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Showing posts from August 19, 2017

FM asks states to cut VAT on petro products

FM asks states to cut VAT on petro products Finance Minister Arun Jaitley has written to all Chief Ministers urging them to reduce Value Added Tax (VAT) on petroleum products used in the manufacture of goods as the current system was leading to cascading of taxes on such goods under the Goods and Services Tax (GST) regime. Currently, crude oil, natural gas, petrol, diesel and aviation turbine fuel are out of GST purview. All other petroleum products fall under the new indirect tax. “The letter by Finance Minister highlights a concern being raised by the manufacturing sector in the country regarding the rise in input costs of petroleum products happening on account of transition to Goods and Services Tax regime,” the Finance Ministry said. “In the post-GST scenario, manufactured goods attract GST while inputs of petroleum products used in the manufacturing attract VAT and, therefore, it would lead to cascading of taxes.” “These products are a principal source of revenue for the states, so …

‘There’s No Inconsistency in Data on Taxpayers’

‘There’s No Inconsistency in Data on Taxpayers’ The Central Board of Direct Taxes has said number of individuals filing income tax returns jumped to 2.79 crore this year from 2.23 crore, an increase of 56 lakh as stated by Prime  Minister Narendra Modi in his Independence Day speech. The apex direct taxes body said there is no inconsistency in the data. The statement comes after doubts were raised in some quarters over the data given out by government at different points in time. “It is clarified that there is no inconsistency in the data provided by the government in the statements referred to above as these are in different contexts and for different time periods,” a CBDT statement said on Friday. The Prime Minister's speech (on August 15) referred to the increase in number of e-filed Personal Income Tax Returns (ITRs) filed from April 1, 2017 to August 5, 2017 over the ITRs filed in corresponding period of earlier years. “The data maintained by the Income Tax Department shows that…

P-note investors return to Mauritius as FPIs

P-note investors return to Mauritius as FPIs Even as participatory notes (P-notes) become unattractive for taking positions, many investors are now looking to enter India using the foreign portfolio investment (FPI) route either through Mauritius or directly.  P-notes are overseas derivative instruments with Indian stocks as their underlying assets. Industry trackers say some P-note holders are looking to directly invest in India without setting up an investment arm in a buffer country .However, some of the other investors could route their investments through Mauritius.  The persons cited earlier said the newly registered FPIs will fall under category-III definition of the government and could start attracting higher taxes, going ahead.  Many P-note holders invest in In dian futures and options (F&O) on which they did not pay any tax until recently. Also the instrument provided anonymity to these investors. However, the market regulator recently took two steps that forced investors o…

RBI identifies 40 more large loan defaulter accounts for clean-up

RBI identifies 40 more large loan defaulter accounts for clean-up Along with the 12 cases where bankruptcy proceedings have already started, these would account for 60-65% of the bad loans clogging the banking system The Reserve Bank of India (RBI) has identified 40 large defaulters as the next lot of firms where banks will push for an early resolution, a government official said on condition of anonymity.  Along with the 12 cases where bankruptcy proceedings have already started, these would account for 60-65% of the bad loans clogging the banking system, this person added.  An RBI spokesperson declined comment. A speedy resolution of these cases “will keep the banking system running”, the government official said. He added that invoking the Insolvency and Bankruptcy Code won’t be the default option for resolving these accounts and lenders will also look at other mechanisms such as joint lenders’ forums. Indian banks are sitting on a stressed asset pile of more than Rs10 trillion, of which…