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Showing posts from March 2, 2017

Govt asks all banks to have mbanking facility by Mar 31

The government has asked all banks to provide mobile banking facility to all customers  by March31 in a bid to push digital transactions.”What we have asked the banksto do is to enable all customerswhohave mobilesformobilebanking... Weareaskingbankstoruna nationwidecampaignupto March31toensurethatevery customerwhohasamobile phoneisenabledformobile banking,” ElectronicsandIT SecretaryArunaSundararajan toldreporters. Business Standard New Delhi,02th March 2017

Labour Ministry Hikes Minimum Wage for Agricultural Labourers

Entitlement at minimum `300 per day in C-category towns compared to Rs 160 now The labour ministry has nearly doubled the minimum wage for agricultural labourers including those hired on contract, barely six months after a significant increase in minimum wages for non-agricultural labourers. The Centre had on August 1 last year raised minimum wages for non-agricultural workers 42%.
According to a labour ministry notification, an unskilled agricultural labourer will be entitled to a minimum wage of `300 per day in C-category towns compared to `160 now while those in B and A category towns will get ` 303 and `333 respectively. Similarly, semi-skilled workers will be entitled to a daily minimum wage of `364, `335 and `307 in A, B and C-category towns while skilled workers will be paid `395, `364 and `334 under three catego ries respectively. Highly skilled workers will get `438, `407 and `364 in A, B and C-category towns.

Wages prescribed by the state government will prevail over these ra…

No GST Credit If Vendors aren't Paid in 90 Days

The Government circulated draft of the GST Model Law requesting for suggestions from the industry . The industry and experts have been poring over the draft. The article seeks to highlight the need to reconsider one of the provisions related to input tax credits. The proposed GST Legislation appears to deny tax credit in relation to input services for which payments are made after three months of the date of the invoice of the supplier. In fact the proposal mandates payment of interest inaddition to the denial of credit.
Also, under the current legislation,customer can re-claim the credit reversed earlier on making payment against the invoice. However, a similar provision is missing under GST and consequently may result in permanent loss ofinput credit of tax paid earlier.

It appears that this proposal was inserted to mitigate benami transactions. This anxiety is clearly misplaced for several reasons: A) The compliance prescribed un der the GST regime requires every person making a supp…

Muted response to 2nd black money disclosure scheme

The government´s efforts to disclose unaccounted deposited in banks ban have received response. At the end of February, the Pradhan Mantri Garib Kalyan Yojana (PMGKY), also known as Income Declaration Scheme II, saw declarations crore, of which the Mumbai accounted for Rs.500 crore. Offeringafinal option of black money, the had on December 17 provided time until March 31 to come clean on deposits of banned currency notes in banks. For those holding unaccounted cash, the PMGKY proposed to tax 50 per cent of the declared amount and park 25 per cent in an interestfree deposit for The informal tax collection target for the scheme was over Rs.75,000 crore, double that of the Income Disclosure Scheme I. To collect that amount, the disclosure would have to be to the tune of Rs.1.5 lakh crore. The scheme is part of the Taxation Amendment) Act, by the Lok Sabha in December 2016. The tepid collection has prompted the Central Board of Direct Taxes (CBDT) to conductavideo conference with tax officials…