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The Lok Sabha on Tuesday passed the Payment of Wages (Amendment) Bill, 2017 which allows for digital payment of salaries or through cheque. The bill will now go to Rajya Sabha and following its passage in the upper House, the amendments will be notified. The move will enable employers to pay wages of less than Rs 18,000 a month by cheque or digitally to bank accounts, besides in cash, by doing away with the requirement of employees' written consent for the same. At present, wages can be given through cheque or transferred to a bank account only after a written authorisation from an employee. The Bill was introduced in the Lok Sabha on December 15, but it could not be taken up for discussion amid din over demonetisation. 08TH FEBRUARY, 2017, THE ECONOMIC TIMES, NEW-DELHI

The Lok Sabha on Tuesday passed a Bill,which makes holding of more than 10 old notes of Rs500/1,000 denomination punishable with a minimum fine of Rs 10,000,  with the government saying the aim was to check parallel economy using the scrapped notes. Piloting the Specified Bank Notes(Cessation of Liabilities) Bill,Finance Minister Arun Jaitley said it will extinguish the government’s liability towards  scrapped notes and also eliminate the possibility of their being used as parallel currency. Jaitley said the volume of currency in India was extraordinarily large. 08TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

The government on Tuesday said show cause notices have been issued to 536 firms for non-compliance with corporate social responsibility (CSR) norms under the companies law. Under the Companies Act,2013, certain class of profitable entities are required to shell out atleast two percent of their three-year annual average net profit towards CSR activities in a particular financial year.In case of non-spending, the company concerned has to provide explanation to the ministry. 08TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

From April 1,chartered accountants (CAs), merchant bankers and valuers can’t escape responsibility for filing of incorrect information in certificates or reports attached with income tax returns of assessees.They will be fined Rs 10,000 for each such certificates or reports, according to a provision in the Budget for 2017-18. For this purpose,the Budget has proposed to insert a new section, 271 J,in the Income Tax Act. "Under Section 271J... we have entrusted responsibility with chartered accountants, valuers and merchant bankers who files audit, valuation reports and other things...," CBDT Chairman Sushil Chandra said at a post-Budget interaction with PHD Chamber of Commerce and Industry here.“So,if they file any incorrect information in there turns, they are also liable for a token penalty of Rs 10,000.” The whole system is based on"alot of faith on CAs and assessees and they have to be more responsible", he said. While there are many provisions to penalise the d...

Model goods and services tax law, which is currently being vetted by the law department, is expected to be finalised by this month-end, said a senior finance ministry official. The law will pave the way for roll out of GST from July 1. 08TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

Kerala has a 5% VAT on gold and jewellery and states like Bihar, which see low jewellery consumption, are pitching for higher GST.   MUMBAI: Kerala and Bihar are seeking a higher Goods and Services Tax on bullion and jewellery, which trade associations say is delaying a decision on the matter. The government has fixed a four-slab structure ­­ 5%, 12%, 18% and 28% ­­ for GST but said that tax on bullion and jewellery would be different from  these. This has sparked speculation among trade on the quantum of tax on jewellery .   While All India Gem & Jewellery Federation (GJF) is proposing a 1.2% GST for jewellery , India Bullion & Jewellers Association (IBJA) expects it will be way higher at 8%, with import duty reduced to 6% from the present 10%.   “Kerala has a 5% VAT on gold and jewellery and states like Bihar, which see low jewellery consumption, are pitching for higher GST,“ said Surendra Mehta, national secretary, IBJA.   ...

Beginning next financial year, the tax department will withhold refund in scrutiny cases only “inexceptional circumstances”, like an apprehension that the assessee might flee the country.In order to address the concerns of assessees in genuine cases,the Finance Bill 2017 has relaxed the norms for refunds for  scrutiny cases.Elaborating on the Budget provision,Central Board of Direct Taxes(CBDT) Chairman Sushil Chandra said income tax refund will not be withheld simply because the case has been selected for scrutiny. “Only in exceptional circumstances,that too with a lot of riders,the Commissioner can order for withholding refund.   07TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

The market regulator will take up the issue of alleged unfair access at National Stock Exchange (NSE) at its board meeting on Saturday, sources said. Securities and Exchange Board of India (Sebi) is also likely to tell its board about current participatory note (P-note) framework and may recommend against further tightening it. The board meeting after Union Budget is customary; it could be attended by Union finance minister Arun Jaitley.   The countrys largest exchange firm, NSE, is embroiled in allegations of allowing unfair access to trade data to certain brokers at co-location facility. At a colocation centre, you can place your computer containing trading algorithms next to an exchange’s data centre, which matches buy and sell orders. This shaves crucial milliseconds from the time it takes to complete a trade. If traders are located 100 miles away from an exchange, they face a delay of one millisecond whenever they seek to trade a price via their computer s...

India and Austria on Monday agreed to change their taxation treaty to prevent tax evasion as well as enable mutual assistance. The protocol will broaden the scope of the existing frame work of exchange of tax-related information, which will help curb tax evasion and tax avoidance between the two countries and will enable mutual assistance in collection of taxes, an official statement said. It was signed by Central Board of Direct Taxes   07TH FEBRUARY, 2017, BUSINESS STANDARD, NEW-DELHI

The National Democratic Alliance government plans to shift to the goods and service tax (GST) regime on July 1. In the new indirect tax architecture,  some existing cesses, that are currently levied, will be done away with. Yet the government has budgeted for increases in even those cesses that will  cease to exist after July 1. The Budget does not separately show collections in the GST regime but continues to project collections for excise duties  and services taxes through the year. This has led experts to question whether the government has factored in the impact of the shift to GST in the Budget, including that on the schemes that are funded from cess collections.   The Budget pegs the cess and surcharge collections for FY 18 at Rs 2.96 lakhcrore — a jump of Rs 46,298 crore over the Revised Estimates (RE) of FY17.These cesses and surcharges include the ones imposed along with both direct and indirect taxes.   A senior tax consultant said: “The...

The I-T department today said companies that had a turnover of less than Rs 50 crore in 2015-16 will pay tax at the reduced rate of 25 per cent from April 1 even if they cross the threshold in 2016-17 or subsequent years.   Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said the income tax department will come out with a clarification on which companies would be eligible to avail the tax benefit.   In order to boost the SME sector, Finance Minister Arun Jaitley in Budget 2017-18 reduced the income tax for smaller companies with annual turnover up to Rs 50 crore to 25 per cent as against the usual rate of 30 per cent.   "If your turnover in 2015-16 was Rs 50 crore then you will be subject to 25 per cent tax. We will come out with clarification on (applicability of the tax benefit to) new companies," Chandra said.   According to the memorandum to the Finance Bill 2017, in case of domestic company, the rate of income-tax sh...