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Updates Of the Day 1.SEBI has proposed new regulations for public issue of 'core capital' instruments by banks and for the public issue of Infrastructure Investment Trusts (InviTs). 2.MCA notifies sections related to reporting on fraud by auditor and omnibus approval by Audit Committee of the Companies Amendment Act, 2015 and made applicable from 14.12.2015. 3.CESTAT order to deposit duty after considering prima facie case, undue hardship and interest of revenue is valid. [Advance Netways Marketing Pvt. Ltd. vs. CCE, Honorable Bombay High Court]. 4.TDS u/s.194I not deductible on lease premium paid to acquire land on lease with substantial right. [ACIT vs. OBC, Mumbai Bench of ITAT]. 5.Free samples of medicines to medical practitioners not covered under gift, no disallowance u/s 37. [ITAT Delhi: Eli Lilly & Co. (India) Pvt. Ltd. vs, ACIT]. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

The government plans to introduce a bill in Parliament on Monday to deal with sick companies that turn insolvent for genuine reasons. The bill — Insolvency and Bankruptcy Code — once voted into law will replace a string of archaic legislations with a modern contemporary law, which will help companies opt for easy exits, in a move that will further improve ease of doing business in the country. “Finance minister will introduce Insolvency and Bankruptcy Bill in Parliament tomorrow,” Shaktikanta Das, secretary, department of economic affairs tweeted on Sunday. The move was first announced by finance minister Arun Jaitley in the budget. Last month, the Bankruptcy Law Committee headed by former law secretary TK Vishwnathan released the first draft of a proposed bankruptcy law modelled on the USA’s tested Chapter 11 bankruptcy code, which handholds insolvent companies and aids banks that would have lent to such companies. The bill could be referred to the standing committee for a ful

Room for rise of up to 2 percentage points, move to help meet higher expenditure need in FY17 To meet higher expenditure requirement for the next financial year, mainly on account of the seventh pay commission’s recommendations and the implementation of the one- rank- one- pay ( OROP) pension plan, the Centre could raise the service tax rate by up to two percentage points in the coming Union Budget. A committee headed by Chief Economic Advisor Arvind Subramanian has recommended a standard rate of 16.9 per cent to 18.9 per cent under the proposed goods and services tax ( GST) regime. So, Finance Minister Arun Jaitley has the room to increase the service tax rate from the current 14 per cent to 16 per cent next financial year — to shore up revenue and also prepare the country for a GST regime. “Discussions and consultations are on; services is an area where we see room, as far as revenue sources are concerned. We do not know how global oil prices will behave next year, so excise

Salary, allowances covered under ruling in a plea filed by Indian subsidiary of US group Payments to expats working in India for local arms of multinationals by the foreign parent won't attract service tax, the Authority for Advance Ruling has said. The decision is significant as it brings some relief to MNCs that have been served with notices in similar cases. “There shall be no liability to pay service tax on the salary and the allowances payable by the applicant to the employee in terms of the dual employment agreement and such salary will not be eligible to levy the service tax as per the provisions of the Finance Act,“ the ruling said. This followed a plea by North American Coal Corp. India, the local subsidiary of US-based North American Coal Corp. It sought a ruling on the application of service tax on social security benefits given by the parent to an employee working in India on contract. There have been recent instances of tax authorities issuing notices to MNCs i

Plans to set up a monetary policy committee (MPC) under the Reserve Bank of India (RBI), which will be empowered to set interest rates, has entered the final leg. The finance ministry on Friday said that it has moved a draft Cabinet note seeking comments from all stakeholders including other ministries. The details of the agreement are not known but indications are that the RBI would continue to have a say in decisions relating to interest rates. While the government and RBI have managed to iron out their differences on the proposed MPC, in August the finance ministry found itself amid a raging controversy when the Financial Sector Legislative Reforms Commission put up a report seeking to take away RBI governor’s overriding powers on interest rate decisions. However, the finance ministry clarified that the report was not final and it just sought comments from stakeholders. In February, the government and the RBI signed the monetary policy framework agreement with the objective

The Securities and Exchange Board of India ( Sebi) has proposed new regulations for public issue of core capital instruments by banks and for the public issue of Infrastructure Investment Trusts ( InviTs). The proposed norms for retail or public issuance of Additional Tier- 1 ( AT1) bonds set the minimum investment at ? 2 lakh, due to the additional risk with these as compared to other debt products. “ To ensure only well- informed retail ( individual) investors, with adequate risk tolerance level, subscribe to these," explained Sebi in the draft norms, issued on Friday. Last year, the Reserve Bank had allowed banks to issue AT1 instruments to retail investors. Sebis committee on corporate bonds had deliberated on the additional requirements for and disclosures by banks for doing so. For InviTs, Sebi has proposed that disclosures in the offer documents and draft papers be kept in the public domain for at least 21 days. The allocation in the public issue to qualified instit

There is hope that the Rajya Sabha is likely to function smoothly for the three remaining days of the winter session of Parliament. But it might not discuss contentious legislations such as the Goods and Services Tax (GST) Constitution Amendment Bill. This has dashed any hopes of the GST being rolled out by April 2016. The tax reform would now be taken up in the Budget session in Februaryend. At an all- party meeting convened by Rajya Sabha Chairman M Hamid Ansari, the Opposition, including the Congress, agreed it would ensure the passage of at least half- a- dozen Bills and allow the House to debate issues such as price- rice, agrarian crisis, impact of floods and drought, the political crisis in Arunachal Pradesh and the intolerance issue. However, consensus eluded on the GST and real estate ( regulation and development) Bills. Ansari described the hourlong meeting as “ good”. The Bills that the meeting agreed the House should pass before its session concluded on Wednesday ar