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Showing posts from February 7, 2017

Kerala, Bihar Demand Higher GST on Jewellery

Kerala has a 5% VAT on gold and jewellery and states like Bihar, which see low jewellery consumption, are pitching for higher GST. MUMBAI: Kerala and Bihar are seeking a higher Goods and Services Tax on bullion and jewellery, which trade associations say is delaying a decision on the matter. The government has fixed a four-slab structure ­­ 5%, 12%, 18% and 28% ­­ for GST but said that tax on bullion and jewellery would be different from  these. This has sparked speculation among trade on the quantum of tax on jewellery . While All India Gem & Jewellery Federation (GJF) is proposing a 1.2% GST for jewellery , India Bullion & Jewellers Association (IBJA) expects it will be way higher at 8%, with import duty reduced to 6% from the present 10%. “Kerala has a 5% VAT on gold and jewellery and states like Bihar, which see low jewellery consumption, are pitching for higher GST,“ said Surendra Mehta, national secretary, IBJA. “That's one of the reasons for the GST Council not hav…

Refunds to be withheld only in doubtful scrutiny cases: CBDT

Beginning next financial year, the tax department will withhold refund in scrutiny cases only “inexceptional circumstances”, like an apprehension that the assessee might flee the country.In order to address the concerns of assessees in genuine cases,the Finance Bill 2017 has relaxed the norms for refunds for  scrutiny cases.Elaborating on the Budget provision,Central Board of Direct Taxes(CBDT) Chairman Sushil Chandra said income tax refund will not be withheld simply because the case has been selected for scrutiny. “Only in exceptional circumstances,that too with a lot of riders,the Commissioner can order for withholding refund. 07TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

Sebi board may discuss ‘unfairaccess’ at NSE

The market regulator will take up the issue of alleged unfair access at National Stock Exchange (NSE) at its board meeting on Saturday, sources said. Securities and Exchange Board of India (Sebi) is also likely to tell its board about current participatory note (P-note) framework and may recommend against further tightening it. The board meeting after Union Budget is customary; it could be attended by Union finance minister Arun Jaitley. The countrys largest exchange firm, NSE, is embroiled in allegations of allowing unfair access to trade data to certain brokers at co-location facility. At a colocation centre, you can place your computer containing trading algorithms next to an exchange’s data centre, which matches buy and sell orders. This shaves crucial milliseconds from the time it takes to complete a trade. If traders are located 100 miles away from an exchange, they face a delay of one millisecond whenever they seek to trade a price via their computer screen. "Sebi will pr…

India, Austria agree to change tax treaty

India and Austria on Monday agreed to change their taxation treaty to prevent tax evasion as well as enable mutual assistance. The protocol will broaden the scope of the existing frame work of exchange of tax-related information, which will help curb tax evasion and tax avoidance between the two countries and will enable mutual assistance in collection of taxes, an official statement said. It was signed by Central Board of Direct Taxes 07TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

Cesses set to go with GST, see increase in Budget

The National Democratic Alliance government plans to shift to the goods and service tax (GST) regime on July 1. In the new indirect tax architecture,  some existing cesses, that are currently levied, will be done away with. Yet the government has budgeted for increases in even those cesses that will  cease to exist after July 1. The Budget does not separately show collections in the GST regime but continues to project collections for excise duties  and services taxes through the year. This has led experts to question whether the government has factored in the impact of the shift to GST in the Budget, including that on the schemes that are funded from cess collections. The Budget pegs the cess and surcharge collections for FY 18 at Rs 2.96 lakhcrore — a jump of Rs 46,298 crore over the Revised Estimates (RE) of FY17.These cesses and surcharges include the ones imposed along with both direct and indirect taxes. A senior tax consultant said: “The government does not appear to have budge…

SMEs to pay 25% tax even if Rs 50-cr limit crossed in FY17

The I-T department today said companies that had a turnover of less than Rs 50 crore in 2015-16 will pay tax at the reduced rate of 25 per cent from April 1 even if they cross the threshold in 2016-17 or subsequent years. Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said the income tax department will come out with a clarification on which companies would be eligible to avail the tax benefit. In order to boost the SME sector, Finance Minister Arun Jaitley in Budget 2017-18 reduced the income tax for smaller companies with annual turnover up to Rs 50 crore to 25 per cent as against the usual rate of 30 per cent. "If your turnover in 2015-16 was Rs 50 crore then you will be subject to 25 per cent tax. We will come out with clarification on (applicability of the tax benefit to) new companies," Chandra said. According to the memorandum to the Finance Bill 2017, in case of domestic company, the rate of income-tax shall be 25 per cent of the total income if the to…