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The WTO agreement aims to simplify customs regulations for the cross-border movement of goods The Union cabinet on Wednesday approved a proposal to ratify the Trade Facilitation Agreement (TFA) of the World Trade Organization, which aims to simplify customs regulations for the cro-ss-border movement of goods. To facilitate both domestic coordination and implementation of the TFA provisions, a National Committee on Trade Facilitation will be set up; it will be jointly headed by the commerce and revenue secretaries. The TFA contains provisions to speed up the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. “These objectives are in consonance with India’s ‘ease of doing business’ initiative,” a cabinet statement said. The provisions that each country needs to implement have been divided into three categ

In what could slow down dollar inflow into the country, infrastructure and asset finance companies -including large state-owned firms like Rural Electrification Company, Power Finance Corp and Indian Railway Finance Corp -are unable to raise dollar loans, with new rules on external commercial borrowings (ECB) imposing certain restrictions. These companies, categorised as nonbanking financial companies (NBFCs) in the revised ECB framework, can only raise foreign currency loans which are denominated in rupees. In such loans, lenders take the foreign currency risk -unlike the customary dollar loans where the risk arising out of exchange rate fluctuation lies with borrowers. But, under the current circumstances, where the market has turned volatile and the local currency is depreciating, these companies are finding it impossible to raise rupee-denominated ECB.And, even if they can, the pricing of such borrowings would be prohibitive. Since the beginning of 2016, a little less than

Experts say move to raise period from one to three years could scare markets The already- nervous Street has a new reason to lose sleep. The plan proposed by the government to increase the time frame of long- term capital gains tax from one year to three years has made the stock market investors nervous in the run- up to the Union Budget. Capital gains are the profits that an investor realises when he sells a stock. Long- term capital gains tax is a levy on those gains.Currently, investors dont have to pay any capital gains tax on shares sold on an exchange after one year of holding. The move to increase the holding period to three years would force investors to hold on to their stocks, hurt sentiment, and lead to a crash in the market, say experts. Benchmark indices are already down 10 per cent this year following a rout in the global markets. Sudip Bandyopadhyay, managing director and chief executive, Destimoney Securities, believes such a move would be "disastrous"

The upcoming Budget for 2016-17 would focus on tax rationalisation and simplification besides providing a level-playing field to domestic manufacturers to facilitate Make in India, hinted revenue secretary Hasmukh Adhia on Wednesday. With a fortnight to go for finance minister Arun Jaitley to present the Budget, Adhia said the focus should be on promoting growth and employment. "The focus of the Budget should be on tax rationalisation and simplification. …promoting growth, employment and providing some sort of level-playing field to domestic manufacturers so that the Make In India can happen," Adhia said in the finance ministry's YouTube video. On the need for phasing out of corporate tax exemptions, which cost the exchequer about Rs 2 lakh crore annually, Adhia said the move was necessary to provide a level-playing field to domestic manufacturing companies even though completely eliminating those was not possible. "Exemptions create inequity, between the e

Updates Of the Day 1.Last date for submission of online application form for empanelment with O/o C&AG for the year 2016-2017 for audit of PSUs is extended to 22.02.2016. 2.MCA invites comments on The Draft Companies (Accounting Standards) & (Indian Accounting Standards) Amendment Rules 2016 to be submitted latest by 01.03.2016. 3.CBEC makes it mandatory for RBI and Electricity Board to file Annual Information Return. Notification no. 04/2016 dated 15.02.2016. 4.New appeal filing monetary limit shall apply to pending appeals also.[ITO vs. Smt. Sudha Brijratan Damani (ITAT Mumbai), I.T.A. No. 6952/Mum/2013]. 5.WIP Valuation on receipt basis is forbidden in Mercantile Accounting. [The ACIT vs. M/s. Ambarwadikar & Co., Engineers & Contractors (ITAT Pune), ITA Nos.169 to 171/PN/2006 & C.O.No.27/PN/2010]. 6.Sec. 172 : No TDS on payment to Non–Resident shipping companies. [CIT vs. V.S. Dempo & Co. Pvt. Ltd. (Bombay High Court), Income Tax Appeal Nos. 989, 991,

Updates Of the Day 1.ST applies on C&F Agent Services despite non clearing from factory. [Somani Agencies vs. CCE & ST, Indore; (CESTAT-New Delhi); Final Order No. 50085/2016] 2.Non-Tax Receipt Portal : Platform for making online payment of non-tax receipts by citizens / corporate / others inaugurated by Ministry of Finance on 15.2.16. 3.Excess Cenvat due to calculation mistake is not wrong availment .[M/s. TNT (INDIA) PVT LTD vs Commissioner of Central Excise and Service Tax BANGALORE-III; (CESTAT- Bangalore); Final Order No. 22133 / 2015] 4.Penalty u/s 271AAA is not tenable where no search was conducted. [DCIT vs. M/s. Sam India Abhimanyu Housing (ITAT Delhi), ITA No.1257/ Del./ 2015, AY 2011-12] 5.Non TDS deduction disallowance is not sustainable if payee discharges his tax liability.[ Kurian Ulahannan Moothukuzhiyil vs. ITO (ITAT Ahmedabad), I.T.A. No. 2524 / Ahd /2014, AY 2010-11] 6.Section 80IB(10) : Deduction allowed on additional business declared post search.[M

The Employees’ Provident Fund Organisation (EPFO) on Tuesday marginally raised the interest rate by 0.05 percentage points to 8.8 per cent for 2015- 16, benefiting its 50- million subscribers’ safety net and yet leaving a surplus of ? 673 crore with itself. However, the interest rate could be revised upwards later. The decision was taken at a meeting of the Central Board of Trustees ( CBT) chaired by Union labour minister Bandaru Dattatreya in Chennai. Dattatreya said the decision on interest rate was an interim one, leaving the doors open for further revision of the interest rate for the current financial year in the wake of trade unions’ demand for 8.95 per cent. According to preliminary estimates, with an interest rate of 8.8 per cent, the surplus would be around Rs. 673 crore. “We want to safeguard workers’ interest; we want to give a real and purposeful picture before the workers, and that is why a long debate took place today ( on Tuesday),” said Datttreya, adding: “ We