CA Online

The tax department on Tuesday came out with draft rules for valuation of assets of charitable institutions for taxation after they convert in to non-charitable entities. The draft norms,on which the Central Board of Direct Taxes has sought comments by October 31,prescribed if ferent methods for computing the aggregate fair market value of total asset softrusts and charitable institutions.The Finance Act,2016,added a new chapter in the Income Tax Act, specifying provisions relating to levy of additional income tax where charitable institutions exempt under the Act cease to exist as charitable organisations or convert intonon-charitable entities. Business Standard New Delhi,26th October 2016

Asserting that the government is determined to implement the goods and services tax (GST)from FY18,Economic Affairs Secretary Shaktikanta Dason Tuesday expressed confidence that the revenue neutralrate structure will be decided next month.“The rate structure on which there is alot of discussion going on at the moment with the GST Council and also in the public domain... will get resolved in the next meeting of GST Council in the first week of November. May be,one or two sittings,it should come to a conclusion,”Das said at an Assocham event in the Capital.Dismissing criticism,he said the rate structure has been prepared, based on “a very practical basis”. Business Standard New Delhi,26th October 2016

The finance ministry is examining the possibility of cutting the corporation tax rate by one to two percentage points, even as the revenue department is set to kickstart Budget consultations with industry and consultants from the first week of November. The ministry’s thinking is part of bringing down the corporation tax rate to 25 per cent by the end of 2018-19, from 30 per cent at present.  An official said the government could look at an across-the-board one to two percentage point reduction in corporation tax rate, from 30 per cent next year, based on the phasing-out of exemptions.  Finance Minister Arun Jaitley had, in 2015-16, promised a reduction in corporation tax rate to 25 per cent by 2019. Towards that, it has laid down the road map to simultaneously phase out exemptions given to the corporate sector to reduce the tax rate, simplify administration, and improve India’s competitive edge globally. Corporation tax is 30 per cent, but it is effectively 23 per cent due t...

The government has allowed 100% foreign direct investment (FDI) in `other financial services' carried out by non-banking finance companies (NBFCs), continuing with the liberalisation of the overseas investments regime. “The government has liberalised its FDI policy in other financial services and non-banking finance companies (NBFCs),“ the Department Of Industrial Policy & Promotion (DIPP) said in a press note on Tuesday. Other financial services will include activities which are regulated by any financial sector regulator -RBI, SEBI, IRDA, Pension Fund Regulatory and Development Authority, Natio nal Housing Bank “or any other financial sector regulator as may be notified by the government in this regard“, it said. The investment would, however, be subject to sector conditions such as minimum capitalisation norms specified by the regulator or government agency concerned. Under the current rules, 100% FDI is allowed through automatic route for 18 specified NBFC activit...