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Over 1.9 mn file GST returns As many as 19,42,354 taxpayers have till Wednesday filed returns for July under the new goods and services tax (GST) regime. Officers of the GST Network (GSTN), responsible for the information technology (IT) backbone of the GST, said they hoped 2.8 million more would do so by the deadline in the next two days. Those who have filed returns constitute over 22 per cent of total assessees (8.7 million) under the GST regime. However, of the 8.7 million assessees, 2.2 million are yet to complete the migration process to the new indirect tax regime. The GSTN, also managing the tax filing apparatus, has geared up the IT network to handle the rush, its Chairman Navin Kumar said. A last minute rush caused the GSTN portal to crash last week, forcing the government to extend the deadline by five days to August 25. Those who wish to claim transitional input tax credit can file returns by August 28. Sudhir Singh, MD of Marg ERP,a solution provider for GST returns, s...

Cabinet fast tracks merger of public sector banks New framework approved; mergers by share swaps The Cabinet on Wednesday approvedaframework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps. The government also said there would be no job losses after any of the mergers.PSU bank unions had gone onastrike on Tuesday. The decision lifted banking stocks, but bankers said the decision should not be forced on them. Finance Minister Arun Jaitley made it clear the process would be initiated by the boards of the banks. An official said a number of banks were discussing merger possibilities among themselves.“The government is saying it will not force (mergers). They will leave it to the banks. If the players find it reasonable and profitable, they will work on it," said State Bank of India Chairperson Arundhati Bhattacharya. Business Standard had reported in June that Bank of Baroda and C...

CBDT Gives Offshoring Cos a Boost, Withdraws Controversial Guideline The Central Board of Direct Taxes is open to lowering the withholding tax rate for foreign companies which have income in India, but said that companies should pay their due taxes. “I would like to be informed in which areas the TDS (tax deducted at source) is high, so that we can think of reducing that also,” CBDT chairman Sushil Chandra said at an international tax conference organised by Assocham on Wednesday. “We are absolutely open to any suggestions which can make the life of a genuine taxpayer easy." Chandra urged firms and multinational companies operating in India to pay their due share of taxes and said adequate safeguards had been put in place to ensure that anti-abuse provisions like General Anti Avoidance Rules (GAAR) are not misused. Rahul Garg, chairman at Assocham’s National Council on Direct Taxes, said the tax department issues refunds to the tune of Rs 40,000-60,000 crore every year and, he...

Govt clarifies GST on newspaper ad space sale Space selling for advertisement in print media will attract 18 per cent GST (goods and services tax) if an agency does so as an agent ofanewspaper on commission basis, the government said on Wednesday. GST of five per cent will be levied if the advertisement agency works on principal to principal basis —buys space from the newspaper and sells such space for advertisement to clients on its own account,afinance ministry statement said. As an illustration, ifanewspaper sellsaunit of space worth Rs 100 to an advertisement agency for Rs 85 (afteratrade discount of Rs  15) and the agency sells the space to client at Rs 100, the newspaper would pay 5 per cent GST on Rs 85 and the advertisement agency a similar amount of tax on Rs 100. Business Standard New Delhi, 24th August 2017