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Only 62 items likely to stay in 28 percent GSt slab About three-fourth items in the highest tax slab may move to lower brackets Those planning to buy new furniture or refit electric switches might have to pay less after Friday, as the GST (goods and services tax) Council is likely to slash the indirect tax rates on these items at its meeting in Guwahati.At present, these attract 28 per cent tax. As many as 165 such items could be moved to the 18 per cent category, with only 62 attracting the highest rate. Those retained in the highest category could include digital cameras, shaving creams, paints and varnishes, cigars, pan masala, chocolates, cosmetics, vacuum cleaners, refrigerators, washing machines, hair conditioning items, hair dyes, and marble and granite.Some common items might also have their rates slashed from 18 per cent to 12 per cent, as demanded by states such as West Bengal. At the Friday meeting, the Council will also have a presentation about the inclusion of r

HC upholds ICDS validity but strikes down key provisions The Delhi High Court has upheld the constitutional validity of the Income Computation and Disclosure Standards (ICDS), but only to the extent that they do not go against judicial pronouncements and the provisions of the IncomeTax (IT) Act.These standards played a key role in improving India´s position in the World Bank´s ease of doing business rankings, released recently. “The ICDS is not meant to overrule the provisions of the (Income Tax) Act, the rules thereunder, and the judicial precedents applicable thereto as they stand,” said the court on Wednesday, striking down the ICDS provisions that went against judicial pronouncements and the ITAct.Hearing the petitions filed by the Chamber of Tax Consultants and others, the court also said wherever the ICDS amends the judicial pronouncements and ITprovisions, it should be brought by the legislature and not the executive. For instance, the court struck down ICDS I, which doe

GST Sops for Digital Payment Push GST Council may discuss proposal tomorrow, has option of incentivising merchants & customers A year after demonetisation, India is getting ready to give digital payments yet another push.It could consider providing incentives in the goods and services tax (GST) regime for payments that are settled electronically . The GST Council meeting on Friday is likely to consider a proposal in this regard, a senior government official told ET.“There is a thinking that digital transactions need to be incentivised... The council will look at what could be done,“ the person said. The council could take up the proposal along with steps to cut GST on some items from the top 28% rate besides easing the compliance burden for businesses.As far as digital payments are concerned, the council has the option of incentivising merchants and customers. Under the proposal, benefits in terms of credit or exemption could be provided within central and state GST to enco

Aadhaar, insurance link mandatory The Insurance Regulatory and Development Authority said linkage of Aadhaar with insurance policies is mandatory and asked insurers to comply with the statutory norms.“The authority clarifies that linkage of Aadhaar to insurance policies is mandatory under the Prevention of Money laundering (Maintenance of Records) Second Amendment Rules, 2017,” the regulator said. The Business Standard, New Delhi, 09th November 2017

Stronger Contract Law in Pipeline to Lift Ease of Doing Business Ranking Changes to widen ambit of enforceability beyond compensation; law min to move Cabinet note soon India is proposing a radical change in the legal framework on contracts to make them enforceable, thus creating a more stable and predictable business environment and boosting investment, especially in the country's infrastructure sector. A cabinet note will soon be moved by the ministry of law and justice to amend the Specific Relief Act toward this end. The move is expected to lift the country's rating in the World Bank's Doing Business index as it's a measure on which India does poorly, having been ranked at 164 out of 190 on this score. Prime Minister Narendra Modi wants the country to break into the top 50, boosting India's attractiveness as an investment destination.“Details have been finalised. It will go to cabinet soon,“ a top government official told ET.The changes are aimed at wi

Capital gains tax relief for foreign origin funds  Income from sale of securities in India by funds based abroad will be exempt from capital gains tax, the government announced.This exemption will be given only when the India focused fund is also charged to tax in India.The Central Board of Direct Taxes (CBDT) said the tax provision on indirect transfer would not apply to this type of income at private equity and venture capital funds. This, say experts, ought to reassure those investing in India through a multilayered structure.The issue was a concern among foreign portfolio investors (FPIs).The Finance Act of 2012 had amended section 9 of the Income Tax Act to address the ruling given by the Supreme Court in favour of Vodafone. Accordingly, gains through indirect transfers were made subject to capital gains tax. The condition being that the Indian assets should exceed Rs 10 crore and represent at least half the value of all assets held by the foreign investor. Investors holding l

Direct tax mop up rises 15 Percent to Rs 4.39 lakh cr in Apr to Oct The government has collected Rs 4.39 lakh crore in direct taxes, up 15.2 percent year-on-year, during the first seven months of the current fiscal year. The collection, which includes personal income tax and corporate tax, represents 44.8 per cent of the total Budget Estimates of Rs 9.8 lakh crore in direct taxes for 201718 “The provisional figures of direct tax collections up to October, 2017, show that net collections are at Rs 4.39 lakh crore, which is 15.2 per cent higher than the net collections for the corresponding period of last year,”a finance ministry statement said. Gross collections (before adjusting for refunds) have increased 10.7 per cent to Rs 5.28 lakh crore during AprilOctober, 2017.Refunds amounting to Rs 89,507 crore were issued during the seve-nmonth period The Business Standard, New Delhi, 08th November 2017