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Govt clarifies GST on newspaper ad space sale Space selling for advertisement in print media will attract 18 per cent GST (goods and services tax) if an agency does so as an agent ofanewspaper on commission basis, the government said on Wednesday. GST of five per cent will be levied if the advertisement agency works on principal to principal basis —buys space from the newspaper and sells such space for advertisement to clients on its own account,afinance ministry statement said. As an illustration, ifanewspaper sellsaunit of space worth Rs 100 to an advertisement agency for Rs 85 (afteratrade discount of Rs  15) and the agency sells the space to client at Rs 100, the newspaper would pay 5 per cent GST on Rs 85 and the advertisement agency a similar amount of tax on Rs 100. Business Standard New Delhi, 24th August 2017

Tax Queries - Use ITR-2 to Show Salary and Capital Gains Income Which I-T form will be used for a salaried person if there is income from capital gains. Can we efile the ITR? Checking google, I gathered I should file ITR 2. But on choosing e-filing option, it shows ITR 1 and ITR 4. --HARSH An assessee having income under the heads income from salary and capital gains is required to file his return of income in ITR-2 for AY 2017-18. You will be required to prepare your return of income offline using ITR-2 utility (JavaExcel) available on the eFiling portal of income-tax department; generate xml file and upload it. Only the ITR 1 and 4 can be prepared and submitted online. I retired from a PSU on November 30, 2015, and final settlement of my dues was done in May 2017. I have received a tax notice on July 24, 2017, asking about deductions claimed under section 80C, 80D, 80GG and 80TTA. If I do not reply and upload necessary documents in support of my claims, the amount will be taxed.

Car prices to go up on GST cess hike Hyundai India, the country's second-largest carmaker, said vehicle prices will go up substantially as the government hikes tax on auto mobile manu facturers as part of a revi sion of GST ra tes. Y K Koo, MD and CEO of the company's local operations, said Hyundai will have to pass on the increased cost as the government moves to hike cess on larger vehicles to 25% from existing 15% (levied over 28% GST rate).Koo said that the measure is surprising and shocking as it is being proposed in just second month of the GST regime. “We are little confused...and really do not know what exactly is going on.“ Companies say they are not aware of what the government means when it says the cess on `luxury vehicles' will be revised. “We are wondering as to what is the definition of luxury , is it meant for any particular engine size, or will it be based on length of the vehicle. Also, what is the percentage of hike that will be mandated for our types

Reserve Bank of India to introduce Rs 200 notes beginning September Reserve Bank of India appears to be giving highest emphasis on how to avoid the possibility of an illegal trade of currency notes as it prepares to introduce  Rs 200 denominated bank notes for the first time in history. RBI is likely to put the proposed Rs 200 bank notes in circulation by the end of August or in the first week of September, according to people in the know. Most importantly, it is taking all steps to stop black marketing and is building a stack of about 50 crore notes of the new denomination to start with so there is no scarcity or possibility of illegal trade, sources said. "There is no other denomination available between Rs 100 and Rs 500 and RBI is expecting Rs 200 notes to become very popular and that's why it is taking every step to ensure availability of it," the source said. RBI did not respond officially to ET's queries till time of going to press. “a large number of new c

Heavy industries minister seeks GST cut for auto Heavy Industries Minister Anant Geete has recommended to Finance Minister Arun Jaitley to cut the goods and services tax (GST) rate for the auto mobile sector to promote its growth and maintain tempo of job growth. At an ASSOCHAM event in New Delhi, he said, “With all the applications that I have received from automobile sector for reduction in GST rates, I have included my suggestions on the same and requested the finance minister to think in this direction.” He also emphasised on the need to make people at the helmin the government departments accountable for any violation or accident. The Business Standard,New Delhi, 23rd August 2017

Anti profiteering authority to be ready in a fortnight, says CBEC chief The proposed anti-profiteering authority, which will monitor pricing behaviour of  businesses under GST, will be up in a fortnight, says CBEC chief Vanaja N. Sarna  Businesses will shortly have a new regulator taking a penetrating gaze over their affairs. The proposed anti-profiteering authority that will monitor pricing behaviour of businesses  will be up and running in a fortnight, said Central Board of Excise and Customs (CBEC)  chairperson Vanaja N. Sarna‎. A selection panel led by Cabinet secretary P.K. Sinha has asked states to suggest  candidates for the five-member authority, including the chairperson, while the Union  government has sent a list of its nominees to states for state-level screening panels that  are part of the authority’s ecosystem, said the CBEC chairperson.  State-level panels will watch out for instances of businesses not passing on benefits of  tax reduction to consumers in the

FMCG dealers seek to recover GST cost from companies  Companies in FMCG and consumer durable space are facing a surprise bouncer from their  dealers experiencing goods and services tax (GST) transition blues.  Dealers have sought compensation from companies as they are unable to claim credit on the  past stock and therefore, have to shell out extra tax from their pocket for now. This has  raised their working capital costs.  “There is a minor working capital cash shock for the dealers in the month,” said a source,  adding that industry is still grappling with the fine print of this major tax reform.  “There is a lot of fine print within the GST that is yet to be clarified. There is  confusion in the trade on issues such as input credit which are still persisting. We are  awaiting clarity on the same,” said an official with a leading FMCG company.  Trade partners of most consumer goods and durables firms had destocked in the two weeks  just ahead of the GST rollout to ensure