CA Online

Textile exporters have urged the government to exempt them from the integrated goods and services tax  (IGST). The GST Council has finalised rates between 5 and 28 per cent of applicable IGST on various  products. Additionally, 5 per cent GST is applicable on job work also. “Merchant exporters cannot  benefit from the facility of exports under bond /letter of undertaking (LUT). There is no enabling  document prescribed by the government under which goods can be cleared by a manufacturer without  charging IGST meant for exports by a merchant exporter against bond/LUT. In absence of such a  provision, the manufacturer charges IGST on the goods supplied to the merchant exporter meant for  exports under bond/LUT. In the erstwhile central excise regime, there was a facility under which a  merchant exporter who has executed a bond (B-1 bond) was provided with C T 1 certificates. Introduce a  similar facility at the earliest so that the merchant exporters exporting under bond / LUT can ge

Two days after suspending trading in 331 listed shell companies, the capital markets regulator,  Securities and Exchange Board of India (Sebi), ordered stock exchanges to verify their credentials and  fundamentals. In a letter to the exchanges on Wednesday, the markets regulator hinted if  a company´s business model  appeared satisfactory, the trading ban could be revoked. The move comes after Sebi faced wide spread criticism from various quarters for classifying these  entities as shell companies on Monday. The market value of at least 10 companies on the list is over Rs 200 crore each. Also 161 of these companies were active in trading, with over 2.7 million public shareholders. Sebi had directed exchanges to impose stringent trading curbs on these companies by putting them in  the Stage VI of the Graded Surveillance Measure (GSM). The companies were identified by the Ministry  of Corporate Affairs (MCA), with the help of the Serious Fraud Investigation Office (SFIO) an

The exchequer got 19.1 per cent more from direct taxes in the first four months of the current  financial year (FY18), but the amount paid by companies reflected their struggle with the goods and  services tax (GST). The total direct taxes after refunds grew 19.1 per cent at Rs 1.9 lakh crore  between April and June this year. Last year, during this period, it had risen 24 per cent. This isaminor deceleration, but when compared  in terms of percentage of Budget Estimates (BE), the figures this time are rosier. The collections constituted 19.5 per cent of the BE of direct taxes for FY 18. In FY 17, they had accounted for 18.8 per cent of the BE. What is startling, however, is the slow tax collection from corporate entities. This year, this grew by 7.2 per cent in the AprilJuly period, sharply lower than the 11.7 per cent in  the same period last year. Experts said the slowdown could be attributed to adjustments leading to destocking and the offering of  discounts by comp

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 fr

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

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 a

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 Mitta