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Over 1.9 mn file GST returns

Over 1.9 mn file GST returns As many as 19,42,354 taxpayers have till Wednesday filed returns for July under the new goods and services tax (GST) regime. Officers of the GST Network (GSTN), responsible for the information technology (IT) backbone of the GST, said they hoped 2.8 million more would do so by the deadline in the next two days.

Those who have filed returns constitute over 22 per cent of total assessees (8.7 million) under the GST regime. However, of the 8.7 million assessees, 2.2 million are yet to complete the migration process to the new indirect tax regime.

The GSTN, also managing the tax filing apparatus, has geared up the IT network to handle the rush, its Chairman Navin Kumar said. A last minute rush caused the GSTN portal to crash last week, forcing the government to extend the deadline by five days to August 25.

Those who wish to claim transitional input tax credit can file returns by August 28. Sudhir Singh, MD of Marg ERP,a solution provider for GST returns, said ov…

Cabinet fast tracks merger of public sector banks

Cabinet fast tracks merger of public sector banks New framework approved; mergers by share swaps

The Cabinet on Wednesday approvedaframework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps.

The government also said there would be no job losses after any of the mergers.PSU bank unions had gone onastrike on Tuesday. The decision lifted banking stocks, but bankers said the decision should not be forced on them.

Finance Minister Arun Jaitley made it clear the process would be initiated by the boards of the banks. An official said a number of banks were discussing merger possibilities among themselves.“The government is saying it will not force (mergers). They will leave it to the banks.

If the players find it reasonable and profitable, they will work on it," said State Bank of India Chairperson Arundhati Bhattacharya. Business Standard had reported in June that Bank of Baroda and Canara B…

CBDT Gives Offshoring Cos a Boost, Withdraws Controversial Guideline

CBDT Gives Offshoring Cos a Boost, Withdraws Controversial Guideline The Central Board of Direct Taxes is open to lowering the withholding tax rate for foreign companies which have income in India, but said that companies should pay their due taxes.

“I would like to be informed in which areas the TDS (tax deducted at source) is high, so that we can think of reducing that also,” CBDT chairman Sushil Chandra said at an international tax conference organised by Assocham on Wednesday. “We are absolutely open to any suggestions which can make the life of a genuine taxpayer easy."

Chandra urged firms and multinational companies operating in India to pay their due share of taxes and said adequate safeguards had been put in place to ensure that anti-abuse provisions like General Anti Avoidance Rules (GAAR) are not misused. Rahul Garg, chairman at Assocham’s National Council on Direct Taxes, said the tax department issues refunds to the tune of Rs 40,000-60,000 crore every year and, hence, …

Govt clarifies GST on newspaper ad space sale

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

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. For …

Car prices to go up on GST cess hike

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 of…

Reserve Bank of India to introduce Rs 200 notes beginning September

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 currenc…