Skip to main content

Posts

Showing posts from August 21, 2017

Composition scheme picks up pace after deadline leeway

Composition scheme picks up pace after deadline leeway About 1 mn traders opt for window under GST regime About a million taxpayers have opted for a scheme that will benefit small businesses in the goods and services tax (GST) regime by allowing easier compliance and a flat rate of tax.  After a muted response initially, interest in the composition scheme has increased. As of August 16, the last date to apply for the scheme, 938,165 entities had  registered, against about 100,000 as of July 21, the earlier deadline. In other words, about 11 per cent of GST taxpayers have opted for the composition scheme.  Those with an annual turnover of up to Rs 75 lakh are eligible to apply for the scheme, which allows them to pay one per cent tax if they are traders, two per cent if they are manufacturers and five per cent if they are in the restaurant business. “Response picked up after we extended the deadline as it gave time for businesses to plan better and take a decision,” said a government o…

Govt all set to hike GST cess on luxury cars, via ordinance

Govt all set to hike GST cess on luxury cars, via ordinance The ordinance will allow the government to hike GST cess on luxury cars and SUVs to restore tax revenue from the auto industry The government is set to promulgate an ordinance within weeks, allowing an increase in goods and services tax (GST) cess on luxury cars and SUVs, as it seeks to restore tax revenue from the automobile industry that unintentionally got affected in the transition to the new indirect tax regime. A person aware of the discussions in the finance ministry said on condition of anonymity that a cabinet note is being moved proposing changes to the schedule of cess levied under the GST (Compensation to States) Act, 2017, to correct the reduction in tax burden on cars due to GST rollout. The GST Council, however, has taken the view that tax rate revisions during the transition to the new indirect tax system that kicked in from 1 July will be limited only to correcting unintentional effects of the tax rate fixing…

Income tax scrutiny to remain limited despite ITR filings surge

Income tax scrutiny to remain limited despite ITR filings surge Enforcement action by the income tax department will be reserved for cases where specific tip-offs regarding large-scale tax evasions have been received The income tax department will maintain the number of income tax returns (ITRs) chosen for scrutiny at the current level of less than 1% of all returns, in spite of a surge in individual tax filings to keep the process non-intrusive and taxpayer-friendly. Gentle persuasion through text messages, emails and advertisements will remain the department’s main ways of interacting with taxpayers, while enforcement action will be reserved for cases where specific tip-offs regarding large-scale evasions have been received. Out of the 52.8 million income-tax returns filed for the 2015-16 fiscal year, only about 300,000 cases, or around 0.6%, were scrutinized, a person privy to the deliberations within the tax department said on condition of anonymity. “Even when the number of our a…

Haryana Tax Dept Turns Lens on Shell Cos

Haryana Tax Dept Turns Lens on Shell Cos Experts warn that intrusive methods of GST verification may hurt smaller cos Haryana excise and taxation department has asked its officers to find out whether premises companies from the state have mentioned in goods and services tax network  registration are authentic, a move that seems to be aimed at identifying shell companies. Experts, however, warn that this could create problems for several genuine companies, mainly smaller ones, and may even prompt them to deregister from the GST network. “Success of GST depends on smaller entities as their non-inclusion in the GST value chain will significantly impair the reform,“ said MS Mani, partner at Deloitte India. “Usage of intrusive methods for verification of their registration would, at this initial stage, impact their acceptance of the reform. It is expected that all tax authorities would go all out to encourage smaller businesses to embrace GST without any concerns of a heavy handed approach…

Sebi Takes Stock of Aadhaar Linkage

Sebi Takes Stock of Aadhaar Linkage Seeks feedback from exchanges on brokers' preparedness to get clients' IDs by December 31 The Securities and Exchange Board of India has set the ball rolling for making Aadhaar compulsory for stock trading. The markets regulator has asked exchanges for their feedback on brokers' preparedness to get their clients to submit the biometric IDs before December 31. ET reported first on August 10 that Aadhaar would become mandatory for buying shares and mutual funds. The BSE, in a recent circular, asked brokers for their comments on the matter by August 23.It said existing clients will have to submit Aadhaar numbers to their brokers by December 31. New clients should do so within six months of opening demat account. “In case of failure to submit the documents within the aforesaid time limit, the account shall cease to be operational till the time Aadhaar number is submitted by the client,“ the circular said. The government and Sebi are making A…