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India’s aviation industry might be flying into a debt cloud when new accounting standards come into force in 2019. Carriers may see their loans liability soar by more  than Rs 50,000 crore, with the latest set of rules calling time on the established practice of aircraft leasing.  The biggest impact of the switch would be on low-fare, asset-light airlines, especially IndiGo, which rely on lease-rentals for their operations. The new global  accounting norms – IFRS 16 – would also affect legacy carriers such as Jet AirwaysBSE 0.13 % and Air India, which have adopted the industry best practice to lower  their upfront costs. Net cash outgo for carriers, however, may not increase after the change over.  A spokesperson at IndiGo declined to comment, saying the airline is in a silent period as its April-June earnings are to be announced shortly. A senior executive at  Jet said there would “definitely be an impact” but didn’t elaborate.  "It weighs down the balance sheet with re

Companies going for Indian accounting standards (IndAS) need not do second round of adjustment for  mark-to-market losses on financial instruments in its book profits for the purpose of tax computation,  the income tax department has clarified.  This is so because these are already adjusted to book profits under minimum alternate tax (MAT), the  Central Board of Direct Taxes (CBDT) said.  However, if there is a reduction in value of assets other than financial instruments through mark-to- market values, the companies will have to adjust those to the book profit.  The CBDT has issued frequently asked questions (FAQs) on the issue after receiving the recommendations  of an expert committee. The Finance Act, 2017, had amended the MAT provisions (Section 115JB) for IndAS compliant companies  with effect from April 1, 2017. Barring banks, insurance and non-banking financial companies, most companies are required to adopt Ind AS from April 1, 2017. Small unlisted firms of less th

Over 6.83 lakh companies have a permanent account number (PAN) but did not file income tax returns for  assessment year 2016-17, Parliament was informed on Tuesday. The number of companies which have PAN but do not file income tax returns have increased over the past  five years from 4.09 lakh in assessment year 2012-13, to 4.60 lakh (AY 2013-14), Minister of State for  Finance Santosh Kumar Gangwar said in a written reply to a question in the Rajya Sabha. The number was 5.19 lakh in AY 2014-15, 5.73 lakh (AY 2015-16) and 6.83 lakh (AY 2016-17). The bUsiness Standard, New Delhi, 26th July 2017

The proposed anti-profiteering authority under the GST will bolster consumer confidence and ensure  that the intended benefits of the new indirect tax regime reach the common man, the finance ministry  said today.  A selection committee under the chairmanship of the cabinet secretary has been set up to select  eligible persons for appointment as the chairman and members of the National Anti-Profiteering  Authority under the Goods and Services Tax.  The proposed authority will have the responsibility to ensure that the full benefits of a reduction in  tax on supply of goods or services flow to the consumers.  "The constitution of the National Anti-profiteering Authority is expected to bolster consumer  confidence and ensure all stakeholders reap the intended benefits of the GST," the finance ministry  said in a statement.  The authority shall be responsible for applying anti- profiteering measures in the event of a  reduction in rate of the GST on supply of goods o

The government has started a drive to bring all active workers of the National Rural Employment  Guarantee Scheme (NREGS) under the Aadhaar framework to bring down duplication under the scheme and  prevent leakage of funds. The rural development ministry, in consultation with the department of financial services, will  organise camps in villages to seek consent of the beneficiaries for seeding their bank accounts to  their Aadhaar numbers.“Linking with Aadhaar will help us reduce leakages in the transfer of funds to  the beneficiary’s account... The biometric verification ensures that money is reaching the right  person,” a senior official told ET. Rural development ministry has roped in Indian Banks’ Association  along with 13 private sector banks for the exercise.  So far 50% of the 10.7 crore active workers under NREGS have linked their bank accounts with the 12- digit Aadhaar identity. “While we had gathered Aadhaar information of over 85% workers, banks want to  receive th