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After liberalising the external commercial borrowing (ECB) regime for companies looking to raise debt abroad, the government and the Reserve Bank of India are having a look at easing the norms on Indian Depository Receipts ( IDR) for foreign companies, Business Standard has learnt. Sources aware of the matter said the likely base for such recommendations would be a report last year on IDRs from a panel chaired by Competition Commission of India ( CCI) member M S Sahoo. While American and Global Depository Receipts (ADRs/ GDRs) allow Indian companies to access capital markets abroad, an IDR is a security a foreign company can list on Indian exchanges. The 11- member Sahoo committee made many recommendations on overhauling the IDR market. These included a whole new class of securities called Bharat Depository Receipts ( BhDRs) to replace IDRs. Also, the widening of underlying securities to include all instruments accessible to an Indian investor, widening of endusage rules for ca

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b

Excise relief for around 200 items may go, zero rate being debated Tea, coffee, biscuits and some medicines, currently exempted from excise duty, may come under the proposed goods and services tax ( GST) as the finance ministry and empowered committee of state finance ministers draw up a common list of exempted items. The Centre’s excise duty exemption list of around 300 items will be reduced to the states’ value- added tax ( VAT) list of close to 90. “We are finalising the exemption list. Excise exemptions will be pruned to around 90 items,” said a government official. “ The idea is to keep exemptions to a minimum.” States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit- based items. Common items between Centre and states include bread, eggs, milk, vegetables, cereals, books and salt, which will continue to b

Updates Of the Day 1.The Reserve Bank of India (RBI) has cancelled the registration of 56 non- banking financial companies (NBFCs). 2.CEA led Panel recommends RNR at 17-18% and eliminating Additional Tax of 1% on inter-state supply of goods. 3.Free warranty services provided by vehicle-dealers to vehicle-buyers out of their dealer’s margin/ handling charges is not liable to Service tax:[Chowgule Industries (P.) Ltd] . 4.No VAT on free supply of medicines – State Govt. not competent to levy tax on the basis of MRP or any other notional value. [Mapra Laboratories Pvt. Ltd]. 5.Where seller has not reduced his Output Tax liability in pursuance to the Credit Notes the purchaser is not required to reverse Input Tax Credit. [Appellate Tribunal, VAT : of M/s Khanna Photo Store]. 6.CBDT allows service of notice, summons, requisition, order etc. by Email. Notification No. 89/2015. 7.CBDT issued notification to Issue refund below Rs.50,000/- Expeditiously in Non-CASS cases : Notification

The Central Board of Direct Taxes ( CBDT) has notified use of emails as the new mode of communication between the taxman and taxpayers, as part of the governments e- initiative to reduce human interface and complaints of harassment and corruption in conducting tax related jobs. The amendment in the Income Tax Act was also required as the department has recently launched a pilot project of sending email queries, notices and summons to taxpayers while processing cases of scrutiny. According to the notification 89 issued by the CBDT, the apex policy- making body of the tax department, an amendment has been made in the Section 282 of the I- T Act ( Service of notice) allowing for inclusion of taxpayers or tax paying entities email as the new mode of official communication along with the existing modes like courier, postage or departmental dispatch. Henceforth, the taxman can now send official communication to “ email address available in the income- tax return details furnished by th

The finance ministry wants Employees Provident Fund Organisation ( EPFO) to retain 8.75 per cent rate of interest on provident fund (PF) deposits for 2015- 16 although the retirement fund body is in a position to give better returns to its over 50 million subscribers. The EPFO has provided 8.75 per cent rate of interest on PF deposits for previous two financial years — 2013- 14 and 2014- 15. “During a recent meeting of finance ministry and labour ministry top officials, of the former urged the latter that the EPFO should retain its 8.75 per cent interest on deposits for the current fiscal as well in view of the governments intention to reduce rate of returns on small saving schemes and PPF," a source said. The source further said, “EPFO has already worked out the income projection for the current fiscal, on the basis of which it can provide higher rate of returns than 8.75 per cent provided in the previous two financial years.” Business Standard, New Delhi, 7th Dec. 2015