CA Online

The tax department on Tuesday came out with draft rules for valuation of assets of charitable institutions for taxation after they convert in to non-charitable entities. The draft norms,on which the Central Board of Direct Taxes has sought comments by October 31,prescribed if ferent methods for computing the aggregate fair market value of total asset softrusts and charitable institutions.The Finance Act,2016,added a new chapter in the Income Tax Act, specifying provisions relating to levy of additional income tax where charitable institutions exempt under the Act cease to exist as charitable organisations or convert intonon-charitable entities. Business Standard New Delhi,26th October 2016

Asserting that the government is determined to implement the goods and services tax (GST)from FY18,Economic Affairs Secretary Shaktikanta Dason Tuesday expressed confidence that the revenue neutralrate structure will be decided next month.“The rate structure on which there is alot of discussion going on at the moment with the GST Council and also in the public domain... will get resolved in the next meeting of GST Council in the first week of November. May be,one or two sittings,it should come to a conclusion,”Das said at an Assocham event in the Capital.Dismissing criticism,he said the rate structure has been prepared, based on “a very practical basis”. Business Standard New Delhi,26th October 2016

The finance ministry is examining the possibility of cutting the corporation tax rate by one to two percentage points, even as the revenue department is set to kickstart Budget consultations with industry and consultants from the first week of November. The ministry’s thinking is part of bringing down the corporation tax rate to 25 per cent by the end of 2018-19, from 30 per cent at present.  An official said the government could look at an across-the-board one to two percentage point reduction in corporation tax rate, from 30 per cent next year, based on the phasing-out of exemptions.  Finance Minister Arun Jaitley had, in 2015-16, promised a reduction in corporation tax rate to 25 per cent by 2019. Towards that, it has laid down the road map to simultaneously phase out exemptions given to the corporate sector to reduce the tax rate, simplify administration, and improve India’s competitive edge globally. Corporation tax is 30 per cent, but it is effectively 23 per cent due to many ex

The government has allowed 100% foreign direct investment (FDI) in `other financial services' carried out by non-banking finance companies (NBFCs), continuing with the liberalisation of the overseas investments regime. “The government has liberalised its FDI policy in other financial services and non-banking finance companies (NBFCs),“ the Department Of Industrial Policy & Promotion (DIPP) said in a press note on Tuesday. Other financial services will include activities which are regulated by any financial sector regulator -RBI, SEBI, IRDA, Pension Fund Regulatory and Development Authority, Natio nal Housing Bank “or any other financial sector regulator as may be notified by the government in this regard“, it said. The investment would, however, be subject to sector conditions such as minimum capitalisation norms specified by the regulator or government agency concerned. Under the current rules, 100% FDI is allowed through automatic route for 18 specified NBFC activit

New RBI norms may ease equity funding norms, increase investor interest for firms The Reserve Bank of India's move to allow up to 100% foreign direct investment (FDI) in regulated financial services companies other than banks or insurance companies through the automatic route is likely to benefit several fintech startups as it is expected to ease equity funding norms, increase investor interest, and also help them expand into more financial services. So far, activities of NBFCs such as underwriting, investment advisory and stock broking were among 18 categories under the 100% FDI automatic route regime. Startups that didn't fall in these categories had to take the approval route. Now, all regulated financial services companies can take the automatic route. In its notification last week, the RBI said other financial services will include activities which are regulated by any financial sector regulators including RBI, Securities and Exchange Board of India, and the Insura

Individuals and entities can pay taxes online using debit or credit cards once the Goods and Services Tax (GST) is rolled out, Revenue Secretary Hasmukh Adhia said on Sunday. The government proposes to roll out the new indirect tax regime from April 1 next year and has made refunds, returns filing and payment processes online. “With regard to payments, the best thing that will happen is all payments will have to be made online. You can use any mode of payment, electronic, NEFT, RTGS. You can do it through debit cards or credit cards of any bank,“ Adhia said while addressing the Global Investors Summit here. The Economic Times New Delhi,24th October 2016

Early stage companies that are yet to see significant profit and loss-making companies looking to turnaround will now have more elbow room to hire star CEOs. The Ministry of Corporate Affairs (MCA) has significantly relaxed a company law provision that capped the remuneration payable to top managers. Earlier, it had also eased the rules governing disclosure requirements under the law. The ministry recently amended Section II of Part-II of the Schedule V of the Companies Act, 2013. The section deals with the monetary limits for remuneration that can be paid to the managerial personnel without central government approval. These limits were specific to companies that had no profit or inadequate profit. By way of this amendment, the ministry has effectively doubled the remuneration payable without prior approval of government across different categories based on paid-up capital. In further relief to pure-play professionals who are neither related to promoters nor have any other form