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Income tax (I-T) officials fear 80 per cent of the outstanding tax demand arrears, quantified over Rs 8.4 lakh crore, is unlikely to be recovered. The Central Board of Direct Taxes (CBDT) plans to adopt a two-pronged strategy to reduce such huge dues. It would focus on optimising disposal in terms of numbers and on maximising disposal of appeals involving high quantum of demand. The CBDT has asked commissioners of I-T (appeals) to dispose of at least 30 per cent of appeals that involve I-T arrear demands of over Rs 10 lakh. It has also directed them to conclude 100 per cent of cases that involve demands of over Rs 50 crore. Arrears of tax demands are demands raised against assessees in the past that have not been paid. The total outstanding arrear demands increased to Rs 10,52,084 crore in April 2017 from Rs 9,29,972 crore in March 2016. Officials indicated 80 per cent of this would be difficult to recover in this fiscal year. The arrears are piling up because of litigation, liquid

Eateries, shops need to put up display boards saying they have chosen low-tax scheme Eateries and shops that opt for the low-tax composition scheme will have to prominently display a board stating this and can’t charge goods and services tax (GST) from  customers. Small establishments in the Rs  20 lakh to Rs  75 lakh annual turnover range are eligible for composition scheme. “They will need to upfront state that they are under the composition levy… They will not charge GST from customers,” said a government official. Composition scheme  norms specify that the entity has to mention the words ‘composition taxable person, not eligible to collect tax on supplies’ at the top of the bill of supply.  ‘Composition taxable person’ has to be displayed prominently at all places of business. “Since composition dealers are not allowed to collect GST from the customers, a display is needed for consumer's information and protection,” said Pratik Jain, leader,  indirect tax, PwC. “In

The labour ministry has sought Cabinet approval for the new labour code on wages, a move which is seen as a first step towards labour reforms. Once approved, it will be laid in Parliament during the upcoming monsoon session. It is expected to significantly improve the ease of doing business as well as ensure minimum wage to all. “The final bill on labour code on wages, after being cleared by the inter-ministerial group, has been sent to the Cabinet yesterday (Monday). The effort will be to introduce it in the upcoming monsoon session of the Parliament,” labour minister Dattatreya told ET. The Code on Wages Bill, which will ensure universal minimum wage for all industries and workers, has already been approved by the finance minister Arun Jaitley-led inter-ministerial panel on labour. The Code on Wages Bill also seeks to empower the Centre to set a minimum wage across sectors, and states will have to follow that. However, states will be able to provide higher minimum wage in

Keep an eye on price rise and shortage of any commodity, report immediately in case of software glitches and complaints from traders, and file weekly reports by Sunday  – this is a fresh directive to all central ministries from cabinet secretary PK Sinha, who has initiated a mechanism to keep ground level checks on the implementation  of the goods and services tax regime. Sinha has written to secretaries of all ministries to put in place a grassroots mechanism to report price rise post-GST, software glitches, trader complaints, shortage  of commodities and stakeholders who still have not switched to the new taxation regime. “To make the transition smooth and painless for the general public as well as  for the traders, it is essential that all the government functionaries constantly obtain and analyse feedback from ground level and take corrective steps wherever  necessary,” the letter said.  Earlier, the revenue department had asked all ministries to set up a GST cell in the mi

Items outside GST’s purview can offset gains of this momentous reform Auto companies cut prices after the rollout of the goods and services tax (GST) on July 1, but Maharashtra raised the onetime registration levy for new private vehicles by two percentage points. Meanwhile, cinema theatres across Tamil Nadu stopped screenings for four days to protest against a 30% local tax levied over and above 28% GST. The strike States could ramp up these taxes while GST settles Municipalities could impose entry taxes to take cities out of single market was called off on Friday. Elsewhere across India, transport department officials have emerged as enforcers of a new inspector raj on the roads after sales tax checkposts disappeared, undermining the beneficial, common-market effects of GST by imposing new barriers and levying penalties in the name of rules they have ignored for years. More such levies and actions by state authorities could spoil the State borders disappear but other inspec

To protect online consumers, the government has made it mandatory for e-commerce companies from January 2018 to print not only the MRP (maximum retail price) on goods but also information such ad expiry date and customer care details. An amendment in this regard has been made to the Legal Metrology (Packaged Commodities) Rules, 2011, by the consumer affairs ministry last month. A six-month deadline has been given to the companies to comply with the new rule. “Consumers deserve the same protection online as offline. A six-month deadline has been given to the companies to comply with the new rule At present, only MRP is printed on the goods sold online Govt has asked the companies to declare additional details on the label If an online seller does not comply from printed on the goods sold online. We have asked the companies to declare additional details on the label,” a senior official in the consumer affairs ministry said. Along with MRP, the companies January 2018 it will face st

By limiting the liability, the apex bank is trying to enhance customer confidence in digital transactions ‘Guilty until proven innocent’ — this was the situation that bank customers found themselves in when they reported any fraud. The Reserve Bank of India (RBI), in its latest circular, seems to changing the rules to ‘Innocent until proven guilty’. And, this is a good news for customers. “The RBI’s latest provisions favour customers. Earlier, if your card was used somewhere; you had to prove you didn’t use it. Now, the onus is on the bank to prove that you used it,” says Navin Chandani, chief business development officer, Bankbazaar.com. The growing number of customer complaints regarding unauthorised debits from their accounts and cards seems to have impacted the apex bank’s decision. According to experts the new norms will go a long way towards enhancing customer confidence in digital transactions. The new norms include ‘zero liability’ and ‘limited liability’ for customers. The