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NBFCs to Meet RBI on Ind AS Implementation New norms to take effect for NBFCs from this fiscal itself The non-banking finance companies are planning to meet the Reserve Bank of India on the issue of implementation of Indian Accounting Standards, popularly known as Ind AS.RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018. NBFCs will have to compute their first quarter result this month and it is expected to have an impact on capital due to enhanced provisioning. Ind AS is a global accounting practice that NBFCs are mandated to adopt, which may lead to initial credit losses. The practice is on a par with the International Financial Reporting Standard (IFRS) 9. The provisioning requirements under IFRS 9 would be higher as NBFCs will have to provide for on expected losses rather than incurred losses. According to the initial plan, ministry of corporate affairs was to implement Ind AS for banks, insurance companies

In a First, Firm Liquidated as a Going Concern NEW CHAPTER Move helps lenders recover more money against unpaid loans F or the first time under the Insolvency and Bankruptcy Code, Kolkata-based Keshav Sponge and Energy has been liquidated as a ‘going concern’, marking a new chapter in the evolving Insolvency and Bankruptcy Code that provides the framework to extricate billions of dollars stuck in bad loans. This move has twin-benefits: It helps lenders recover more money against the unpaid loans, and creates future job opportunities for those employees who used to work for the company. ‘A going concern’ or ‘a slump sale of the assets’ enables the sale of business of the company including all its assets and properties. The business of the company is continued during the liquidation process by the liquidator. “The process of selling all fixed assets is over. It will take some more time to complete the entire process,” said Anil Agarwal, the official liquidator, who works for AAA

Centralised AAR for GST on Cards for Uniform Rulings Bid to prevent divergent rulings on identical issues that fuel confusion India is looking at creating a centralised Authority for Advance Rulings (AAR) for the goods and services tax (GST) after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax. A recent case in point being the divergent rulings by Karnataka and Maharashtra AARs on the issue of solar projects. “We are looking at an issuebased central authority with officials from states and the Centre,” a top government official told ET. “If more than one appeal is filed on the same issue in different jurisdictions it can be taken up by this body.”The AAR is a quasi-judicial body that allows assessees to get guidance on their potential tax liabilities relating to any transaction beforehand. The rulings by the AAR are case-specific, but they have a persuasive impact on tax assessment in cases of other firms under similar circumsta

Delisting norms: SEBI provides relaxations for insolvent firms More than 750 entities, including many listed firms, are facing insolvency proceedings Sebi has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges. The move is expected to provide succour for various listed companies that have been referred for resolution under the Insolvency and Bankruptcy Code (IBC).More than 750 entities, including many listed firms, are facing insolvency proceedings. In a notification, the markets regulator said norms pertaining to delisting of equity shares would not be applicable to any entity that is getting delisted pursuant to a resolution plan approved under the IBC.The exemption would be subject to conditions that the resolution plan "lays down any specific procedure to complete the delisting of such shares" or that the plans

  Free banking services offered to customers not under GST ambit The ambiguity arose after notices were sent to lenders for non-payment of service tax under the pre-GST regime In relief for the banking sector, the government cleared the ambiguity over goods and services tax (GST) on ‘free services’ offered to customers. The Centre said these will not attract GST. The ambiguity arose after notices were sent to lenders for non-payment of service tax under the pre-GST regime. That issue is yet to be sorted, though the government has given enough signals that these notices might be withdrawn. In 32 pages of ‘Frequently Asked Questions’ (FAQs) for the financial services sector, issued on Sunday, the Central Board of Indirect Taxes and Customs (CBIC) clarified there would be no levy on services provided without consideration (free) to other than related/distinct persons. Government answered 91 in FAQs In other important clarifications, CBIC has noted that ATM machines do not trig

SEBI Lens on FPIs Under NRI ‘Control’ Eye on 2019 Polls: Custodians of FPIs told to identify such offshore funds The Securities and Exchange Board of India has asked custodians of foreign portfolio investors (FPIs) to identify offshore funds that are ‘controlled’ by nonresident Indians. Sebi, acting on the government’s instructions, has made it clear through fresh restrictions on investments and in subsequent meetings over the past few weeks that it’s not in favour of NRIs using FPI vehicles to trade on Indian stock exchanges. This is primarily due to a growing suspicion that resident Indians have been using NRI friends and relatives to bring back and legitimise undisclosed funds parked abroad through fund structures that are registered as FPIs with the capital markets regulator. It is widely perceived that New Delhi is trying to minimise the inflow of money through round-tripping in the run-up to the 2019 elections. “Many custodians were told last week to share data. It is

Tax Axe Still Looms for Banks on Free Services Despite FAQs mentioning GST exemption, banks will have to slug it out before adjudicating authority. India’s banks, faced with having to pay thousands of crores in taxes on services provided in lieu of customers maintaining a minimum balance in their accounts, will have to slug it out before the adjudicating authority with the tax department. ET had reported earlier that State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and others have been sent notices by Directorate General of Goods and Services Tax Intelligence (DGGSTI). “Show-cause notices have been issued so due process of law will have to follow,” a senior government official aware of the matter told ET. This comes even as the government has clarified that free services to unrelated parties will not attract goods and services tax (GST) through detailed frequently asked questions (FAQs) for the financial services industry. The indirect tax authorities are convinced abo