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The valuation report from a registered valuer will not be questioned by the income tax department for disclosures made under the domestic black money compliance scheme, the CBDT clarified on Thursday . “The valuer is expected to furnish a true and correct valuation report in accordance with accepted principles of valuation. In case of any misrepresentation, appropriate action as per law shall be taken against the registered valuer,“ said the fifth set of FAQs.   CBDT had received representations from stakeholders to provide an option to value the immovable property on the basis of the registered value. “After due consideration, the rules have been amended to provide that where acquisition of an immovable property is evidenced by a registered deed, an option shall be available with the declarant to declare the fair market value of such property by applying the cost inflation index to stamp duty value of property ,“ the FAQs said.   The Times...

The Central Board of Excise and Customs (CBEC) will chair a meeting this week with e-commerce companies over their apprehensions about the Goods and Services Tax (GST) and to fine-tune and improve the law. While e-tailers have broadly welcomed the government's effort to implement the GST, clauses such as tax at source, which would impact small scale sellers and increase compliance burden, have been bothering these companies.   According to the tax head of a top e-commerce firm, major pain points also include filing tax forms before buying goods more than Rs 5,000 in select states.    The companies are trying hard to convince the government to do away with these rules in the final GST law .“The government's intent to bring GST is welcome but some clauses seem to have not been looked at carefully . We have already provided feedback on major pain points for us and the meeting is expected to deliberate further on these issues. If these clauses ...

GST Council To Fix Rates, Govt To Focus On Policy The Union budget is set to get thinner once the Goods and Services Tax (GST), a vital indirect tax reforms that aims to develop a common domestic market and cut out multiple levies, rolls out in the months ahead.   Experts say Part B of the budget, which is the most awaited section, will in all probability sport a very trimmed look after GST becomes a reality.   And, after the announcement of Direct Tax Code (DTC), length of the budget will be further trimmed, prompting the government to focus on policy announcements and detail outcomes of various proposals. The changes on account of GST are expected to reflect from the 201819 budget.   “Part two of the budget where you have the tax rates will be reduced by more than 50% and you will only have direct tax rates,“ said Dhirendra Swarup, a former expenditure secretary .   “I don't know in what form DTC will come. And the GST rate will be ...

LEG-UP FOR STARTUP FUNDING The fund will help in the flow of venture debt from the formal banking system Startups are one step closer to being able to borrow money , with the Department of Industrial Policy & Promotion (DIPP) given charge of framing guidelines for a credit guarantee fund for them.   “Earlier, the matter was being dealt with by the department of finance. We have started the work and it should be finalised by September,“ a senior government official said. The DIPP is part of the ministry of commerce & industry .   After suggestions from stakeholders including startups, venture capital funds and angel investors, the govern ment is looking at ways of increasing the availability of finance to startups.The credit guarantee fund would help in the flow of “venture debt from the formal banking system,“ the official said.   The Startup Action Plan announced by Prime Minister Narendra Modi in January said that a credit guarantee ...

Govt wants RBI to ask banks to allow over the counter payment of tax under the scheme in cash Those disclosing unaccounted wealth under the income declaration scheme (IDS) will have the option of paying the tax on such income in cash, the income-tax  department has clarified through a fifth set of frequently asked questions (FAQs). The I-T department has also said tax authorities will not question the valuation reports of the accredited valuers, clearing more doubts about the four-month long scheme that closes on September 30.   The government has requested the Reserve Bank of India to issue instructions to banks to allow over the counter payment of tax under the scheme in cash.   “It is clarified that no adverse action shall be taken against the declarant by Financial Intelligence Unit (FIU) or the I-T department solely on the basis of the information regarding cash deposit made consequent to the declaration under the scheme,“ the department has s...

www.caonline.in News... 1. NIRC of ICAI is organising Workshop on GST on 22 August at Institution Technia, Madhuban Chowk, Rohini, Delhi and on 24th August 2016 at ICAI Bhawan, Vishwas Nagar, Delhi. For details  Visit www.nircseminars.org 2. On STBA representation dated 09.08.2016 the following problems resolved by the Delhi VAT Department. a) DSC made optional. b) In Item code with rate of 12.5% the option of others would now be working. c) Restaurant & Halwai dealers under composition Scheme can now file returns without filing commodity  in Annex-2B.. d) C forms can now be uploaded even if dealer has not filed the return for Q-1 2016. e) Labour & service charges can now be filled in Annex 2A/2B without item Code. 3. SEBI has launched electronic mode for payment of penalties, disgorgement as well as settlement amounts. 4. Indian Overseas Bank invites application for empanelments of concurrent audit. The firm or its prop/partners have not been the subject of ...

In order to promote `less-cash' economy , the government has said it will bear the transaction cost for all payments made to it through debit or credit cards and net-banking.   At present, customers bear the transaction cost, commonly known as merchant discount rate (MDR), on payments made to the government.   “Government departments shall take appropriate steps to bear MDR cost like other merchants. The public shall not bear any MDR cost for making payment to government through debit cards or credit cards or digital means,“ said an office memorandum issued by the finance ministry. It said the methodology to reimburse such payment to intermediaries on transactions involving debtcredit cards or digital means is being worked out and the detailed guidelines and operational modalities would be issued in due course.   The ministry has issued the circular in line with the government's decision to promote creditdigital transactions in government payments and collecti...

Starting Line Govt readies detailed framework to review excise duty exemptions being enjoyed by pharma, FMCG and auto cos in states India Inc may not face a bumpy ride under the proposed goods and services tax (GST) regime that would witness elimination of tax holidays as the government is readying a detailed framework to ensure a smooth transition.   The Central Board of Excise & Customs (CBEC) has set up a panel to formulate the framework that could have wide ramifications for pharmaceuticals, FMCG and automobiles sectors that have thrived in the states enjoying area-based excise duty exemptions.   “All these issues need to be worked out for smooth implementation,“ said an official. A detailed set of guidelines would be put in place ensure that entities enjoying tax holidays during the grandfathering period do not suffer.   The finance ministry is also beginning stakeholder consultations with individual sectors -starting with ecommerce on Wednesday -to...

BSE sends compulsory de-listing notices to 194 companies; Sebi might attach properties of promoters who fail to comply The Securities Exchange Board of India (Sebi)’s drive to de-list companies facing suspension has gotten underway. The BSE on Tuesday sent ‘compulsory de-listing’ notices to 194 companies. Trading in these companies has been suspended for nearly 13 years for non-compliance of listing agreement. The promoters of these companies will soon have to pay their public shareholders a ‘fair value’, which will be calculated by an independent agency. The fair value will act as a buyback price to ensure de-listing.   According to sources, Sebi is likely to attach properties and other assets of companies that fail to comply with de-listing notices. The regulator is expected to issue a circular in this regard soon, said a source.   Sebi and exchanges have embarked on a drive to weed out thousands of companies whose shares are suspended from trading...

The Goods and Services Tax Network, the information technology backbone that will implement the new indirect tax regime, will become a data analytics powerhouse in the months after the roll-out. “Once sufficient amount of data is generated, we will be able to generate analytics based on the requirements of various stakeholders,” Navin Kumar, chairman, GSTN, told Business Standard in a recent interview.   GSTN is a non-profit entity that is building the information technology backbone for the goods and services tax (GST). It will store all details related to the relevant transactions. These analytics, based on data filed by millions of taxpayers who will migrate to the system, will help in plugging leakages,    identifying economic trends and ensure more focused economic-policymaking. Kumar said this would be the third phase of the work undertaken by GSTN and is part of the terms of reference of the vendor, Infosys. “The vendor would build p...

Middle class constituted about 49 per cent of the total tax payees in financial year 2011-12 The top 1 per cent of earning individuals who filed tax returns earned about 18 per cent of the total income in financial year 2011-12, according to the latest data on income tax released by the income-tax department recently.   The bottom half of the earning individuals earned just about 21 per cent of the total income shown in the returns, the data showed, highlighting stark income inequality. However, in between there is a big chunk of middle class. It is this class, which was addressed by Prime Minister Narendra Modi in his    Independence-Day speech when he said he would further mitigate their problems with the income-tax department.  The top 1 per cent of the individuals were those who earned Rs 25 lakh and above, while the bottom 50 per cent made up of those who earned up to Rs 2.5 lakh. In between, there was a middle class, constituting...