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Showing posts from June 27, 2018

Sebi files appeal against Rs. 210 cr tax demand

Sebi files appeal against Rs. 210 cr tax demand The Securities and Exchange Board of India (Sebi) has filed an appeal in the goods and services tax (GST) tribunal against a tax demand of Rs. 210 crore for providing various services in the 2013-16 period, two people familiar with the development said. This follows the failure of talks with the finance ministry officials to waive the tax demand, and greater conviction within the regulator that it has a strong case under the Finance Act. The case pertains to tax liability on services provided by Sebi to entities such as stock exchanges, their members, brokers and investors for processing initial public offerings, debt issues, mutual funds and new fund offers, besides providing informal guidance to firms. In 2013, the tax department had said these services were not in a ‘negative list’ of nontaxable services and were hence taxable. In February 2013, services rendered by Sebi were not put in negative list. The Union Budget 2016-17 amended th…

GST may have nodal appellate authority

GST may have nodal appellate authority The revenue department is considering setting up of a centralised appellate authority to deal with the problem created by contradictory verdicts passed by the Authority of Advance Rulings (AAR) in different states, a top official said on Tuesday. Under the Goods and Services Tax (GST) law, each state is required to set up an Authority for Advance Rulings (AAR) comprising one member from the central tax department, and the other from the respective state. In view of the confusion being created by contradictory rulings given by different authorities on the same or similar issues, the Finance Ministry is planning to set up a centralised appellate authority which could reconcile the contradictory verdicts of different AARs. The Mint, 27th June 2018, New Delhi

Bad loans at banks will rise further this fiscal: RBI report

Bad loans at banks will rise further this fiscal: RBI report Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31, placing additional strain on the already stressed financial system, a central bank study warned. Gross non-performing asset ratio of banks will rise to 12.2% by March 2019 from 11.6% at the end of the previous fiscal if economic conditions remain the same, said the Reserve Bank of India financial stability report released on Tuesday. RBI’s latest report said that weak profitability of banks is an additional concern as it prevents lenders from setting aside adequate money to cover potential losses on loans and makes them vulnerable to adverse shocks. In a scenario of severe stress, this ratio may rise to as high as 13.3% by March, the report said. For public sector banks, this ratio may jump to 17.3% by March. Rising b…

E-TAILERS GET THREE MONTHS’ BREATHER

E-TAILERS GET THREE MONTHS’ BREATHER The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September end. The GST Council in its meeting on Mrach 10 suspended the provision for decduction of TDS and collectionn of TCS, as well as implementation of the reverse charge mechanism (RCM) till June 30. With this, e-commerce companies can heave a sigh of relief since they would not be required to collect 1 percent TCS while making payments to suplier under GST. According to Central GST (CGST) Act, notified entities are required to collect TDS at 1 per cent on payments to goods or services supliers in excess of Rs. 2.5lakh. The resverse charge mechansim, under which registered dealers need to pay taxes in case the goods are procured from unregistered business alo stands deferred till September end. The Business Standard, 27th June 2018, New Delhi

GST mop-up will touch Rs 1 trillion a month in FY19, says Hasmukh Adhia

GST mop-up will touch Rs 1 trillion a month in FY19, says Hasmukh Adhia Refunds have improved substantially now, 90 per cent of claims have already been approved or rejected As GST rollout is to complete a year in a few days, finance secretary Hasmukh Adhia tells Dilasha Seth and Indivjal Dhasmana that the system has perfectly stabilised now. Adhia, who played a critical role, in the roll-out says bringing petroleum under GST is no solution to their high prices. Edited excerpts: After the GSTN portal crashed in initial months and then at a time of original date of e-way bill, has the GST system stabilised now? I may beg to differ. There was no crash of the portal, there were minor glitches initially in certain applications. Those were set corrected very soon. Of course, the system has perfectly stabilised now. Both the Centre and states collected less than the target in the first eight months of GST roll out in 2017-18. Do you think the target will be met in the current financial year? I t…

New EPFO rules: Now, withdraw 75% funds after 1 month of unemployment

New EPFO rules: Now, withdraw 75% funds after 1 month of unemployment At present, a subscriber can withdraw his or her funds after two months of unemployment and settle the account in one go Retirement fund body EPFO on Tuesday decided to give its members an option to withdraw 75 per cent of their funds after one month of unemployment and keep their PF account with the body. The members would also have an option to withdraw remaining 25 per cent of their funds and go for final settlement of account after completion of two months of unemployment under the new provision in the Employee Provident Fund Scheme 1952. “We have decided to amend the scheme to allow members to take advance from its account on one month of unemployment. He can withdraw 75 per cent of its funds as advance from its account after one month of unemployment and keep its account with the EPFO,” Labour Minister Santosh Kumar Gangwar, who is also the Chairman of EPFO’s Central Board of Trustees, told reporters after the t…