CA Online

Daily Update 31-May-2017 Economic Times • Indian Railways to pour more money into Rail Neer brand • French company Engie likely to invest Rs 6,500 crore in solar energy in India • Jindal Poly Films in talks to acquire European operations of DuPont Teijin Films • Govt's new policy on EOR contracts can help double India's oil output • Enforcement Directorate, banks claim right over assets pledged by Vijay Mallya • PhD student commits suicide in IIT Delhi campus Business Standard • PM Modi supports Merkel's EU leadership as Donald Trump scolds Germany • Babri Masjid case: CBI court frames conspiracy charges against LK Advani • Piramal Finance enters auto space, invests Rs 565 cr in two component cos • Jet Airways Q4 net slumps 95% to Rs 23 cr on mounting expenses Mint • RBI calls for a/c number portability, banks wary • India not ready to roll out GST from 1 July, says West Bengal FM • Nestle reduces salt, adds iron to make Maggi noodles health...

Karnataka will place the goods and services tax (GST) Bill in the state Assembly when it reconvenes in the continued Budget session on June 5. The state Cabinet approved the move to seek ratification in the Assembly meet on Tuesday, keeping in view that the GST regime is expected to be rolled out on July 1, the state´s law ministerTBJayachandra said. Karnataka has been the forefront in preparing itself for the GST regime, by enrolling over 550,000 lakh taxpayers. Business Standard, New Delhi, May 31, 2017

Sebi discussing tax issues with CBDT; options to be launched to increase farmer participation The Securities & Exchange Board of India (Sebi) is expected to issue a circular on the operational framework and modalities for launch of commodity options by exchanges like NCDEX and MCX in a fortnight, a person aware of the development told ET. The regulator has also taken up the tricky issue of options' taxation with the Central Board of Direct Taxes (CBDT), he added. The circular will contain, among others, design of the new contracts, number of commodities on which options can be launched, product turnover criteria and the date of devolvement ­­ conversion of options into futures contracts. “The circular is likely to be issued in a fortnight's time,“ the person said. A Sebi official was not available for comment. The finance minister announced the launch of options for commexes in the Union Budget FY17 to get more farmer participation and to deepen the market. Howe...

New Re1 notes with predominantly pink-green on obverse and reverse in combination with other colours will be soon put into circulation. The notes bearing the rupee  symbol have been printed by the government. At present, one rupee coins are minted. Printing of Re1 notes was discontinued in 1994; it was relaunched in 2015.  “The Reserve Bank of India will soon put into circulation currency notes in one rupee denomination,” the central bank said in a statement. Mint, New Delhi, May 31, 2017

Revenue Secretary Hasmukh Adhia on Tuesday did not rule out the scope for rationalisation of tax rates fixed on various goods and services under the GST regime to be implemented from July 1. “One thing we would agree is that there isascope for rationalisation of tax rates on various goods and services,” he said here in an interaction with the industry on GST. Even the Central Board of Excise and Customs Chairperson Vanaja Sarna had on Monday said the GST Council could revise rates if there is any justification for reconsideration. Various industries and businesses, including traders, FMCG (fastmoving consumer goods) and automobiles had been petitioning the central government for revising rates. On concerns raised by representatives of food processing sector, Adhia saidadecision on the rates of foodgrain, especially wheat and rice, would be taken at the June 3 meeting. “It was already mentioned by (Finance Minister Arun) Jaitley that this is one issue which is still pending befo...

To help companies raise funds through green bonds for investment in renewable energy space, the Securities and Exchange Board of India (Sebi) on Tuesday put in  place disclosure norms for issuance and listing of such bonds. The issuer of a green bond will have to make disclosure about environmental objectives of the issue  of such securities in the offer documents, Sebi said in a circular. Besides, issues would have to provide details of the systems and procedures to be employed for  tracking the proceeds of the issue, including the investments made and earmarked for eligible projects in the offer documents. In addition, the issuer would have to  make disclosures including use of proceeds, list of projects to which green bond proceeds have been allocated in the annual report and periodical filings made to  the stock exchanges. Business Standard, New Delhi, May 31, 2017

New Delhi: Giving thumbs up to the demonetisation of high value currency notes last year and the upcoming roll out of the goods and services tax (GST), the World Bank has said the two reforms will increase the formalisation of the Indian economy. In its latest India Development Update released on Monday, the World Bank said India’s economy will grow 7.2% in fiscal year 2017-18. “In the long-term, demonetization has the potential to accelerate the formalization of the economy… the implementation of the GST is a key complementary reform that will support formalization, as firms have a strong incentive to register with GST to obtain input tax credits,” the World Bank said in the biannual report themed ‘Unlocking Women’s Potential’. GST, the report said, would lead to higher tax collection, greater digital financial inclusion and make India’s fundamentals stronger and yet not increase the burden on the poor. Given the effi- ciency and revenue gains that the reform will eventually achie...