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Clear exporters’ pending claims, GST panel tells government Hasmukh Adhia-led panel, set up by GST Council, urges Centre and state tax administrations to clear pending tax refund claims of exporters from the pre-GST period A panel set up by the GST (goods and services tax) Council, the federal indirect tax body, has urged Union and state tax administrations to clear pending tax refund claims of exporters from the pre-GST period, even as ways of processing newer claims are being figured out, according to an official statement. “The authorities of state governments as well as the central government have been requested to clear the pending refund claims of central excise and value added tax for the pre-GST period, so that exporters will get immediate relief,” said the statement. The suggestion from the panel led by revenue secretary Hasmukh Adhia is in response to exporters’ concerns about their capital getting stuck on account of technical glitches in the IT system backing GST. Keen

Govt notifies new duty drawback rates from Oct 1 The revenue department on Friday came out with modified duty drawback rates for exporters with industry body FIEO demanding that the government should also offset other embedded taxes on products. The department has notified ´All Industry Rates´ of duty drawback, the refund of duties on imported inputs for export items, on a host of items, including toys, furniture, musical instruments, aircraft and vehicles, effective October 1. Reacting to the drawback rates, FIEO president Ganesh Kumar Gupta said the new rates basically factor in the basic customs duty on the inputs used in export production. “However,alot of embedded taxes like taxes on power and electricity, taxes on petroleum and diesel products, embedded taxes on products which are exempt also add to the burden of the exporters,” he said The Business Standard, New Delhi, 23th September 2017

Taxpayers have to update info on e-filing portal The income tax Department has asked taxpayers, who file ITRs and conduct other IT businesses online, to update their profiles and vital details on the official e-filing portal to ensure an “effective communication” between the two. The department on Friday issued an advisory asking taxpayers to furnish their latest information such as personal and secondary email and mobile phone numbers, address and bank account details. These details will be verified and processed after the taxpayer is sent a one time password (OTP) over the email and through SMS. The Business Standard, New Delhi, 23th September 2017

Only Rs 12,000 cr credit claims valid The government on Friday said only Rs 12,000 crore of the Rs 65,000 crore of input tax credit claimed by assessees for the pre-GST stocks were valid. The governments, both the Centre and states, had got Rs 95,000 crore of revenues from the goods and services tax (GST) for July, the first month of the indirect taxation system. But after claims of Rs 65,000 crore were made for refunds of taxes paid on stocks lying with businesses as of June 30, the government was startled, as that would have meant just Rs 30,000 crore of revenues from GST, which would be shared between the Centre and the states. The finance ministry said Rs 95,000 crore was the amount actually paid in cash, other than availing credit. The Press Trust of India reported the government has estimated valid transitional credit claims of taxpayers in July were just Rs 12,000 crore and not Rs 65,000 crore, as previously claimed. This would give the government a short in the arm in its e

Companies can have only two layers of subsidiaries Corporates can have only two layers of subsidiaries under the companies law, with the government putting in place stricter norms as it continues with the clampdown on illicit fund flows. While the rules would be applicable prospectively, companies that already have more than two layers of subsidiaries have to furnish details about them to the government. Banking and non-banking financial companies as well as insurance firms and government companies have been exempted from the restrictions, according to notification issued by the corporate affairs ministry. The rules, notified after public consultation, came into effect from Wednesday. It assumes significance against the back drop of concerns that shell companies are being floated to act as conduits for illicit funding activities. The Business Standard, New Delhi, 23th September 2017

Council decides manner to distribute assessees After deciding the basic principle of division of assessess between central and state tax authorities, the goods and services tax (GST) council has stated how this  would be done. Earlier, the GST council had decided a state would have control over 90 % of  GST  payer where turnover of businesses was up to Rs 1.5 crore a year. over t hat figure, the state and central officials were to have 50:50 control.The division to be done by computer at the state level,by random choice.   Now,it has been decided that for those registered under value-added tax(VAT) or both VAT and central excise, their state turnover,including interstate transactions,  will be taken into account.for those registeresd only under central excise and not VAT,the annual turnover given in central excise returns will be taken into account.   Those registered under VAT and sevice tax will be considered on the turnover given  in the returns for both, the overlape be

Sebi allows bourses to conduct forensic audit The logo of the Securities and Exchange Board of India (Sebi) is pictured on the premises of its headquarters in Mumbai.  The Securities and Exchange Board of India (Sebi) has empowered stock exchanges to conduct forensic audits on listed companies which seem dubious, being suspected of  use as conduits for illicit fund flow. An authorisation letter in this regard has been issued to the bourses. The latter may take action in this regard on their own initiative. Sources say this is a sequel  to the discussion between Sebi's surveillance department and the exchanges, on ways to curb such manipulation. The regulator wants exchanges to review suspect companies on a weekly basis and select those for forensic audit. Till now, the exchanges did not have the authority to  order this type of audit on their own. A forensic audit is similar to a regular audit of a company's financial statement. However, the mode of examination or e