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The Narendra Modi government is set to take up three finance ministry related legislative matters in the coming monsoon session of Parliament .These are the Banking Regulation Act amendment specified in the ordinance to deal with non-performing assets,a bankruptcy Bill for financial firms, and passage of a new National Bank for Agriculture and Rural Development (Amendment) Bill. Officials told Business Standard that while the ministry´s load was relatively lighter compared to the Budget session, when the goods and services tax Bills were passed apart from the Finance Bill, the three legislation slated for the monsoon session were also crucial.It is scheduled to begin on July 12. The government has to amend the Banking Regulation Act after an ordinance was promulgated in May to give the Reserve Bank of India (RBI) the power to direct banks to initiate bankruptcy proceedings of defaulting companies and to take decisions on behalf of lenders while dealing with stressed assets. Two sec...

Automakers Nissan, Skoda and Isuzu Motors have reduced prices of passenger vehicles in India by upto Rs 2.4 lakh to pass on benefit of goods and services tax(GST) to customers.Tata Motors has cut prices of its commercial vehicles by upto 8.2 percent, while Bajaj Auto´s Austrian arm KTM dropped prices of its sports bikes in the country.Japanese automaker Nissan announced reduction in prices of its vehicles, including the Dats unbrand, by an average of three percent in the country. The company sells a range of vehicles under Nissan and Dats unbrands, ranging from hatch back Redi Go to SUV Terrano, in Indian market. Czech car maker Skoda reduced prices of Superb model range by upto 7.3 percent in Mumbai, resulting in a price benefit of up to 2.4lakh. Hyundai Motor India also said it has reduced prices of its vehicles by upto 5.9 percent to pass on GST benefit to customers. Business Standard New Delhi, 07th July 2017

Seeking to send a stern message, the income tax (I-T) department has initiated a plan to take strident action against tax evaders. This is to ensure they are prosecuted without requiring the assessment to get over. This follows an action plan drawn up by the Central Board of Direct Taxes (CBDT) where an aggressive strategy was outlined to nab tax dodgers. The CBDT had circulated a strategy paper for the investigation team of the I-T wing, saying the taxman should prosecute tax evaders in large numbers to create a credible deterrence against the black money menace. “Filing of prosecution complaints in cases where evidence is strong does not require completion of tax assessment,” the department said in its action plan prepared for FY-18. “The department has tweaked its strategy from just raising tax demand to going the extra mile of taking them to courts,” said a senior tax official with direct knowledge of the plan. Typically, the tax department launches a prosecution or charge shee...

Cos could however claim input tax credit on intra-company transactions India Inc may have to deal with another avatar of GST — the tax may be applicable on senior executives’ big-ticket perquisites over and above those mentioned in the employment contract and on gift items of over Rs 50,000. However, companies should be able to claim input tax credit on these intracompany ‘transactions’. Tax professionals ET spoke to said the rate may be in the 1843% band, depending on the nature of the perk/gift. A finance ministry official, who did not wish to be identified, said an employer’s gifts to employees will be treated as supplies without any consideration and attract GST. However, companies are likely to be able to claim input tax credit on it. Keeping tabs on company perks and gifts will not be an additional enforcement cost to the government, tax experts said. All purchases by companies will be available on GSTN. Therefore, during audits these issues can be easily identified. GST ...

The finance ministry has said that 5% central goods and services tax will not apply on products paneer, natural honey, wheat, and rice that are not registered under the Trade Marks Act. "Unless the brand or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST (Central Goods and Services tax) rate of 2.5% will not be applicable on the supply of such goods," an official statement said. Economic Times New Delhi, 06th July 2017

Amount may be raised from Rs 10,000 to Rs 30,000 a month; tribunals also proposed to get more teeth The Union government is planning to hike the maintenance amount payable to parents and senior citizens under the Maintenance and Welfare of Parents and Senior Citizens Act. The amount could triple to Rs 30,000 a month from the existing Rs 10,000. The Act provides for financial support to seniors by their children or relatives who are neglecting them or have abandoned them. While increasing the amount was due as the decade-old regulations have not kept pace with inflation, experts say that the government should also increase the powers of tribunals and focus on implementation to provide the required financial support to seniors in their golden years. “To be fair to seniors and their relatives, the government should keep the maintenance amount as a percentage of the income of the children or relative, rather than a fixed sum. Medical treatment, for example, can sometimes burn a hole in...

Advent of the goods and services tax (GST) is likely to hit small distributors and investment advisors, says the mutual fund (MF) sector.Players say ambiguity over input tax credit and interstate transactions has created confusion among distributors, particularly those earning less than Rs 20 lakh a year. Meanwhile, fund houses and the Association of Mutual Funds in India (Amfi) are helping distributors get GST ready, by conducting workshops and educating through lists of ´Frequently asked questions (FAQs). Amfi has also appointed consultancy entity PwC India to assess the impact on the sector. According to industry players, registration and obtaining of GST number is mandatory for all MF distributors, irrespective of their income.Fund houses are expected to deduct GST from distributors´ commission, even those whose income is below the threshold of Rs 20 lakh, if they haven´t provided their GST number. Those providing it will be paid the entire brokerage and distributors will have ...

The home ministry has given security clearance to the Goods and Services Tax Network (GSTN), the information technology backbone of the goods and services tax (GST) regime, paving the way for its operationalisation soon.Security clearance to the GSTN,anotforprofit private limited company, was delayed as the home ministry was examining threat perception to national security from any of the stakeholders,a ministry official said. Business Standard New Delhi, 06th July 2017

Delhi Deputy Chief Minister Manish Sisodia on Wednesday said he would pitch for lowering tax rates under the goods and services tax (GST) regime, calling 28 per cent rate uncalled for. “Highest slab of GST at 28 per cent is uncalled for. As long as this slab is not moderated, the GST cannot be termed as one of the most influential tax reforms in the history of India,” Sisodia said at a PHDCCI event. He said he would press for bringing down the higher slabs to considerably lower rates in the GST Council’s meeting. Business Standard New Delhi, 06th July 2017

Many companies considering price hikes over the next few months to pass on the burdens of GST and material cost. Prices of televisions, airconditioners, washing machines and refrigerators may rise twice this year because of higher input costs and a new tax structure. Videocon, Panasonic, LG and Whirlpool are considering immediate price hikes to pass on the additional tax burden under the goods and services tax (GST). The rise in material prices over the past few months may be passed on during the festive season. Prices of steel, copper and plastic have been rising since February. Prices of components such as compressors for ACs and refrigerators have risen up by 4 per cent and prices of TV panels have risen by 3 per cent. Under margin pressure, companies had postponed price hikes till the festive season. Rajeev Bhutani, vice-president, marketing, Samsung India Electronics, had told Business Standard earlier that the increased cost of TV panels would have to be passed on. “We have n...

Consumer cos say changing price labels on stock operational & logistical challenge Consumer goods makers are unlikely to change prices of pre-GST stock by putting fresh stickers as mandated by the government because it will be costly and operationally challenging to pull back unsold stock. Fast-moving consumer goods (FMCG) firms have decided to keep prices intact for old stock even in cases where their tax incidence has increased under the goods and services tax regime and will change prices only for the new stock that will be manufactured henceforth. For products where tax rates have been lowered and prices tracking down unsold stocks with distributors and retailers across India is impossible need to be reduced, companies said they would rather release fresh stock with reduced MRPs than go through the hassle of relabelling old inventory. Large companies such as PepsiCo, Parle, Dabur, Britannia and Marico had started controlling inventory in May and June, so unsold stocks o...