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Showing posts from July 6, 2016

No Indirect Tax Recovery During Pendency of Stay

CBEC tells field officials not to go ahead with recovery of `confirmed' demand during the period The Central Board of Excise & Customs (CBEC) has directed its field officials not to proceed with the recovery of a “confirmed“ demand in relation to indirect taxes if the matter has been stayed, providing significant relief to industry. “In cases where the stay application is pending before the Commissioner (Appeals) or CESTAT for periods prior to August 6, 2014, no recovery shall be made during the pendency of the stay application,“ the apex indirect taxes body said in a circular issued on Monday. A confirmed demand of tax arises when, after ex amining submissions of a tax payer, an order is issued validating the claim made on the assessee. The government had amended the law on the issue on August 6, 2014, pro viding for a fixed payment of 7.5% or 10% of the tax demand in case the as sessee decides to challenge a tax deci sion, providing clarity on how much could be demanded as a pre…

Centre to Ensure Monetary Policy Panel is Legal Tender

Centre and Reserve Bank in talks to effect statutory backing for the committee The government wants to make sure that the monetary policy committee (MPC) that will take over interest-rate-setting functions has strong legal foundations and to that end has started discussions with the Reserve Bank of India (RBI). This new monetary policy framework will replace the February 2015 agreement between the two. The finance ministry has already sent a formal communication to the RBI on the issue. “Some preliminary discussions have started,“ said a senior government official. “The previous framework was non-statutory and so a new one has to be finalized.“ The earlier 2015 monetary policy framework agreed to between the government and the central bank predates the amendment of the RBI Act in the budget session this year to provide for the MPC. The 2015 agreement, therefore, lacked legal backing. Based on the amended RBI Act, the government will issue a new framework through rules for which discussions h…

CBDT plans to take paperless project to more taxpayers

After successfully completing over 1,000 scrutiny I- T assessments under a maiden taxpayer- friendly paperless inquiry system, the Central Board of Direct Taxes ( CBDT) is set to extend the initiative as it is mulling seeking taxpayers’ consent to opt for the scheme at ITR filing stage itself. The CBDT, the policymaking body of the Income- Tax department, had launched a pilot project last year to reduce taxpayers visit to the tax office and their interface with the taxman. Under the project, the first set of e- communications were decided to be mailed to the assessees in Delhi, Mumbai, Bengaluru,Ahmedabad and Chennai region. Business Standard New Delhi,06th July 2016

Procedural hurdle for foreign law firms

The government has set the ball rolling to liberalise legal services, and allow entry of foreign law firms in India. In a meeting chaired by secretary, ministry of law and justice, on Tuesday, there was in- principal agreement among various stakeholders that included representatives of The Bar Council of India, the legal fraternity, and the sector, on the move to open up legal services. However, there are differences among stakeholders on certain procedural issues to allow foreign law firms to offer services in the country. Last week, The Bar Council of India ( the regulator of country’s legal services) circulated among its members the draft rules for foreign law firms and lawyers to practice in India. These included the terms for registration with The Bar Council that allows them to offer non- litigation legal opinion in non- Indian laws, in association with Indian law firms. However, the draft rules attracted criticism from Society of Indian Law Firms (Silf) that has many large- and mi…

GST may hit Centre’s revenue by Rs. 1.5 lakh cr

The Centre may lose over Rs. 1.5 lakh crore revenue from cess and surcharge if the goods and services tax ( GST) is fully rolled out in 2017- 18. However, the government may get a cushion for a few years as the chances are that the GST may be implemented without petroleum attracting the new indirect tax to begin with. Close to 70 per cent of the cess and surcharge from excise duty and service tax was accounted for by petroleum only. Revenue from sources like cess and surcharge on excise and service tax has been budgeted at Rs. 1.55 lakh crore in 2016- 17, or 14.7 per cent of the Centre’s total net revenue after devolution to states. The budgeted revenue from cess and surcharges more than doubled from 2014- 15 and is 22.5 per cent higher than in 2015- 16. In 2014- 15, Rs. 75,232 crore came in as cess and surcharge, or 8.32 per cent of total tax revenue after adjusting for states’ share. In the previous financial year, Rs. 1.26 lakh crore accounted for 13.3 per cent of the Centre’s total ne…

Taxpayers get relief from recovery during a stay order

In a relief to taxpayers, the government has asked taxmen not to proceed with recovery of a‘ confirmed’ demand in relation to indirect taxes during the pendency of stay applications. The Central Board of Excise and Customs(CBEC) on Monday issued a circular on Recovery of Confirmed Demand of Tax During the Pendency of Stay Application in relation to indirect taxes. Confirmed demand of tax arises, when after examining the submissions of ataxpayer, an order is issued confirming demand of tax from a tax payer. Business Standard New Delhi, 06th July 2016 News... News...
1. NIRC of ICAI is organising GST Workshop on 12 July at 5PM at ICAI Bhawan, Vishwas Nagar, Delhi & Workshop on Real Estate Act on 13 July at 5PM at Hindi Bhawan, Rouz Avenue, Delhi. For Reg
2. Construction companies in ancillary manufacturing can claim S. 80HH & 80I deduction.[Indian Railway Const. Co. Ltd. Vs. IAC (A) (ITAT Delhi)]
3. ICAI has recently released the amendments for November 2016 Exams for IPCC and CA Final both levels. These amendments are released on
4. Amount raised by issue of Unsecured non-convertible debentures, is not a deposit. The Companies (Acceptance of Deposits) Amendment Rules, 2016.
5. CBEC clarification regarding recovery of confirmed demands during the pendency of stay application. Circular No. 1035/23/2016-CX dt. 4.7.2016.
6. Today (06.07.16) is the due date for e-payment of Service Tax for the month ending June for Cos and quarter ending June for others.
7. We wish you and your family …