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The government has reduced the number of forms and reports from 36 to 12 under labour law to improve ease of doing business. 11TH APRIL,2017, BUSINESS STANDARD,NEW-DELHI  

The government on Monday said there is no proposal under its consideration to review the foreign direct investment (FDI) policy in the multibrand retail sector.“No proposal is under consideration of the government to review the extant FDI policy on multi-brand retail,” Commerce and Industry Minister Nirmala Sitharaman said inawritten reply to the Lok Sabha.The current FDI policy permits overseas players to hold 51 per cent stake in an Indian retail company.So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy.Replying to a separate question, she said the government has been interacting with investors to identify issues for promoting FDI in food processing. 11TH APRIL,2017,BUSINESS STANDARD,NEW-DELHI

Weak response to transfer pricing rules set out in 2013 The government is set to slash safe-harbour margins in transfer pricing within a few weeks. The margins are used to determine the prices of goods and services rendered by multinationals to their subsidiaries in India. With margins running up to 30 per cent, the government wants to align them with market rates, which could be well under 20 per cent. Margins decided in tribunals or in advance pricing agreements turn out to be much lower, ranging between 15 per cent and 18 per cent. The safe-harbour rules have evoked a tepid response since these were introduced three-anda-half years ago. The move is aimed at simplifying the tax regime and reducing litigation. It will particularly benefit information technology and  research companies. “We are reviewing safe-harbour margins. We will make them more attractive for companies. We may bring them down to under 20 per cent in some cases,” an official said. The Central Board of Direct Taxe

The Lok Sabha on Thursday passed a Bill that would ensure continuance of levy of excise on petroleum products and abolition of cess on some other items following goods and services tax rollout from July 1. The Taxation Laws (Amendment) Bill, 2017, seeks to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001 and the Finance Act, 2005. The Business Standard New Delhi, 07th April 2017

The Rajya Sabha on Thursday cleared four goods and services tax (GST) Bills. Now, the President´s consent and approval of the Assemblies are required for clearing all legislative hurdles, before the unified indirect tax regime is rolled out. Before passage of the Bills, Finance Minister Arun Jaitley sought to allay the Opposition´s apprehension over the requirement of multiple registrations for companies  and powers to arrest given to officials under the proposed GST rules. Even as states clear their Bills, the GST Council will take up fitment of items in five slabs of GST rates and the four pending rules at its meeting on May 18 and 19  in Jammu and Kashmir. The Bills passed by Parliament, however, do not come into effect in the states because of special Constitutional rights. The Lok Sabha also passed the Taxation Laws (Amendment) Bill, 2017, to ensure continuance of levy of excise on petroleum products and abolition of cess on some other  items following the GST rollou

The Reserve Bank of India (RBI) has decided to slash clearance time for National Electronic Funds Transfers (NEFT), in an  attempt to enhance efficiency of the electronic payments system and add to customer convenience. In line with the document on Vision 2018 for Payment and Settlement Systems, the NEFT settlement cycle will be reduced from  hourly batches to halfhourly batches, the RBI said in the first bimonthly monetary policy for 2017- 18. “Consequently, 11  additional settlement batches will be introduced at 8.30 am onwards, taking the total number of half hourly settlement  batches during the day to 23,” newlyappointed Deputy GovernorBPKanungo said. This will enhance the efficiency of the NEFT  system and add to customer convenience, he said. On promoting financial inclusion and literacy, it said the RBI is  initiatingapilot project on financial literacy at the block level to explore innovative and participatory approaches to  financial literacy. The Business Standard

The Reserve Bank of India (RBI)´smove to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Funds (InvITs) might not find  many takers, if experts are to be believed. Currently, banks can invest in instruments such as mutual fund schemes, venture capital funds and equities to the extent of 20 per cent of their net owned funds. This limit will now include REITs and InvITs. REITs and InvITs typically offer higher yields but carry higher risks as well. This is because money raised through these instruments is invested in projects in the real estate and infrastructure sectors, which can be impacted due to cyclicality. A bank which would have already lent to these companies can now also take an equity interest in these companies´ projects via REITs and InvITs. Analysts sayabank which has lent toareal estate developer, for instance, would typically know all the intricacies about the projects and may consider investing in  these instrume