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The draft model goods and services tax ( GST) law that has been put in the public domain represents the collective consensus between the Centre and the states. While the law has many redeeming features, especially in the area of input credit, it has not gone far enough in the area of dispute resolution. One of the common grievances that taxpayers have in India relates to delays in the dispute resolution system. It is argued rightly that justice delayed is justice denied. This argument has three aspects: •When does a disagreement between the department and taxpayers take the form of a " dispute" in a legal sense; •Once the dispute arises, how does one resolve it expeditiously with a degree of finality; •When disputes involve principles of assessment ( matters relating to principles of classification, valuation, etc) how does one ensure that such decisions taken are uniformly applied all over the country Flowing from the above, we can broadly outline the features of a wor...

The Securities and Exchange Board of India (Sebi) has decided not to proceed with the final regulations on crowdfunding, according to people in the know. In a discussion paper floated two years ago, Sebi had proposed a framework to enable domestic start-ups and small and medium enterprises (SMEs) to raise capital from multiple investors through crowdfunding. Divergent views from the market and lack of interest for its recently launched start-up platform have discouraged Sebi from issuing final guidelines on crowdfunding, said a source. Also, the market feedback given to Sebi was that there might not be enough takers for the regulator’s proposed framework as it was ‘too restrictive’, the source added. Sebi’s discussion paper had defined crowdfunding as “solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause”. Typically, crowdfunding involves a large group of indi...

With the income-tax (I-T) department planning to issue 700,000 letters to individuals who have done high-value transactions without declaring their permanent account number (PAN), many individuals may face scrutiny. The I-T department has zeroed in on transactions, which included cash deposits of over Rs 10 lakh in a bank account and sale or purchase of immovable property of Rs 30 lakh or more over the past seven years (since 2009-10). The department gets data of high-value transactions under the annual information return (AIR). Amit Maheshwari, partner, Ashok Maheshwary & Associates LLP, says the first thing to be taken into account would be whether the I-T returns have been filed or not. If returns have been filed, the next question would be on the source of income and whether tax has been paid or not. For this, one should keep the necessary documents safe and ready. For example, if one has purchased a property of over Rs 30 lakh, but funded the initial down payment through...

The labour ministry has moved a step closer to doubling incremental employee provident fund investments in equity to 10% in spite of opposition from central trade unions. An expert committee set up by the finance, audit and investment committee (FAIC) of retirement fund body Employees' Provident Fund Organisation (EPFO) has favoured such an increase. The government has now asked FAIC to take a decision. Once approved by FAIC, the labour ministry will present the decision before the next board meeting of EPFO for information, following which the new rate of investment will be notified. “It is the government's right to decide on EPFO's investment in equity and whether trade unions agree to it or not we may go ahead with the increased investment as proposed by the expert group,“ a senior government official told ET on condition of anonymity . The panel set up by FAIC has suggested doubling the investment in exchange traded funds (ETFs) to make it a meaningful contribut...

www.caonline.in News... 1. Result of the Chartered Accountants Intermediate (Integrated Professional Competence) Examination held in May, 2016 is likely to be declared on Tuesday, the 2nd August 2016. 2. Invitation for Empanelment as Concurrent Auditor with UCO Bank. Last Date to Apply is 10-08-2016.https://apps.ucoonline.in/conc_audit/home.jsp 3. Interest on investments of Service Co-operative Banks eligible for deduction u/s 80P (2) (a) (1). 4. Comvat assured date of filing of Q1 Return extended by 1 month Circular to follow. 5. L.G. appoints 26.07.2016 as the date on which DVAT (Amendment) Act, 2016 come into force. 6. Last date to file Income Tax Return is 31.07.2016. 7. CBDT releases draft rules for prescribing the manner of determining amount received by the company in respect of shares formulated u/s115QA. Press Release of 25.7.16.

The Income Tax department has conducted searches in various states, including Gujarat and Maharashtra, on the premises of pulses traders, the government said today "Evidence of tax evasion and other violations of the I-T Act, 1961 were recovered during such actions," Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha. He said the tax department had conducted searches and surveys at various premises of assessees engaged in the business of pulses. Such premises were located in various states, including Maharashtra, Gujarat, Madhya Pradesh, and Delhi. Business Standard New Delhi , 23th July 2016

A parliamentary panel has recommended doing away with the present restrictions on the composition of the board of directors of asset reconstruction companies (ARCs). And, suggested other changes in a government Bill to amend the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest ( Sarfaesi) Act, 2002 and other relevant legislation. A committee of both Houses, headed by Rajya Sabha member Bhupender Yadav of the ruling party, has recommended doing away with the existing clause in the Sarfaesi law which states that more than half of the members in an ARC board cannot be either nominees of any sponsor or associated in any manner with the sponsor or any of its subsidiaries. This was suggested following the proposed permission to the sponsor of an ARC to hold up to 100 per cent stake in it and to permit non- institutional investors to invest in securitisation receipts. Amendments to Sarfaesi were incorporated in the broader legislation— the E...

Consultants Grapple With Valuations Of Jewellery, Assets During Disclosures A tax consultant with a leading firm is facing a unique problem. His father had bought a Swiss watch almost 60 years ago. When a local shopkeeper saw it, he offered to buy the watch for a pittance. The consultant then sent it to the company , which has estimated the cost of repair at $5,000 (over Rs 3 lakh). With the income tax department seeking detailed disclosures of assets -property , bullion, jewellery , vehicles, yachts, aircraft, etc -from those with taxable income of over Rs 50 lakh during 2015-16, tax practitioners have been grappling with a series of queries and clarifications. While the consultant with the Swiss watch is finding it tough to ascertain the value, his counterpart at another firm believes that there is no need to provide any details, pointing to the rules released by the income tax department. “Jewellery is not clearly defined. It can include diamond-studded or gold-plated watche...

Sources said Cong has softened its stand & some meeting is likely by the beginning of next week There appears to be some forward movement on the Goods and Services Tax Bill with Congress showing a more positive attitude towards the government on the issue, leading the Narendra Modi dispensation to list it in the business for the forthcoming week in the Rajya Sabha. Government sources claimed that Congress has softened its stand at Congress has softened its stand to some extent on the GST Bill and some meeting ground is likely by the beginning of next week. Finance Minister Arun Jaitley has been engaged in back channel negotiations with the Congress leaders. However, a structured meeting has not been held after the `preliminary talks' between the government and the principal Opposition before the Monsoon Session began. Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi stated in the Rajya Sabha that the Goods and Services Tax Bill is listed for discussion ...

Over Rs 8 lakh crore tax revenue was locked up in appeals before various courts and authorities at the end of last fiscal, government said today. As on March 31, 2016, over 3 lakh cases were pending before the Commissioner of Income-Tax (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court, Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha. Business Standard New Delhi,23th July 2016

www.caonline.in News... 1. Permission to pay service tax through non electronic modes. 2. Sebi may help in government’s recapitalisation plans for PSBs. 3. CBDT gives option to file revised income declaration in Form 1 of IDS. 4. MCA releases National Company Law Tribunal Rules, 2016 & the National Company Law Appellate Tribunal Rules, 2016, on 21.07.16. 5. CBDT launches paperless PAN & TAN application process, PAN/TIN to be issued within one day. New Aadhaar e-Signature based application process also made available.