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Showing posts from August 17, 2016

No fee on card, online payments made to govt

In order to promote `less-cash' economy , the government has said it will bear the transaction cost for all payments made to it through debit or credit cards and net-banking.
At present, customers bear the transaction cost, commonly known as merchant discount rate (MDR), on payments made to the government. “Government departments shall take appropriate steps to bear MDR cost like other merchants. The public shall not bear any MDR cost for making payment to government through debit cards or credit cards or digital means,“ said an office memorandum issued by the finance ministry. It said the methodology to reimburse such payment to intermediaries on transactions involving debtcredit cards or digital means is being worked out and the detailed guidelines and operational modalities would be issued in due course. The ministry has issued the circular in line with the government's decision to promote creditdigital transactions in government payments and collections. Earlier, the gove…

CBEC Sets Up Panel to Smooth Road to GST

Starting Line Govt readies detailed framework to review excise duty exemptions being enjoyed by pharma, FMCG and auto cos in states India Inc may not face a bumpy ride under the proposed goods and services tax (GST) regime that would witness elimination of tax holidays as the government is readying a detailed framework to ensure a smooth transition.
The Central Board of Excise & Customs (CBEC) has set up a panel to formulate the framework that could have wide ramifications for pharmaceuticals, FMCG and automobiles sectors that have thrived in the states enjoying area-based excise duty exemptions. “All these issues need to be worked out for smooth implementation,“ said an official. A detailed set of guidelines would be put in place ensure that entities enjoying tax holidays during the grandfathering period do not suffer. The finance ministry is also beginning stakeholder consultations with individual sectors -starting with ecommerce on Wednesday -to understand concerns on the prop…

Sebi, exchanges begin delisting drive for suspended companies

BSE sends compulsory de-listing notices to 194 companies; Sebi might attach properties of promoters who fail to comply The Securities Exchange Board of India (Sebi)’s drive to de-list companies facing suspension has gotten underway. The BSE on Tuesday sent ‘compulsory de-listing’ notices to 194 companies. Trading in these companies has been suspended for nearly 13 years for non-compliance of listing agreement. The promoters of these companies will soon have to pay their public shareholders a ‘fair value’, which will be calculated by an independent agency. The fair value will act as a buyback price to ensure de-listing. According to sources, Sebi is likely to attach properties and other assets of companies that fail to comply with de-listing notices. The regulator is expected to issue a circular in this regard soon, said a source. Sebi and exchanges have embarked on a drive to weed out thousands of companies whose shares are suspended from trading due to non-compliance. The regulator w…

GST platform to become analytics powerhouse

The Goods and Services Tax Network, the information technology backbone that will implement the new indirect tax regime, will become a data analytics powerhouse in the months after the roll-out. “Once sufficient amount of data is generated, we will be able to generate analytics based on the requirements of various stakeholders,” Navin Kumar, chairman, GSTN, told Business Standard in a recent interview. GSTN is a non-profit entity that is building the information technology backbone for the goods and services tax (GST). It will store all details related to the relevant transactions. These analytics, based on data filed by millions of taxpayers who will migrate to the system, will help in plugging leakages,  identifying economic trends and ensure more focused economic-policymaking. Kumar said this would be the third phase of the work undertaken by GSTN and is part of the terms of reference of the vendor, Infosys. “The vendor would build programmes and analytical tools as per the data r…

I-T returns: Top 1% earned 18% of income

Middle class constituted about 49 per cent of the total tax payees in financial year 2011-12 The top 1 per cent of earning individuals who filed tax returns earned about 18 per cent of the total income in financial year 2011-12, according to the latest data on income tax released by the income-tax department recently. The bottom half of the earning individuals earned just about 21 per cent of the total income shown in the returns, the data showed, highlighting stark income inequality. However, in between there is a big chunk of middle class. It is this class, which was addressed by Prime Minister Narendra Modi in his  Independence-Day speech when he said he would further mitigate their problems with the income-tax department.  The top 1 per cent of the individuals were those who earned Rs 25 lakh and above, while the bottom 50 per cent made up of those who earned up to Rs 2.5 lakh. In between, there was a middle class, constituting about 49 per cent of the total tax payees. Their inco… News... News...
1. NIRC of ICAI is organizing Seminar on Audit Planning, Audit Working Papers, Pre Audit Study, Checklist for Audit, ROC Compliances, Audit Report & Tax Audit on 26th and 27th Aug 2016 at NDMC Convention Centre, Parliament Street, Delhi
2. Consistent treatment made by assessee of share transactions cannot be disturbed by revenue. [The DCIT Circle-2 Vs Shri Mahender Kumar Bader (ITAT Jaipur)].
3. The Factories (Amendment) Bill, 2016 has been passed in Lok Sabha. Now the overtime work hour, under Section 64, has been doubled from 50 to 100 hr in a quarter and to 125 hours under special circumstances.
4. The petition alleging oppression on the ground of illegal allotment of shares without any basic resolution merits acceptance. [Ashok manchanda vs. Riviera bag manufacturing limited CLB, Delhi].
5. Bihar state legislature pass GST Bill in special one-day session, it become second state after Assam to pass it.
6. Form 3 under Income Declara…