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Updates Of the Day 1.NIRC of ICAI is organizing three days Workshop on Income Computation Disclosure Standards ( ICDS) on 15th, 16th and 17th December 2015 at The Auditorium of ICAI Bhawan, Vishwas Nagar, Shahdara, Delhi from 4.30 PM to 07.30 PM FEE Rs.200/-(Per Day). 2.Income Tax Department, New Delhi invites Empanelment of CA Firms to carry out special audit u/s 142(2A) Last Date : 21.12.2015. 3.Interest, depreciation and profit margin not to be considered for arriving at production cost. [Nirma Ltd. & Others]. 4.RBI through its Master Circular dated 01.12.2015 (available on its websitewww.rbi.org.in) has issued Instructions/Guidelines on Credit Card/Debit Card/Pre-Paid Card. 5.RBI has issued Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2015 which shall come into force from the date of their publication in the Official Gazette. 6.If upon a misconception of legal position, assessee had paid tax which he was not liable to p...

Parliament passes law to facilitate easy legal recourse after Rajya Sabha okay Parliament has passed a law allowing cheque bounce cases to be filed at the place where the cheque is presented for clearance and not the place of issue, a change that is expected to go a long way in improving legal recourse in such cases. The Rajya Sabha passed the Negotiable Instruments (Amendment) Bill on Monday without any debate. The Minister of State for Finance Jayant Sinha moved the bill for passage that had been passed by the Lok Sabha earlier. The amendments to the Negotiable Instruments Act will impact over 18 lakh cheque bounce cases pending in various courts, Sinha said while moving the bill. The amendments overturn a Supreme Court ruling which said the cases have to be initiated where the cheque-issuing branch was located. The court had reasoned that the territorial jurisdiction for dishonour of cheques is restricted to the court within whose local jurisdiction the offence was com...

The goods and services tax (GST) Constitution amendment Bill is likely to be listed for discussion in the Rajya Sabha not before December 14, which would leave the government with eight days of the winter session to get the key tax reform passed by the Upper House and subsequently the amended Bill by the Lok Sabha before the session ends on December 23. Central ministers said they haven’t lost hope about the GST Bill being passed in the ongoing session, despite no clear indications emerging from the Congress leadership, particularly from Congress President Sonia Gandhi and Vice- President Rahul Gandhi. The Congress has conveyed to the government that while it had agreed that the Rajya Sabha’s Business Advisory Committee allocate four hours for a discussion on the Bill, the Bill should only be listed in the day’s business after the Upper House discusses other issues of urgent public importance, especially the drought situation in large parts of the country and the price rise. The ...

After liberalising the external commercial borrowing (ECB) regime for companies looking to raise debt abroad, the government and the Reserve Bank of India are having a look at easing the norms on Indian Depository Receipts ( IDR) for foreign companies, Business Standard has learnt. Sources aware of the matter said the likely base for such recommendations would be a report last year on IDRs from a panel chaired by Competition Commission of India ( CCI) member M S Sahoo. While American and Global Depository Receipts (ADRs/ GDRs) allow Indian companies to access capital markets abroad, an IDR is a security a foreign company can list on Indian exchanges. The 11- member Sahoo committee made many recommendations on overhauling the IDR market. These included a whole new class of securities called Bharat Depository Receipts ( BhDRs) to replace IDRs. Also, the widening of underlying securities to include all instruments accessible to an Indian investor, widening of endusage rules for ca...

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b...

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b...

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b...

Updates Of the Day 1.The Reserve Bank of India (RBI) has cancelled the registration of 56 non- banking financial companies (NBFCs). 2.CEA led Panel recommends RNR at 17-18% and eliminating Additional Tax of 1% on inter-state supply of goods. 3.Free warranty services provided by vehicle-dealers to vehicle-buyers out of their dealer’s margin/ handling charges is not liable to Service tax:[Chowgule Industries (P.) Ltd] . 4.No VAT on free supply of medicines – State Govt. not competent to levy tax on the basis of MRP or any other notional value. [Mapra Laboratories Pvt. Ltd]. 5.Where seller has not reduced his Output Tax liability in pursuance to the Credit Notes the purchaser is not required to reverse Input Tax Credit. [Appellate Tribunal, VAT : of M/s Khanna Photo Store]. 6.CBDT allows service of notice, summons, requisition, order etc. by Email. Notification No. 89/2015. 7.CBDT issued notification to Issue refund below Rs.50,000/- Expeditiously in Non-CASS cases : Notification ...

The Central Board of Direct Taxes ( CBDT) has notified use of emails as the new mode of communication between the taxman and taxpayers, as part of the governments e- initiative to reduce human interface and complaints of harassment and corruption in conducting tax related jobs. The amendment in the Income Tax Act was also required as the department has recently launched a pilot project of sending email queries, notices and summons to taxpayers while processing cases of scrutiny. According to the notification 89 issued by the CBDT, the apex policy- making body of the tax department, an amendment has been made in the Section 282 of the I- T Act ( Service of notice) allowing for inclusion of taxpayers or tax paying entities email as the new mode of official communication along with the existing modes like courier, postage or departmental dispatch. Henceforth, the taxman can now send official communication to “ email address available in the income- tax return details furnished by th...

The finance ministry wants Employees Provident Fund Organisation ( EPFO) to retain 8.75 per cent rate of interest on provident fund (PF) deposits for 2015- 16 although the retirement fund body is in a position to give better returns to its over 50 million subscribers. The EPFO has provided 8.75 per cent rate of interest on PF deposits for previous two financial years — 2013- 14 and 2014- 15. “During a recent meeting of finance ministry and labour ministry top officials, of the former urged the latter that the EPFO should retain its 8.75 per cent interest on deposits for the current fiscal as well in view of the governments intention to reduce rate of returns on small saving schemes and PPF," a source said. The source further said, “EPFO has already worked out the income projection for the current fiscal, on the basis of which it can provide higher rate of returns than 8.75 per cent provided in the previous two financial years.” Business Standard, New Delhi, 7th Dec. 2015...

RBI to allow computation of banks ’base rates on the basis of marginal cost of funds In a move aimed at ensuring faster transmission of rate revisions, the Reserve Bank of India ( RBI) is set to release its final guidelines on computation of banks’ base rates on the basis of marginal cost of funds. These guidelines, allowing dynamic pricing of loans as suggested by banks, are likely to benefit new customers. One suggestion made by the bankers’ lobby — there are indications that RBI has taken it seriously — is that pricing of loans should be changed on the basis of market- linked yields, with a clause for reset every quarter or year. While it is not yet clear whether the yields taken into consideration will be on adaily basis or an average, dynamic pricing of loans will be tricky business for borrowers, who will also have to time their borrowings according to money markets and the view on interest rates. That is because the rate could be reset only after a quarter or a year of a l...