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Showing posts from May 3, 2018

From bank info to e-way bills, govt eyes more data to curb tax evasion

From bank info to e-way bills, govt eyes more data to curb tax evasion
New Delhi: The Union government has signalled its intent to tighten scrutiny of businesses.
For this, it is proposing to mine all data points, not just limited to direct and indirect taxes, but extending to transaction information collated from banks, details disclosed to the ministry of corporate affairs and the shops and establishment department of states and data collected from e-way bills.
All of this will be part of the fraud analytics infrastructure the government is creating for indirect taxes. It will entail building a risk profile of the taxpayer using information such as sales, purchases, links with suspect firms and dealings in sensitive commodities under the goods and services tax (GST).
The government is hoping that fraud analytics of the massive amount of information collected from various sources will help in plugging revenue leakages under GST by identifying methods employed by taxpayers to avoid paying…

In non-payment of taxes, the authorities will follow it up with the seller, based on the liability generated from the invoice upload

In non-payment of taxes, the authorities will follow it up with the seller, based on the liability generated from the invoice upload In a relief for businesses, the Goods and Services Tax Council is to simplify filing of returns at a meeting on Friday, through a ‘hybrid model’ recommended by a panel led by Bihar deputy chief minister Sushil Modi. The proposed model is a fusion between the recommendation by Infosys Chairman Nandan Nilekani and the ‘provisional credit model’ suggested by government officers. A buyer will get input tax credit based on the seller's uploading of invoices, including missing ones. This would be irrespective of whether seller has actually paid the tax. “The Council will discuss (this). It is expected to get acceptance,” said an official.In the provisional credit model, the buyer would provisionally get input tax credit once he uploaded the missing invoices. This was to get reversed in three months if the seller had not uploaded the invoices and paid the tax…

The revenue department will focus on quarterly average of GST revenues for better analysis of revenue trend, an official said.

The revenue department will focus on quarterly average of GST revenues for better analysis of revenue trend, an official said. While the Goods and Services Tax (GST) collections in April- the first month of the current fiscal - came in at Rs 1.03 trillion, the average monthly collection last fiscal from August-March was Rs 898.85 billion
"The department will look at quarterly revenue trends to better gauge the revenue trend. The aim is to increase the average revenue collection from what we achieved last fiscal," a senior official said.
From 2018-19 fiscal, the government has shifted to a cash basis of accounting where revenues accrued at the completion of a month would be taken on record immediately at the end of the month.
Accordingly, the Rs 1.03 trillion GST collected in April reflects the Central GST and State GST which accrued in March.
While releasing the April tax collection data on Tuesday, the Finance Ministry had said that in March which is the last month of a financia…

RBI policy relatively insulated from global monetary policy: Staff paper

RBI policy relatively insulated from global monetary policy: Staff paper Monetary policy in India is largely independent of spillovers from unconventional global monetary policy, says a paper from Reserve Bank of India (RBI) staff. “Heightened sensitivity of foreign exchange and equity markets to global spillovers notwithstanding, there is no strong evidence of domestic monetary policy losing traction because of global spillovers,” said the paper. It is authored by Michael Patra, Sitikantha Pattanaik, Joice John and Harendra Behera. Patra is an executive director at RBI and member of the six-member Monetary Policy Committee. He has advised rate hikes several times against the other members voting for a pause, or even a cut. The other three are advisors to the monetary policy department. “Monetary policy transmission through the money and credit markets is unaffected by global spillovers. In the debt market, however, transmission is impacted, producing occasional overshooting and over-cor…