CA Online

Bring realty under GST with stamp duty: Assocham If the real estate sector is brought with in the ambit of the goods and services tax (GST), it should be along with the stamp duty and moderate rate, and should not add to the cost of housing and construction, according to an industry body. The Associated Chambers of Commerce and Industry of India(Assocham) said the Centre is certainly in favour of realty under the GST, but the states have to be brought on board because there are revenue implications. There are reports that the realty sector may be brought under the GST without stamp duty and other levies like property tax.That will serve no purpose and instead would lead to more confusion, Assocham Secretary General DS Rawat said. The Business Standard, New Delhi, 15th November 2017

New GST rates may lower CPI inflation by 20 bps: Nomura The decision to lower the goods and services tax(GST) rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices,  says a report. According to global financial services major Nomura, the recent decision by the Centre to lower tax rates for 213 items, including 178 items of daily consumer use, is likely to lower CPI inflation by about 20 basis points (0.2percent). “The government expects these(GST) measures to be disinflationary. Our quantitative analysis suggests that if (a big if) the GST tax changes are fully passed on to consumers, they would lower CPI inflation by estimated 20 basis points,” Nomura said. The Business Standard, New Delhi, 15th November 2017

Registered properties worth over Rs 30 lakh on scanner as CBDT turns up heat on black money The I-T department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy, CBDT chairman Sushil Chandra said. The government’s continuing crackdown on black money will now see tax officials sift through details of property ownership to ascertain cases of tax evasion and benami transactions.According to Central Board of Direct Taxes (CBDT) chairman Sushil Chandra, the Income Tax department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy. Mismatches between asset ownership and reported income enable the department to identify cases of tax evasion. In benami ownership, the beneficial owner of the asset will be different from its legal owner.The exercise follows the enactment of the

Anti-Profiteering Guidelines Under GST Likely by Next Mth Methodology to ascertain if rate cut benefits are passed on to consumers Days after tax rates of about 178 products under goods & services Tax (GST) were changed, the government could be looking to come out with detailed anti-profiteering guidelines, according to three people close to the development.The broad idea is to prescribe a methodology to ascertain whether companies are passing on the tax reduction under GST and benefits derived from input tax credits to consumers. The guidelines could come by December first week, according to the people in the know. Several experts — in the government and tax advisors — have been raising several hypothetical questions around the anti-profiteering clause of the GST. Can a company pass benefits of the recent GST rate reduction on one brand of bodywash to another brand of bodywash? Can the company cross subsidise reduction in GST rates in bodywash to something else it sells, s

I-T Dept to Soon Issue Notices to Suspicious Cash Depositors The Income Tax Department will soon issue notices to those who have deposited “suspicious” amounts of money in banks post-demonetisation and have not responded to taxman's preliminary communication, CBDT said on Tuesday. Sushil Chandra, chairman, Central Board of Direct Taxes (CBDT), said despite closing of I-T returns filing time period, a number of entities and individuals failed to file their tax returns, as required under the ‘Operation Clean Money’ (OCM) initiated by the government to check black money post demonetisation. “The government has already taken all measures under the Operation Clean Money. We have given enough time to people to file their returns and come out clean,” he said. “But we have found that even after the last date of returns, a large number of persons have not filed the same,” Chandra said. LENS ON PROFILES OF PROPERTIES The Income Tax Department is matching the “tax profiles” of all

IBC Tweak may Bar Defaulters from Bidding Promoters can buy back stressed assets at a discount now, leaving room open for furore The government is considering amending its insolvency law to prevent existing promoters of bankrupt companies from reacquiring them during the resolution process at a steep discount.The current Insolvency and Bankruptcy Code, passed last year, does not prevent promoters from bidding for these stressed assets during the resolution process. Some owners are reported to be getting ready to stake a claim for these assets when they are put up for sale by the creditors. But promoters wresting back control of entities after banks take a big haircut would be politically very controversial and an influential section in the government is keen to prevent this from happening. “There is some discomfort with it (the possibility of promoters buying back assets at a discount). It is being looked at,” a top government official told ET.The changes may be introduced as e

Jaitley rules out single GST rate Finance Minister Arun Jaitley on Monday ruled outasingle rate for the goods and services tax (GST), adding any further rationalisation of tariffs would be contingent on revenues.“Those who are speaking ofasingle rate for the GST have no understanding of the tariff structure. Food items have to be taxed at nil. ´Commonman items´ have to be taxed at the lowest rate of 5 per cent,” he said.Congress VicePresident Rahul Gandhi had demanded a GST rate of up to 18 per against the current slabs of 12, 18, and 28 per cent. “Luxury goods, sin products, and products hazardous to environment and health can´t taxed at the same rate as man products´. Wheat, sugar can´t be taxed at the rate Mercedes car orayacht or Jaitley said.He, however, held out hope for rationalising rates.four months, we have the 28 per cent slab.Such rationalisation (in future) depends on revenue buoyancy,” Jaitley said.Last Friday, the GST Council lowered the rates for almost 210 item