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Move to ensure multiple benefits are passed on & head off any unwarranted price shocks FOR A SMOOTH RIDE Even as the govt tries to iron out issues ahead of April 1 GST rollout, a central notification has created confusion on excise front The government is considering a price-monitoring mechanism under the proposed goods and services tax (GST) to ensure that the multiple benefits of the landmark reform are passed on and head off any unwarranted price shocks. States are also keen to ensure that the effects of GST provide a demand push to the economy. “A mechanism will be put in place to keep a tab on prices,“ said a senior official aware of deliberations before the GST Council meets later this week to decide on key issues, including the tax rate. The government is keen to put GST in place on April 1, 2017. The incidence of tax on goods is expected to fall sharply under GST, widely seen as India's biggest reform since independence. It will replace multiple central and ...

VOLUNTARY VEHICLE FLEET MODERNISATION PROGRAMME UNDER REVIEW The government's ambitious programme to get old, polluting vehicles off the road has hit an unexpected speed bump: Goods and Services Tax. The Voluntary Vehicle Fleet Modernisation Programme (V-VMP) is back on the drawing board as the government reviews its options to reward those who agree to junk their old vehicles to buy new, lesspolluting, ones. The earlier plan was to levy lower excise tax on new vehicles bought under V-VMP . But the new tax system that is expected take effect next fiscal year will amalgamate excise tax into the overarching indirect tax called GST. The finance ministry doesn't favour giving incentives under GST and has directed the roads transport ministry to examine other methods to encourage people to scrap old vehicles. “I had recently met the finance minister (Arun Jaitley) to discuss the proposed policy . He is in favour of providing financial benefits to people for scrapping vehic...

The finance ministry will clarify on Monday certain aspects of the Contitution amendment Act on the goods and services notified recently. Some questions are raised about the notifications issued recently in respect of GST constitution amendment, revenue secretary Hasmukh Adhia said in his tweets. " We will be clarifying the correct legal position tomorrow and we will issue amendments if the need be," he tweeted further. Business Standard New Delhi,19th September 2016

In a bid to roll out the crucial goods and services Tax( GST) from April1 next year, the Modi government is considering to bring forward the winter session of Parliament to pass the Central GST( CGST) and Integrated GST Bills, and pave way for implementation of the new sales tax regime. The winter session is generally convened in the third or fourth week of November. The government, however,  is looking to start the session from first fort night of November, just after the festival season. Parliamentary Affairs Minister Ananth Kumar is working to repeat the success of monsoon session,according to sources. Business Standard New Delhi,19th September 2016

The Constitution ( 122) Amendment Bill enabling the introduction of the goods and services tax ( GST) has recently been enacted. It is a landmark reform considering the sweeping changes it brings about in the indirect tax regime in India as well as in distribution of powers between the Centre and states vis- à- vis such taxes. Unfortunately, upon minute review of the amendments read with the provisions of the draft Model GST law, several constitutional issues emerge. Definition of goods The first challenge emerges in the form of the definition of ‘ goods’ and ‘services’ under the Model GST law. Since inception, ‘ goods’ was defined in the Constitution in a broad manner. Judicial decisions have thus far held goods to include intangible property such as off- the- shelf software, trademarks, and the sales tax levied on them. The definition of ‘ services’ has now been added in the Constitution as “anything other than goods”. While the Model GST law uses a similar definition for ‘ ser...

Sebi considering lenders' proposal; if approved, it could revive sick cos, resolve banks' stressed asset situation The rules of acquisition will be tweaked to make it more attractive for investors to acquire distressed companies whose bankers are pushing for a change in management. Sebi, the Indian capital markets regulator, is considering a proposal to spare such investors from making open offers to the minority shareholders of companies where they take control. The interests of a defaulting, cash strapped company, it's felt, would be better served if a new promoter spends its resources to infuse capital in reviving the company than paying out to shareholders in an open offer (that is triggered by the takeover code). “The request (from lenders) is under consideration. We are working on it. It is expected to happen soon.An open offer is not warranted as money is needed by the company,“ a Sebi official told ET. Banks have had very little success in converting outst...