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Showing posts from July 24, 2017

New governance norms likely for bourses

The Securities and Exchange Board of India (Sebi) is looking to align the remuneration paid to directors and key management personnel at stock exchanges in line with provisions of the Companies Act, said two people with direct knowledge of the matter. This is part of the comprehensive review of governance and ownership norms at stock exchanges and clearing corporations which the regulator had embarked on in February. The review will focus on increasing the governance, accountability and transparency at these market infrastructure institutions, said these people on condition on anonymity. On February 11, the Sebi board had decided to do this review in the wakeof exchanges getting listed and observing certain governance lapses. Sebi had invited comments from the market to finalise a list of proposed norms. “A discussion paper is being prepared,” said the first person cited earlier. “The regulator is also looking to increase transparency in the appointment of Public Interest Directors (PID…

GST will expand tax base:Jaitley

Union finance minister Arun Jaitley on Saturday said demonetisation and GST will make cash transactions a lot more difficult and lead to greater compliance as well as expansion of tax base. Mr Jaitley said the government has come out with laws to contain overseas black money as well as those dealing with domestic black money and cracking down on shell companies. The minister said the country had reconciled to a Indian normal — a very large number of tax non-compliance and very large amount of transaction which took place outside the system. “There was almost a helplessness in trying to deal with the situation. Every year through the Finance Bill we would announce some changes which at best had a marginal impact. I think the lasting impact of those marginal changes was not very significant. And therefore, steps had to be taken in order to make a very significant impact,” he said. “Net impact of the demonetisation coupled with the GST exercise, which is going to make generation of cash a lo…

Undue profit of over Rs 1 crore to come under GST authority’s lens

The proposed anti-profiteering authority under the new goods and services tax (GST) regime will take up for scrutiny only those cases that have mass impact and those where undue profit of more than Rs1 crore has been earned, a senior government official said. A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the GST regime. The Mint, New Delhi, 24th July 2017

Rules may be eased to help e-commerce companies boost exports

To enable homegrown ecommerce players such Myntra, Snapdeal and a host of handicraft and garment platforms to expand their global footprint, India is looking to revamp the export framework governing overseas sales by them. The measures under consideration include a complete switchover to e-enabled filing systems and even doing away with the current cap of Rs 25,000 on a purchase.  “A number of steps have been identified to make it easier for the ecommerce sector to trade,” said a senior finance ministry official. A pilot has already been launched in Mumbai and will be expanded to other customs ports. Exports via these online marketplaces rely on couriers and small packages and often involves a lot of paperwork at the ports. Essentially, these couriers act as aggregators for ecommerce platforms.  So, one courier may have to deal with multiple packages but of small value unlike large exporters. The paperwork for each package has to be done separately. They may be allowed to make a single …

Tax department's demand to disclose foreign bank accounts sends NRIs, expats into tizzy

As the July 31 deadline for filing tax return nears, many non-resident Indians (NRIs), expats, as well as foreigners with investments in private equity and hedge funds here are puzzled by the strange new demand from the Indian tax office asking them to disclose their bank accounts held across the world.  Neither can they figure out the reason nor are they comfortable with sharing details of offshore accounts with the income-tax department which cannot tax earnings from such assetsTax practitioners and lawyers are inundated with phone calls from these individuals who fear non-disclosure could put them on the wrong side of Indian regulations.  Leading law firm Khaitan & Co is among those that have drawn the attention of Central Board of Direct Taxes, the apex tax authority, to the additional reporting requirement that has crept into the tax return forms. With the government refusing to spell out whether it has been inadvertently or intentionally inserted into the forms, NRIs and forei…