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  Govt planning to revamp GST AAR mechanism The government is planning to revamp the advance ruling mechanism under GST by setting up either a centralised authority or four regional authorities, in the wake of  the contradictory orders passed by Authority for Advance Rulings (AARs) in different states. Under the GST law, each state is required to set up AAR comprising one  member from the central tax department, and the other from the respective state. The Business Standard, New Delhi, 06th June 2018

Govt unable to crack GST e-wallet code as export refunds remain unpaid Traders had supported the e-wallet mechanism to battle the crippling liquidity crunch that had set in after GST was imposed Even as exporters and the government continue to argue over the amount of unpaid refunds under the goods and services tax (GST) regime, the much-awaited e-wallet mechanism remains a non-starter.Traders had supported the e-wallet mechanism to battle the liquidity crunch that had set in after the GST was introduced. Subsequently, a decision to adopt it was taken at the 22nd GST Council meet on October 6 last year, with an initial deadline for April 1. However, after the deadline was missed, the government extended the roll-out by six months. Earlier this year, Business Standard was the first to point out that little progress would derail the April 1 deadline. More than two months later, despite multiple meetings between top officials of the Ministries of Commerce and Finance, the progress wa

GSTR1, e-way bills data to be matched to curb tax evasion   Move will also ensure supply of goods is done properly, says GSTN CEO To curb tax evasion, authorities will start matching details given in the Goods and Services Tax Return (GSTR) Form Number 1 with those given in the e-way bill. The matching will begin with returns to be filed for April as it is the first month when the tax authorities will have both GSTR1 and e-way bill data. In the meantime, tax authorities have issued notices to over 8,000 assessees for differences in sales figures of more than ?50 lakh in their GSTR1 and GSTR3B forms. Notices have been served on the basis of returns filed during August and December, 2017. Based on their response, a decision will be taken on how much tax and penalty they need to pay. “Matching process will ensure supply of goods have been done properly,” Prakash Kumar, CEO of GSTN, the IT backbone of unified indirect tax system, told BusinessLine. The logic behind matching i

NBFCs to Meet RBI on Ind AS Implementation New norms to take effect for NBFCs from this fiscal itself The non-banking finance companies are planning to meet the Reserve Bank of India on the issue of implementation of Indian Accounting Standards, popularly known as Ind AS.RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018. NBFCs will have to compute their first quarter result this month and it is expected to have an impact on capital due to enhanced provisioning. Ind AS is a global accounting practice that NBFCs are mandated to adopt, which may lead to initial credit losses. The practice is on a par with the International Financial Reporting Standard (IFRS) 9. The provisioning requirements under IFRS 9 would be higher as NBFCs will have to provide for on expected losses rather than incurred losses. According to the initial plan, ministry of corporate affairs was to implement Ind AS for banks, insurance companies

In a First, Firm Liquidated as a Going Concern NEW CHAPTER Move helps lenders recover more money against unpaid loans F or the first time under the Insolvency and Bankruptcy Code, Kolkata-based Keshav Sponge and Energy has been liquidated as a ‘going concern’, marking a new chapter in the evolving Insolvency and Bankruptcy Code that provides the framework to extricate billions of dollars stuck in bad loans. This move has twin-benefits: It helps lenders recover more money against the unpaid loans, and creates future job opportunities for those employees who used to work for the company. ‘A going concern’ or ‘a slump sale of the assets’ enables the sale of business of the company including all its assets and properties. The business of the company is continued during the liquidation process by the liquidator. “The process of selling all fixed assets is over. It will take some more time to complete the entire process,” said Anil Agarwal, the official liquidator, who works for AAA

Centralised AAR for GST on Cards for Uniform Rulings Bid to prevent divergent rulings on identical issues that fuel confusion India is looking at creating a centralised Authority for Advance Rulings (AAR) for the goods and services tax (GST) after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax. A recent case in point being the divergent rulings by Karnataka and Maharashtra AARs on the issue of solar projects. “We are looking at an issuebased central authority with officials from states and the Centre,” a top government official told ET. “If more than one appeal is filed on the same issue in different jurisdictions it can be taken up by this body.”The AAR is a quasi-judicial body that allows assessees to get guidance on their potential tax liabilities relating to any transaction beforehand. The rulings by the AAR are case-specific, but they have a persuasive impact on tax assessment in cases of other firms under similar circumsta

Delisting norms: SEBI provides relaxations for insolvent firms More than 750 entities, including many listed firms, are facing insolvency proceedings Sebi has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges. The move is expected to provide succour for various listed companies that have been referred for resolution under the Insolvency and Bankruptcy Code (IBC).More than 750 entities, including many listed firms, are facing insolvency proceedings. In a notification, the markets regulator said norms pertaining to delisting of equity shares would not be applicable to any entity that is getting delisted pursuant to a resolution plan approved under the IBC.The exemption would be subject to conditions that the resolution plan "lays down any specific procedure to complete the delisting of such shares" or that the plans