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Leased vehicles: Govt provides clarity on tax rate Leasing of vehicles purchased priorto July 1 will attract a tax equivalent to 65 percent of the current applicable GST (goods and services tax) rate for a period of thre eyears, the government said on Thursday.The GST Council, comprising Union Finance Minister Arun Jaitley and state finance ministers, in its last meeting on October 6 had  decided to levy concessional rate for leased vehicles. Also, such vehicles when sold will attract a GST of 65 percent of the  applicable GST rate, including compensation cess. Sale of vehicles by a registered person who had procured the vehicle priorto July1,2017 and has not availed any input tax credits of central excise duty, VAT (value added tax) or any other taxes paid on such motor vehicles, will also be subject to 65 percent of applicable GST rate. These rates would apply for three years with effect fromJuly1,2017. The Business Standard, New Delhi, 13th October 2017

RBI proposes forex platform for retail customers The Reserve Bank of India (RBI) on Thursday proposed retail customers  access to the currency trading platform, and that prices should be in line with the inter-bank market through an in built mechanism on the platform.In a discussion paper on its website, the central bank said the existing FXCLEAR platform should be extended to the retail customers through an internet based application. However, the retail market will be separate from the interbank market.While banks can access both the institutional and retail markets, retail customers would be limited to the retail market segment of the platform.Both the markets will have the same timings, 9 am to 5 pm, where orders can be placed anonymously.The minimum order size would Rs 1,000 and there after in multiples of Rs 500. The maximum order size would be Rs 500,000 for retail customers. “The system will have a functionality to aggregate customer orders at the same rate up to the mi...

HC Notice to Govt over Disqualification of Shell Cos' Directors The Delhi High Court has issued notice to the Ministry of Corporate Affairs and Registrar of Companies (RoC) on a petition challenging the disqualification of more than one lakh directors of shell companies.The Ministry of Corporate Affairs, last month, identified 1,06,578 directors of shell companies for disqualification.While issuing notices to the ministry, the HC also stayed the disqualification of three such directors. Advocate Manish Jain, counsel for the petitioners, challenged the vires, Latin for powers, of Section 164 (2) of Companies Act, 2013 which was notified in the year 2014.Jain said that the section was wholly ambiguous, as it is unclear as to whether it is applicable only to existing directors or extends to all those who no longer are directors of the disputed shell companies. “The vires of the section in question has been challenged,“ Jain told ET. He argued that the ministry had violated the pri...

GST Council to take up real estate in November meeting Aadahaar could be made manadatory for buying internationl air tickets,car Realestate, a sector prone to tax evasion, might soon come under the goods and servicestax(GST) net.The GST Council would consider this at its next meeting on November10in Guwahati, finance minister Arun Jaitley said on Wednesday— early Thursday morning in India— at Harvard University. While delivering a lecture on tax reforms in the country, he called the taxation system in India one of the least efficient in the world, with a very small tax base. He also hinted at making Aadhaar mandatory for buying a car or international air tickets in the future, taking a cue from the recent Supreme Court judgement. The GST was rolled out on July 1, replacing a large number of indirect taxes with one unified tax of five rates.Petroleum, real estate, and alcohol were kept out of its ambit.“The one sector in India where maximum amount of tax evasion and cash generat...

Press Release Ministry of Finance dated 12 Oct, 2017 Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess). I n order to provide relief to old/existing leases of motor vehicles, GST Council in its 22nd Meeting held on the 6th October, 2017 in the national capital took several decisions in respect of motor vehicles purchased and leased prior to 1st July, 2017. These decisions are as given below:- a)Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess). b)Such vehicles when sold shall attract GST of 65% of the applicable GST rate (including Compensation Cess). c) Sale of vehicles by a registered person who had procured the vehicle prior to 1st July, 2017 and has not availed any Input Tax Credits of Central Excise duty, VAT or any other taxes paid on such motor v...