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Showing posts from January 7, 2019

Expedite GST on Energy: PMO

The Prime Minister’s Office has asked nodal ministries to speed up efforts to bring all states on board for the inclusion of oil, natural gas, electricity and coal under the ambit of the goods and service tax (GST). States have been reluctant because so far, they have the freedom to levy their own taxes — a significant part of the state revenue. Niti Aayog had reached out to the PMO with a blueprint to make the energy sector more competitive and ensure uniform pricing across India, a senior government official told ET, requesting anonymity. “Nodal ministries have taken recognition of the directive from the top and have initiated discussions with all stakeholders and states,” the official added. The next meeting of the GST Council will be held on January 10. Various stakeholders, including consumers, have demanded the power sector be brought in the ambit of GST, which may lower tariffs 10%. NITI Aayog is of the view that such a variety of subsidies and taxes distorts the market and prom…

CBDT Withdraws Circular on Share Valuation After Cong Claims ‘Win’

Days after issuing a circular that sought to clarify taxes on valuations, the Central Board of Direct Taxes (CBDT) withdrew it following a Congress party press conference at which it said the move would exonerate Rahul and Sonia Gandhi over income-tax liabilities in the Associated Journals Ltd (AJL) case. The withdrawal means that the taxman will again start challenging valuations in cases where there was a fresh issuance of shares. Experts said the withdrawal of the circular has created confusion for several companies that had received tax demands on valuations. “I don’t know why the government is creating so much confusion in the investing space. Just a simple clarification was required so that genuine investments from listed companies, Sebi-registered AIFs (Alternative Investment Funds), holding companies into subsidiaries, angel funds into DIPP-registered startups, other similar investments should have been made exempt,” said Jeenendra Bhandari, partner, MGB, a chartered accountanc…