CA Online

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused. Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification. While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady. "Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore. The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing ...

Direct tax receipts soar 17.5% in April-August Collections at Rs 2.24 lakh crore higher than government estimates Direct taxes fetched 17.5 per cent higher receipts to the exchequer for the first five months (April-August) of the current financial year (FY18), more than what was projected for the entire financial year. However, the growth rate slowed in August. Direct tax collections, net of refunds, stood at Rs 2.24 lakh crore during the April-August period of FY18. The receipts had grown 19.1 per cent in the first four months of FY18. The government had projected 9.8 lakh crore from the direct taxes — corporation tax and personal income tax — in 2017-18, which would be 15.7 per cent higher than Rs 8.47 lakh crore in FY17. Till August, 22.9 per cent of the target has been achieved. After adjusting for refunds, the growth in corporation collections was at 18.1 per cent during the period, while personal income tax collections rose 16.5 per cent. Before refunds, corporation tax colle...

Labourers to get unique ID number: Santosh Gangwar Labourers from both organised and unorganised sectors will be allotted a unique identification number as a part of labour reforms, Union minister for Labour and Employment Santosh Gangwar has said. Gangwar said representatives of recognised labour organisations have been invited to New Delhi on September 14 for establishing better coordination and giving momentum to the process of labour reforms in the country. Four labour laws, that had become irrelevant, have been done away with and the relevance of 36 other laws is being examined, he said at a function organised by the Indian Industries Association last night. "As part of labour reforms, labourers in both the organised and unorganised sectors will be given a unique ID number," he said here. Workers in the unorganised sector account for over 93 per cent of the country's total work force, whose size according to a National Sample Survey Organisation (NSSO) 2009-10 su...

Sebi panel recommends easing block deal framework An expert committee of the Securities and Exchange Board of India (Sebi) has recommended easing the ‘block deal’ framework. The Secondary Market Advisory Committee ( SMAC) is in favour of extending the block deal window and allowing better flexibility in terms of pricing of deals. Under the current framework, block deals are allowed during a 30-minute window — between 9.15 am and 9.45 am. Sources said the SMAC wanted the alignment of the block deal window with normal trading hours. Block deals involve trading of a large number of shares between two parties, which are typically pre-decided. The current framework also allows pricing of such deals close to the market rate — plus or minus one per cent from the previous close. The expert panel deliberated whether more flexibility could be provided by allowing pricing to be up to five per cent higher or lower compared to the last close. The SMAC will soon submit its recommendations to the...

Individuals to get bankruptcy protection soon Centre Begins Framing Rulesc The government has begun work on laying down a process for individuals to be declared bankrupt, which will help them deal with a financial crisis rather than be bogged down by it. The rules being framed will help a defaulter repay the money in a structured way, rather than being forced to cough it up to banks in one go. Sources said the idea is to make the process more humane as the rules would deal with a host of individuals — from farmers and kirana shop owners to a salaried middle class person who may be struggling to repay a loan for reasons like loss of job.“There is huge social stig-resolve and recover dues quickly ma attached to this. So, you cannot be punitive. People should be allowed to restructure their lives, ” said Sumant Batra, managing partner and head of the insolvency, secured transactions & corporate law practice at law firm Kesar Dass B & Associates. From this year, Saudi Arabia ha...

Sebi to turn the heat on audit committees Regulator’s board meeting on Sept 18; to take stock of action against 331 suspected shell firms Capital markets regulator the Securities and Exchange Board of India (Sebi) is likely to tighten norms pertaining to constitution and functioning of the audit committees for listed companies. These committees act as independent oversight bodies responsible for transparency and accuracy in functioning of company and the board. According to sources, the markets regulator plans to look at how India Inc is appointing members on the audit committee, their qualifications and whether they are discharging their duties, without undue influence of the promoters. ‘Proceedings of audit committee and reconstitution of the same’ is among the top agenda of the Sebi board meeting scheduled on September 18, said sources. Other agenda items include the surveillance action report on 331 suspected shell companies, changes to infrastructure investment trust (InvIT) n...