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Showing posts from August 30, 2017

Government may announce a new ‘outcome-oriented’ industrial policy by October

Government may announce a new ‘outcome-oriented’ industrial policy by October Nirmala Sitharaman to hold consultations with stakeholders, including industry captains, think tanks and states to finalise the policy. Government will announce the new industrial policy in October this year, seeking to make India a manufacturing hub by promoting ‘Make in India’ and addressing the issue of slower job creation. Commerce and industry minister Nirmala Sitharaman will hold talks with stakeholders, including industry captains, think tanks and state governments in Chennai, Guwahati and Mumbai to finalise the policy. In a press statement, Department of Industrial Policy and Promotion (DIPP) said the government wants to formulate “an outcome oriented actionable industrial policy that provides direction and charts a course of action for a globally competitive Indian industry which leverages skill, scale and technology.” DIPP has floated a discussion paper to have a “future ready new industrial policy” to …

Govt might allow revised returns for input credit for pre-GST stocks

Govt might allow revised returns for input credit for pre-GST stocks Unavailability of the form offline made it difficult for companies to punch in details manually In a respite for companies with big claims of input tax credit for pre-goods and services tax (GST) stocks, the government is likely to allow rectifications of returns filed. The revenue department is consulting the law committee on the matter. Although companies have been given 90 days to file the TRAN 1 form to claim input tax credit for stocks bought before July 1, the last date for filing it was August 28. Unavailability of the form offline made it difficult for companies to punch in details manually, increasing the chances of under reporting or incorrect filing. No provision for rectification of transitional credit claims might mean companies losing credit. “We are aware of the concerns with respect to rectification of returns. We are consulting the law committee to see if we can allow entities to revise their TRAN 1 form,…

Room rent in hospitals exempted from GST

Room rent in hospitals exempted from GST Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax (GST), the government said today.  Issuing clarifications on levy of GST on the tariff for various accommodation services, the Central Board of Excise and Customs (CBEC) said the tax on rooms in the hotel, guest house or inns will be payable on the actual amount charged and not on declared or published tariff.  "Declared or published tariff is relevant only for the determination of the tax rate slab," the clarification issued in form of Frequently Asked Questions (FAQs) said.  No GST is applicable on room tariffs of less than Rs 1,000.  A 12 per cent tax will be levied on the tariff of more than Rs 1,000 and less than Rs 2,500 while an 18 per cent levy would come in for room rents of between Rs 2,500 and Rs 7,500.  A GST of 28 per cent will be charged on tariff greater than Rs 7,500.  The tax will be levied on the entire amount, including charges for ex…

Cabinet May Consider Ordinance On GST Cess Hike Tomorrow

Cabinet May Consider Ordinance On GST Cess Hike Tomorrow The Centre is all set to pass an ordinance that will increase the additional cess levied on SUVs to 25 per cent from 15 per cent under the Goods and Service Tax (GST) regime at present. This will be applicable to all motor cars designed to transport 13 persons seated including the drivers, including station wagons and racing cars. Prices of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh following the implementation of GST, which subsumed over a dozen central and state levies like excise duty, service tax, and VAT from July 1. The GST Council, the apex tax rate setting body under the GST regime, had on August 5, 2017, approved raising cess on SUV's. But, for raising the cess requires an amendment to the Schedule of section 8 of the GST (Compensation to a State) Act, 2017. An ordinance is issued when Parliament is not in session to approve legislation or change in legislation. It has to be replaced with a proper legislation…

RBI asks banks to stick to December deadline for insolvency

RBI asks banks to stick to December deadline for insolvency The latest communique is a reminder of that deadline, say bankers The Reserve Bank of India (RBI), sources say, has instructed banks to maintain the December deadline for completing the bankruptcy proceedings on their largest non-performing assets (NPAs), in addition to the 12 named in June and the ones in various stages of similar operations.  Senior bankers of various banks said there was no common list as such, but separate lists for different banks, drawn up on the basis of each one’s exposure to the defaulters.  So, say, if State Bank of India (SBI) received a list of 30 accounts, Punjab National Bank had a 20-account list, IDBI Bank had a list of 15-20 names, and Bank of Maharashtra was given a list of 10 names, say bankers. Many of the accounts are common among the lists as the loans were given by consortiums of lenders.  On June 13, the RBI had said the top 12 accounts, having an exposure of at least Rs 5,000 crore each, s…

GST collections top govt target, 64% file returns in July: Arun Jaitley

GST collections top govt target, 64% file returns in July: Arun Jaitley First month sees Rs 92,283 cr mop-up; Arun Jaitley says 'we have crossed the red line' The collections under the goods and services tax (GST) in July, the first month of its roll-out, exceeded the Union and state governments’ target, even though 36 per cent of the assessees did not file returns. The governments have earned Rs 92,283 crore, against the target of Rs 91,000 crore. Extrapolating the targets in the annual Budget, the central government’s July tax revenue should have been Rs 48,000 crore. Assuming 14 per cent growth each in 2016-17 and 2017-18 over the 2015-16 revenues of the states, their tax kitty should have been more than Rs 43,000 crore for the month.  The growth rate is taken in accordance with a formula of compensating loss-making states. Thus, the combined kitty comes to Rs 91,000 crore. Union Finance Minister Arun Jaitley said: “We have crossed the red line so far as tax targets are concerned.…