CA Online

The GST Council may reconsider the proposed 43 per cent tax on hybrid cars at its meeting next week after the auto industry voiced disappointment over the steep rate hike. According to the tax slabs decided by the Council, the mid and largesized hybrid cars have been kept at the same level as passenger vehicles.Under the GST, the tax incidence on hybrid vehicles will go up to 43 per cent from the current level of effective tax rate of 30.3 per cent. Business Standard New Delhi, 25th May 2017

The Union Cabinet on Wednesday approvedapolicy providing preference to domestically manufactured goods for government procurements, inamajor step to boost the government´s Make in India initiative. It also approved the abolition of the Foreign Investment Promotion Board (FIPB), which has, for 25 years, been the singlepoint window for clearing foreign direct investment (FDI) proposals requiring government nod. The Cabinet, headed by Prime Minister Narendra Modi, also gave its nod toa “strategic partnership” model under which select private firms would be engaged to build military platforms like fighter jets, submarines and battle tanks. The Cabinet Committee on Economic Affairs (CCEA), which met before the Cabinet, approved the closure of Janpath hotel in the national capital.The property will be used for setting up government offices.It also cleared the hike in fair price for sugarcane by Rs 25 a quintal,amove that will benefit about five crore farmers across cane-producing states.

The government has notified regulations for voluntary liquidation under the Insolvency and Bankruptcy Code.Companies, limited liability partnerships and any other persons incorporated with limited liability can opt for voluntary liquidation. The new regulation has become effective from April 1, the Ministry of Corporate Affairs said in a notification.As per the norms, a corporate person may initiate a voluntary liquidation proceeding subject to various conditions, including that majority of the directors or designated partners of the corporate person make a declaration to that effect. Besides, an insolvency professional is prohibited from acting as a liquidator for a corporate person if he is not independent of the entity concerned. Further, the liquidator and professionals assisting him in liquidation are required to make disclosures -- initial and continuing -- about pecuniary or personal relationship with any of the stakeholders or the corporate person. Business Standard New Del

IT minister says govt has roped in McKinsey to prepare road map for digital economy With the aim to “corporatise“ its Digital India project, the government is looking at creating a Digital India Corporation. Union minister for electronics and IT Ravi Shankar Prasad said the idea is to have a professional way to implement the programme. “It will be professionally managed with a corporate architecture,“ he said on Tuesday at a press conference to list achievements of his ministry after three years of the Modi government. Prasad also said the government has appointed consultancy firm McKinsey to prepare the road map for the digital economy for the next few years. Government think-tank Niti Aayog will also prepare an e-readiness index of the states. “The digital economy in the country will become a one trillion [dollar] economy in the next five to seven years,“ Prasad said. Since the government announced demonetisation, the volume of digital payments through mobile wallets has increase

Markets regulator Sebi on Tuesday allowed mutual funds, alternative investment funds and portfo lio managers, operating in international financial servic es centres (IFSC), to invest in securities listed in such centres. Besides, they are permitted to invest in securities issued by companies incorporated in IFSC, the Securities and Exchange Board of India (Sebi) said in a circular. Further, they can also invest in securities issued by firms incorporated in India or companies belonging to foreign jurisdiction, it added. These investments are subject to conditions stipulated or issued by RBI and government from time to time. The Economic Times New Delhi, 24th May 2017

The Centre is likely to introduce a separate bankruptcy law to deal with insolvency in financial sector companies that include banks and non banking financial company (NBFCs) and micro finance institutions which have money deposited, in the monsoon session of Parliament,asenior finance ministry official said. Business Standard New Delhi, 24th May 2017

The government´s white collar crime investigation agency Serious Fraud Investigation Office (SFIO) is developing a new system for early detection of corporate frauds and to safeguard gullible investors from fly by night operators.The new system would also trawl social media platforms for leads on any possible fraud in making.The SFIO, which comes under the Corporate Affairs Ministry, floated a tender earlier this month for selection ofa ´managed service provider´ to develop this ´Early Warning System´, calling for bids to be submitted by May 31. Business Standard New Delhi, 24th May 2017