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Showing posts from April 12, 2016

FinMin to replace interest subvention with back-ended subsidies

Concerned at the slow transmission of policy rate changes by banks, the Centre plans to replace interest subvention schemes with interest subsidies that do not interfere with lenders’ marginal lending rates. The government has also asked states to coordinate with one another in market borrowings so that there is no liquidity crunch. “We need to revisit our interest subventions schemes and replace them with back-ended interest subsidies that do not interfere with the marginal lending rates, and yet have the same effect on the loan repayments as the interest subventions have,” Finance Secretary Ratan Watal said at a meeting with state finance secretaries here on Monday. While the focus is on setting policy rates, equally important is the monetary policy transmission, said Watal. “This cannot be left entirely to the central bank. Our policy interventions can often interfere with the transmission of monetary policy actions.” Noting that banks have moved to a new system of marginal settin…

I-T e-filing Appeals Based on Aadhaar, Net Banking

The Income-Tax department has activated the Aadhaar and net banking-based e-filing verification system for taxpayers to file the first appeal before a tax officer, on similar lines of online ITR filing. To reduce the interface between taxman and the taxpayer, the department has recently operationalised the maiden facility on its official e-filing portal. “One EVC (Electronic Verification Code) can be used to validate one form of the assesse irrespective of the assessment year,“ a notification in this regard said. The Economic Time New Delhi, 12th April 2016

CBDT staring at Rs. 7L cr unpaid, disputed taxes

At a time when the government is bearing down upon banks to recover up to Rs. 7 lakh crore of outstanding loans from companies, it has admitted that a like amount of outstanding taxes may be irrecoverable. The tax department has indicated to the government auditor, Comptroller and Auditor General (CAG) that more than 96% of this uncollected demand is difficult to recover in the current financial year. Speaking on condition of anonymity, one tax department official said even later, much of the amount was likely to prove unrecoverable. According to a CAG audit, pending tax demands have more than doubled in five years, from Rs. 2.91 lakh crore in 2010-11 to Rs. 7 lakh crore in 2014-15. The tax department ascribed the ‘difficulty’ in recovery to “inadequate assets for recovery, cases under liquidation, assessees not traceable, demand stayed by various authorities etc.” The CAG had rapped the department for its deficient recovery mechanism, saying: “The uncollected demand is rising despit…

Govt to Move SC on Tax Levy on Legal Services

The revenue department has decided to move the Supreme Court for transfer of petitions filed in three High Courts, which had stayed levy of service tax on legal services provided by senior advocates. It has also decided to rope in Attorney General in the case and get the stay orders vacated. The High Courts of Delhi, Gujarat and Calcutta have stayed the levy of tax on legal services. “The Chairman CBEC has directed to engage the services of the Ld Attorney General to get the stays vacated by moving...SC and requesting for aggregating the petitions filed in various courts,“ said a CBEC communication. The Economic Times New Delhi, 12th April 2016

Regulator mulls single licence for equity, commodity brokers

The Securities and Exchange Board of India (Sebi) is working on a plan to allow a single licence for equity and commodity brokers, a move that will help the broking community reduce costs. Though both security and commodity market intermediaries are now regulated by Sebi, following the absorption of Forward Markets Commission (FMC) into it, they still adhere to different guidelines and requirements. Sebi has initiated an exercise to have a common set of these. “Once the commodity market stabilises, we will allow each lot of brokers to operate in the other segment. It will be done in a gradual and phased manner, so the market isn’t disrupted in any way,” a senior Sebi official told this newspsper. The issue has been discussed in several meetings after the FMC merger in September. Experts say the move will bring down the cost of operations for brokers, under pressure due to shrinking margins. High costs and moderation in growth has led to nearly 3,000 shutting shop in the past eight months… News... News...

1.Catering charges should be included in Mandap keeper service.
2.Section 40A (3): No disallowance for genuine and bonafide cash transactions.
3.Section 80IB: Subsidies for reimbursement of production cost are business income.
4.Section 24(b):Co-owners with unspecified shares entitled to equal interest deduction.
5.ICSI allows 10 secretarial audits for F.Y. 2016-17 for practicing CS: Press release dated 09-04-2016.
6.Forms AOC-4, AOC-4 CFS, FC-2, MGT-14, INC-23, INC-12, INC-2, INC-7, INC-29, MGT-10, FTE, PAS-3 have been recently updated on MCA 21 portal.

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