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Showing posts from May 27, 2017

Govt may reduce PF contribution to increase take home salary

The labour ministry has proposed to reduce the employer´s contribution to the Employees´ Provident Fund (EPF) from 12 per cent to 10 per cent.

The proposal, which will be opposed by trade unions, will come up for approval in the meeting of the Central Board of Trustees (CBT) on Saturday.

Around 50 million employees in the country receive provident fund contributions.

The move, according to the labour ministry, will increase the takehome salary of employees.

But trade unions opposing the move termed it an attack on social security.

According to the agenda paper of the meeting, the Employees´ Provident Fund Organisation´s (EPFO´s) CBT will consideraproposal to lower “the rate of contribution to be paid by employer and equal contribution by employees from the present 12 per cent to 10 per cent by issue of appropriate order by the Central Government”.

The Employees´ Provident Fund and Miscellaneous Provisions Act, 1952, empowers the Central government to lower the contribution rate and the gov…

CBEC Chief rules out GST rates review

Amid clamour in industry over tax rates decided by the GST Council, Vanaja Sarna, chairperson of the Central Board of Excise and Customs, ruled out a review, barring a few rare cases.
She also said the government was set for the July 1 roll-out of the GST and industry must gear up for the new regime.

The government is flooded with representations from industries, including FMCG, automobiles, railways and solar power, to revise rates.

The GST Council in its last meeting decided rates for 1,211 items and 500 services. Around 60 per cent of the items will fall in the 12 per cent and 18 per cent tax slabs. “Industry should know that anything that was finalised in the council meeting will not be revisited now, barring six or seven remaining items. There will never be an end to demands for reviewing rates. Let the GST roll out and then these can be taken up,” Sarna told this newspaper.

She, however, added a few tax rates could be revised later. “Like all budgetary changes, a view can be taken…

Sebi norms for NCDs in mergers

Markets regulator Sebi on Friday issued a new framework for listing of non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS) following mergers and acquisitions (M&As). A listed firm may seek listing of NCRPS/NCDs issued pursuant to a scheme of arrangement only in case where the listed firm is a part of such scheme and such securities are issued to the holders of specified securities of such listed entity, Sebi said in a circular

Mint New Delhi, 27th May 2017

RBI discusses debt recast plan with stakeholders

After outlining a loan recast plan, the Reserve Bank of India (RBI) has begun a dialogue with stakeholders to work on their role details and timelines. There is a sense of urgency, though no timelines have been specified as of now. This was the first meeting after the RBI’s statement on steps on a prompt resolution of troubled assets.

After outlining loan recast plan, Reserve Bank of India (RBI) has begun dialogue with stakeholders, including bankers and insolvency professionals, to work on their role details and timelines.

There is a definite sense of urgency, though no timelines have been specified as of yet. This was the first meeting after RBI's statement on Monday on future steps for prompt resolution of troubled assets, banking sources said.

RBI is expected to grow a framework for an "objective and consistent" decisionmaking process for resolution under the Insolvency and Bankruptcy Code, 2016.

RBI's plan includes reconstituting oversight committee (OC).

Banking so…