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Govt hardens stand on GST defaulters

Govt hardens stand on GST defaulters To issue notices to assessees failing to file returns Toughening its stand on goods and services tax (GST) defaulters, the government has asked officers to send notices to assessees who have failed to file returns.The move has come amid heightened revenue collection concerns with three months left in the current financial year (FY18) Besides, Finance Secretary Hasmukh Adhia, inameeting on December 9, asked Union and state tax officers to review revenue collections in the first five months of the GST rollout, compared to the corresponding period last year. “It seems that postponement of measures under the GST regime such as matching returns, the eway bill, and the reverse charge mechanism has led to tax avoidance, which is reflected in the revenue for October This has prompted a hardening stand on revenue leakages,” said a senior government official.In July, the Central Board of Excise and Customs (CBEC) had asked its officers to go easy on taxpayers ti…

India may not impose anti-dumping duty on polybutadiene rubber

India may not impose anti-dumping duty on polybutadiene rubber India is unlikely to impose anti-dumping duty on polybutadiene rubber used in making tyres and golf balls, after the Commerce Ministry in its probe found that the link between dumped imports and injury to the domestic industry is not conclusively established.The application seeking imposition of anti-dumping duty on polybutadiene rubber originating in or exported from Korea, Russia, South Africa, Singapore and Iran was filed by Reliance Industries Limited. The commerce ministry's investigation arm - Directorate General of Anti-dumping and Allied Duties (DGAD) - concluded in its final findings that it "does not consider it appropriate to recommend levy of an anti-dumping duty" and terminated the investigation.In its petition, RIL, a petrochemical and refinery firm which is the sole producer of polybutadiene rubber in the country, had alleged dumping and consequent injury to the domestic industry. "It is seen…

PEs, NBFCs move to take more control of real estate projects

PEs, NBFCs move to take more control of real estate projects Private equity firms and NBFCs are taking more control in real estate projects, tightening underwriting norms and taking stock of the overall financial health of the developer in transactions As defaults rise and balance sheets of real estate firms weaken, private equity (PE) firms and non-banking financial companies (NBFC) are taking more control in projects, tightening underwriting norms and taking stock of the overall financial health of the developer in transactions Since project financing is the lifeline of residential projects and new real estate regulations come with stiff penalties, it is imperative that the investment strategy is recalibrated, investors said. “While investing these days, realty funds, particularly equity investors, pay significant attention, in their due diligence process, to the developer’s overall ability to raise money in the proposed investment and see that their investment may not get undesired rep…

Sebi seen facing hurdles in implementing proposals of Uday Kotak committee

Sebi seen facing hurdles in implementing proposals of Uday Kotak committee There has been criticism that many recommendations of the Udak Kotak committee on corporate governance will drive up compliance costs and encroach into other regulators’ turf Two months after the Uday Kotak committee on improving corporate governance at listed companies submitted its report, the Securities and Exchange Board of India (Sebi) is finding it hard to implement its recommendations, following criticism that many of them will drive up compliance costs, and encroach into other regulators’ turf, two people aware of the matter said. An email sent to Sebi on Tuesday was not answered until press time. However, Ajay Tyagi, chairman, Sebi said that the regulator is seriously considering the recommendations. “We have received hundreds of comments on the report; the examination is on,” Tyagi said at a conference organized by Association of Investment Banks of India on Tuesday. Sebi panel recommendations on improvin…

Auto industry seeks two GST rates for passenger vehicles

Auto industry seeks two GST rates for passenger vehicles Automobile industry body SIAM is seeking two tax rates for passenger vehicles under the GST regime instead of multiple rates levied currently, as part of its wish list for the upcoming budget.The industry body has also sought from the Finance Minister Arun Jaitley a special tax rate of 12 per cent for electric and hydrogen fuel cell powered vehicles. "The automotive industry has been suggesting two rates for cars in place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime," Society of Indian Automobile Manufacturers (SIAM) said in its suggestions for the Union Budget 2018-19. Currently, under the Goods and Services Tax (GST) regime, small petrol cars with engine capacity less than 1200cc attract 1 per cent cess, while diesel cars with engine capacity of less than 1500cc attract 3 per cent cess, on top of the 28 per cent tax. Similarly, cess on hybrid cars, including …

GSTN plans data scan to detect tax evasion

GSTN plans data scan to detect tax evasion The GST Network (GSTN) will soon float a request for proposal from data analytics companies to analyse data for tax evasion With nearly 10 million taxpayers registering themselves on the goods and services tax (GST) network, or GSTN, the information technology backbone of the new indirect tax regime is initiating the process of mining data to detect tax evasion and analyse taxpayer behaviour.GSTN will soon float a request for proposal (RFP) from data analytics companies to analyse data after meeting central and state government officials and understanding their requirements. To be sure, GSTN will start data analytics when it has sufficient data spanning a year.GST was rolled out in July this year and the tax returns started coming in August.“We are in the process of drafting an RFP because we want the tools and manpower for data analytics. We should be able to slice and dice the data whichever way we want,” said Prakash Kumar, chief executive of…

Cabinet okays Bill to replace Medical Council of India

Cabinet okays Bill to replace Medical Council of India The Union cabinet has approved a bill to replace the much criticised medical education regulator Medical Council of India (MCI) with a new commission to ensure transparency and reform.The National Medical Council Bill, 2016 will be tabled in Parliament in the current session, law and justice minister Ravi Shankar Prasad said in a briefing shortly after the cabinet meeting on Friday The draft bill, proposed by a fou rmember Niti Aayog committee in 2016, was modified by a Group of Ministers (GoM) constituted to relook it in July 2017. It has been awaiting approval for some three months. MCI has long been criticised for rampant corruption and a lack of accountability which, according to a parliamentary standing committee report on health last year, would lead to great social, financial and political cost if unchecked. "The MCI as the regulator of medical education in the country has repeatedly failed on all its mandates over the d…