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Sebi may cut listing time to three days

The Securities and Exchange Board of India (Sebi) plans to reduce the time taken for a security to list  on an exchange to three days from the date of closure of its initial public offer (IPO), instead of the  earlier envisaged timeline of four days. At present, public issues take six days — termed T+6 — to list after closing for a subscription.  Reducing the listing timeline to T+3 days would, feel experts, help reduce the impact of market  volatility. On January 1, 2016, Sebi had brought down the time taken for listing of shares to six days, from the  earlier 12 days. Investors were also allowed to give their application forms to banks, brokers,  depository participants and registrar & transfer agents. Earlier, the forms could be sent only through  banks and brokers. The regulator had also made use of Application Supported by Blocked Amount (Asba) compulsory for all  categories of investors. In this, an IPO applicant's account doesn't get debited until the sha

Few takers for easy GST scheme

Only 100,000 dealers opt for composition scheme, which provides flat rates, smooth compliance A scheme under the goods and services tax (GST) that provides easy compliance and a flat rate to small businesses has had a muted response so far. The new indirect tax regime was rolled out on July 1. Till now, of the 8 million registrations on the GST Network (GSTN), only 100,000 or 1.25 per cent have opted for  the composition scheme. The deadline for choosing this scheme is Friday. This is likely to be extended. Entities with an annual turnover of up to Rs 75 lakh are eligible to apply for the scheme, under which they are allowed to pay tax at the rates of 1 per cent (traders),  2 per cent (manufacturers), or 5 per cent (restaurateurs). “The number (of registrations under the scheme) is quite small. I hope the deadline is extended, as more people would want to opt for it,” said Navin Kumar, chairman,  GSTN. The next opportunity to register for the scheme, if the deadline is

No TDS on income if GST paid on services rendered: CBDT

The Central Board of Direct Taxes (CBDT) has clarified that no income tax would be with held on payments  made to assessees with respect to the goods and services tax (GST) component on services rendered. It said tax would be required to be with held only on the amount paid without including the GST on  services component. For this purpose, terms of agreement between the payer and the payee would be taken into account. Under the old service tax regime as well, the CBDT had clarified that not a was required to be with held  on such service tax component. Various representations were made to the CBDT seeking clarifications whether the same kind of rule would  continue under the GST as well. Consultants PwC said the clarification will have a positive impacton reducing the prevailing ambiguity  in the industry. The Business Standard, New Delhi, 21st July 2017

Where are the Pink Notes ? That's a Rs 2,000 Question

Shortage of Rs 2,000 notes after supply from Reserve Bank dips in recent weeks A shortage of Rs 2,000 notes in recent weeks and months has stumped bankers and ATM operators who are already grappling with cash shortage in some parts of the country  due to heavy usage and hoarding. Bankers and ATM service providers say that there has been a sharp drop in number of ` . 2,000 notes in circulation. Supply of new notes from the central bank has  plummeted in recent weeks leading to speculation that it could be a deliberate strategy to restrict the flow of high-value notes in the economy . “Presently we are receiving currency notes from the Reserve Bank in denomination of Rs 500 in high-va lue currency,“ said Neeraj Vyas, chief operating officer of State  Bank of India. “The 2,000 denomination notes are coming over the counters by way of recirculation.“ There are around 58,000 ATMs of SBI out of the 2.2 lakh deployed in  the country. The country's biggest bank has also moved a s

Delhi HC Questions The Legal Sanctity Of Finance Ministry’s Press Release On GST On Legal Services

The Delhi High Court, on Tuesday, asked the Centre to clarify the “legal sanctity” of the Press Release  issued by it earlier this week, wherein the Ministry of Finance had clarified that legal services  provided by an individual Advocate, including a Senior Advocate and a Firm of Advocates, is liable for  payment of GST under reverse charge(RCM) by the business entity. The question was posed by a Bench comprising Justice S. Muralidhar and Justice Pratibha M. Singh, after  Mr. Sanjeev Narula, Central Government’s Standing Counsel presented before it the Press Release issued  by the Ministry of Finance.  Several queries on the release cropped up during the hearing, pursuant to which, Mr. Narula sought time  to seek instructions on the following questions in particular: (i) Whether there were any further  recommendations of the GST Council on ‘legal services'after the recommendations made at the 14th Meeting  of the GST Council held on 19th May, 2017. (ii) What is the legal

Sebi planning to tighten depository receipt regulations

The Securities and Exchange Board of India (Sebi) is planning to clamp down on depository receipts (DRs) as part of efforts to check the flow of black money into the  stock market. Sources said Sebi planned to make it mandatory for foreign depositories to reveal details of endbeneficiaries holding DRs issued by Indian companies. The new framework will align knowyourcustomer (KYC) requirements for DRs with provisions to prevent money laundering. Many Indian companies issue DRs to raise capital abroad. DRs have shares as an underlying asset and are typically issued byabank, known as the depository bank, on behalf of a company. Sebi has proposed DRs can be exercised by the issuer only if information on beneficial ownership is available. Further, all acquisitions made through DRs resulting inachange in control inalisted company are expected to be governed by Sebi´s takeover rules. For unlisted companies, DRs are permitted only in sectors eligible for investment by registe

Cabinet clears draft bill to replace GST ordinances for J&K

The Cabinet today approved a draft bill to replace ordinances that were promulgated to introduce the  Goods and Services Tax (GST) in Jammu and Kashmir, a senior government official said.  The Central government had earlier this month promulgated ordinances to make the Central GST (CGST) and  Integrated GST (IGST), which deals with inter-state commerce, applicable to the state.  The Cabinet headed by Prime Minister Narendra Modi approved the bill, which will be introduced in  Parliament during the current monsoon session.  The Economis Times, New Delhi, 20th July 2017