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Updates Of the Day 1.Time for filing Form DP-1 for dealers registered upto 30-09-2015 has been extended till 21-10-2015. 2.The Rajasthan Govt notified for providing exemption from payment of VAT leviable on transfer of property in goods involved in the execution of works contracts, with immediate effect. 3.MCA revised AOC-4 (Non-XBRL) (Form for filing financial statement and other documents with the Registrar ) and MGT-7 (Form for filing annual return by a company) w.e.f 30th Sep, 2015. 4.Income Tax Dept released file validation utility for TDS/ TCS FVU version 2.144 for FY 2007-08 to FY 2009-10. 5.CBDT has extended due date for e-filing ITR only for the state of Haryana, Punjab, Union Territory of Chandigarh and Gujarat. Notification No. F.No. 225/207/2016/ITA.II dated 30/9/2015. 6.CBDT has extended due date for e-filing ITR only for the state of Haryana, Punjab, Union Territory of Chandigarh and Gujarat. Notification No. F.No. 225/207/2016/ITA.II dated 30/9/2015. For more New...

Govt feels tax battles with cos like Cairn India & Royal Dutch Shell have tarnished India's image The finance ministry, seeking to build on the recent success in pitching India as an attractive destination, is looking at burying for good the remaining high-profile acrimonious tax tangles involving Cairn India and Royal Dutch Shell, which have tarnished the country's administration. North Block is likely to replicate the Justice AP Shah panel mechanism, which helped address the issue of levying minimum alternate tax on foreign investors, to resolve the tax dispute with Cairn India and some remaining aspects of the Shell transfer pricing case. “We are looking at such a solution,“ a top finance ministry official told ET. The move is in line with finance minister Arun Jaitley's September 17 assurance that pending tax disputes would be put to rest by either judicial or executive resolution. The government could send these cases to the Shah panel itself, as provided for...

The RBI on Tuesday raised the debt limit for foreign investors to up to 5% of the current outstanding amount of bonds by March 2018, which will help in additional inflows of about Rs.1.2 lakh crore. The central bank also added that the limits for foreign portfolio investment in debt securities will henceforth be announced or fixed in rupee terms. The RBI has also allowed FPI investment into state development loans (SDLs), as part of a broad strategy to open up domestic markets. “Additionally, there will be a separate limit for investment by FPIs in SDLs, to be increased in phases to reach 2% of the outstanding stock by March 2018. This would amount to an additional limit of about Rs.50,000 crore by March 2018,” the RBI release said. The increase in limits will be announced every half year in March and September and released every quarter. The RBI also permitted the issuance of rupee bonds in offshore markets with a minimum maturity of 5 years. There shall be no restriction ...

Strict norms will kick in after the expiry of the threemonth-long ‘compliance window’ to declare assets in foreign shores ends Wednesday (September 30) even as the government ruled out any extension of the scheme. The penalties include a hefty 120% of the tax amount due and a jail term of up to 10 years for holding undisclosed foreign assets. The three-month compliance window scheme provided protection against prosecution by declaration of the assets and paying 60% tax and penalty. The Central Board of Direct Taxes has already warned that all “consequences” of law will follow and the taxman will go after black money hoarders who do not declare their illegal funds by Wednesday. According to a top government source, till September 23, not more than 30 entities had reported their foreign investments which totalled about Rs.2,500 crore. On a comparative scale, a tax amnesty scheme called the Voluntary Disclosure of Income Scheme (VDIS) in 1997 had fetched over Rs.10,000 crore. Th...

Minimum Wage, Maximum Damage Issue of minimum wage has been a contentious one for BPOs wanting to expand to non-metros The government's plan to push the business process outsourcing (BPO) industry to expand into non-metro and rural areas could trip on a long-standing issue -varying minimum wages across states. “The challenges come from domestic BPO margins being very low, and managing attrition, which is as high as 80% in the sector,“ said Sonal Arora, assistant vice-president at recruitment firm TeamLease Services. While there are no special minimum wages prescribed by the government for BPOs, a domestic BPO would come under the classification of a commercial establishment, said Arora, and since BPOs are no longer offering only voice services, companies incur significant cost in training, on-boarding and hiring people for specialised skills. The issue of minimum wage has been a contentious one for BPOs wanting to expand to non-metro cities, because they feel the minimum ...

If Bengaluru police intelligence wing has its way, then new recruits of startups and IT firms will need to undergo a compulsory background check from the police.This, police believe, is necessary to keep a check on terrorist activities. Apparently, the Ministry of Home Affairs through the Intelligence Bureau (IB) has told Karnataka Police that some engineers with a terrorism-linked past have infiltrated into Bengaluru's IT industry. “We plan to send a proposal to Police Commissioner and the DGP requesting them to issue a circular to all startups and IT companies in Bengaluru. We'll need to check their recruitment lists to do a background verification for new employees,“ DCP (Intelligence) Maheshwarappa S told ET. As of now, such verification is mandatory only for cab drivers and school staffers. In the calendar year up to Sep 21, the city police received only 13,824 applications for verification from the private sector, and the police are not happy about the number. Cit...

The Securities and Exchange Board of India ( Sebi) on Tuesday exempted the Centre from the takeover code obligations for its investment in Dena Bank, Bank of India and Corporation Bank. The Central government plans to infuse Rs.407 crore in Dena Bank, Rs.2,455 crore in Bank of India and Rs.857 crore in Corporation Bank. The infusion of capital, part of the government’s ‘Indradhanush’ initiative, would have triggered an open offer as the government’s stake in these banks would have increased by more than five per cent. In Dena Bank, the government’s stake is likely to increase 5.25 per cent - from 59.75 per cent to 65 per cent. In Bank of India, the government’s shareholding might raise from 64.43 per cent to 70.13 cent - an increase of 5.7 per cent. For Corporation Bank, the stake increase could be 5.78 per cent to 69.11 per cent. According to Sebi norms, when entities that hold 25 per cent or more equity in a company acquire an additional five per cent or more, they have to ma...

Seek relaxation of order restricting Aadhaar usage in PDS and LPG subsidies The Securities Exchange Board of India ( Sebi) and the Reserve Bank of India ( RBI) on Tuesday moved the Supreme Court for modification of the apex court’s order on Aadhaar, issued in August. The two regulators sought relaxation of the order, which stated the unique identity card should not be insisted upon except for public distribution scheme ( PDS) items such as food and kerosene, and for subsidised liquefied natural gas ( LPG). Considering a large number of similar applications, including that of the Centre and the governments of Gujarat and Jharkhand, the court set the hearing of the matter on October 6. According to Sebi, Aadhaar is useful in various ways for the development of the securities market. It works as a an easy and simplified mode of completion of know- your- client (KYC) requirement, while onboarding a client by any registered intermediary in terms of prevention of money laundering nor...