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Showing posts from May 30, 2018

Income-tax appeal limits may be raised to cut litigation

Income-tax appeal limits may be raised to cut litigation The CBDT is planning to increase the limit for appeals to the Income Tax Appellate Tribunal from Rs 1 million to Rs 2 million. In a move that will lead to more concentrated efforts in resolving tax litigation involving around Rs 5 trillion, the Central Board of Direct Taxes (CBDT) is planning to increase the threshold for filing appeals by income-tax (IT) authorities. The CBDT is planning to increase the limit for appeals to the Income Tax Appellate Tribunal (ITAT) from Rs 1 million to Rs 2 million. It also plans to increase limits for filing income-tax appeals in high courts and the Supreme Court from the current Rs 2 million and 2.5 million, respectively.“It has been observed that the threshold for filing appeals by the tax department against an unfavourable order is inordinately low. This is leading to a significant rise in the number of cases. It is a matter of serious concern that requires attention. Concerted action, therefor…

Govt wants RBI to frame dividend policy; to amend RBI Act

Govt wants RBI to frame dividend policy; to amend RBI Act This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18. The government is nudging the Reserve Bank of India (RBI) to formalise a policy governing the yearly dividends it pays to the Centre.Any such policy is likely to be given statutory backing through amendments in the RBI Act.This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18. A senior government official said that the government’s nominees to the RBI board – economic affairs Secretary Subhash Garg and financial services secretary Rajiv Kumar – will take this issue up in the next RBI board meeting.The planned amendments to the RBI Act will mandate the central bank to transfer a certain portion of its annual profits after making provisions for bad debt, depreciation, and other items. RBI’s views on …

Exporters GST refund: Second phase of fast track clearance drive from Thursday

Exporters GST refund: Second phase of fast track clearance drive from Thursday With an estimated Rs 20,000 crore exporters' refund still stuck, the government will launch the second phase of refund fortnight beginning May 31 to fast-track clearances. "Special Refund Fortnight" to be organised from May 31 to June 14 in which Center and state GST officers will strive to clear all GST refund applications received on or before April 30, 2018," GST@GoI, which is the official twitter handle for GST related matters, tweeted. Federation of Indian Export Organisations (FIEO) President Ganesh Gupta earlier in the day said refund of over Rs 20,000 crore is pending on account of IGST (integrated GST) and ITC (input tax credit). "Many exporters have not been able to file the refund of ITC due to technical glitches as input tax credit and exports happened in different months," Gupta said. In the first phase of refund fortnight observed between March 15 to March 30, the Cent…

Pharma Freebies Under GST Lens

Pharma Freebies Under GST Lens Companies offering schemes such as 1+1 may have to pay tax on the extra quantities Pharmaceutical companies offering buy-one-get-one-free schemes or 20% extra for the same price may have to pay goods and services tax (GST) on the extra quantities, raising prospect of the principle being applied to a broad spectrum of consumer products, said people with knowledge of the matter. The tax heads of firms such as Novartis India, Sun Pharma, Cipla, Lupin have been summoned for meetings with tax officials, they said. The Director General of GST (Intelligence), an arm of the indirect tax department, has begun investigations and sought details of incentives given to distributors, stockists and customers by about 30 companies. Demand may Lead to Litigation, Say Experts The tax authorities want them to either pay GST or reverse input tax credits on the extra quantities. “We did receive a query from the Director General of GST (DGGST) regarding trade discounts offered to…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…

India may have to End Export Promotion Plans If WTO Objects

India may have to End Export Promotion Plans If WTO Objects Panel set up by WTO’s Dispute Settlement Body to look expeditiously into US complaint on subsidies India’s export promotion programmes have come under the global trade watchdog’s scanner and would need to be stopped if found prohibited as per the World Trade Organisation (WTO) norms. The WTO on Monday referred a US complaint against India’s export promotion schemes to the Dispute Settlement Body (DSB) by establishing a panel to look expeditiously into the matter. Failing to find a mutually agreed solution in the stipulated 30 days to India’s export promotion programmes, which Washington claims harm American workers, the US had requested the establishment of a panel more than 10 days ago.“A panel has been established in the DSB under accelerated timelines of the agreement on subsidies and countervailing measures (SCM) on our export-related measures,” an official privy to the details told ET. The SCM agreement provides for accelera…

SGX delays launch of new India products as NSE gets injunction order

SGX delays launch of new India products as NSE gets injunction order Will continue offer SGX Nifty contracts till August 2018 The Singapore Exchange (SGX) has put on hold the launch of its new India derivatives products following the injunction order obtained by the National Stock Exchange (NSE) from the Bombay High Court.Through a circular dated April 11, SGX had announced the launch of three new India products—SGX India Futures, SGX India Bank Futures and SGX Options on India Futures. As the new products were strikingly similar to licensed Nifty products, NSE’s index providing arm India Index Services and Products (IISL) moved Bombay HC on May 21. On May 29, the court granted an interim injunction against the launch of SGX’s new India derivatives products. “In view of the uncertainty caused by IISL’s action, and after consultation with key stakeholders, we have decided to continue listing SGX Nifty contracts until August 2018, as contractually provided for under our licence agreement wi…