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To ease the process for forming new finance companies, the Reserve Bank reduced the number of documents required for registration from the existing 45 documents to eight. This has been done to make the process of registration of new non- banking financial companies (NBFCs) " smoother and hasslefree", it said. Also, there would be two types of applications for nondeposit taking NBFCs, based on sources of funds and customer interface. Applications from those not having access to public funds would be fast- tracked. These companies will be prohibited from accessing public funds and having customer interface. If they intend to later do either, thed need RBI approval. RBI may also call for any further documents to satisfy itself on the eligibility of a company seeking registration as an NBFC. If it does, the applicant must respond within a month. Business Standard New Delhi,18th June 2016

The Securities and Exchange Board of India (Sebi) has proposed further relaxations to the real estate investment trusts ( Reits) regulations, to attract real estate developers towards launching these instruments. Sebi also proposed a framework to help offshore fund managers relocate to India. The decisions were taken at its board meeting on Friday. The board approved removing restriction on the Special Purpose Vehicle ( SPV) to invest in other SPVs holding assets. It also allowed a Reit to invest up to 20 per cent in under- construction projects. Earlier, a Reit could invest only up to 10 per cent in an under- construction project. It also eased the criteria for related- party transactions and allowed Reits to have more sponsors. “Increasing the limit of investment in under- construction assets allows more flexibility to select projects and reduces the time and transaction costs,” said Maadhav Poddar, tax partner, real estate practice, EY. Reits are investment vehicles that

www.caonline.in News... 1.Delhi high court judgment on construction of complex service- a review via {Suresh Kumar Bansal Vs Union of India &Ors} 2. Non Furnishing of reopening reasons render reassessment invalid via {Shri Inderjeet Singh Sachdeva vs. DCIT (ITAT Delhi)} 3. Net realizable of stock to be taken as value it would fetch on actual sale in future via {ITO vs. M/s. Mahendra Traders (ITAT Kolkata)} 4.TDS not deductible on web hosting & marketing services procured from US based entity via {DCIT vs. M/s Matrimony.Com Pvt. Ltd. (ITAT Chennai)} 5.Section 145A no addition for stock valutaion if exclusive method followed via {DCIT vs M/s stone India limited (ITAT Kolkata)}

www.caonline.in News... 1.Penny Shares cannot be treated as bogus if documents are in order via {Ms. Farrah Marker vs. ITO (ITAT Mumbai)} 2.Non Furnishing of reopening reasons render reassessment invalid via {Shri Inderjeet Singh Sachdeva vs. DCIT (ITAT Delhi)} 3.Delhi HC Judgment on construction of complex service- A review via {Suresh Kumar Bansal Vs Union of India &Ors} 4.Net realizable of stock to be taken as value it would fetch on actual sale in future via {ITO vs. M/s. Mahendra Traders (ITAT Kolkata)} 5. TDS not deductible on web hosting & marketing services procured from US based entity via {DCIT vs. M/s Matrimony.Com Pvt. Ltd. (ITAT Chennai) }

Experts feel burden of compliance and administration will fall on online marketplaces The long-awaited Goods & Services Tax (GST) Law, which was expected to resolve the tax issues faced by online marketplaces, could end up increasing compliance costs for them and also create working capital issues for sellers on their platform. The proposed “Model GST Law,“ which awaits legislative clearance, says that online marketplaces will have to deduct taxes directly on the total sales made by merchants on their platforms and pay it to the government. Till now, online marketplaces passed on the payments made by customers to sellers after deducting their commissions and fees (such as for logistics or advertisement.) Tax experts and online marketplaces feel that this will put the burden of compliance and administration on the ecommerce companies, which may hurt both their and sellers' margins. While Flipkart, India's largest online marketplace, welcomed the new law, it also said

In a rare kind of prime ministerial interaction, Narendra Modi will be addressing India's seniormost taxmen on Thursday . His audience at Rajaswa Gyan Sangam -roughly translated as Knowledge Conference on Revenue -will know what most observers of Modi Sarkar may have failed to spot: there's now, after two-plus years in government, a Modi Tax Doctrine (MTD). Unlike most definitive policy guidelines, MTD wasn't born out of white pa pers and special committees. The doctrine took shape out of changes in various tax practices. But it's a definitive break from the past. A big, positive change. But of course, as in any complex system, challenges remain. ET spoke to many key officials in the finance ministry for this report.Some spoke off the record. MTD can be summed up precisely: make paying taxes easy , that is, simplify procedures, avoid litigation; two, make taxmen friendlier, that is, no coercion, no cooking of revenue books; third, go hell for leather after black

The popular `buy one get one free' deals stand to lose some of their charm as the proposed goods and services tax (GST) may apply to free articles given away with those purchased. As per Section 3 of the model GST law that the government has unveiled for stakeholder comments, supplies specified in Schedule I, made without a consideration, are also liable to GST. This means that the buyer will have to pay GST on the article that comes free, said tax experts, confirming that the provision will impact the popular sales. They called for clarity on the issue as the wider implication is that even free samples given by way of business promotion could attract GST. “Any form of direct or indirect GST on free supplies could have a significant impact on the sales & marketing spend of companies, specifically those dealing in consumer products,“ said Pratik Jain, national indirect tax leader at PwC. Prashant Raizada, partner indirect tax at BDO India, said, “The model GST Law does