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GST breather for Railways; no tax on transfer of goods for self-consumption

GST breather for Railways; no tax on transfer of goods for self-consumption No exemption would be available if the transaction is classified as a good In a welcome break for the Indian Railways, no goods and services tax (GST) will be applicable on inter- or intra-state transfer of equipment/materials (without transfer of title) for self-consumption. This is a major relief for the railways, with annual internal consumption estimated to be about Rs 20,000 crore. In a notification to field units on July 11, the railways said, “Transfer of goods/stores from one state/Union Territory (UT) to another state/UT is considered to be an exempted activity.” The notification cited section 7 (1) of the CGST Act 2017, along with clause 1(b) the Schedule II of the CGST Act, 2017 for the said exemption. Experts corroborated this, claiming that according to the GST Act, transfer of goods by any government — Centre or state — or local authority to a similar government unit, is exempt from the indirect tax. …

I-T detected Rs 13,715 cr undisclosed income in FY

I-T detected Rs 13,715 cr undisclosed income in FY  The inco­me-tax dep­a­rtment detected un­disclosed income of Rs 13,715 crore through surveys in 2016-17, minister of state for finance Santosh Kumar Gangwar informed Parliament on Tuesday. Also, as many as 1.26 crore new taxpayers were added in the last financial year, he said in a written reply in the Rajya Sabha. In the last financial year, the income-tax department conducted searches at 5,102 premises of 1,152 groups during which undisclosed income of Rs 15,496 crore was admitted. “During the same period, 12,526 surveys led to detection of undisclosed income of Rs 13,715 crore,” Gangwar said. The minister said 1.96 crore income-tax returns were filed between November 9, 2016 and March 31, 2017, compared with 1.63 crore returns filed during the same period of 2015-16. In a separate reply, Gangwar said during phase one of ‘operation clean money’, launched on January 31, about 1.8 million people were identified whose cash transactions did…

FPIs ask Sebi to clear haze around p-notes circular

Foreign portfolio investors (FPIs) are seeking clarity on the circular on participatory notes (p-notes) or offshore derivative instruments (ODIs), issued by the Securities and Exchange Board of India (Sebi) in July. Investors are unclear whether the hedging position needs to be looked at, at the issuer level or at the subscriber level, and whether the derivatives positions can be taken against equity investments indirectly through foreign currency convertible bonds (FCCBs) or American depository receipts/global depository receipts (ADRs/GDRs). FPIs have told the regulator it would be difficult for issuers to discern between speculative and hedging positions of individual investors, and to ascertain the exact number of open positions held by investors. This will especially be the case if the investors deal with multiple p-notes issuers. Sebi is expected to come out with clarifications on some of these issues. “The language of the circular seems to suggest that it is at the issuer level but…

Sebi lens on angels could lead to crowdfunding rules

The scrutiny of the functioning of angel networks by the Securities and Exchange Board of India (Sebi) could pave the way for crowd funding regulations. Sebi has reportedly written to several angel networks in recent weeks, seeking details about their fund raising business and whether they operate within the contours of the securities market law. Angel networks areakey link between the startups looking to raise money and the investors. The capital markets regulator fears that these platforms are acting like stock exchanges and might be violating the rules of private placement by offering shares to more than 200 investors. Some investors share Sebi´s concerns. "Angel networks are mushrooming, and Sebi´s concerns are genuine. There are public market processes and private placement processes. Sebi wants to understand how these platforms are operating, and if due process is being followed, and if investor protection processes are being followed,´´ said Alok Mittal, an angel investor cumentr…

Sebi whip blocks trade in 331 shell companies

The government crackdown against companies” has hit several investors, funds and small investors, who worth nearly Rs 9,000 crore in these companies. In a late circular on Monday, market Securities and Exchange Board of (Sebi) directed stock exchanges to immediately restrict trading in 331 companies identified as “shell companies” by the Ministry of Corporate Affairs in consultation with the Serious Fraud Investigation Office (SFIO) and the incometax (IT) department. While, by definition,a shell company is one without any business operations or assets, several companies with active business dealings too were part list with 331 names. At least five companies list have market capitalisation (Rs 500 crore each, with diverse shareholding as retail investors.) These companies placed in the surveillance measure where trading in only onceamonth deposit” of three times the trade value. Companies, includingJKumar Infraprojects (mcap of Rs 2,150 crore), Prakash Industries (Rs 2,124 crore), Parsvnath…

Banks to shut out builders without RERA listing

Banks to shut out builders without RERA listing Builders who have been thinking of ways to beat the new Real Estate Regulation Act are fast running out of time as banks, in consultation with the Reserve Bank of India, have decided not to extend loans to those projects which have not been registered under RERA.  "We have to look for some security mechanism, and since RERA is designed to weed out fly-by-night operators, we have decided not to extend credit to projects not registered with it," said a bank official who did not wish to be identified. "Adhering to the regulations will safeguard our interests, it's better to be safe now than regret later."  Banks have also sought additional collateral, including on personal properties of promoters, as guarantees while disbursing loans to a few real estate developers.  "We are very apprehensive because even if we disburse loans as prescribed under the law, the way it is designed, it does not protect our credit. If a l…

DeMo Impact : Individual I-T Returns Up 25%

DeMo Impact : Individual I-T Returns Up 25% With the Centre tightening the screws on black-money holders, the number of income-tax returns (ITRs) filed this fiscal year has risen nearly 25 per cent. According to official data released on Monday, the total number of ITRs filed till August 5 grew 24.7 per cent to 2.82 crore, as against 2.26 crore during the corresponding period of 2016-17. The number of returns filed by individuals rose 25.3 per cent to 2.79 crore, as against 2.22 crore in the previous fiscal year. “This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation,” said the Finance Ministry. August 5 was the last day for filing income-tax returns after the deadline was extended from July 31. The Income-Tax Department had launched ‘Operation Clean Money’ to look into suspicious cash deposits during the note-ban period. Taxpayers also had to declare cash deposits of over ?2 lakh made in their bank accounts during the de…