Skip to main content

Posts

In govt, bet is on a 50 bps rate reduction

'Accommodative Stance Must To Revive Sentiment' Market players and economists may be betting on 25-basis-point (100bps 1 percentage point) rate cut by the RBI next week, but an influential section within the government believes that nothing less than a 50-bps reduc tion with an “accommodative“ stance will revive investment. Differences between the RBI and the government over the extent of an interest rate cut have come out in the open in the past few months with the chief economic adviser in the finance ministry Arvind Subramanian expressing disappointment with the central bank's move not to cut rate as well as the monetary policy committee's (MPC) reading of the inflation situation. Several private sector economists have also criticised MPC's inflation estimates. While efforts have been made to play down the differences, a wide gap in views between the central bank and the finance ministry over the direction of interest rates remains. Multiple sources in the governmen…

GST : Input credit to reduce prices in the long run

The new tax regime addresses the issues of multiplicity of taxes, higher compliance costs, and improving the overall investment climate Billed as India's biggest reform independence taxsince in 1947, GST replaced more than a dozen federal and state levies and was initiated with an intention to unify the country into a single market. However, nearly a month on, many are finding that doing business is quite complicated now. For the man on the street, the impact will be seen in the form of slightly higher fees for banking transactions like funds transfer and ATM transactions as these have been put under the 18 per cent tax bracket in the new GST regime, from the earlier 15 per cent.Nevertheless, it is expected that GST will have a positive impact on India's growth and would reduce the prices in the medium and long term. A MONTH AFTER IMPLEMENTATION It is almost a month since GST was rolled out. Broadly speaking, it is going to impact in the following way: Unified tax system across the…

EPF pensioners may get medical benefits

The government is formulating a medical benefit scheme for all pensioners who are members of Employees' Provident Fund (EPF).The government will also constitute a high-level committee to revamp the Employees' Pension Scheme (EPS). “In association with the Employees' State Insurance Corporation (ESIC), we are going to formulate a medical benefit scheme for all pensioners who are EPF members,“ labour minister Bandaru Dattatreya told Lok Sabha on Friday . He added that this would be a contributory medical benefit scheme and details were being worked out. “I have directed that a complete valuation of EPS 1995 be done... Whatever gaps are there will be plugged,“ the minister said. Dattatreya was responding to a resolution moved by RSP member N K Premachandran on steps to ensure welfare of 59 lakh pensioners under EPS. Premachandran also demanded increase in minimum pension to Rs 3,000 from Rs 1,000 per month under the EPS scheme. He also pitched for implementation of welfare schem…

IT dept to share vital data with MCA to nail down shell cos

The tax authorities will now relay audit reports of corporates and specific information from their I-T returns as also PAN data to the ministry of corporate affairs, as the government plans to crack down harder on shell companies. Coming down heavily on shell companies, the Ministry of Corporate Affairs (MCA) has already cancelled registrations of over 1.62 lakh companies for non-filing of financial statements for the immediate two preceding fiscals. The Central Board of Direct Taxes (CBDT), the apex policy making body of the I-T department, in an order has asked the Principal Director General of Income Tax (Systems) to share "bulk information" to the MCA. Bulk information would mean Permanent Account Number (PAN) data of corporates, their Income Tax returns (ITRs), audit reports and statement of financial transactions (SFT) received from banks relating to corporates. Also the tax department would share identified PAN Challan Identification Number (CIN) as well as PAN Director i…

GST compliance delays billing cycle for telecom companies

A section of postpaid users and corporate customers are getting their monthly mobile bills late as big phone companies are struggling to capture the impact of the goods and services tax (GST) on invoices issued post-July 1.  Bharti AirtelBSE -1.17 %, India’s No 1 phone company, has sent out text messages to some of its postpaid customers saying their bills would be delayed by at least a week this month owing to technical issues. ET has seen these text messages.  Airtel BSE -1.17 % postpaid customers in Delhi and Kolkata told ET that they had been informed by the company’s customer care wing that the reason behind the delayed billing was GST-related.  The country’s second-largest mobile carrier, Vodafone India, in turn, is learnt to be facing a tough time billing corporate or ‘enterprise customers’ on schedule as many clients have not shared their GST registration numbers.  Under GST rules, telcos are required to the mention a corporate customer’s GST registration number in their monthly m…

Without UID, expatriates unable to file tax returns

Many expatriates living in India and non-resident Indians living in any other country may just end up in tax trouble with no fault of theirs. They all are set to miss the July 31 deadline for filing income-tax returns due to snags in the e-filing system.  Several expats are unable to file tax returns because the e-filing system would not accept it without an Aadhaar card link.  This despite the government, through a recent notification, clarified that foreign citizens are not required to obtain Aadhaar card for tax filing purpose. “In several cases, the income tax e-filing system is not allowing expatriates to upload their returns without Aadhaar as they have been tagged as Indian citizens in the income tax database,” said Amit Maheshwari, partner at Ashok Maheshwary & Associates LLP that is helping several expats deal with the problem. “This anomaly seems to have its origin at the time of allotment of PAN,” he said. That is not the only problem.  “In several cases, expats who are no…

Amendments to companies law passed to ensure stringent action against defaulters

Minister of State for Corporate Affairs Arjun Ram Meghwal said the passage of this Bill will help increase the size of the country’s economy and investor protection and corporate governance were the two main objectives of the measure The Lok Sabha on Thursday passed a Bill to amend the companies law seeking to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve the ease of doing business in the country. Piloting the Companies (Amendment) Bill, 2016, Minister of State for Corporate Affairs Arjun Ram Meghwal also said that NSEL and PACL scams were a legacy of the previous regime, which the current government is trying to address. The Bill, which was passed by a voice vote, provides for more than 40 amendments to the Companies Act, 2013, which was passed during the previous United Progressive Alliance (UPA) regime. The Bill was introduced in the Lok Sabha in March 2016, and then referred to the Standing Committee on Finance. Af…