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Showing posts from September 3, 2018

‘Missing’ Service Tax Credit in GST Law Worries Cos

A seemingly missing provision from the fine print in the amendments to the central GST law approved by Parliament in the monsoon session has led to a furore in the industry, A seemingly missing provision from the fine print in the amendments to the central goods and services tax (GST) law approved by parliament in the monsoon session has led to a furore in the industry. Tax practitioners say the latest changes deny carryforward of credit for cesses, as intended, but credit for service tax has also been done away with. A government official, however, played down the concerns saying the interpretation being drawn is erroneous. He told ET that the government will issue a clarification if it is so needed as the intent of the law is very clear. The issue, experts say, stems from the retrospective amendment to Section 140 (1) of the CGST Act 2017 that empowers assessees to transition the closing balance of cenvat (central value added tax) credit in the erstwhile indirect tax regime to the GS…

RBI Buys Gold for 1st Time in Nearly a Decade

DIVERSIFYING ITS ASSETS Investing in gold is a prudent treasury move by the central bank at a time of rising yields. The Reserve Bank of India (RBI) has bought gold for the first time in nearly a decade, signalling that the metal could be in demand as a store of value when returns and capital values of fixed-income bonds are declining in a rising rate environment. The RBI added 8.46 metric tonnes of gold to its stock of holdings during the financial year 2017-18 that ended June 30, taking the level of gold reserves to 566.23 metric tonnes, according to its latest annual report. It last bought 200 metric tonnes from the IMF to boost its reserves in November 2009. Over the past nine years, the gold stock in RBI reserves was stable at 17.9 million troy ounce. But RBI has started adding to its stock since December 2017, data submitted to the IMF indicate. Stock of gold, as of June 30, amounted to 18.20 million troy ounce or equivalent to 566.23 metric tonnes, up from 17.9 million troy ounce…

Direct tax collections grow at 6.6% and corporation tax barely 1%

Officials said the tax department refunds Rs 750 bn in the first four months of the current financial year, half of what was refunded in the entire FY18.The government might be talking about the surge in filing of Income Tax returns till the August 31 deadline, but direct tax collection data available so far are unlikely to bring a loud cheer.  The numbers released by the Controller General of Accounts (CGA) on Friday revealed that direct tax collections grew by a meagre 6.6 per cent during April-July of the current financial year against the Budget target of 14.4 per cent for 2018-19. The growth was in comparison with the corresponding period of the last three years.Corporation taxes, in particular, disappointed the exchequer. These collections grew at just 0.57 per cent, the lowest in the first four months in at least seven years. Corporation taxes are budgeted to yield 10.15 per cent more revenues to the coffers at Rs 6,210 billion in FY2019 against Rs 5,637.45 billion in the previo…