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 Int'l Passengers Need Not Pay GST at Duty-free Shops International passengers buying goods at airport ‘dutyfree’ shops will not be subject to GST and the revenue department will soon clarify on this exemption, an official said. Following an order passed in March by the New Delhi bench of the Authority for Advance Ruling (AAR) stating that GST would be leviable on sale of goods from 'duty-free' shops at airports, the revenue department had received a number of representations seeking clarification on the issue. The revenue department will clarify that duty-free shops will have to only collect a copy of the passport from the passenger to whom it sells the goods and later on seek GST refund from the government, the official added. Experts said that the AAR order had put such shops in a fix, since they were exempt from central sales tax and value added tax in the earlier indirect tax regime. In that mechanism, sale from such shops were considered as exports and supplies we

 F PI Outflow Hits 18-month High at Rs 29,714 cr in May Foreign investors pulled out a massiveRs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices. This comes following an outflow of Rs 15,561 crore from the capital markets (equity and debt) in April. Prior to that, foreign investors had pumped in ?2,662 crore in March. Foreign portfolio investors (FPIs) withdrew a net sum of Rs 10,060 cr from equities and Rs 19,654 cr from debt market in May, taking the total to Rs 29,714 cr. This is the steepest outflow from the capital market since Nov 2016, when FPIs had pulled out Rs 39,396 crore. The Economic Times, New Delhi, 04th June 2018

Govt Clarifies GST Applicability on Financial Services Goods and services tax applies to exit loads charged by mutual funds, additional interest charged for default in payment of loan instalments and late payment charges levied by credit card companies, the government has said. Securitisation, future contracts, derivatives and forward contracts in commodities, unless entailing actual delivery of commodities, will however not be liable to this tax which was introduced on July 1 last year. The detailed clarifications for the financial services sector issued in the form of frequently asked questions (FAQs) seeks to address some pertinent issues relating to the industry such as levy of tax on free services. The FAQs issued late Saturday night cover banking, insurance and capital markets. For banks, automated tellers machines or ATMs will not constitute place of business and will not trigger GST registration, the government said. In case services are provided by multiple branches to

Amended child labour act a mirage' Justice Ranjan Gogoi, who is to take over as the next Chief Justice of India, on Friday expressed serious concern over “concern-deficit” reflected in policy and legislation and stressed the need to ensure that children got an environment in which they could realise their full potential. Speaking at a function to release ‘Every Child Matters’, a book authored by Nobel Laureate Kailash Satyarthi, Justice Gogoi said children in India were victims of “tyranny of indifference”. He contradicted Satyarthi who said India’s laws against child labour were the best in the world. “The 2016 Amendment to the Child Labour Act, for example, is a mirage to say the least. The idea of the Amendment was to make the child labour law more stringent so as to realise the mandate of the Right to Education Act, 2009, i.e., a child in the age group of 6 to 14 be enabled to receive elementary education. “Now, to expect this age to be raised to 18 years will be like

SEBI tells mutual funds to enforce Amfi guidelines The Amfi guidelines also ask intermediaries to refrain from recommending inappropriate products The Securities and Exchange Board of India has asked fund houses to follow the 'best practices' guidelines issued by the Association of Mutual Funds in India (Amfi). It has reiterated the need for sticking to guidelines that stipulate a cap on payment of upfront commission to distributors. Issued by Amfi to take effect from April 2015, this had capped upfront commission at 100 basis points (bps). “The regulator has said it is high time the industry players followed the guidelines in both letter and spirit,” said the chief executive of a fund house. To shore up assets in a rising market, funds resorted to high upfront commissions for distributors in the past financial year. The commissions paid for selling open-ended equity schemes went as high as 200 bps. Those for closed-end ones stood at 5 to 6 per cent, said experts. T

 GST collection in May declines to Rs 940 billion, misses Rs 1-trillion mark Of the total collection, Central GST (CGST) stood at Rs 158.66 billion The goods and services tax (GST) yielded Rs 940.16 billion in May, 4.5 per cent higher than the average monthly collection last year, backed by improved compliance due to the introduction of the e-way bill, which tracks the movement of goods. Incremental impact on revenues is expected over the next few months, when the e-way bill system becomes mandatory even for intra-state movement of goods. The mop-up is, however, lower than the Rs 1 trillion collected in April, although the two cannot be compared since the arrears of the earlier months are paid by year-end. The May collection is higher than the average revenue of Rs 898.8 billion collected in the first nine months since the GST roll-out in 2017-18. “This reflects better compliance after the introduction of e-way bills. Some people are comparing the May collection figure with A

SBI raises lending rates by 10 bps, followed by PNB, ICICI Bank, HDFC SBI's one-year MCLR, which most loans are based on, is now 8.25% State Bank of India (SBI) raised its benchmark lending rates by 10 basis points (bps), followed by Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank and Housing Development Finance Corp (HDFC). Bankers said it was to pass on the rising cost of funds to customers and an effort to protect the net interest margin. As the rise was small, it would not affect demand for credit. While SBI, ICICI, Kotak Mahindra and PNB raised their marginal cost of funds-based lending rate (MCLR) by 10 basis points, HDFC raised its retail prime lending rate likewise. While the others kept the base rate unchanged, PNB raised its by 10 basis points. SBI’s one-year MCLR, which most loans are based on, is now 8.25 per cent. Those of ICICI and PNB are 8.4 per cent and Kotak Mahindra's is 8.9 per cent Interest rates on all rupee loans sanctioned and credi