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Showing posts from September 17, 2015

Report on Uniform GST Rate By Month End

The government panel set up to suggest a uniform rate of indirect tax under the GST regime will submit its report by this monthend and the roll out of the reform measure is possible any time next fiscal, a senior CBEC official said on Wednesday. CBEC has also suggested to Finance Minister Arun Jaitley to set up consultative bodies in each state in the form of GST Secretariat for better coordination between the Centre and states for the roll out.CBEC member GST V S Krishnan said: “A very high rate could dilute the advantages of GST.There is a committee set up under the CEA which is likely to give its report by month end.“ The Economic Times, New Delhi, 17th Sept. 2015

Private Sector Banks may Now Become 100% Foreign Owned

Finmin, DIPP and RBI weigh raising FDI limit in sector from current 74% ICICI Bank, HDFC Bank and their private sector peers could turn into fully foreign-owned entities if a proposal to raise the overseas investment limit in the sector to 100% from 74% is accepted. The measure is being discussed by the finance ministry, the department of industrial policy & promotion (DIPP) and the Reserve Bank of India (RBI), a senior government official said. The move would be in keeping with the government's push to streamline foreign direct investment and open up key sectors to overseas participation. It's also significant in light of the RBI deeming ICICI Bank as one of India's two systemically important banks, the other one being governmentowned State Bank of India. Within the current 74% limit, 49% is allowed automatically and the rest through the approval route, which means permission has to be sought from the Foreign Investment Promotion Board (FIPB) beyond that threshold. “The M…

GST exemptions list to have under 100 items

These exemptions will be over and above those already excluded from GST in Constitution Amendment Bill itself In an effort to minimize the number of exemptions under the goods and services tax (GST), the centre and the states have agreed to restrict this list to less than 100. In a GST regime, the centre and the states will have one common list of exempted goods and services. At present, while the states put together have around 99 exempted items under value-added tax (VAT), the centre has around 250 exempted items under central VAT or excise duty. It has been decided to adopt the states’ exempted list under the GST regime as and when it is rolled out, said a senior finance ministry official who did not want to be identified. Typically, those goods that are consumed by the lower strata of society and those that are considered to be of national importance are exempted from taxes. Food items such as rice, wheat, salt, fresh vegetables and fruits, milk and milk products are some of the items…

Govt moots factory regulator insurance policy for workers

Transgenders to be recognised on a par with other workers In a first, the Union labour ministry has mooted setting up a safety regulator for factories in India, which will set the guidelines for establishments after public hearing and consultation. The regulator, Occupational Safety and Health Board of India, is aimed at making factories a ‘ zero- accident place’ for work and substantially reduce the time to set up factories. According to the proposed amendments to the Factories Act, transgenders will be at par with other workers and there won’t be any discrimination against them. The amendment Bill states state governments may frame rules to ensure respect for “ inherent dignity, non- discrimination and respect for difference and acceptance of transgender persons as part of human diversity”. The proposed amendments say a factory will be deemed approved in 15 days of the receipt of application if guidelines set by the regulator are followed by the employer. The proposal to amend the Fact…

Updates of the Day

1. President ICAI suggested Finance Minister to extend due date of filing of ITR & Tax Audit Report be extended from 30.9.2015 to atleast 31.10.2015 for genuine hardship to the assesses and members of the profession.

2. Individuals can now apply for PAN online with digital signature w.e.f 6.9.2015.

3. Salary and Interest to partner to be allowed as deduction while estimating the profits of the firm where books of accounts are rejected- Inter Continental Constructions (High Court of Andhra Pradesh and Telangana).

4. If the notice u/s 148 of I T Act was not served on the assessee in accordance with law, the re-assessment made is liable to be quashed.[ CIT vs. Chetan Gupta, High Court of Delhi]

5. Now a private company can accept unsecured loans also from a relative of director, with a declaration that such loan is not from borrowings. Notification dated 15.09.2015.

6. Union Cabinet has approved to promulgate the Negotiable Instruments (Amendment) Ordinance 2015 which redefined the juris…