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E-commerce firms may get 6-month tax breather The provision of tax collected at source (TCS) imposed on suppliers selling products on e-commerce websites like Flipkart and Amazon in the goods and services tax (GST) regime is likely to be deferred by six months.The recommendation by the law review committee may come as a breather for e-commerce players, which have been strongly opposing the additional levy. The TCS of 1 per cent to be charged collectively by the Centre and states was kept in abeyance till April 1, 2018, by the GST Council in October along with the reverse charge mechanism and the e-way bill. However, in light of revenue leakage concerns, the e-way bill to track movement of inter-state supply of goods will be implemented from February 1, while reverse charge mechanism on composition dealers may be implemented any time now. “The provision pertaining to TDS and TCS can be kept in abeyance for at least six more months, is the view taken by the law committee,” said a

India shaking off GST roll-out woes, but oil price a risk: S&P S&P Global Ratings on Tuesday said the Indian economy is shaking off its post-GST implementation woes but risks from higher oil prices have reappeared. In its report S&P said overall economic risks in India remain low with pick up in industrial output and bank credit. International oil prices have been rising, which has also led to increased prices of petrol and diesel. A majority of India’s import bill stem from crude oil purchases. Last year, during the July-September quarter, the Indian economy expanded by 6.3 per cent as manufacturing picked up and businesses adjusted to the new tax regime. The Business Standard, New Delhi, 24th January 2018

SEBI GDR crackdown runs into foreign hurdles Market regulator gets little help from overseas counterparts The Securities and Exchange Board of India’s (Sebi’s) investigation of money laundering by Indian nationals through foreign capital markets seems to have hit a hurdle. According to sources, Sebi has sought several key pieces of evidence from foreign agencies, but a majority of these requests have been pending for months. The Securities and Exchange Board of India’s (Sebi’s) investigation into money laundering by Indian nationals through foreign capital markets appears to have hit a hurdle. According to sources, the Indian regulator has sought several key pieces of evidence from foreign agencies, but a majority of these requests have been pending for months, stalling further investigations. In many of the cases, foreign regulators are also reluctant to share information, especially bank account details. Legal experts say Sebi has agreements with market regulators of 30 cou

Companies unlikely to get transition credit for cesses paid earlier The government is set to amend the goods and services tax (GST) law to explicitly state that no transition credit can be availed in lieu of cesses paid under the previous tax regime, a move that comes after companies claimed hundreds of crores of rupees as transition credit in lieu of Swachh Bharat Cess and Krishi Kalyan Cess. Although the government had made it clear at the outset that no transition credit would be available after implementation of the GST regime, some companies took refuge in lack of clarity in law to claim credit against cesses. The GST Council had at its meeting last week approved changes to the GST law suggested by the law review committee. These will now be vetted by the legislative department, approved by the GST Council and brought in as amendment bill in the second half of the budget session, the official said. The GST regime, which kicked in on July 1, 2017, replaced 43 central and st

Forensic audit biz soars as firms head for bankruptcy Forensic departments of large audit firms and independent investigation agencies have been inundated with requests for forensic work following the push to clean up the bad debt mess under the Insolvency and Bankruptcy Code (IBC). According to some estimates, the forensic business linked to the IBC has more than doubled in the past few months, and experts believe it will only increase. The work primarily includes doing background checks on promoters, asset searches, verification of creditors, and forensic monitoring of cash flows. For big accounting firms, this is the icing on the cake as they are already working on bankruptcy cases as insolvency professionals. Checks on promoters Background checks on promoters have surged after the recent amendment to the Insolvency and Bankruptcy Code (IBC). This stems from concerns that promoters or their allies might try to buy back the companies at a discounted value through proxy inve

IMF forecasts 7.4% growth for India in FY19 On the eve of Prime Minister Narendra Modi's keynote address at the World Economic Forum (WEF) in Davos, the International Monetary Fund (IMF) said India's growth will pick up in FY19. That will see the country regain the tag of fastest-growing major economy, backing the government's revival theme. The IMF also said 2017 saw the best global growth in seven years. India is forecast to grow 7.4% in FY19 against 6.7% this year, gaining pace to 7.8% in FY20, the IMF said in its January update of the World Economic Outlook: Brighter Prospects, Optimistic Markets, Challenges Ahead that was released simultaneously in Davos and Washington. Modi will address the WEF opening plenary session on Tuesday. The global economy is expected to grow 3.9% this year, faster than 3.7% forecast earlier in October. India's growth remains unchanged from the October forecast. "Some 120 economies, accounting for three quarters of world GDP,

Sebi outlines role of oversight committee for product design To bring uniformity with respect to the role of the oversight committee on 'product design', Sebi today said the panel will be responsible for introduction of new contracts, modifications of existing product and reviewing the design of the already approved and running contracts. The move comes after Sebi observed that the commodity derivatives exchanges have been adopting varied approach both in terms of constitution as well as the functioning of such oversight committees, the regulator said in a circular.Sebi, in November 2015, had asked all national commodity derivatives exchanges to constitute an oversight committee for 'product design', chaired by a Public Interest Director, within three months. To bring uniformity with respect to the role of the committee on product design, Sebi has decided that the functions of the panel will be to oversee the regulator's inspection observation on product des