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Analysts say if they have to work with a revenue base of Rs. 22,000 crore and net profit of Rs. 600 crore, it’s a bit disappointing, as you have seen better in the past. The real culprit is not sufficiently understanding the dynamics of the project business and particularly a company like L& T, which is heavily into infrastructure investment, which involves public interference. The analyst community had limited data to be able to draw comfort, something we could have avoided. Whatever is the extrapolation that investors would have made, based on FY16 ( numbers), you need to make a two to three percentage (point) adjustment to the revenue numbers, to be closer to the new accounting standard numbers. The second issue was lack of clarity around profitability. Last year, we made an operating margin of 10.8 per cent. If Ihave to restate it, based on the new accounting standard, it will look like 9.5 per cent because of corporate overheads. The Ind- AS standards mandate us to adjus...

Cos seek continuation of duty structure that will make handset imports expensive Handset vendors, worried about how the proposed goods and services tax (GST) regime will affect the Make in India initiative, intend to seek clarity from the government on incentives offered for manufacturing phones locally. The companies are preparing a proposal for the government, seeking continuation of a duty structure that will make it more expensive to import handsets than to produce them in the country. A formal request, with the consensus of all handset makers, will be sent to the revenue department. “We're mulling a proposal where we will be asking the government to keep the differential duty structure as is in order to keep the benefits for local manufacturing,“ said Pankaj Mohindroo, chairman of the Fast Track Task Force established by the government to achieve its target of 500 million locally made handsets as part of the Make in India programme. “The states should levy a GST of 5% acro...

Parliament on Tuesday passed a law to curb undisclosed money, particularly in real estate, the Benami Transactions (Prohibition) Amendment Bill, stiffening a 1988 enactment. Those declaring black money and assets under the ongoing Income Declaration Scheme, ending September 30, would get immunity from its provisions. The Rajya Sabha approval came on Tuesday. The Lok Sabha had already passed it. The legislation will enable confiscation of benami property (held, illegally, in another's name) and provide for prosecution, aiming to block a major avenue for generation and holding of undisclosed money. “I hope people get the clear signal and don’t give the state an opportunity to use this law,” said Finance Minister Arun Jaitley. He said the multi-agency group probing the ‘Panama Papers’ evidence leak, naming around 500 Indians who've allegedly stashed money in offshore entities, had given three reports last month. “The investigations have progressed a lot,” he said. He...

For the first time ever, the income tax department is thinking of writing off tax arrears in each case where the dues are up to Rs. 5,000. The idea is to cut litigation, lower the cost of collection and prioritising of bigger defaulters. Though writing off will mean the government could lose up to to Rs. 600 crore, many of these accounts are anyway not recoverable. There are four million tax arrear cases of under Rs. 5,000, older than three years. Initially, what is being considered is writing off 1.8 mill ion arrear cases with dues under Rs. 100 each. “( This could) then be expanded to cover arrears under Rs. 5,000. This will ease alot of hassle that tax payers go through, beside decluttering our database of arrears, which might not even be recoverable,” said an official. About 2.2 million cases are between Rs. 100 and Rs. 5,000. “Since these are old cases, they are not even being followed up by the department. In some cases, the defaulter cannot be tracked. The cost of reco...

The tax department will soon come out with aset of frequently asked questions, with regard to the Dispute Resolution Scheme, as it seeks to settle over 259,000 appeals pending with income tax commissioners. Besides, the Central Board of Direct Taxes will also launch a massive publicity drive to make the scheme a success. Business Standard New Delhi,03 August 2016

For start-ups getting into partnerships in their quest to find success and profitability has become the new big thing. Start-ups with strengths in different areas are joining forces to create a more wholesome ecosystem, strong enough to take on compete. In a latest development, Freecharge, the digital payments platform acquired by Snapdeal, has partnered with payment gateway solution provider, PayUbiz, to further strengthen its merchant base and help consumers move from cash to digital payments. This integration allows Freecharge to tap PayUbiz's more than 10,000 online merchants across sectors will also be accessible to the patrons of the mobile wallet. "We want to make Freecharge wallet ubiquitous in both the online and offline space by creating an ecosystem of partnerships. Through PayUbiz association, we will further strengthen our partner ecosystem and enable digital payments across 10,000 more merchants. Alliances such as this will certainly help us move in the rig...

Division of revenue clarified; govt circulates list of 9 amendments to the Bill   The government on Tuesday circulated among Rajya Sabha members a list of nine amendments to the Goods and Services Tax ( GST) Constitution Amendment Bill, which included yielding to the Congress demand of scrapping a contentious 1 per cent levy on inter- state supply of goods. However, the Bill, which will be taken up in the Rajya Sabha on Wednesday, may still not please some of the Opposition parties as the clause on compensation to states was still vague, sources said. The other major amendment relates to a provision requiring the GST Council to establish a mechanism for adjudication of disputes between the Centre and states, or among states. One of the amendments on compensation to states says categorically that the Centre will provide compensation to states for losses under the GST regime. However, sources said, the provision only promises compensation to states for a period that can be ex...

www.caonline.in News... 1. New RBI norms rule out banking licences for big corporates. 2. No service tax could be levied if there was a transfer of right to use goods irrespective of the fact that the transfer was non-exclusive. 3. Order passed by DG allowing confidentiality of documents couldn't be subject matter of appeal: CCI. 4. No disallowance of cultivation expenses just because it didn't generate desired results to assessee. 5. TDS on commission doesn't prove its genuiness, assessee has to prove that services were rendered by recipient.