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The Union government has moved a proposal to make a budgetary provision for refunding its share of area based exemptions on indirect taxes given to certain states in the past. In last week´s meeting of thee goods and services tax (GST) Council, it was decided that ´all entities exempted under payment of indirect tax under any existing incentives scheme of central or state governments shall not continue under the GST regime and existing units shall pay tax under the GST regime´. Under the discretionary powers left to it by the Council regarding these incentives, the finance ministry has proposed to provide budgetary support for refunding its share in GST to such units to which exemptions in indirect taxes were granted, for promoting industrialisation. The units are situated in Jammu &Kashmir, Himachal Pradesh, Uttrakhand and the north eastern states, In these states, some areas have been catagorised as excise free zones and units in those areas were eligible for expemptions. Acc

Might make a recommendation to the ministry of corporate affairs The Securities and Exchange Board of India (Sebi) is in favour of having at least one woman as independent director (ID) on the board of listed companies, said two people in the know, including a senior Sebi official. According to the Companies Act, 2013, all listed companies need to have at least one woman as a director on their board. While most companies have fulfilled this, some have done so by inducting family members of the promoters. And, women on India Inc boards are still low in number. “The thinking within Sebi is that there should be at least a fifth of women on the boards of listed companies in the next three years. To achieve this, the regulator plans to make a recommendation to the ministry of corporate affairs of making one independent woman director mandatory,” said a person with knowledge of the development, asking not to be named. The person said the recommendation could be made after a newly setup c

The Narendra Modi government is set to take up three finance ministry related legislative matters in the coming monsoon session of Parliament .These are the Banking Regulation Act amendment specified in the ordinance to deal with non-performing assets,a bankruptcy Bill for financial firms, and passage of a new National Bank for Agriculture and Rural Development (Amendment) Bill. Officials told Business Standard that while the ministry´s load was relatively lighter compared to the Budget session, when the goods and services tax Bills were passed apart from the Finance Bill, the three legislation slated for the monsoon session were also crucial.It is scheduled to begin on July 12. The government has to amend the Banking Regulation Act after an ordinance was promulgated in May to give the Reserve Bank of India (RBI) the power to direct banks to initiate bankruptcy proceedings of defaulting companies and to take decisions on behalf of lenders while dealing with stressed assets. Two sec

Automakers Nissan, Skoda and Isuzu Motors have reduced prices of passenger vehicles in India by upto Rs 2.4 lakh to pass on benefit of goods and services tax(GST) to customers.Tata Motors has cut prices of its commercial vehicles by upto 8.2 percent, while Bajaj Auto´s Austrian arm KTM dropped prices of its sports bikes in the country.Japanese automaker Nissan announced reduction in prices of its vehicles, including the Dats unbrand, by an average of three percent in the country. The company sells a range of vehicles under Nissan and Dats unbrands, ranging from hatch back Redi Go to SUV Terrano, in Indian market. Czech car maker Skoda reduced prices of Superb model range by upto 7.3 percent in Mumbai, resulting in a price benefit of up to 2.4lakh. Hyundai Motor India also said it has reduced prices of its vehicles by upto 5.9 percent to pass on GST benefit to customers. Business Standard New Delhi, 07th July 2017

Seeking to send a stern message, the income tax (I-T) department has initiated a plan to take strident action against tax evaders. This is to ensure they are prosecuted without requiring the assessment to get over. This follows an action plan drawn up by the Central Board of Direct Taxes (CBDT) where an aggressive strategy was outlined to nab tax dodgers. The CBDT had circulated a strategy paper for the investigation team of the I-T wing, saying the taxman should prosecute tax evaders in large numbers to create a credible deterrence against the black money menace. “Filing of prosecution complaints in cases where evidence is strong does not require completion of tax assessment,” the department said in its action plan prepared for FY-18. “The department has tweaked its strategy from just raising tax demand to going the extra mile of taking them to courts,” said a senior tax official with direct knowledge of the plan. Typically, the tax department launches a prosecution or charge shee

Cos could however claim input tax credit on intra-company transactions India Inc may have to deal with another avatar of GST — the tax may be applicable on senior executives’ big-ticket perquisites over and above those mentioned in the employment contract and on gift items of over Rs 50,000. However, companies should be able to claim input tax credit on these intracompany ‘transactions’. Tax professionals ET spoke to said the rate may be in the 1843% band, depending on the nature of the perk/gift. A finance ministry official, who did not wish to be identified, said an employer’s gifts to employees will be treated as supplies without any consideration and attract GST. However, companies are likely to be able to claim input tax credit on it. Keeping tabs on company perks and gifts will not be an additional enforcement cost to the government, tax experts said. All purchases by companies will be available on GSTN. Therefore, during audits these issues can be easily identified. GST

The finance ministry has said that 5% central goods and services tax will not apply on products paneer, natural honey, wheat, and rice that are not registered under the Trade Marks Act. "Unless the brand or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST (Central Goods and Services tax) rate of 2.5% will not be applicable on the supply of such goods," an official statement said. Economic Times New Delhi, 06th July 2017