/07/2015.

Skill could be next fundamental right

The right to skill will task states with setting up universities to be overseen by a regulatory body, says rajiv pratap rudy The government is planning to make skill training a fundamental right guaranteed by the Constitution to boost employability of India’s workforce. The proposed right to skill will task state governments with the responsibility of imparting vocational training through special universities that will be overseen by a regulatory body at the Centre. Skill development as a right has been enacted in several countries, including Germany, Switzerland and South Korea, and is present closer home in Chhattisgarh as well. Explaining the proposal, minister of state for skill development and entrepreneurship Rajiv Pratap Rudy said, “The proposal is at the discussion stage at this point. It will be the responsibility of the state to see that anyone who wants to be skilled is not left out. The idea is to include it under the fundamental rights.” “Anyone in the age group of 15-45 can …

Tax sops for e payments run into road blocks

The proposal to provide income tax relief for usage of debit and credit cards has run into opposition -- within the government. According to sources, the revenue department has flagged a host of concerns, and expressed reservations on the draft proposal of the department of economic affairs (DEA) to promote electronic payments. The two departments are likely to engage in a series of detailed discussions to sort out these issues. Tax benefits, lower transaction fees for electronic payments and a nominal charge on high-value cash transactions are among likely steps that the government plans to implement to become a cashless economy. The government had on June 22 released draft proposals to encourage electronic transactions in a bid to curb generation and circulation of black money. The draft proposes a mix of steps to increase debit and credit card usage, mobile payments and other forms of electronic transactions. “The goal of the proposed policy is to provide necessary incentives to use e…

Legal audit firms wage turf war

Audit and accounting firms favour multi- disciplinary partnership, the legal fraternity stays out The global turf war between accountants and lawyers was played out in India last month, when the Society of Indian Law Firms (SILF), an association of about 100 law firms, filed a complaint with the regulator, Bar Council of India, saying that four multinational audit and accounting firms — EY, KPMG, Deloitte and PwC — were indulging in the practice of law in violation of the Advocates Act, 1961 provisions. The Bar Council sent notices to the firms, seeking their response. The move comes at a time when the three professional institutes that represent chartered accountants, cost accountants and company secretaries are working on broad contours of setting up multi- disciplinary partnerships. That would allow them to offer audit, cost accounting and consultancy services under one roof. However, the legal fraternity in India has taken an aggressive stand against the multi- disciplinary practice. …

Child labour Bill likely this session

Will amend 1986 law to bring provisions in line with global standards; DMs to get implementation powers, rehabilitation fund coming The government will push a Bill amending the law on child labour in the coming session of Parliament. It was introduced in the Rajya Sabha in December 2012 and then sent to a standing committee for scrutiny. The final shape was cleared by the Cabinet in May. It proposes a full ban on employment of children below 14 years of age across all industries and processes. However, a child will be allowed to “ help” her family in their own businesses after school hours or during vacations, and also work as a child artist. The ministry will continue its ban on children working in a circus. Various activists had criticised the government’s move to allow children to assist their families in work. However, the government has said it will not allow children to work in set- ups where an employer- employee relation is established. “It is important to note that the word used i…

RBI likely to hold rate next month

Monsoon uncertainty, increase in oil prices cloud inflation outlook The Reserve Bank of India ( RBI) is expected to keep the interest rate unchanged on August 24, in its third bi- monthly monetary policy review for 2015- 16. This was the near- unanimous response of 10 market participants in a poll conducted by Business Standard. While nine of the respondents said they expected RBI to maintain the repo rate — the rate at which banks borrow from the central bank — at 7.25 per cent, only one said the rate could be reduced, by 25 basis points. The market believes the outlook for inflation over the next few months depends on the monsoon rainfall during the rest of the season. So, RBI Governor Raghuram Rajan might adopt a wait- andwatch approach for now. Besides, RBI had front- loaded the rate cut, with a 75- basis- point reduction since the start of 2015. “Food prices remain at the mercy of exogenous events like rains. As such, they also remain the biggest threat for RBI in its desire to lower in…

GST Govt amenable to full compensation to states for 5 years

Congress preparing a dissent note on the issue The government appears ready to accept the demand for full compensation to states for a period of five years after introduction of the proposed national goods and services tax ( GST). By acceding to this view among the Rajya Sabha panel scrutinising the constitutional amendment Bill for GST, the government would be closer to getting regional political parties on board for the major tax change. The Congress party, however, continues to oppose the present Bill and is preparing a dissent note to the report. Left representatives are also likely to dissent on several clauses. The Bill had proposed full compensation for three years, tapering to 75 per cent in the fourth year and 50 per cent in the fifth. The panel is slated to finalise the report next week. It could see a majority siding with the government, with the dissenters likely to be limited to Left, Congress and AIADMK, five of the 21 members. The Congress wants removal of the proposed one p…

Land acquisition law another solution

There is needless despair over the centre’s inability to pass a land law After almost a year of struggling, the Union government has admitted to political roadblocks that prevent the passage of a rational land acquisition law. Efforts to replace the existing law, approved by Parliament in 2013, have failed. At a meeting of the NITI Aayog last week, Union finance minister Arun Jaitley hinted at a different, less than perfect, solution to the problem. In comments after the meeting, Jaitley said that, “There was a suggestion from the states that those who wanted development (should) be allowed to frame their own laws that the central government could approve. This was a suggestion from an overwhelming section of the chief ministers.” As matters stand now, this appears to be the only way out. The Narendra Modi government has repeatedly issued ordinances that embody a better, more industry-friendly law. But these have fallen in the Rajya Sabha as the government is in a minority there. Pending…

Centre preparing draft GST legislation

For both central and state systems, to be opened for feedback once the Constitution amendment is through The government is preparing model draft legislations to implement the proposed national goods and services tax (GST). "It is to put these for comments from stakeholders once Parliament approves the GST constitution amendment bill," disclosed Central Board of Excise and Customs (CBEC) member V S Krishnan at a business chamber event here. He said this would be done once the constitution amendment, pending in the Rajya Sabha, is passed. This Bill will also then, have to be approved by half the states. The Bill, approved by the Lok Sabha, is being scrutinised by a Rajya Sabha panel, likely to give its report next week. The three legislations - Central GST (CGST), State GST (SGST) and integrated GST (iGST) - will have to be approved by the respective legislatures for nationwide roll out of the single rate GST. CGST would be a central law and states would have to pass their own legi…