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www.caonline.in News... 1. Ministry of Finance has issued Indirect Tax Dispute Resolution Scheme Rules, 2016. 2.Simplification of procedure for Form No. 15G & 15H. Notification No 1/2016 Dated: 09th June, 2016. 3.Ministry of Finance has amended the Service Tax Rules, 1994 by issuing The Service Tax (Fourth Amendment) Rules, 2016. 4.Service Tax on Flats can not be Levied on Composite Contracts. [Suresh Kumar Bansal and Anuj Goyal v. Union of India, (Delhi HC)]. 5.Today (10.06.16) is Last Date to file ER-1, 2 & 6 for Excise returns by Non SSI assesses, EOUs and by units paying duty above 1 crore respectively for May 2016.

Tells DIPP policy could be tweaked to give high-tech cos time frame to implement condition The Foreign Investment Promotion Board (FIPB) has written to the Department of Industrial Policy and Promotion (DIPP), asking it to incorporate relaxation in local sourcing rules for foreign-funded single-brand retailers selling products with cutting-edge technology. In its letter to DIPP, which has been lobbying for clearance for Apple Inc to set up its stores here, the board that vets foreign investment proposals said the single-brand retail policy could be tweaked to give high-tech companies a time frame within which they need to meet the sourcing condition. “Any relaxation in the time frame for sourcing has to be part of the FDI policy framework and cannot be on a case-to-case basis,“ said a government official. “The FIPB will be able to grant any relaxation only then.“ Also, a decision on the sourcing rule cannot be made with respect to one company and an enabling policy framework mu

REGULATOR NOT COMFORTABLE as DRs are transferable and identity of overseas holders is not certain After curbs on participatory notes, India's capital market regulator is proposing a clamp down on unsponsored depositary receipts (DRs). An unsponsored DR is one which is not backed by the issuer company , but run by global custodians of shares (unlike a sponsored DR, which is backed by the company). A custodian buys shares from investors (and not the company) in the local market, creates a pool and facilitates trading of these shares abroad. The Securities and Exchange Board of India (Sebi) is learnt to have told the government that it is not comfortable with allowing this instrument as DRs are transferable and the identity of the overseas holder will not be known. “If you are uncomfortable with PNs (participatory notes) then this (un-sponsored DRs) is PN to the power of N,“ said a regulatory official familiar with the development. In 2014, following the recommendations of t

The government is looking to tweak the investment norms for National Investment and Infrastructure Fund ( NIIF) to allow investors to co- invest in this sovereign wealth fund as also in the individual projects. The norms would be tweaked within the broad framework of the investment to take into account suggestions from the domestic and foreign investors, Economic Affairs Secretary Shaktikanta Das said on Thursday. Das also expressed hope the retail inflation would remain at five per cent this financial year, in line with the Reserve Bank of India’s projection, and help India develop into a low- cost economy in terms of lower interest rates, transaction costs and logistics costs. Das further said Indias economy is likely to grow at eight per cent this year. “With a good monsoon which we expect this year, with the passage of GST, which also the government is very confident that it will happen in the monsoon session of the Parliament and the cumulative result of all reform measu

Host of companies from the logistics, cement, automobile, consumer and media sectors stand to benefit once the Bill goes through and gets implemented Passage of the goods and services tax ( GST) Bill has been pending for a long time but the expectations have now increased on its passage in the next session of Parliament. If so, many sectors and companies will gain, especially those dominated by unorganised entities. For, the Bill will shrink differential tax rates and increase tax compliance. Given the recent buzz, certain companies in the logistics and realty segments have already seen some run- up in their share price. Once passed, it will lead to more clarity on date of implementation and rates applicable. However, based on the proposal, sectors that can benefit include automobiles, ancillaries, consumer goods, retailing and logistics, beside infrastructure and building material. Logistics is being looked on as a major beneficiary among sectors. Sandeep Upadhyay, managing di

Those buying under- construction property have got a surprise benefit from the Delhi High Court ( HC) recently. The court has ruled that that since there is no provision to calculate the value of service in a deal between builder and buyer, there should be no service tax on it. While the judgment will definitely apply to buyers within Delhi’s jurisdiction, it could also have an impact on property deals in other states. The judgment also says service tax should be refunded in case of buyers, who have purchased property after 2012. However, there is a catch: experts believe the tax department is likely to appeal against the order, as otherwise it would mean a huge tax outflow for the government for refunds. But until that happens this order holds and flat buyers can technically refuse to pay service tax on under- construction property or existing buyers can even seek refunds. In other cities, buyers could also cite this order. Today, the service tax on under- construction property