Skip to main content

Posts

Showing posts from June 12, 2017

Daily Update 12-June-2017

Good Afternoon Everyone
Have a good day to all of you
Daily Update
12-June-2017

Economic Times
•Airtel, Vodafone and Idea report sharp fall in AGR
•Republic's viewership falls after TRAI's intervention
•Karnataka discoms barred from buying more wind power
•Quick installation, discounts boost large appliances' online sales
•India finds factual errors in World Bank’s ease of business report

Business Standard
•French open 2017: Rafael Nadal outclasses Wawrinka to win 'La Decima'
•Sikhs in US are not feeling safe, raise it with Trump: Amarinder to Swaraj
•Jayalalithaa's split legacy leaves the field open in Tamil Nadu
•Global warming will increase rainfall in Earth's tropical regions: NASA
Mint
•GST Council reduces tax rates on 66 items - Tax body also widens scope of concessional scheme for small businesses
•Sebi board to consider cutting IPO listing time to four days
•Petrol pump owners threaten to stop purchasing fuel from OMCs
•Strides Shasun promoters rai…

Simplifying safe harbour rules

Experts check out whether the easing of rules will reduce transfer pricing litigation

Too many riders for low value adding services

The much awaited amendment to the Safe Harbour Rules (aprovision in a law or regulation that offers protection from liability or penalty under specific situations or if certain conditions are met) provides an avenue for taxpayers with lower thresholds of related party transactions pertaining to IT, ITeS, BPO/KPO/Contract R&D services, etc to pay taxes on a presumptive basis.

While there could still be issues around the classification of a particular service inaparticular basket, the safe harbour margins are more or less in line with the expectations of industry.The APA programme also offers margins in a similar range.

Therefore, from a dispute resolution stand point smaller tax payers can now go towards the safe harbour regime, rather than lining up in the APA programme. Further, low value adding services have also now been included in the safe harbour r…

Traders can now everify GST registration via OTP

Traders and businesses can opt for verification of their GST registration via emode, including a onetime password on their registered mobile number.This is in addition to the option of using banking channel or everification code, for everification of enrolment.The move comes after traders complained of facing problems in verifying their GST enrolment via digital signature for companies and Aadhaar for traders.

Business Standard New Delhi, 12th June 2017

MSME units can nowfile GST grievances online

Micro, small and medium enterprises (MSMEs) will now be able file GST related grievances online, with the government putting in place a monitoring mechanism in this regard.The units can put forth their suggestions, complaints and seek guidance or information pertaining to the new indirect tax regime using the Internet Grievance Monitoring Mechanism established by the MSME ministry.The facility can be availed by MSMEs as well as their employees, associations, prospective entrepreneurs, individuals and others.The Internet Grievance Monitoring Mechanism is expected to smoothen the implementation of GST by MSME units, as the issues flagged by them using the online forum will be taken up by the government for redressal.

Business Standard New Delhi, 12th June 2017

Sebi mulls ways to check fraudulent tax benefits via stocks

Regulator Sebi is mulling tightening its investigation and enforcement mechanism to check misuse of stock market platform for generating "bogus" long-term capital gains to launder black money.

The markets watchdog has also come across cases wherein fraudulent tax benefits have been claimed through trades in some blue-chip stocks, as against the common perception of only penny stocks being used as vehicles for such frauds, a top official said.

While the rules provide exemption from long-term capital gains through stock market trades, the government in this years Budget, announced steps to limit such benefits only to "genuine trades" as part of a concerted effort to clamp down on tax evasion through "sham transactions".

The regulator is now looking at further steps to ensure such benefits are available to genuine investors only as they are aimed at encouraging long-term investment culture in the country, the official said, while adding that some changes are r…

FinMin debating bad bank, basic income proposals: Jaitley

Finance Minister Arun Jaitley on Sunday said the ministry is debating two innovative suggestions made by the latest Economic Survey— Universal Basic Income (UBI) and creation of bad bank —to deal with the unacceptable levels of bad loans.He, however, said the idea of UBI does not seem to beafeasible policy option at this
point of time given the “political limitations”.

While inaugurating the oneweek teachers´ workshop at the Indian Institute of Technology (IIT), Delhi, the Finance Minister also emphasised policy makers to continuously upgrade their knowledge on different subjects.

“I think it´s equally meant for policy makers because they should also be acquainted with the facts for informed policy making,” he noted.On innovative ideas of the Survey, he said it remainsachallenge on how to allocate subsidies inatargeted manner.

“This year also it (survey) initiated a very important idea as to how do we subsidise… substitute the entire set of subsidies...we want to replace it by a Universa…

FPIs red flag Sebi’s plan to curb p-notes

Say it is difficult to differentiate between speculative and hedged positions

Overseas investors have written to the Securities and Exchange Board of India (Sebi), opposing the proposed curbs on participatory notes (p-notes), or offshore derivatives instruments (ODIs).

In a discussion paper floated last month, the market regulator proposed to bar p-notes from taking speculative positions in the derivatives market. Also, the papertalks about levying fees of $1,000 per ODI per subscriber every three years. Sebi has suggested that ODI issuers be given time till December 31, 2020, to wind down any outstanding derivatives exposure taken for a purpose other than hedging.

FPIs have told the regulator that it would be difficult for issuers to discern between speculative and hedging positions of individual investors, and to ascertain the exact number of open positions held by investors without any underlying. On the other hand, most investors would be reluctant to disclose their trade positions.

GST Council reduces rates of 66 products

Telecom rates unchanged; meeting on June 18 to discuss residual issues

With two weeks to go for the goods and services tax (GST) roll-out, the GST Council on Sunday reduced the rates for 66 items and expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs.

The composition scheme is a presumptive taxation scheme allowing small traders, manufacturers and restaurants to paya15 per cent GST rate on sales without tax credits.Insulin, pickles, printers, agarbattis,school bags, and cashew nuts are among the 66. Those were among 133 items whose rates were reviewed following industry representation.

However, the GST rates for telecom services, marbles, granite, spectacles, among others, were retained, which drew flak from the respective sectors.Union Finance Minister Arun Jaitley, who is the head of the Council, said in certain cases the rate fitment committee went beyond the equalisation principle of maintaining the current tax incidence.

“…