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Govt may allow 100% FDI in telecom via automatic route The government is finalising a plan to allow 100 per cent FDI for telecom services through the automatic route which allows firms to attract foreign funds without its approval, sources said today. The proposal is likely to be considered by the Telecom Commission, the apex decision making body of the Department of Telecom, at its meeting scheduled for tomorrow, they said."The TC is likely to consider raising of FDI limit up to 100 per cent for all telecom services including infrastructure through automatic route," a source said. At present 100 per cent FDI is allowed, of which up to 49 per cent investment in a company can be done through the automatic route. The inflow of overseas investment beyond that requires government approval because of security reasons.The panel is also likely to discuss the relief package recommended by an inter-ministerial group (IMG) for the telecom sector which is reeling under debt of a

More changes to bankruptcy code likely in Budget The government will fix a few urgent problem areas in the insolvency ordinance when it is brought to Parliament in the ongoing session but is likely to make substantive changes to the law in the upcoming budget after the panel looking into the Insolvency and Bankruptcy Code (IBC) makes its recommendations. The government had last month issued an ordinance to list eligibility condition for those participating in the resolution process of insolvent companies, barring promoters of such companies from bidding for the company or its assets. The government has also set up a committee to identify areas that need to be addressed after seeing the working of the insolvency code for about a year. "Some of these changes could be brought in as part of the finance bill," a top government official told ET. As ET had reported earlier, there are two changes that the government may introduce to the law in the ongoing winter session. Th

Full I-T e-assessment from next year; CBDT forms committee The government is set to roll out a pan-India "faceless and nameless" e-assessment procedure for income tax payers from 2018 with the CBDT today constituting a high-level committee to prepare a quick roadmap for the implementation of this ambitious proposal. The Central Board of Direct Taxes (CBDT), the policy- making body for the Income Tax Department, notified a nine- member committee--headed by a Principal Chief Commissioner rank officer -- and has set for it a deadline of February 28, 2018, for submitting its report. "The deadline of February end to the committee is an indication that the government and the CBDT want to usher in this new regime from the first half of the new year," a senior tax officer privy to the development said.The committee is being constituted as the "department is embarking upon the concept of a faceless and nameless e- assessment procedure", the CBDT order, issu

Cabinet approves Consumer Protection Bill Focused on faster redressal of consumer grievances and to ensure stringent action against unfair trade practices, the Cabinet approved the introduction of the Consumer Protection Bill, 2017, to amend the Consumer Protection Act, 1986, sources said. The Bill seeks to enlarge the scope of the existing Act and proposes stricter actions against misleading advertisements and food adulteration. The amended Act will provide for the setting up of a Central Consumer Protection Authority, which will make way for faster redressal of consumer complaints. It will also take up class-action cases, raised by a group of consumers with the same set of complaints. "Consumer empowerment is one of the main components of the new Act. Misleading ads will be tackled even more strictly," minister of food, consumer affairs and public distribution Ram Vilas Paswan had said in October. The new law will also provide for proper definition and scope for e

Rajya Sabha passes Compnaies Bill,2017 The Companies Amendment Bill seeks to strengthen corporate governance, initiate action against defaulting firms and improve ease of doing business. The Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha on Tuesday by a voice vote.The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country. The Companies Act, 2013 has already been amended once under the current government. It was passed after much debate in the winter session of the Parliament as members raised concerns about independent directors being allowed up to 10% pecuniary interest in a company.Explaining the changes one could expect, Ankit Singhi, partner at consulting fi

Extend pre GST duty drawback rates: House panel A parliamentary panel has suggested the government extend the preGST duty drawback rates until June next year or till the revenue department comes out with the revised rates for exporter In its report on the ´Impact of goods and services tax (GST) on Exports´ placed in Parliament on Tuesday, the Standing Committee on Commerce chaired by Naresh Gujral recommended that a formal mechanism for grievance redressal of exporters must be put in place “In order to bring relief to the exporters, the Committee recommends that the Department of Revenue, Ministry of Finance extend the preGST duty drawback rates till June 30, 2018 or till such time the Department works out the revised duty drawback rates. “The Committee hopes that this will enable the exporters to overcome the problems being faced by them currently besides helping them to takealongterm perspective while negotiating export orders,” said the panel in the report. Panel raps go

Shell companies: Govt may provide relief for disqualified directors Starting January, shell companies can apply for a pardon for three months, and, for this period, the disqualification of directors will be lifted to allow them to file these documents The ministry of corporate affairs, or MCA, will soon notify a scheme to provide relief to over 300,000 directors disqualified for associating with companies that failed to file their financial results, said two people with knowledge of the matter. Non-compliant companies can apply for a pardon (or condonation of delay) for three months starting January; for this period, the disqualification of their directors will be lifted temporarily to allow them to file these documents. The window for filing all pending documents will be open till 30 June, said a copy of a draft circular reviewed by Mint. In September, the government had taken two sets of action against companies that were not compliant with provisions of the Companies Act.