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Surat is the new shell firm capital

Surat is the new shell firm capital Surat has replaced Kolkata as the new capital of shell firms that evade taxes.According to the income tax (IT) department,a majority of the companies featuring on the new list of firms provided by the government are based in Kolkata had topped the first list. The tax department began tightening the noose shell firms earlier this year, as more details such companies to light after In the new list, tax have found over 80 per cent of the 2,138 shell firms, which deposited unaccounted cash of at least Rs 5,000 crore during the note ban, were from Surat. The tax department expects this number to go up.This list featured 5,800 shell companies, shortlisted by the finance ministry, which had deposits of Rs17,000 crore in near zero balance accounts after demonetisation and nearly an equal amount of withdrawal thereafter. Earlier, the tax department had identified 16,000 shell firms floated in Kolkata between 2011 and 2015, to launder money.The probe

No GST on Advance Taken by FMCG Cos

No GST on Advance Taken by FMCG Cos Cos say amount taken from dealers was not against a specified product and so tax rate was not clear In a big relief to all FMCG companies and others that take advance from dealers before they supply goods, no goods and services tax (GST) would be levied on such advance.The department of revenue has issued a notification allowing the relaxation after the same was approved in the GST Council meeting last week in Guwahati. The notification exempts all taxpayers from payment of tax on advances received in case of supply of goods. The companies were having trouble levying GST on such advance as it was not against a specific product and so it was not clear what rate had to be applied.Besides, some funds were blocked because of this payment of tax on advances. “Under VAT regime, there was no tax on advances for goods but was introduced under GST. Since the input credit was only available after receipt of goods, this led to working capital blockage f

India set to be 'attractive' place for business FM

India set to be 'attractive' place for business FM With greater digitisation and formalisation of financial activities and businesses, India is set to become an “extremely attractive” country to do business, Finance Minister Arun Jaitley said.Speaking at the Singapore Fintech Festival, Jaitley said the ongoing process of digitisation was a result of Aaadhar scheme coupled with financial inclusion, improvement in the digital eco-payment system as well as the introduction of the GST. PTI The Business Standard, New Delhi, 16th November 2017

200 items cheaper as GST cuts notified

200 items cheaper as GST cuts notified Eating out and a  little over 200 products of mass consumption, including detergents and ceiling fans, became cheaper from Wednesday with the lower goods and services tax (GST) rates taking effect. The finance ministry has told citizens to remember this while purchasing these.The government formally notified the lower rates, including on chocolates, waffles, furniture, wristwatches, cutlery, suitcases, ceramic tiles and articles of cement. The GST Council, chaired by Finance Minister Arun Jaitley, had on Friday in Guwahati decided to cut rates on these items to provide relief to consumers and businesses, amid an economic slowdown. The Council pruned the list of items in the top 28 per cent GST slab to 50, from the earlier 228. Another 176 had the rate cut from 28 per cent to 18 per cent —chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, arti

Bring realty under GST with stamp duty: Assocham

Bring realty under GST with stamp duty: Assocham If the real estate sector is brought with in the ambit of the goods and services tax (GST), it should be along with the stamp duty and moderate rate, and should not add to the cost of housing and construction, according to an industry body. The Associated Chambers of Commerce and Industry of India(Assocham) said the Centre is certainly in favour of realty under the GST, but the states have to be brought on board because there are revenue implications. There are reports that the realty sector may be brought under the GST without stamp duty and other levies like property tax.That will serve no purpose and instead would lead to more confusion, Assocham Secretary General DS Rawat said. The Business Standard, New Delhi, 15th November 2017

New GST rates may lower CPI inflation by 20 bps: Nomura

New GST rates may lower CPI inflation by 20 bps: Nomura The decision to lower the goods and services tax(GST) rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices,  says a report. According to global financial services major Nomura, the recent decision by the Centre to lower tax rates for 213 items, including 178 items of daily consumer use, is likely to lower CPI inflation by about 20 basis points (0.2percent). “The government expects these(GST) measures to be disinflationary. Our quantitative analysis suggests that if (a big if) the GST tax changes are fully passed on to consumers, they would lower CPI inflation by estimated 20 basis points,” Nomura said. The Business Standard, New Delhi, 15th November 2017

Registered properties worth over Rs 30 lakh on scanner as CBDT turns up heat on black money

Registered properties worth over Rs 30 lakh on scanner as CBDT turns up heat on black money The I-T department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy, CBDT chairman Sushil Chandra said. The government’s continuing crackdown on black money will now see tax officials sift through details of property ownership to ascertain cases of tax evasion and benami transactions.According to Central Board of Direct Taxes (CBDT) chairman Sushil Chandra, the Income Tax department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy. Mismatches between asset ownership and reported income enable the department to identify cases of tax evasion. In benami ownership, the beneficial owner of the asset will be different from its legal owner.The exercise follows the enactment of the