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Showing posts from August 10, 2017

Govt notifies timeline for filing of tax returns under GST

The government has notified the timeline for furnishing final tax returns for July and August under the Goods and Services Tax (GST) regime. The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, had in June allowed businesses extended timeline for filing final GST returns in forms GSTR-1, GSTR-2 and GSTR-3 for July and August. In the interim period, businesses have to file GSTR-3B which is a summary of self-assessed tax liabilities with consolidated details of outward supplies and input credit. The Central Board of Excise and Customs (CBEC) has now notified the dates for filing the GST returns forms. As per the notification, outward supplies in Form GSTR-1 for the month of July will have to be filed between September 1-5. For August, it is to be filed between September 16-20. The original date for filing GSTR-1 was 10th of the next month. Details of inward supplies in Form GSTR-2 for July will have to be filed between September 6-10. For August, the …

Share of mutual fund assets from smaller cities growing

Sector has been focusing on bringing more customers via the Systematic Investment Plan mode One of every four rupees invested by individual investors in mutual fund (MF) schemes now belongs to people from beyond the top 15 cities (B-15 in sector parlance). The Rs 20 lakh crore sector has been trying for participation from smaller cities and towns. As on June-end, about 26.2 per cent or Rs 2.5 lakh crore of individual assets came from B-15 places. A year before, it was Rs 1.6 lakh crore and made up 23.8 per cent of total individual assets. The latter was Rs 9.48 lakh crore at end-June, against Rs 6.8 lakh crore a year before. The sector has been focusing on bringing more and more individual customers through the Systematic Investment Plan (SIP) mode. There are now 14.5 million SIP accounts, which stoke a sticky and consistent Rs 5,000 crore of monthly flow. A Balasubramanian, chief executive officer (CEO) of Aditya Birla Sun Life MF, says, “It is the outcome of the efforts that are being u…

Textile exporters seek exemption from GST

Textile exporters have urged the government to exempt them from the integrated goods and services tax (IGST). The GST Council has finalised rates between 5 and 28 per cent of applicable IGST on various products. Additionally, 5 per cent GST is applicable on job work also. “Merchant exporters cannot benefit from the facility of exports under bond /letter of undertaking (LUT). There is no enabling document prescribed by the government under which goods can be cleared by a manufacturer without charging IGST meant for exports by a merchant exporter against bond/LUT. In absence of such a provision, the manufacturer charges IGST on the goods supplied to the merchant exporter meant for exports under bond/LUT. In the erstwhile central excise regime, there was a facility under which a merchant exporter who has executed a bond (B-1 bond) was provided with C T 1 certificates. Introduce a similar facility at the earliest so that the merchant exporters exporting under bond / LUT can get IGST-free …

Sebi softens stand as 'Shell firms' move SAT

Two days after suspending trading in 331 listed shell companies, the capital markets regulator, Securities and Exchange Board of India (Sebi), ordered stock exchanges to verify their credentials and fundamentals. In a letter to the exchanges on Wednesday, the markets regulator hinted if  a company´s business model appeared satisfactory, the trading ban could be revoked. The move comes after Sebi faced wide spread criticism from various quarters for classifying these entities as shell companies on Monday. The market value of at least 10 companies on the list is over Rs 200 crore each. Also 161 of these companies were active in trading, with over 2.7 million public shareholders. Sebi had directed exchanges to impose stringent trading curbs on these companies by putting them in the Stage VI of the Graded Surveillance Measure (GSM). The companies were identified by the Ministry of Corporate Affairs (MCA), with the help of the Serious Fraud Investigation Office (SFIO) and the income tax (IT) de…

Corporate tax growth feels GST heat

The exchequer got 19.1 per cent more from direct taxes in the first four months of the current financial year (FY18), but the amount paid by companies reflected their struggle with the goods and services tax (GST). The total direct taxes after refunds grew 19.1 per cent at Rs 1.9 lakh crore between April and June this year. Last year, during this period, it had risen 24 per cent. This isaminor deceleration, but when compared in terms of percentage of Budget Estimates (BE), the figures this time are rosier. The collections constituted 19.5 per cent of the BE of direct taxes for FY 18. In FY 17, they had accounted for 18.8 per cent of the BE. What is startling, however, is the slow tax collection from corporate entities. This year, this grew by 7.2 per cent in the AprilJuly period, sharply lower than the 11.7 per cent in the same period last year. Experts said the slowdown could be attributed to adjustments leading to destocking and the offering of discounts by companies as the government ush…