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GST Sops for Digital Payment Push GST Council may discuss proposal tomorrow, has option of incentivising merchants & customers A year after demonetisation, India is getting ready to give digital payments yet another push.It could consider providing incentives in the goods and services tax (GST) regime for payments that are settled electronically . The GST Council meeting on Friday is likely to consider a proposal in this regard, a senior government official told ET.“There is a thinking that digital transactions need to be incentivised... The council will look at what could be done,“ the person said. The council could take up the proposal along with steps to cut GST on some items from the top 28% rate besides easing the compliance burden for businesses.As far as digital payments are concerned, the council has the option of incentivising merchants and customers. Under the proposal, benefits in terms of credit or exemption could be provided within central and state GST to enco

Aadhaar, insurance link mandatory The Insurance Regulatory and Development Authority said linkage of Aadhaar with insurance policies is mandatory and asked insurers to comply with the statutory norms.“The authority clarifies that linkage of Aadhaar to insurance policies is mandatory under the Prevention of Money laundering (Maintenance of Records) Second Amendment Rules, 2017,” the regulator said. The Business Standard, New Delhi, 09th November 2017

Stronger Contract Law in Pipeline to Lift Ease of Doing Business Ranking Changes to widen ambit of enforceability beyond compensation; law min to move Cabinet note soon India is proposing a radical change in the legal framework on contracts to make them enforceable, thus creating a more stable and predictable business environment and boosting investment, especially in the country's infrastructure sector. A cabinet note will soon be moved by the ministry of law and justice to amend the Specific Relief Act toward this end. The move is expected to lift the country's rating in the World Bank's Doing Business index as it's a measure on which India does poorly, having been ranked at 164 out of 190 on this score. Prime Minister Narendra Modi wants the country to break into the top 50, boosting India's attractiveness as an investment destination.“Details have been finalised. It will go to cabinet soon,“ a top government official told ET.The changes are aimed at wi

Capital gains tax relief for foreign origin funds  Income from sale of securities in India by funds based abroad will be exempt from capital gains tax, the government announced.This exemption will be given only when the India focused fund is also charged to tax in India.The Central Board of Direct Taxes (CBDT) said the tax provision on indirect transfer would not apply to this type of income at private equity and venture capital funds. This, say experts, ought to reassure those investing in India through a multilayered structure.The issue was a concern among foreign portfolio investors (FPIs).The Finance Act of 2012 had amended section 9 of the Income Tax Act to address the ruling given by the Supreme Court in favour of Vodafone. Accordingly, gains through indirect transfers were made subject to capital gains tax. The condition being that the Indian assets should exceed Rs 10 crore and represent at least half the value of all assets held by the foreign investor. Investors holding l

Direct tax mop up rises 15 Percent to Rs 4.39 lakh cr in Apr to Oct The government has collected Rs 4.39 lakh crore in direct taxes, up 15.2 percent year-on-year, during the first seven months of the current fiscal year. The collection, which includes personal income tax and corporate tax, represents 44.8 per cent of the total Budget Estimates of Rs 9.8 lakh crore in direct taxes for 201718 “The provisional figures of direct tax collections up to October, 2017, show that net collections are at Rs 4.39 lakh crore, which is 15.2 per cent higher than the net collections for the corresponding period of last year,”a finance ministry statement said. Gross collections (before adjusting for refunds) have increased 10.7 per cent to Rs 5.28 lakh crore during AprilOctober, 2017.Refunds amounting to Rs 89,507 crore were issued during the seve-nmonth period The Business Standard, New Delhi, 08th November 2017

GST advisory panel receives 700 representations on industry woes The six member advisory panel formed by the government for simplifying and rationalising the goods and services tax (GST) has received more than 700 representations on problems faced by industry over return filing, the eway bill, input tax credit, and exports.The committee will now meet for the first time on Wednesday to take up these issues, ahead of the crucial GST Council meeting on Thursday in Guwahati. Some of its recommendations may be taken up by the Council.The panel includes representations from trade and industry.“The government is open to taking feedback from industry and rectifying the anomalies in the law. We are putting in efforts to make the GST industry friendly and will be open to incorporating suggestions by the advisory panel,” said a government official. The final report of the group will be submitted on November 30 and discussed in the subsequent meeting of the Council.“If the panel comes toac

Wilful defaulters cannot bid for their cos State Bank of India (SBI) chairman Rajnish Kumar on Monday said that promoters of defaulting companies are within their rights to bid for their businesses which are on the block following insolvency proceedings. However, wilful defaulters or those borrowers who have diverted funds will not find any place in the bidding process, he said. Kumar’s remarks come at a time when the insolvency process has come under criticism as it allows existing borrowers to bid for the companies at steep discounts. For instance, in the case of Innoventive Industries — one of the first cases in the National Company’s Law Tribunal under the new Insolvency and Bankruptcy Code — the best bids that the lenders have received requires them to take a haircut of 75% of their loan amount, resulting in a stalemate. “Ethically, I don’t know, but legally they are within their rights to participate,” said Kumar, responding to queries on whether it was ethical to let a d