CA Online

  E-commerce policy in six months; to tackle data privacy and tax issues On the issue of a potential regulator for the sector, the Commerce Secretary said it would depend on whether the policy needed legislative requirements and new regulations or existing laws sufficed The government has announced that a framework for an e-commerce policy will be prepared within the next six months. The comprehensive policy is expected to focus on all aspects of the e-commerce business and consumers. It will encompass data privacy and taxation, apart from a host of technical aspects such as technology transfer, server localisation and connectivity issues. Commerce Secretary Rita Teaotia said on Tuesday that a large number of ministries, key industry players and several regulators, including the Competition Commission of India and the Telecom Regulatory Authority of India, would be involved in drafting the policy. The think tank tasked with drafting the policy held its first meeting on Tuesday.

Draft Rules Framed on Capital Gains Tax Where STT Not Paid Bonus shares, policy compliant foreign investment eligible for 10% tax even though STT not paid The income tax department has put out draft rules specifying situations where the recently imposed capital gains tax would apply even though no securities transactions tax (STT) has been paid. Bonus shares, policy compliant foreign investment, shares acquired via a will or inheritance, court or regulator approved acquisition, shares acquired under insolvency resolution and those under government disinvestment among others would be eligible for the new capital gains tax regime even though STT is not paid. The department has sought comments on the draft rules that recognise genuine transactions where STT could not have been paid. Once these rules are in force, these transactions would be eligible for tax at the rate of 10% even though there is no STT paid. Otherwise, such gains can face higher tax if clubbed with income. The

I ndia may Face Pressure to Cut Duties on 90% of Goods Traded with China India is likely to face greater pressure to eliminate duties on 90% of goods it trades with China under the mega trade agreement among 16 Asia Pacific countries that is in the works. Officials said that China, which has till now not aggressively pushed to fast track negotiations in the Regional Comprehensive Economic Partnership (RCEP), has shown a new keenness to “engage actively” ahead of the next round of talks later this week, the first after it its trade standoff with the US. The talks are scheduled for April 28- May 8 in Singapore. “The current situation can influence our negotiations. China looks keen to engage actively,” said a government official. Beijing’s sudden interest in the closure of the RCEP is fuelled by Washington’s renewed interest in the Trans-Pacific Partnership (TPP) agreement, another mega regional trade partnership. Incidentally, seven countries-Australia, Brunei, Japan, Malaysia

LTCG tax: No STT likely on employee stock options plans, inherited shares Listed shares received through family succession or will of the deceased and acquired till January 31 will not attract STT The income-tax (IT) department has proposed to exempt employee stock options plans (ESOPs) given till January 31, 2018, from the securities transaction tax (STT), while availing the benefits of grandfathering and threshold exemption in long-term capital gains (LTCG) tax at 10 per cent. Also, listed shares received through family succession or will of the deceased and acquired till January 31 will not attract STT. The department has sought comments on these proposals by April 30. There have been queries on whether the 10 per cent LTCG tax will be applicable if STT was not paid at the time of acquiring certain off-market transactions or whether these assessees will have to pay LTCG tax under different provisions where certain concessions were not available. The new tax is imposed un