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Apple will increase prices of applications on its App Store in the country,by upto 33 percent,with the government introducing a 14.5 percent service tax and the falling value of the rupee. An app costing $0.99 (aboutRs.68)on the App Store in the US will now cost Rs.80 in India as opposed to Rs.60 earlier.The move is part of a global change in prices of apps, an exercise Apple engages in periodically. Apple communicated the changes in pricing to developers and was reported by digital media outlet Mac Rumors. The government introduced a service tax of 14 percent and levy of 0.5percent from December1 last year on all services sold digitally.This equalisation levy was introduced as part of a global move by nations to tax digital goods sold from outside a country.It is now popularly known as “GoogleTax”. “Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates,business practices,taxes,and the cost of doing business.These fa...

Foreign portfolio investors (FPI) can now breathe easy with the Income Tax (I-T) Department on Tuesday putting in abeyance its controversial circular on taxing India-dedicated funds. Experts said clarity was necessary on the issue at the earliest so that FPIs were certain. They expect the finance ministry to amend the law in the Budget to put an end to the controversy. The circular, in the form of frequently asked questions (FAQs), had spooked the markets when it was issued last month. It also gave rise to fears of retrospective taxation as the principal amendment to the Income Tax Act on indirect transfers was such in nature. These provisions were first introduced in 2012, with retrospective effect, after the government failed in levying a tax on the British telecom giant Vodafone Group Plc’s purchase of Hutchison Whampoa’s India telecommunications business. The Central Board of Direct Taxes (CBDT) and the capital markets division of the finance ministry have received a number...

New Delhi: The new division of administrative control between the centre and the states under the goods and services tax (GST) will ensure that at least 1.4-1.5 million taxpayers remain under the purview of the Central Board of Excise and Customs (CBEC) in the new indirect tax regime. However, CBEC is likely  to lose a substantial portion of its service tax assessees, an issue that is causing angst among officials. After states demanded a larger pool of  taxpayers to administer in the initial round of negotiations in the GST council, the CBEC was threatened with redundancy leading to a prolonged face-off with states.  18th JANUARY 2017,MINT, NEW-DELHI

Mumbai: The Securities and Exchange Board of India is planning a makeover for stock trading rules and some of the key norms governing stock exchanges,  clearing corporations and market intermediaries such as brokers and depository participants. About a month ago, Sebi commenced a study of markets, trading behaviour, functioning of intermediaries and the ability of institutions such as exchanges and clearing corporations to handle increased  market activity, two people familiar with the development said. They said the regulator is revamping norms to strengthen its scrutiny of defaulters, enhance transparency in dealings and mitigate liquidity risks arising out of increasing algorithmic trading. One of Sebi’s top priorities is to  tighten surveillance and risk management norms for stock exchanges so that they are able to collect more elaborate data on trading, price movements  and dealings between market participants. 18th JANUARY 2017,MINT, NEW-DELHI

Finance minister Arun Jaitley is likely to significantly increase public investment in infrastructure in his upcoming budget, offering fiscal stimulus to boost economic growth at a time when private investment shows no signs of a pick-up. There is near unanimity that the economy needs to be spurred through higher public investment, unlike last year when there was a significant divergence of opinion over the need for fiscal stimulus, said an official with knowledge of the thinking within the government. The official requested anonymity. Last year, chief economic adviser in the finance ministry Arvind Subramanian advocated a stimulus, but the minister decided to stick to the  fiscal deficit target of 3.5% of gross domestic product (GDP), fearing a backlash from investors and rating agencies. “Different schools of thought have argued either in favour of fisaverage cal consolidation and stability or for a less aggressive consolidation  and for boosting growth. I have weighed the ...

Govt had to give an option to domestic black money holders to declare their unaccounted wealth. In a minor relaxation to IDS tax payment rules, the Income Tax Department has said disclosures under the scheme will be considered valid even if the tax amount has been realised by December 5. The first instalment of taxes was to be paid by November 30. The government had come out with a 4-month long Income Disclosure Scheme, which closed on September 30, 2016, to give an option to domestic black money holders to declare their unaccounted wealth and come clean by paying 45 per cent tax and penalty. In an instruction to principal commissioners, the income tax department has asked them to condone the delay in payment of first  instalment which has arisen due to "genuine technical difficulties". "CBDT hereby directs... To accept the request for condonation of delay in payment of tax payable under the scheme in cases where payment has been made through cheque, RTGS, electronic tr...

CBDT circular had raised multiple taxation concerns Foreign portfolio investors (FPI) can now breathe easy with the Income Tax (I-T) Department on Tuesday putting in abeyance  its controversial circular on taxing India-dedicated funds. Experts said clarity was necessary on the issue at the earliest so that FPIs were certain. They expect the finance ministry  to amend the law in the Budget to put an end to the controversy. The circular, in the form of frequently asked questions (FAQs), had spooked the markets when it was issued last month.  It also gave rise to fears of retrospective taxation as the principal amendment to the Income Tax Act on indirect transfers was such in nature.  These provisions were first introduced in 2012, with retrospective effect, after the government failed in levying a tax on  the British telecom giant Vodafone Group Plc’s purchase of Hutchison Whampoa’s India telecommunications business. The Central Board of Direct Taxes (CBDT) and t...

The Reserve Bank of India (RBI) on Monday relaxed the per day cash withdrawal limit from automated teller machines (ATM) to Rs 10,000 per card, from Rs 4,500 currently. The weekly limit, however, remains unchanged at Rs 24,000. Current account holders can now withdraw up to Rs 1 lakh per week. Earlier, they were allowed to withdraw only up to Rs 50,000. This facility has been extended to overdraft and cash credit accounts as well.  RBI had imposed these limits in November after the government banned Rs 500 and Rs 1,000 notes. The withdrawal limits are unlikely to be removed completely till RBI supplied the economy with sufficient amount of new notes, analysts said. The daily withdrawal limit has been changed a number of times earlier. On November 8 — the day Prime Minister Narendra Modi announced the note ban — the central bank restricted daily withdrawal to Rs 2,000. It was increased to Rs 4,500 a few days later. This was quickly rolled back to Rs 2,000; then increased ...

Commerce and Industry Minister Nirmala Sitharaman today indicated that start-ups may get additional tax benefits in the forthcoming budget, to be unveiled on February 1. The ministry has already suggested the finance ministry to consider raising tax holiday for start-ups to 7 years from the current 3 years to encourage budding entrepreneurs. Business Standard New Delhi,17th January 2017

Days after government ordered seeking PAN details of all account holders, banks have started asking their customers, including KYC-compliant ones, to update their PAN details by February 28. Business Standard New Delhi,17th January 2017

The Goods and Services Tax (GST) Council on Monday broke a deadlock over issues of administrative control over assessees and broadly agreed to roll out the GST from July 1, instead of the earlier deadline of April 1. Whether a state or the Centre will assess an entity would be decided by a computer programme. The Council also resolved a logjam over the right to tax economic activities within 12 nautical miles from India’s coasts. Against the earlier proposals of reserving administration of assessees up to Rs 1.5 crore in annual turnover for states, or of allowing both the Centre and states to jointly administer these, the Council decided to blend the two suggestions. The entire tax base would be shared between the Centre and states in a predetermined ratio, Union Finance Minister Arun Jaitley, the chairman of the Council, said at a press conference after the meeting. The Centre agreed the states would have the powers to administer 90 per cent of assessees with an annual turn...