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The government panel set up to suggest a uniform rate of indirect tax under the GST regime will submit its report by this monthend and the roll out of the reform measure is possible any time next fiscal, a senior CBEC official said on Wednesday. CBEC has also suggested to Finance Minister Arun Jaitley to set up consultative bodies in each state in the form of GST Secretariat for better coordination between the Centre and states for the roll out.CBEC member GST V S Krishnan said: “A very high rate could dilute the advantages of GST.There is a committee set up under the CEA which is likely to give its report by month end.“ The Economic Times, New Delhi, 17th Sept. 2015

Finmin, DIPP and RBI weigh raising FDI limit in sector from current 74% ICICI Bank, HDFC Bank and their private sector peers could turn into fully foreign-owned entities if a proposal to raise the overseas investment limit in the sector to 100% from 74% is accepted. The measure is being discussed by the finance ministry, the department of industrial policy & promotion (DIPP) and the Reserve Bank of India (RBI), a senior government official said. The move would be in keeping with the government's push to streamline foreign direct investment and open up key sectors to overseas participation. It's also significant in light of the RBI deeming ICICI Bank as one of India's two systemically important banks, the other one being governmentowned State Bank of India. Within the current 74% limit, 49% is allowed automatically and the rest through the approval route, which means permission has to be sought from the Foreign Investment Promotion Board (FIPB) beyond that thresh...

The Employees Provident Fund Organisation ( EPFO) on Wednesday increased the maximum amount assured under its employees’ deposit linked insurance scheme (EDLI) to Rs.6 lakh from the existing Rs.3.6 lakh. Business Standard, New Delhi, 17th Sept. 2015

These exemptions will be over and above those already excluded from GST in Constitution Amendment Bill itself In an effort to minimize the number of exemptions under the goods and services tax (GST), the centre and the states have agreed to restrict this list to less than 100. In a GST regime, the centre and the states will have one common list of exempted goods and services. At present, while the states put together have around 99 exempted items under value-added tax (VAT), the centre has around 250 exempted items under central VAT or excise duty. It has been decided to adopt the states’ exempted list under the GST regime as and when it is rolled out, said a senior finance ministry official who did not want to be identified. Typically, those goods that are consumed by the lower strata of society and those that are considered to be of national importance are exempted from taxes. Food items such as rice, wheat, salt, fresh vegetables and fruits, milk and milk products are some...

The government on Wednesday came out with details of the twin gold schemes, Gold Monetisation Scheme and Gold Bond Scheme, aimed at reducing the demand for physical gold and said that interest rate on the schemes would be decided in consultation with the Reserve Bank of India. Business Standard, New Delhi, 17th Sept. 2015

Transgenders to be recognised on a par with other workers In a first, the Union labour ministry has mooted setting up a safety regulator for factories in India, which will set the guidelines for establishments after public hearing and consultation. The regulator, Occupational Safety and Health Board of India, is aimed at making factories a ‘ zero- accident place’ for work and substantially reduce the time to set up factories. According to the proposed amendments to the Factories Act, transgenders will be at par with other workers and there won’t be any discrimination against them. The amendment Bill states state governments may frame rules to ensure respect for “ inherent dignity, non- discrimination and respect for difference and acceptance of transgender persons as part of human diversity”. The proposed amendments say a factory will be deemed approved in 15 days of the receipt of application if guidelines set by the regulator are followed by the employer. The proposal to amen...

1.  President ICAI suggested Finance Minister to extend due date of filing of ITR & Tax Audit Report be extended from 30.9.2015 to atleast 31.10.2015 for genuine hardship to the assesses and members of the profession. 2.  Individuals can now apply for PAN online with digital signature w.e.f 6.9.2015. 3.  Salary and Interest to partner to be allowed as deduction while estimating the profits of the firm where books of accounts are rejected- Inter Continental Constructions (High Court of Andhra Pradesh and Telangana). 4.  If the notice u/s 148 of I T Act was not served on the assessee in accordance with law, the re-assessment made is liable to be quashed.[ CIT vs. Chetan Gupta, High Court of Delhi] 5.  Now a private company can accept unsecured loans also from a relative of director, with a declaration that such loan is not from borrowings. Notification dated 15.09.2015. 6.  Union Cabinet has approved to promulgate the Negotiable Instruments (Am...

1.  Ponds specially designed for breeding of prawns to be treated as plant for depreciation purposes.[ ACIT vs VICTORY AQUA FARM LTD. (Supreme Court)] 2.  Depreciation on enhanced cost of asset is allowed from the date when the obligation to pay customs duty arose.[CIT vs Noida Medicare Centre Ltd, Delhi High Court] 3.  Now a private company can accept unsecured loans even from a relative of a director of the company.   http://www.mca.gov.in/Minis…/…/Amendement_Rules_15092015.pdf 4.  Finance minister Mr. Arun Jaitley on Monday announced the government's decision to impose a 20% safeguard duty on steel imports with immediate effect. 5.  RBI has decided that the resident importer can raise trade credit in Rupees (INR) within the prescribed framework. 6.  Modifications in Electronic IECs as well as physical IECs will now be carried out online by paying a fee of Rs.200/- w ef. 21.9.2015. 7.  Consignment wise duty payment can be made throu...

Prior govt nod not required for raising money via these instruments in areas where FDI is allowed under automatic route The government has decided to consider foreign investments in partly paid shares and warrants eligible instruments under the foreign direct investment policy , bringing greater flexibility in their use to raise capital. “The government has reviewed the extant FDI policy...to allow partly paid shares and warrants as eligible capital instruments for the purpose of the FDI policy ,“ the department of industrial policy and promotion (DIPP) said on Tuesday in a notification amending the consolidated FDI policy circular 2015. Till now warrants and partly paid shares could be issued to foreign investors only after approval through the government route. Bringing them under eligible foreign investment instruments means that prior government permission will not be required for raising money through these instruments in sectors where FDI is allowed under the automatic ...

Says exposure to top 20 borrowers will have to be disclosed ahead of public offer of debt securities The Securities and Exchange Board of India ( Sebi) has asked non- banking financial companies ( NBFCs) to issue detailed disclosures while launching a public offer of debt securities to raise funds. The norms, which will be applicable to draft offer documents to be filed on or after November 1, have been finalised on the basis of feedback from market entities. Sebi seeks to align the norms in line with the stipulations required by the Reserve Bank of India ( RBI). The NBFCs would now need to disclose “ aggregated exposure to the top 20 borrowers with respect to the concentration of advances", against the current requirement for top 10 borrowers. They would also need to disclose the details of loans, which are overdue and classified as non- performing according to RBI guidelines. Sebi further said, “ NBFCs are frequent issuers of debt securities and amongst other things, g...

Says cut reliance on ratings, do research before investment The Securities and Exchange Board of India ( Sebi) has asked mutual fund ( MF) managers not to invest in debt paper solely based on credit rating. The capital markets regulator has called for more scrutiny, based on detailed research, amid a rise in the banking systems stressed assets. The move is a fallout of the problems faced by JPMorgan MF on account of its investment in Amtek Auto’s debt, later downgraded by rating agencies. Sources say Sebi is concerned over MFs’ exposure to poor quality corporate paper and is asking them to remain careful. It has written to heads of all fund houses for vigilance on investment in corporate paper. And, asked fund houses for details of the securities which have been downgraded after their investments. Sebi has specifically asked fund houses to reduce concentration risk in their fixed income portfolios, said people in the know. By the norms, a fixed income scheme can invest up to ...