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GST Council to take up 5% sugar cess to compensate cane farmers Meanwhile, many states are opposed to the idea of a separate cess under the GST as it goes against the principle of the uniform indirect tax The GST Council will at its meeting on Friday consider a proposal to impose a sugar cess to compensate cane farmers. The proposal by the ministry of consumer affairs, food and public distribution for a 5 per cent sugar cess will be outside the purview of the compensation cess under the goods and services tax, and hence will need a separate law. “The sugar cess proposal will be taken up by the council. It will be a different cess from the compensation cess and will need a separate act of Parliament or by way of a provision in the Finance Act,” said a government official. The government may choose to go ahead with this by way of an ordinance, he added. Currently, only the compensation cess is within the purview of the GST law, and is levied on a handful of luxury and demerit i

GST Council to take a call on converting GSTN into a govt-owned company 'Hiring and firing' was faster since it was a private company says GSTN CEO Prakash Kumar Amid data security concerns, the GST Council will take a call on converting GST Network (GSTN), the IT backbone of the indirect tax system, into a government-owned company during its meeting on Friday. However, irrespective of government ownership, manpower-related flexibility was likely to be provided through a built-in human resource policy, officials said. GSTN CEO Prakash Kumar had told Business Standard earlier that “hiring and firing” was faster since it was a private company and the private sector salary structure helped it hire the right kind of people The Business Standard, New Delhi, 04th May 2018

RBI asks listed firms to provide FPI data to depositories by May 15 Currently, the RBI receives data on investment made by foreign portfolio investors (FPIs) and non-resident Indians (NRIs) on stock exchanges from banks, based on which restrictions beyond a threshold limit is imposed on such investments in listed Indian companies The Reserve Bank today asked all listed companies to provide information on FPI investments to depositories before May 15 or else they will be barred from receiving foreign investments. Currently, the RBI receives data on investment made by foreign portfolio investors (FPIs) and non-resident Indians (NRIs) on stock exchanges from banks, based on which restrictions beyond a threshold limit is imposed on such investments in listed Indian companies. In order to enable listed companies to ensure compliance with various foreign investment limits, the RBI in consultation with market regulator SEBI has decided to put in place a new system for monitoring forei

 Firms to challenge input tax credit notices, revenue department's stand According to Cenvat rules, companies have to reverse input tax credit on exempted turnover arising out of non-core businesses Some of the companies that have received notices to reverse input tax credit in service tax are planning to challenge the revenue department's stand at the commissioner level. According to them, they should not be served the notices as they have not given any services by investing in securities and mutual funds. The notice, if upheld, could have repercussions for the Goods and Services Tax (GST) regime as well as similar provisions exist in the new indirect tax regime as well. The companies have not been trading in stocks but investing in stocks and as such not providing any services, said Abhishek Rastogi, partner with Khaitan & Co. Experts said, services are provided by mutual funds, or brokers or investment advisers and not these firms. They are, in fact, recipient of

RBI asks banks, firms to divulge more data on forex The Reserve Bank of India (RBI) on Thursday told banks to share data with the Directorate of Revenue Intelligence. The directive was in compliance with a notification by the Customs department on december 14, 2017 that said  banks must share all data regarding forex transactions of any individual. The RBI said banks should start following it with immediatie effect. The RBI also said a new format wil be released to motion foreign investments in listed indian firms.    The Business Standard, New Delhi, 04th May 2018