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Showing posts from June 2, 2016 News... News...

1.Bad Debt admissible if written off as irrecoverable in books: CBDT via (Circular No. 12/2016-Income Tax - (30/05/2016))
2.Definitive anti-dumping duty on Methyl Acetoacetate via (Notification No. 22/2016-Customs (ADD) - (31/05/2016))
3.If DTAA does not specifically treat consideration for use of ‘computer software’ as Royalty, such consideration cannot be taxed as Royalty under DTAA via (DDIT Vs Reliance Industries Ltd ( ITAT Mumbai)).
4.SEBI has notified disclosure of the impact of Audit qualifications by the Listed entities.
5.RBI has issued Master Direction on Financial Services provided by Banks Directions, 2016. As per the direction, a Bank is not allowed to contribute more than 10% of its paid up capital and reserves as per last audited balance sheet in factoring subsidiaries and factoring companies.

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Modi govt’s crude oil party finally over?

The Narendra Modi government’s crude oil party might be finally getting over. Thanks to the 80 per cent slump in global crude prices between June 2014 and January 2016, the Centre had the leeway of raising excise duty on petroleum products. Thus collecting Rs.1.11 lakh crore in the first nine months of 2015- 16, against Rs. 99,000 crore in all of 2014- 15. Also, oil marketing companies’ collective profits jumped 65 per cent to Rs. 13,090 crore in 2015- 16, while consumers gained through reduced retail prices of petrol and diesel. All of that could soon become history. The price of the Indian basket of crude oil jumped as much as 78 per cent to cross $ 50 a barrel last week, from a multi- year low of $ 28 in January. After the OMCs’ latest round of revision in retail prices, taking effect on Wednesday, petrol is Rs.65.6 a litre. This level was earlier seen in October 2014, around the time global crude price benchmarks started crashing, and two months after the Modi government assumed char…

India’s growth curve to accelerate further: Jaitley

Highlighting India as the worlds fastest growing major economy despite an unsupportive global environment, Finance Minister Arun Jaitley said good monsoon, GST passage and higher spending will accelerate the upward curve in the coming years. “When globally the going is good most countries do well. It is when the world is slowing down and world environment is not only unsupportive but at times obstructive, for an economy to grow is most challenging," Jaitley said. Pro- growth policies have helped GDP grow at fasterthanexpected 7.9 per cent in the January- March quarter, and 7.6 per cent for the entire 2015- 16 fiscal, he said. “To grow at this rate in the midst of an unsupportive global environment is itself significant,” Jaitley said addressing aconference before heading for Osaka. Stating that global unpredictability impacts India, he said the shrinkage of global trade as well as fluctuations in currencies has adversely effected the economy. Besides, drought for two consecutive years…

India Post Payments Bank to be a reality

India Post Payments Bank ( IPPB) will be set up as a public limited company under the Department of Posts with 100 per cent government equity. The Cabinet approved a proposal in this respect on Wednesday. The total corpus of the payments bank is of Rs. 800 crore, which will have Rs. 400- crore equity and Rs.400- crore grant. Telecom Minister Ravi Shankar Prasad told reporters after the Cabinet meeting that 650 branches of the postal payments bank would be established in India, which will be linked to rural post offices. India has 154,000 post offices, of which 139,000 are rural post offices. IPPB will obtain banking licence from the Reserve Bank of India (RBI) by March 2017 and by September 2017, all 650 branches of the postal payments bank would become operational. Its services will be available across the country through these 650 payments bank branches, linked post offices and alternative channels, riding on modern technology including mobiles, ATMs and simple digital payments. “This we…

Govt sets mine transfer charge at 80% of royalty

Any company that wants to transfer ownership of its non- auctioned captive mines will have to pay the equivalent to 80 per cent of the royalty to the respective state government, the government notified on Wednesday. “We have decided on this amount — equivalent to 80 per cent of the royalty —keeping the concerns of the cement industry in mind. Earlier, we were thinking of imposing an amount far more than this, but after discussions with the industry, we have come to this extremely reasonable amount,” said mines secretary Balvinder Kumar. Ignoring the apprehensions of some companies, the secretary made it clear that this amount would have to be paid even if the mine is getting transferred from one subsidiary to another in the same company. The Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016, passed by Parliament in Budget session, was introduced by the government for permitting transfer of non- auctioned captive mines. Now, as the rules and transfer charge have been…

Govt constitutes National Company Law Tribunal

The government on Wednesday constituted the National Company Law Tribunal ( NCLT) and its appellate body, implementing most of the provisions of new Companies Act and helping implementation of the Bankruptcy Code. With this, the Company Law Board, constituted under the old Act, stands dissolved. Retired judge M M Kumar would be the president of NCLT and retired judge S J Mukhopadhaya would take over as chairman of National Company Law Appellate Tribunal. Initially, NCLT will have 11 benches — two at New Delhi and one each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. Business Standard New Delhi,02 June 2016

The curious case of GDP discrepancies

Gross domestic product (GDP) data released on Tuesday by the Central Statistical Office ( CSO) showed India’s economy grew at a robust 7.9 per cent in the fourth quarter of the previous financial year. While CSO’s previous estimates of GDP growth under the new series have been met with scepticism about the performance of the manufacturing sector, this time there has been a rather peculiar criticism of the latest GDP numbers. It revolves around a sharp increase in an item on the expenditure side: Discrepancies. They grew at an alarming pace — from Rs.29,933 crore in the fourth quarter of 2014- 15 to Rs. 1,43,210 crore in the corresponding period of 2015- 16. Discounting these would lower GDP growth for the fourth quarter from 7.9 per cent to a mere 3.9 per cent. The problem with this criticism is that it doesn’t take into account the manner in which GDP is estimated in India. “To begin with, estimates of gross value added ( GVA) are arrived from the production side,” says Pronab Sen, former…