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Showing posts from May 23, 2016

RBI: Banks should increase provisioning on bad loans

Reserve Bank of India Deputy Governor SS Mundra on Friday said banks should increase the provision coverage ratio ( PCR) and aim to raise it to 70 per cent, the amount lenders were mandated to maintain earlier. “We do not have a prescribed level. We would encourage that on their own, they should inch it up to the extent possible. I don’t have any percentage in mind. There is no prescription at this point of time but let’s say there was a benchmark earlier, it would be a good thing to at least aim for that benchmark,” said Mundra. Earlier, banks were required to mandatorily maintain a PCR of 70 per cent. But, the mandate was withdrawn in September 2011 after most banks had met the criterion. Now, with the rise in bad loan, banks are increasingly reducing the PCR to ensure that the profitability is not hit adversely. In fact, several public sector banks ( PSBs) have seen a reduction in their PCR, as non- performing assets ( NPAs) in balance sheets have increased. Several banks’ PCR stand a…

Compliance systems to be eased for importers

The government is looking to expand the scope of the singlewindow clearance mechanism for importers launched on April 1, which could significantly cut the cost and time for importers and, in turn, help improve ease of doing business. To further simplify inbound shipments, the government is working towards allowing all physical import licences to be uploaded online with a digital signature. This will do away with the cumbersome compliance measures requiring importers to show physical copies of import licences or rules of origin certificates to the authorities each time. “The next step is to do away with the need to present physical copies of licences each time one imports. It will all be made online within the next two months,” said a government official. The import facilitation move is expected to benefit a large volume of imports and, in turn, the economic growth and manufacturing, which is largely import- dependent. Currently, a bill of entry requires an average of three documents. An i…

Don't Equate Singapore with Mauritius: FPIs tell Govt

Foreign portfolio investors and Singapore govt want some leeway in new tax treaty
India, which is currently looking to renegotiate its tax treaty with Singapore, has got feelers from foreign portfolio investors (FPIs) and the Singapore government to include some concessions in the agreement. Concerned that investing in Indian equities through Singapore may become tougher if India offers the city state a tax treaty similar to the new agreement with Mauritius, the FPIs are demanding some leeway . Their main point is that unlike Mauritius, Singapore has lot of checks and balances in place and so the scope for irregularities is less when an investment is routed through the Southeast Asian country . In an interaction with FPIs on Friday, Minister of State for Finance Jayant Sinha said in all probability, the current India-Singapore tax treaty would be renegotiated before the end of March next year. “If the tax treaty is not renegotiated, India will assume right to tax capital gains. Tax will …

Govt Reviewing Startup Action Plan's Progress

DIPP collating the progress made and will share its report with Niti Aayog, two meetings already held by DIPP officials in this regard The government is reviewing the Startup Action Plan launched in January by Prime Minister Narendra Modi to assess if it is moving in the right direction. The department of industrial policy and promotion (DIPP) is collating the progress made on the plan and will share its report with the NITI Aayog. Two meeting have already been held by DIPP officials to take stock of the steps undertaken so far. Having recently revised the patent rules to create a conducive envi ronment for startups, the DIPP has also put together a group of 280 experts, including lawyers and consultants, to assist startups in filing their patent applications. The amended rules provide for expedited services for patent registration and also include the definition of `startup' for passing on the special benefits. Besides, the government is also conducting an exercise to map incubation c…

Govt to Push Compensatory Afforestation Fund Bill in RS

Move to make available over Rs. 6,000 crore to states a year for improving forest cover The government will push for the passage of the Compensatory Afforestation Fund Bill in the Rajya Sabha in the upcoming monsoon session, which will make available more than Rs. 6,000 crore to states every year for improving the forest cover. The proposed law is expected to create over 15 crore man-days of direct employment, most of it in the tribal and backward areas of the country. The Lok Sabha has already passed the Bill, incorporating 20 of the 26 proposals of a standing committee that vetted it.
Rs. 40,000 crore lying in There is ` the fund, excluding interest accrued on amounts invested in fixed deposits, indicating the huge financial resources at the disposal for afforestation. Any delay in passing the Bill will not only affect the afforestation drive, but also deprive tribal people and other backward communities huge employment opportunity, a senior government official said. FUND FLOW The Bill pro…

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1.Additional Depreciation u/s 32(1) (iia) on printing and publishing :Circular No. 15/2016.
2.S. 274 notice must specify if it’s for concealment or for incorrect particulars. [Sanghavi Savla Commodity Brokers Pvt. Ltd. vs. ACIT (ITAT Mumbai)].
3.No disallowance u/s. 14A on shares held as stock-in-trade. [Shri Paresh Pritamlal Mehta vs. Income Tax Officer, (ITAT, Pune)].
4.No Addition u/s 68 if identity, creditworthiness and genuineness established. [DCIT vs. Overseas Infrastructure Alliance (I) Pvt. Ltd. (ITAT MUMBAI)].
5.S. 263 not justified due to multiple view on applicability of TDS. [Neo Sports Broadcast Pvt.Ltd. vs. CIT (TDS) (ITAT Mumbai)].

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