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Levy will raise co's tax obligations by almost 50% The proposed 6% equalisation levy on the online advertisement revenue of foreign companies introduced in the Finance Bill 2016 will “cripple the startup companies“ and raise their tax obligations by almost 50%, the Internet and Mobile Association of India (IAMAI) has said. The industry body said that the levy will have a severe impact on Indian technology startups and small and medium enterprises (SMEs), which it said are primary users of digital ad platforms such as Google and Facebook. An eight-member committee on taxation of ecommerce had in a report, released last month, proposed that services ranging from online advertising and cloud computing to software downloads and web hosting be subject to an “equalisation levy“ of 6-8% of gross payment if the provider of the service is a foreign entity without a “permanent establishment“ in India. “The tech startups are already paying 14.5% service tax to use these ad platforms which am

As interest rates are expected to move south, many savvy investors are buying tax- free bonds in the secondary market. Some of these an effective yield of over seven per cent or 10 per cent return before tax — an attractive rate for those in the highest income tax bracket. “We are advising the clients who are looking to make fresh investments in debt to add tax- free bonds in their portfolio. It’s a good time to get into these bonds.  With pretax returns of around 10 per cent, they are attractive compared to other instruments,” says Sriram Iyer, chief executive officer of Religare Wealth Management.  These bonds are liquid and are issued by companies that are not only backed by the government but also have high credit ratings. “ The interest rate risk at present is also low as rates are expected to go down further. These factors make them extremely safe to invest,” Iyer says. State Bank of India’s 10- year fixed deposit offers seven per cent interest. For those in 30 per cent tax brac

The Securities and Exchange Board of India ( Sebi) has deferred the deadline for enhancing scheme related to disclosures for mutual fund houses. In a circular dated March 18, 2016, the market regulator had asked fund houses to disclose, effective from May 1, the aggregate investment in schemes by asset management companies board of directors, fund managers and other key managerial personnel. In a letter to the industry body Association of Mutual Funds in India (Amfi), Sebi has pushed back the deadline by a month. Also, fund houses are not required to show on its website separate scheme information document ( SID) and key information memorandum ( KIM) for each MF scheme managed by the AMC. Industry officials say the whole new system required lot of technical changes which would have required time. However, on the salary disclosures issue, there has not been any relief and sources told the Business Standard despite requests from fund houses. According to the circular, each fund house ha

Joint committee cuts timeline from 60 to 45 days; suggests shield for employees Those filing for bankruptcy could find their assets in other countries assessed under Indian laws, if India implements the suggestions made by a parliamentary joint committee on the bankruptcy code. The joint committee on the insolvency and bankruptcy code has said since “ many corporate transactions and businesses today involve an international and crossborder  element, the implications of crossborder insolvency cannot be ignored for too long.” The panel has suggested two new clauses and sub- clauses, which would require India to enter into agreements with foreign governments to enforce provisions of the code to debtors’ assets outside India as well. In its report, the panel said if a resolution professional or bankruptcy trustee decides that a debtor’s assets located abroad should be brought under the ambit of the  law, then the adjudicating authority in the case should issue a letter of request to a cou

www.caonline.in News... 1.Excess of TDS deposited u/s. 195 eligible for interest u/s. 244A. Circular no: 11/2016– IT. 2.Family pension claim not acceptable if option to join scheme was not exercised. [Ganesh Prasad Mishra vs. Commissioner EPF Organization (Madhya Pradesh HC at Indore)]. 3.IASB, ICAI organizing certificate course on concurrent audit at rewari from May 21.For registration: 9812030886,caanil78@gmail.com. 4.Pre-MEF 2016-17 data verification would be live. Please check at www.meficai.org from 27/04/2016. 5.Govt. reduces interest rates on employee provident fund (EPF) from 8.75% to 8.7% for financial Year 2015-16. 6.Today (28.04.16) is last date to file DVAT- 56 (DVAT Return verification form) and DVAT-48(Return of TDS) for quarter ended March, 2016. For more News Like us onhttps://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

The Mumbai bench of the Income-Tax Appellate Tribunal, in a recent order, has taken a benevolent view and dismissed the penalty levied by income tax officials on a salaried employee for “concealment of income“. A punching error by a taxreturn filing portal whose ser vices Richa Dubey had enlisted resulted in under-reporting of her salary income as Rs 2.09 lakh instead of Rs 20.96 lakh in the I-T return. Tax officials treated such underreporting as an attempt to conceal income and hence imposed a heavy penalty on her. However, the ITAT ruled that at the time of filing of the I-T return, Dubey was five months pregnant and under immense work pressure. Paucity of time had prevented her from checking the content of the I-T return filed. She had relied completely on the services of the portal, blindly signed the e-acknowledgement sent to her by it and forwarded it to the I-T department. After examining the case and Dubey's circumstances, the ITAT dismissed this penalty on t

Implementation of the Goods and Services Tax (GST) and bridging large infrastructure deficit are a difficult task before the Indian government, Moody's Investors Service said on Wednesday. In a report, Moody's said a history of double-digit inflation, elevated government debt, weak infrastructure and a complex regulatory regime have constrained India's credit profile. “We also expect that some aspects of the government's policy agenda -such as the implementation of GST and bridging India's large infrastructure deficit will still face an uphill climb,“ it said. As a positive, Moody's noted that easing of constraints on investment coupled with RBI's inflation targeting and ongoing efforts to clean up bank balancesheets could propel growth. Moody's has a 'positive' outlook on its 'Baa3' rating on India, which is just a notch above the junk grade. “Our positive outlook on India's rating is based on our expectation of con