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Individual bankruptcy rules to take more time: All you need to know The Insolvency and Bankruptcy Code is in force since 2016 for corporate entities Rules for individual bankruptcy might take still longer to come.  A key official involved in framing it, says: “While insolvency provisions for companies would not create a direct social impact, individual bankruptcy provisions will directly have social fallouts.”  The Insolvency and Bankruptcy Code (IBC) is in force since 2016 for corporate entities. The government has also issued a draft set of rules for cross-border insolvency. Norms for corporate guarantors, proprietorship and partnership firms are likely soon. Officials say bankruptcy is still seen in India in a derogatory sense and could affect families. Hence the caution in finalising rules for individual insolvency. Once all the rules are notified, the existing Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920, would be replaced. Petitions were

BSE SME aims to list 300 firms by Dec The BSE SME Platform hopes to list 300 companies on its platform by December this year, a senior exchange official said. “As on today 254 SMEs are listed on BSE SME platform having a market capitalisation of Rs 21,000 crore. Nearly 46 companies have filed for listing, of which 20 SMEs have received approvals and we hope that 300 SMEs will get listed on our platform by December 2018,” BSE SME head Ajay Thakur told PTI on the sidelines of panel discussion on ‘International MSME day’ on Wednesday. The Mint, 28th June 2018, New Delhi

'PoeM' firms to be taxed at 40% Foriegn companies whose place of effective control are in India will have to shell out 40 per cent corpopration tax against 30 per cent levied on domestic firms. The Central Board of Direct Taxes has come out with clarifications for place of effective management (PoeM) through a notification for these Companies. Through PoeM, the goverment taxes companies located outside the country but controlled from India. It applies to companies having annual turnover of more than Rs. 500 million. The Business Standard, 28th June 2018, New Delhi

Sebi files appeal against Rs. 210 cr tax demand The Securities and Exchange Board of India (Sebi) has filed an appeal in the goods and services tax (GST) tribunal against a tax demand of  Rs .  210 crore for  providing various services in the 2013-16 period, two people familiar with the development said.  This follows the failure of talks with the finance ministry officials to waive the tax demand, and greater conviction within the regulator that it has a  strong case under the Finance Act.  The case pertains to tax liability on services provided by Sebi to entities such as stock exchanges, their members, brokers and investors for processing  initial public offerings, debt issues, mutual funds and new fund offers, besides providing informal guidance to firms. In 2013, the tax department had said these services were not in a ‘negative list’ of nontaxable services and were hence taxable. In February 2013, services  rendered by Sebi were not put in negative list.  The Union Budget 2

GST may have nodal appellate authority The revenue department is considering setting up of a centralised appellate authority to deal with the problem created by contradictory verdicts passed by  the Authority of Advance Rulings (AAR) in different states, a top official said on Tuesday. Under the Goods and Services Tax (GST) law, each state is  required to set up an Authority for Advance Rulings (AAR) comprising one member from the central tax department, and the other from the respective state.   In  view of the confusion being created by contradictory rulings given by different authorities on the same or similar issues, the Finance Ministry is planning  to set up a centralised appellate authority which could reconcile the contradictory verdicts of different AARs.   T he Mint, 27th June 2018, New Delhi

Bad loans at banks will rise further this fiscal: RBI report Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31, placing additional strain on the  already stressed financial system, a central bank study warned.  Gross non-performing asset ratio of banks will rise to 12.2% by March 2019 from 11.6% at the end of the previous fiscal if economic conditions remain the  same, said the Reserve Bank of India financial stability report released on Tuesday. RBI’s latest report said that weak profitability of banks is an additional concern as it prevents lenders from setting aside adequate money to cover  potential losses on loans and makes them vulnerable to adverse shocks.  In a scenario of severe stress, this ratio may rise to as high as 13.3% by March, the report said. For public sector banks, this ratio may jump to 17.3% by 

E-TAILERS GET THREE MONTHS’ BREATHER The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected  at source (TCS) for another three months till September end.  The GST Council in its meeting on Mrach 10 suspended the provision for decduction of TDS and collectionn of TCS, as well as implementation of the reverse  charge mechanism (RCM) till June 30. With this, e-commerce companies can heave a sigh of relief since they would not be required to collect 1 percent TCS while making payments to suplier under  GST. According to Central GST (CGST) Act, notified entities are required to collect TDS at 1 per cent on payments to goods or services supliers in excess of  Rs. 2.5lakh.  The resverse charge mechansim, under which registered dealers need to pay taxes in case the goods are procured from unregistered business alo stands  deferred till September end. The Business Standard, 27th June 2018