CA Online

Cos Fear Losing Credit Over GST Filing Errors Industry bats for extension of filing deadline citing delay in getting offline utility A company with Rs.100 crore credit in lieu of taxes paid in the past regime, risks losing it now under the goods and services tax (GST) reign simply because of the `fat finger,' as it is popularly called. With the August 28 (Monday) deadline looming for filing returns and ensuring GST compliance, corporates are a deeply concerned lot. The offline utility for GST TRAN 1 form to be used to claim input tax credit for the pre-GST regime -was not available till Sunday , leaving just a day for filing returns and causing a weekend rush. In absence of the utility, details had to be filed online with higher chances of error. Tax practioners struggled to meet the deadline, having had to deploy additional manpower to manually key in invoices, some running into thousands. What has compounded the industry's worry is that there is no clarity on whet

Sebi May Bring Rules for Merger of MF Schemes Move expected to improve transparency and reduce confusion for MF investors India's capital markets regulator intends to introduce rules that will force mutual funds to merge schemes in the same investment categories, driving long-pending consolidation in an industry that has hitherto ignored informal requests for ending the surfeit of plans.   Broadly put, if a mutual fund has two equity schemes with mandates to invest in large-cap stocks, the asset manager will have to merge the investment products once the new rules proposed by the Securities and Exchange Board of India (Sebi) kick in. The step is aimed at improving transparency and reducing the clutter for investors.   The Sebi-appointed mutual fund advisory panel, scheduled to meet September 1, will discuss the matter, said three people familiar with the development. Exact details of the proposed rules could not be ascertained, but one official said the norms will req

Government notifies changes in Banking Regulation Act   The government has notified the Banking Regulation (Amendment) Act under which it can authorise the RBI to issue directions to banks to initiate insolvency resolution process to recover bad loans.    The banking sector is saddled with non-performing assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).    Earlier this month, Parliament had approved the Act, which replaced an ordinance in this regard.    The government in May had promulgated an ordinance authorising the Reserve Bank of India (RBI) to issue directions to banks to initiate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.    Following the ordinance, the RBI had identified 12 accounts each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks for immediate referral for resolution under the bankruptcy law.    The Econo

Insurance firms tap blockchain for ease of transaction 13 companies to create pool of policyholder data; to lower cost for insurers Thirteen Indian insurance companies have come together to use a blockchain-like technology to create a central repository of policyholder data, so that insurers need not repeat the registration procedure for multiple policies. “When the same records are available to a number of life insurance companies in a chain, the cost incurred by them is lower compared to what it is when they were all separately conducting tests and storing records,” said Akshay Dhanak, vice-president, business systems & technology at HDFC Life Insurance. A whole lot of work has to be done in know-your-customer, medical underwriting, financial underwriting, etc, when a customer buys insurance, he said. Duplication of these procedures can be avoided by having the entire data set on blockchain. Blockchain is like a digital ledger used to store information of all cryptocu

Now, SFIO has powers to arrest people for violations of companies law While the Companies Act, 2013 provides powers of arrest to the SFIO, which comes under the corporate affairs ministry, the provision has been notified only now. The Serious Fraud Investigation Office (SFIO) now has powers to arrest people for violations of companies law, with the government notifying relevant provisions amid the crackdown on illicit fund flows. The shot in the arm for the probe agency also comes at a time when the government is cracking the whip on suspected shell companies being used for illegal activities, including money laundering and tax evasion. While the Companies Act, 2013 provides powers of arrest to the SFIO, which comes under the corporate affairs ministry, the provision has been notified only now. Most provisions of the Act came into force on April 1, 2014. The SFIO is a multi-disciplinary organisation having experts for prosecution of white-collar crimes and frauds under th

Post-GST haze may delay foreign trade policy The mid-term review of the Foreign Trade Policy had earlier been scheduled for release on July 1 along with GST   The mid-term review of the Foreign Trade Policy (FTP) is struggling to meet its September deadline, despite being pushed back from its initial release date of July 1, sources say.   Senior government officials claimed work was on the fast track. But they were not sure if the revised policy can be released by September. Assessing the effects of the goods and services tax (GST) regime on the export system and the export promotion schemes were throwing up new challenges every week, they explained. As of now, the government is busy trying to deal with the issue of exporters losing a major chunk of their working capital, because of GST. Complaints by exporters regarding reduced utility of duty credit scrips, which only cover basic Customs duty and not the integrated GST, were also being looked into, a senior commerce minis

Deadline for Aadhaar PAN linkage to stay Tax payers will have to link their PAN with Aadhaar by the stipulated deadline, which is this month-end, as the Supreme Court verdict on privacy has no bearing on the requirement, UIDAI CEO Ajay Bhushan Pandey has said. The requirement for Aadhaar being quoted for availing government subsidies, welfare schemes and other benefits will also continue unhindered for now, he told PTI. The government had mandated linking of PAN with Aadhaar by the extended deadline of August 31. Asked about the implication of the Supreme Court ruling (privacy being a fundamental right) on linking of Aadhaar and PAN, Pandey said: "There also, linking of PAN to Aadhaar is mandated by an amendment in income tax act...the linking will continue under that act and law. There is no change". Pandey said various deadlines that have been prescribed, be it under provision of Aadhaar Act, Income Tax Act or money laundering rules will "have to be adhered to"