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Showing posts from January 2, 2018

Govt to classify shell firms by month-end

Govt to classify shell firms by month-end The government will come up with a proper definition of what a shell company is by the end of this month. According to sources, the Prime Minister’s Office (PMO) had in February last year constituted a special task force to tackle malpractices by shell companies. The task force will lay down specific guidelines to validate the clampdown on shell companies. The definition of shell firms is expected to be inserted in the Companies Act, securities laws, and also in the Income-Tax (I-T) Act, wherever applicable. The Centre is working on recommendations from multiple enforcement agencies and regulatory bodies, sources said. “We have received a lot of suggestions in this regard as there is no law that defines the subject and related parameters,” said an official privy to the development. According to the official, the special task force had directed all enforcement agencies concerned, including the Central Board of Direct Taxes, Enforcement

SBI surprises with 30 bp base rate cut

SBI surprises with 30 bp base rate cut In a surprising move at the start of the year, State Bank of India (SBI) reduced its base rate and benchmark prime lending rates (BPLR) for existing customers by 30 basis points each effective from January 1. One basis point is a hundredth of a percentage point.The bank said it would also extend its on going waiver on home loan processing fee till March 31 for new customers and for customers switching their loans from other banks to SBI. Though all new customers are offered the marginal cost based lending rate (MCLR),alarge chunk of retail customers —especially on the home loan side —as well as old corporate loans, are still in the base rate system.About 8 million customers would benefit from this move, said PKGupta, managing director (retail and digital banking), SBI. The revised base rate for the bank is now 8.65 per cent, while the BPLR is 13.40 per cent.The base rate is the minimum a bank can offer to its customers“The reduction in t

Bankruptcy will dictate M& Atrend in 2018

Bankruptcy will dictate M& Atrend in 2018 On the first day of the year when most holiday, Sourav Mallik, joint managing director at Kotak Mahindra Capital, is chalking out his mergers and acquisitions (M&A) strategy sitting at his BandraKurla Complex office in Mumbai.“We expect domestic consolidation to be the larger M&Atheme this year Especially with the new legal process for bankruptcy, home grown firms are better placed to deal with it,” he said.According to the data available with Thomson Reuters for deals up to December 12, 2017, India had M&Aworth Rs 55.9 billion last year.Of this 33 per cent, worth Rs 18.4 billion, was in the telecom sector as the launch of Reliance Jio services at a record low price disrupted the industry. This includes the proposed merger of Vodafone India and Idea Cellular that is valued at Rs 11.6 billion.Besides, last week Reliance Jio also announced the acquisition of Anil Ambaniled RCom´s wireless assets for an undisclosed amount.B

GST: Centre relaxes norms for rectification of tax returns

GST: Centre relaxes norms for rectification of tax returns The finance ministry has permitted businesses to rectify mistakes in their monthly returns —GSTR3B —and adjust tax liability,amove that will help them file correct returns without fear of penalty.This relaxation will give an opportunity to businesses to claim tax credit correctly by rectifying the mistakes made initially while computing the goods and services tax (GST) liability. Businesses have been finding it difficult to assess tax liability correctly after India moved to the GST regime with effect from July 1, 2017.Industry bodies have been demanding relaxation of norms and easier compliance provisions to help businesses adapt to the new system of filing tax returns online. The Business Standard, New Delhi, 2nd January 2018

Govt closes subscription for 8% savings bonds from today

Govt closes subscription for 8% savings bonds from today The government savings bonds, 2003, one of the most sought after investment instruments among the middle class, particularly senior citizens, which gave an assured return of 8 per cent per annum, will be closed for subscription from January 2.“The eight per cent GOI Savings (Taxable) Bonds, 2003, shall cease for subscription with effect from the close of banking business on Tuesday, January 2, 2018,” the Ministry of Finance said in a statement on Monday. The bond, which the Reserve Bank of India (RBI) started issuing on the behalf of the Union government in 2003, was considered to be one of the safest savings instruments for retail investors.It got more traction in recent years as interest rates on bank fixed deposits and small savings schemes gradually declined The bond had alockin period of six years and was available for purchase by individuals on tap.Former finance minister PChidambaram said the move to scrap the bond