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Showing posts from August 29, 2017

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Financial year change to Jan-Dec ruled out for now

Financial year change to Jan-Dec ruled out for now The Centre’s plan to change the financial year cycle from April-March to January December has been put on hold and may not materialise in the Narendra Modi government’s current term, according to a senior official. Any change in the financial year would have to be agreed upon by all states, and a number of them were still not in its favour, the official, who did not wish to be named, said on Monday. Besides, the government did not see many advantages in switching to the January December cycle, the official added. Surprisingly, changing the financial year has been one of Prime Minister Narendra Modi’s pet themes. “A number of states are not on board with the idea. The financial year change has been put on the back burner,” the official said, adding that a final decision on the matter could be taken in 2019. “Too many disruptions like the goods and services tax (GST) and lack of data are also hurdles in advancing the financial year,” the off…

I-T department warns against cash dealings above Rs 2 lakh

I-T department warns against cash dealings above Rs 2 lakh The Income-Tax Department on Monday warned people against cash dealings of Rs 2 lakh and more, saying any violation of this cap will invite strict penalty under law.  In a public message, the department said “accepting Rs 2 lakh or more in aggregate from a single person in a day for one or more transactions relating to one event or occasion is prohibited”.  The Economic Times, New Delhi, 29th August 2017.

GST filing date extended

GST filing date extended The government has extended the date for filing goods and services tax (GST) for those providing online information and database access or retrieval services from outside India to a non-taxable online entity.  They can now file their July return (GSTR5A) by September 15, according to notification by the central government. This covers central GST as well as integrated GST. States would separately issue their respective notifications for SGST.  The government has notified new dates for filing of returns (GSTR6) for input service distributors for July to September 8 and for August to September 23. The July return forms had to be filed till August 13.  The Economic Times, New Delhi, 29th August 2017

Over 3.6 million businesses file GST returns

Over 3.6 million businesses file GST returns Those who wish to claim transitional input tax credit could file returns by August 28 As many as 36,32,279 businesses filed their returns for the month of July till Monday morning under the goods and services tax (GST) regime. However, there were problems with the filing of forms required for claiming input tax credit for pre-GST stocks. Those who have filed the returns constitute about 42 per cent of total number of assessees of 8.7 million under the GST regime. However, 2.2 million of these assessees are yet to complete the migration process. A last-minute rush had led to the GST Network portal, the information technology backbone of the new indirect tax system, crashing last week, forcing the government to postpone the tax filing deadline by five days to August 25. Those who wish to claim transitional input tax credit could file returns by August 28.  However, there were certain issues with TRAN-1 forms, needed for claiming transitional input…

FDI consolidated policy includes startups, allows 100% FVCI

FDI consolidated policy includes startups, allows 100% FVCI India unveiled a new foreign direct investment policy framework that for the first time comprises provisions specific to startups, a sector that is top on the government’s agenda.  The 2017 FDI policy circular lists startups as a separate section and spells out provisions that allow them to raise foreign money from venture capital funds and other investors through instruments such as convertible notes.  They can issue equity or equitylinked instruments to foreign venture capital (VC) investors, says the circular, the first issued after the abolition of the Foreign Investment Promotion Board (FIPB).  The Department of Industrial Policy and Promotion (DIPP) released the rules on Monday with immediate effect.  Foreign residents, except those in Pakistan and Bangladesh, will be permitted to purchase convertible notes issued by an Indian startup for Rs 25 lakh or more in a single tranche, it said.  Startups will have to take requisite g…