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Showing posts from July 23, 2015

Regulators, agencies cast wider net to curb tax manipulation

SIT on black money seeks details of probe by Sebi; investigation into 100 entities underway The crackdown on tax manipulation by listed entities using the stock exchange platform has picked up steam, as regulatory bodies and investigative agencies have intensified their scrutiny of the companies involved. According to sources, the Special Investigative Team (SIT) on unaccounted ( black) money has sought a probe report from the Securities and Exchange Board of India ( Sebi), which has so far been leading this probe. “SIT has sought a probe report on these listed companies that are using the stock exchange platform to evade taxes by way of misusing longterm capital gains tax ( LTCG) provision,” said a source. Over the past six months, under whole- time member Rajeev Kumar Agarwal, Sebi passed orders related to around 10 companies; 36 companies involved in irregular trades were suspended and 900 entities were banned. According to estimates, the money involved in these orders adds to ? 20,00…

Madhya Pradesh Assembly clears key labour law reforms

Factories with up to 300 workers can fire without government approval After failing to get the Centre’s approval to the ordinance route, the Madhya Pradesh Assembly on Wednesday passed a single Bill to amend eight major labour laws; seven other laws would be changed through compounding provisions, etc. With this, Madhya Pradesh became the third state in a year, after Rajasthan and Gujarat, to pass its own labour law amendments in Assembly. After the amendments, those companies in Madhya Pradesh that employ up to 300 people will be allowed to retrench workers or shut shop without government approval ( the current provision is for those employing up to 100 to do so). To be able to do so, employers will have to give a higher compensation package —workers will get a threemonth notice and at least three months’ salary in the event of retrenchment. At present, either of two is provided; and employees are paid 15 days of wages for every year worked. Also, in case of a dispute, a worker will hav…

Rajya Sabha panel for standard GST rate up to 20%

A select committee of the Rajya Sabha has observed that the standard Goods and Services Tax ( GST) rate should be within 20 per cent, while the lower one should not cross 14 per cent. These rates are quite lower than the Revenue Neutral Rate (RNR) of around 27 per cent, arrived at by the sub- panel of the Empowered Committee of State Finance Ministers on GST, earlier. Besides, the panel suggested changes in the two important provisions of the Constitution Amendment Bill on GST — one per cent additional tax over GST on interstate supply of goods to help the producing states, and reduction in compensation to states in the fourth and fifth years. In its crucial report on the Constitution Amendment Bill on GST, submitted to the Rajya Sabha on Wednesday, the committee recommended that the proposed GST council may opt for a broad- based and moderate rate as the high rate will surely erode the confidence of the consumers badly and may lead to high inflation. In its dissent note, the Congress …