CA Online

The labour ministry has proposed to reduce the employer´s contribution to the Employees´ Provident Fund (EPF) from 12 per cent to 10 per cent. The proposal, which will be opposed by trade unions, will come up for approval in the meeting of the Central Board of Trustees (CBT) on Saturday. Around 50 million employees in the country receive provident fund contributions. The move, according to the labour ministry, will increase the takehome salary of employees. But trade unions opposing the move termed it an attack on social security. According to the agenda paper of the meeting, the Employees´ Provident Fund Organisation´s (EPFO´s) CBT will consideraproposal to lower “the rate of contribution to be paid by employer and equal contribution by employees from the present 12 per cent to 10 per cent by issue of appropriate order by the Central Government”. The Employees´ Provident Fund and Miscellaneous Provisions Act, 1952, empowers the Central government to lower the contribution rate and

Amid clamour in industry over tax rates decided by the GST Council, Vanaja Sarna, chairperson of the Central Board of Excise and Customs, ruled out a review, barring a few rare cases.   She also said the government was set for the July 1 roll-out of the GST and industry must gear up for the new regime. The government is flooded with representations from industries, including FMCG, automobiles, railways and solar power, to revise rates. The GST Council in its last meeting decided rates for 1,211 items and 500 services. Around 60 per cent of the items will fall in the 12 per cent and 18 per cent tax slabs. “Industry should know that anything that was finalised in the council meeting will not be revisited now, barring six or seven remaining items. There will never be an end to demands for reviewing rates. Let the GST roll out and then these can be taken up,” Sarna told this newspaper. She, however, added a few tax rates could be revised later. “Like all budgetary changes, a view can

Markets regulator Sebi on Friday issued a new framework for listing of non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS) following mergers and acquisitions (M&As). A listed firm may seek listing of NCRPS/NCDs issued pursuant to a scheme of arrangement only in case where the listed firm is a part of such scheme and such securities are issued to the holders of specified securities of such listed entity, Sebi said in a circular Mint New Delhi, 27th May 2017

After outlining a loan recast plan, the Reserve Bank of India (RBI) has begun a dialogue with stakeholders to work on their role details and timelines. There is a sense of urgency, though no timelines have been specified as of now. This was the first meeting after the RBI’s statement on steps on a prompt resolution of troubled assets. After outlining loan recast plan, Reserve Bank of India (RBI) has begun dialogue with stakeholders, including bankers and insolvency professionals, to work on their role details and timelines. There is a definite sense of urgency, though no timelines have been specified as of yet. This was the first meeting after RBI's statement on Monday on future steps for prompt resolution of troubled assets, banking sources said. RBI is expected to grow a framework for an "objective and consistent" decisionmaking process for resolution under the Insolvency and Bankruptcy Code, 2016. RBI's plan includes reconstituting oversight committee (OC). Ban

Agri minister says under the new tax regime, food inflation is likely to dip by 2% India has said that the implementation of the Goods and Services Tax (GST) will benefit farmers and reduce food inflation, as grain and milk would remain exempted under the new regime that would put in place a single levy instead of multiple taxes. “With the GST coming, inflation will come down by 2%,“ federal farm minister Radhamohan Singh said in New Delhi. There has been no major increase in tax slabs for agriculture produce, and it was beneficial for both farmers and consumers, Singh said. Currently, both the tax-payer and the consumer were paying levies to both the state and the Centre on the sale of produce, leading to increase in the prices of commodities, Singh said. Under the GST, agriculture produce from foodgrains, oilseeds, fruits and vegetables, milk, spices, fish, meat, and sugarcane will attract zero duty. “In some commodities such as cream and flavoured yogurt, the tax has come down t

Filings under new tax system set to reduce risk, cut cost While small and medium businesses are expected to face teething trouble in complying with the Goods and Services Tax regime, the new tax system will also open an opportunity for them to access credit as GST filings are set to become a significant data source for flow-based lending. Both banks and digital lending players say GST filings can be the best trove of information to lend to small businesses and will also reduce risks and cut costs while scoring these businesses for credit worthiness. “GST will help make invoicing and data analytics around businesses more credible.In the long term, it will be beneficial for both SMEs and lenders,“ said Rajeev Ahuja, head of strategy , retail and financial inclusion at RBL Bank. “For banks like us, it will help reduce costs of doing business. Today , assessing small business involves feet on street and operational work. With GST, there will be a significant opportunity for many servic

Attaches properties worth Rs 600 crore The income tax department on Wednesday said it had identified over 400 benami transactions and attached properties worth Rs 600 crore in about 240 cases.Keen to implement the new Benami Act to ensure “visible outcomes on the ground”, the department last week set 24 dedicated benami prohibition units across the country. The department started initiating actions under the new Benami Transactions (Prohibition) Amendment Act, 2016, from November 1 last year.The law provides for a maximum punishment of seven years in andafine. Benami property includes movable or immovable, tangible or intangible, corporeal or incorporeal property, in name of someone other than the beneficial owner. “Income tax directorates of investigation have identified around 400 benami transactions up to May 23, 2017. These include bank deposits, plots of land, flat and jewellery,” an official release said. Provisional attachment of properties under the law has been done in a