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Showing posts from December 14, 2017

GST Network simplifies returns filing process

GST Network simplifies returns filing process The GST Network said it has introduced a functionality which simplifies the returns filing process for taxpayers."A new functionality has been introduced on the GST portal for ease of the taxpayers under which questions will be posed as soon as the taxpayer enters the Returns dashboard and only relevant tiles will be displayed to the taxpayers based on the answers to the questions posed," the GST Network said in a statement This has been started first with GSTR-3B returns (initial sales return), it added.For 'nil' GSTR 3B returns, one-click filing has been introduced as no tile will be shown to such taxpayers. Also, a help section has been provided on each page for the convenience of the taxpayer."Until now, taxpayers were shown all tiles with payments when they enter the Returns dashboard but now they will be shown only those tiles which are relevant for them "They will be asked questions and basis their response,…

RBI stays firm on MDR revision

RBI stays firm on MDR revision Retailers across the country are protesting against the RBI’s move to “rationalise” the MDR based on the turnover of the merchant establishment

The Reserve Bank of India (RBI) made it clear on Wednesday that it would stay firm on recent revisions to the merchant discount rate (MDR).Retailers across the country are protesting against the RBI’s move to “rationalise” the MDR based on the turnover of the merchant establishment. The MDR is the rate charged to a merchant by a bank for providing debit and credit card services. Under the revised rule, merchants with a turnover of more than Rs 20 lakh would have to pay a maximum MDR of 0.9 per cent of the transaction value to banks. But for smaller establishments, the MDR would be 0.4 per cent of the transaction value. The Retailers Association of India (RAI) has been vocal about the changes, but RBI Deputy Governor B P Kanungo said in a select press interaction that the association did not provide feedback to the dr…

Sebi norm on profit-sharing puzzles firms

Sebi norm on profit-sharing puzzles firms Norms issued by the Securities and Exchange Board of India (Sebi) on profit-sharing agreements have forced companies to seek clarifications. A round six companies have sought informal guidance over applicability of the provisions in various situations. An informal guidance is a method for entities to seek interpretation from the market regulator on any regulation, circular or guideline. Although Sebi acts in accordance with an informal guidance, it is not a binding obligation. Legal experts say there are many grey areas in the circular issued by Sebi in November last year to curb profit-sharing arrangements, which are typically side-deals between the managements of companies and private equity investors. One of the key issues is how “profit” is interpreted because there is no standard definition, experts point out. Further, it is unclear whether the provisions are applicable to payments made in unlisted subsidiaries of listed companies. Also, wheth…

Banks, insurance companies under lens for inflated tax credits

Banks, insurance companies under lens for inflated tax credits The government is keeping a watch on some banks, insurance companies and technology and telecom firms after it announced that errors in tax credit claims should be rectified, according to two people aware of the matter. "There are instances where the transitional credit has jumped by more than 50% from the period before GST (goods and services tax). The government want these companies to return transitional credit either erroneously claimed or inflated," one of the persons said, requesting not to be named. A few companies in FMCG and consumer durables sectors are also under the scanner, the person said. Tax credit is the amount that can be set off against a taxpayer's liability. When India moved to GST, many companies faced a situation where they had paid tax on old stock and availed credit but had to now set it off against the GST liability. Transitional credits are tax credits accumulated before July 1on pre-G…

To avoid extra TDS, give tax-saving proofs

To avoid extra TDS, give tax-saving proofs If you don’t submit proof of tax-saving investments and expenses, your employer will deduct tax as per the applicable slab rate, without considering tax deductions Though a few months are still left for financial year 2017-18 (FY18) to end, your employer will soon ask or might have already reminded you to submit proof of tax-saving investments and expenses to claim various tax deductions. If you fail to submit the documents, your employer is liable to deduct tax as per the applicable slab rate, without considering tax deductions. And if that happens, you may end up paying extra tax in the form of tax deducted at source (TDS), from the salary of the remaining months of the FY. Here’s what you need to do to avoid paying more tax than you have to. Document submission There is no specific date mentioned in the income tax laws regarding submission of tax-saving investment documents to the employer. “As such there is no statutory time limit for submitti…

To avoid extra TDS, give tax-saving proofs

To avoid extra TDS, give tax-saving proofs If you don’t submit proof of tax-saving investments and expenses, your employer will deduct tax as per the applicable slab rate, without considering tax deductions Though a few months are still left for financial year 2017-18 (FY18) to end, your employer will soon ask or might have already reminded you to submit proof of tax-saving investments and expenses to claim various tax deductions. If you fail to submit the documents, your employer is liable to deduct tax as per the applicable slab rate, without considering tax deductions. And if that happens, you may end up paying extra tax in the form of tax deducted at source (TDS), from the salary of the remaining months of the FY. Here’s what you need to do to avoid paying more tax than you have to. Document submission There is no specific date mentioned in the income tax laws regarding submission of tax-saving investment documents to the employer. “As such there is no statutory time limit for submitti…

Banks set to crack down on defaulters in RBI’s second list

Banks set to crack down on defaulters in RBI’s second list A majority of companies on RBI’s second list of loan defaulters, including Monnet Power and Visa Steel, will be referred to NCLT for bankruptcy proceedings Banks are set to refer a majority of the 28 loan defaulters cited in the Reserve Bank of India’s (RBI’s) second list to bankruptcy courts starting Thursday, as the central bank prods lenders to speedily resolve bad loans clogging their balance sheets. After its first list of 12 large defaulters was sent to banks in June, RBI sent a second list of 28 troubled companies in late August, accounting for Rs 2 trillion of bad loans, asking lenders to find resolution plans for them by 13 December or start insolvency proceedings by December end. The assets of some of the 40 top defaulters are likely to be sold over the next few months as RBI and the government pushes lenders to speed up the resolution of Rs10 trillion of soured loans. This, along with the government’s Rs 2.1 trillion ca…