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Showing posts from October 4, 2017

Advance Authority for Rulings in Demand to Clear Doubts on GST

Advance Authority for Rulings in Demand to Clear Doubts on GST Fight for Forum Cos, associations approaching courts in absence of advance ruling mechanism A few senior tax officials and corporates have requested the government to start Advance Authority for Rulings as early as possible to clear doubts on goods and services tax (GST), as this will prevent companies and associations from approaching courts for clarity .

Advance Authority for Rulings (AAR) is a forum companies customarily approach to get clarity on certain tax issues to determine their future liability. Absence of such an authority is leading to many companies and associations dragging the GST Council and government to court, say industry trackers.

At the last count, about 10 writ petitions were filed, challenging some aspect of GST. About half a dozen more writs would be filed in the next fortnight alone. The trigger may have been some prominent companies, associations and multinational banks having either moved court or …

Disqualified Directors Seek Reprieve from Ministry

Disqualified Directors Seek Reprieve from Ministry Disqualified directors have started knocking on the doors of the Ministry of Corporate Affairs (MCA) seeking reprieve from the debarment ordered by the government last month, with several of them explaining to the government that they have been wrongly disqualified and that they were not associated with the struck-off companies.

The government could consider coming up with some solution for the aggrieved directors since no recourse is currently available under the Companies Act 2013. While companies can approach the National Company Law Tribunal (NCLT), directors have no such option. “The directors have got disqualified by the operation of law. We had sent notices to the companies before we struck off their names. We are seeing what can be done now...discussions will start soon,“ a senior official told ET.

Chartered accountants and company secretaries have also met government officials over the disqualification of directors. Many CAs ha…

Sebi breather on loan default disclosure

Sebi breather on loan default disclosure Regulator is considering increasing the timeline for disclosing defaults to 30 days The Securities and Exchange Board of India (Sebi) is looking to issue a more relaxed loan default disclosure framework.

According to sources, the market regulator now plans to give up to a month’s time to companies for disclosing loan defaults and also make provision to explain the nature of the default. Under the previous proposal (according to a circular dated August 4) — the implementation of which has been deferred — Sebi had mandated companies to make public any loan default within 24 hours of missing the repayment obligation.

Sources said Sebi is re-looking at some of the contentious issues in the proposed circular, which have been brought to its notice by market players, including industry bodies, banks and rating agencies.

Under the revised directives, Sebi may increase the “delta D” or date of default to 30 days and may give some additional time to compani…

Centre to crack whip on firms not filing cost audits

Centre to crack whip on firms not filing cost audits The Ministry of Corporate Affairs is planning to pull the plug on companies that do not file cost audits to ensure these businesses pay accurate corporation taxes and consumers know the pricing of products.

A senior official said the ministry will examine companies across 10 sectors to identify companies that do not hire cost accountants and file reports. Textiles, machinery, insecticides, milk powder, glass, tea and coffee are some of the sectors that will be monitored.

The move will ensure firms do not evade corporation tax, the official explained. Cost audit, which reflects efficiency of the company concerned, also provides the consumer an idea about the fair price of products.

The official stated the plan is being thought of in the interest of investors as well. “Filing of cost audits will tell us if companies are fudging numbers, and will also tell investors what the company’s costing plan is,” the official added.

At present, there…

GST anti-profiteering body: Govt to examine contours today

GST anti-profiteering body: Govt to examine contours today The Union Cabinet is likely to approve setting up of an anti-profiteering authority under the goods and services tax (GST) regime on Wednesday. Prime Minister Narendra Modi headed Cabinet may also approve creation of the post of chairman and four technical members of the authority on Wednesday, officials said. To keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the GST regime, the GST Council had approved setting up of a five member National Anti-Profiteering Authority. The authority will have a sunset date of two years from the date on which the chairman assumes charge. The chairman and the four members of the authority have to be less than 62 years.

The Business Standard, New Delhi, 04th October 2017

Tax dept to engage with corporates to spur receipts

Tax dept to engage with corporates to spur receipts Amid slowing growth in advance tax collections, the income-tax department is exploring enhanced engagement with the top 100 companies to facilitate compliance. A committee set up under the direct tax department to review assessment and scrutiny has identified “taxpayer segmentation” to improve collections.

“The idea is to provide differential treatment to big taxpayers as they make up for the bulk of the revenue collection. The tax department is, after all, a 30 per cent stakeholder in corporate sector earnings. Stepping up engagement with them will help the department and the companies,” said a government official.

The idea is to have a dedicated tax officer who will act as a one-point contact, keeping a close watch on a company’s quarterly results or performance, facilitating advance tax filing and helping estimate earnings for advance tax computation.

Advance tax collection up to September 15 slowed to 11 per cent as against 14 per c…