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The Central Board of Direct Taxes has signed 20 unilateral advance pricing agreement (APAs) with Indian taxpayers as it looks to reduce litigation by providing certainty in transfer pricing. Business Standard, New Delhi, 31 August 2016

The Mizoram Assembly on Tuesday ratified the goods and services tax (GST) constitutional amendment Bill by adopting an official resolution, becoming the 13th state to have approved the legislation. Earlier in the day, the Telangana legislature also unanimously ratified the Bill. In a separate development, the Goa Assembly has convened a day-long special session on Wednesday to ratify the GST Bill, a senior official said on Tuesday. Business Standard, New Delhi, 31 August 2016

I-T department seized over Rs 330 crore of alleged tainted cash, jewellery and other movable and immovable assets The Income Tax (I-T) department has seized an all-time high value of cash and jewellery, while Rs 3,360 crore unpaid taxes have been surrendered this year as part of its enhanced crackdown against black money holders in the country. In a mammoth jump of over three times in the searches, raids and seizure action in the first seven months of this year as compared to the corresponding period of 2015, the department seized over Rs 330 crore of alleged tainted cash, jewellery and other movable and immovable assets. Last year, this figure stood at Rs 102.50 crore. An official report prepared in this regard states that I-T raids and searches this year have beaten all records of the last five years in terms of number of such actions conducted, seizures made and subsequently the untaxed income brought to the government coffers. The figures compiled in the report, which has been acc...

E-commerce companies seek exemption from tax Companies on Tuesday pitched for a standard goods and services tax (GST) rate of 18 per cent and sought time to switch over to the new regime at a meeting with the empowered committee of state finance ministers chaired by West Bengal Finance Minister Amit Mitra on Tuesday. States, which are seeking a higher tax rate of 20 per cent, asked companies if they would pass on low rates to consumers. The finance ministers did not buy the argument of the e-commerce industry, which sought an exemption from the tax, that it merely provided a platform for vendors and customers and did not make money out of sales. This was the first meeting of the empowered committee of state finance ministers since the passage of the Constitution Amendment Bill for the GST in Parliament. The meeting discussed GST rates and the accountability of the goods and services tax network. Thirteen states have ratified the Bill. Telangana and Mizoram had the legislation approve...

The Centre on Tuesday  increased the minimum wages and bonus for its employees to pacify trade unions that have called a nationwide strike on Friday. The Minimum Wage Advisory Board on Tuesday announced a hike in the lowest wage for unskilled central government workers to Rs 350 a day from Rs 246. The increase will also be effective for central public sector undertakings. “The government has effected a 43 per cent increase in the minimum wage. This was a major demand of the trade unions,” Union Labour Minister Bandaru Dattatreya (pictured) said. Dattatreya has held meetings with trade unions over their charter of demands. The issues have been taken up by an inter-ministerial committee headed by Finance Minister Arun Jaitley. “The bonus entitlements for 2014-15 and 2015-16 will be released on revised norms. This was pending for two years. After this, the bonus will be covered under the Seventh Pay Commission,” Jaitley said. The Payment of Bonus Act, 2015, doubled the statutory bon...

www.caonline.in News... 1. RBI has issued Master Directions for NBFC Cos on six subjects. The subjects on which Master Directions have been issued are Exemptions from the provisions of RBI Act, 1934. 2. DVAT Last date extended for filing the return for Q1 2016-17 by 10 days and also to find out the ways to improve the system STBA. 3. Sikkim becomes the 14th state to ratify GST bill. One more required to go. 4. Under GST no refund up to 1000 in GST. Only declaration for refund less than 5 lacs. Prescribed documents for refund of 5 lacs & above. 5. An arbitrator has no power to award pendent lite interest if the same is barred expressly by the contract. It would depend on the nature of the ouster clause in the contract. [Union of India vs. Ambica Construction (SC of India)]. 6. Company e-Forms AOC-4, AOC-4 CFS, DIR-12, and FC-2 & MGT-15 revised on MCA portal. Download the latest version of forms W.e.f 24.8.16 for e-filing. 7. The CBDT vide Circular no. 30/2016 dated. 26 ...

The formation of the National Company Law Tribunal ( NCLT) on June 1, 2016, marked a decade- long attempt to overhaul company law litigation in India. NCLT President M M Kumar struck an optimistic note while speaking at a recent public function, highlighting the new approach of the tribunal. However, considering the large increase in workload, infrastructure and manpower constraints continue to remain the tribunal’s Achilles’ heel. Kumar said the crux of the changed approach lay in Section 422 of the Companies Act, 2013, which mandates three months for the completion of proceedings, extendable by 90 days. There was no such guidance for the functioning of the erstwhile Company Law Board ( CLB). The CLB had gained notoriety in the past for its laggard approach towards proceedings, leading to long- drawn disputes. Even after constitution of the NCLT, many were sceptical of its eventual efficacy. The lack of underlying rules of procedure led cynics to believe the tribunal was just ...

With an average annualised return of 10 per cent, income fund investors have had a couple of good years. However, considering that Consumer Price Index- based inflation is currently closer to the upper end of the Reserve Bank of India’s (RBI’s) target and the new governor is likely to continue to keep a focus on inflation, we might not see an interest rate cut any time soon. It may be recalled that after Raghuram Rajan’s decision to quit RBI, the bond market witnessed a smart rally on expectations that the new governor might cut rates faster. However, as became evident after the announcement of Urjit Patel’s appointment that there might not be a significant change in RBI’s monetary policy stance, the bond market witnessed some selloff. Leaving investors with the dilemma of whether the current scenario warrants a realigning their debt fund portfolio. Although the current scenario doesn’t appear favourable to the short- term prospects of income funds, investors will do well not t...

Eager to meet the April 1 target to rollout the landmark Goods and Services Tax( GST), the government might advance the winter session of Parliament by a fortnight to get supporting legislations passed,giving sufficient time for implementation of the new indirect tax regime.The winter session is normally convened in the third or four th week of November. The government is looking at starting the month- longsessionimmediately after the festive season. Business Standard New Delhi,29th August 2016

Ind-AS, the new accounting standards that came into effect from April 1, might squeeze the revenues of fast moving consumer goods (FMCG) companies by up to eight per cent in 2016-17. The key cause is deduction of sales promotion expenditure from the revenue figure, hitherto part of the profit & loss (P&L) statement under the earlier IGAAP accounting norms. In the just-concluded June quarter, for instance, the top line of the country's largest consumer goods company, Hindustan Unilever (HUL), was affected by 2.6 per cent or Rs 214 crore under Ind-AS. Godrej Consumer Products’ revenue was squeezed 10.4 per cent. Sunil Duggal, chief executive, Dabur India, said six to seven per cent of its FY17  revenue would be hit. “Some part of promotional expenditure, mainly below-line expenses, will be deducted from revenue,  expected to be around Rs 600 crore,” he said. Vivek Karve, chief financial officer, Marico, said: “On an annualised basis, sales will get restated downw...

Aturf battle is brewing between Indian audit companies and those owned by global audit and accounting networks, as the government pushes for opening up of accounting services. Small and midsize chartered accountancy ( CA) entities feel the most threatened by this move. Questions are being raised on issues around reciprocity, visa restrictions and non- recognition of Indian audit certificates in other jurisdictions. CAs working with international audit agencies say the move will improve India’s bargaining position in global markets on export of services. It started with a note sent earlier this month by the Union ministry of corporate affairs to The Institute of Chartered Accountants of India ( ICAI), regulatory body for auditing professionals. The ministry sought the institute’s views on allowing foreign auditors to practice directly in the country, and to use their own brand name while attesting financial statements. Currently, global audit companies operate in the country t...