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Indian businesses that paid most of their goods and services tax (GST) liability using input tax credit or reported a significant variation in turnover are being queried by taxmen, a move that has irked industry and prompted it to petition the authorities against such tactics.  Tax officials have sent emails seeking information from businesses that paid over 95% of their dues using input tax credit to ascertain the key factors responsible for subdued GST collections. These queries relate to a large variation in turnover reported, negative growth in central GST liability and a wide divergence in input tax credit between GSTR 2A and GSTR3B. In some centres, businesses have been even asked to furnish tax payment challans. GSTR 2A and GSTR3B are return forms. The first includes all information related to purchases, the second is a simplified return form aimed at making life easier for filers. GST was rolled out on July 1, 2017. Tax experts said revenue pressure appears to be driving

Large overseas fund managers such as Templeton, Fidelity and BlackRock have opposed the Securities and Exchange Board of India (Sebi) proposal to create a central database containing the personal information of all beneficial owners of offshore funds, said two people with direct knowledge of the matter. Such a database held by an external agency in India would violate the law in their home countries, they argue. The issue pertains to disclosure of know-your-customer (KYC) information of beneficial owners (BOs). Sebi had issued a circular on April 10 last year asking foreign portfolio investors (FPIs) to identify the BO of a fund based on not just ownership but control as well. In cases where there is no significant BO based on economic ownership, fund managers and other senior management officials of the funds were to be considered BOs. All publicly pooled funds such as foreign mutual funds have no significant BO since they raise money from thousands of small unit holders. In such

Subscribers of retirement fund body EPFO would not require to file employee provident fund (EPF) transfer claims on changing jobs from the next fiscal as the process would be made automated, according to a labour ministry official.  At present, the subscribers of the Employees Provident Fund Organisation (EPFO) are required to file transfer of EPF claims on changing jobs despite having universal account number (UAN). The EPFO gets about eight lakh EPF transfer claims every year. "The EPFO is testing the automation of EPF transfer on changing jobs on pilot basis. The facility for all subscribers is expected to be launched any time next year," a senior labour ministry official said.  The official said, "The EPFO had engaged the C-DAC to study its operating systems to achieve the goal of becoming paperless organisation. At present, 80 per cent of the work is being done online. The automated transfer of EPF on changing jobs is one of the tools to be used to achieve that

The Reserve Bank of India (RBI) on Friday withdrew the 20 per cent limit on investments by FPIs in corporate bonds of an entity with a view to encourage more foreign investments.  As part of the review of the FPI investment in corporate debt undertaken in April 2018, it was stipulated that no FPI should have an exposure of more than 20 per cent of its corporate bond portfolio to a single corporate (including exposure to entities related to the corporate).  While the provision was aimed at incentivising FPIs to maintain a portfolio of assets, market feedback indicates that foreign portfolio investors (FPIs) have been constrained by this stipulation, the RBI said.  "...in order to encourage a wider spectrum of investors to access the Indian corporate debt market, it has been decided to withdraw this provision with immediate effect," the central bank said.  The RBI said the directions in this regard have been issued the Foreign Exchange Management Act. The Business Standard,

The country's exports grew 3.74 per cent to USD 26.36 billion in January on account of growth in sectors such as gems & jewellery, pharmaceuticals and chemicals, according to data from the commerce ministry.  Imports almost remained flat at USD 41 billion during the last month, narrowing the trade deficit to USD 14.73 billion.  The trade deficit stood at USD 15.67 billion in January 2018. Gold imports also grew 38.16 per cent to USD 2.31 billion in January this year as against USD 1.67 billion in the corresponding month of 2018.  During the April-January period of the current financial year, exports grew 9.52 per cent to USD 271.8 billion. Imports rose by 11.27 per cent to USD 427.73 billion.  The trade deficit widened to USD 155.93 billion during the 10 months of the current fiscal from USD 136.25 billion in April-January 2017-18. The Business Standard, 16th February 2019

In the iconic Bollywood movie, Sholay, a number of policemen have been featured. There is the bumbling jailor who relies on weak market intelligence and ends up burning his fingers. Then, there is the stereotypical Bollywood cop who arrives after all the action is over in the last scene.  In the recent furore over fancy structures used by mutual funds for promoter financing, market regulator Securities and Exchange Board of India (Sebi), unfortunately, displays similar weaknesses. To start with, its market intelligence comes across as extraordinarily poor, if not absent. Reports say the regulator is now concerned about undue risks taken by mutual funds, although there was no inkling of any concerns of the kind anytime in the past. Likewise, while market participants are now calling for better disclosures of such financing structures by listed companies, Sebi is yet to make a statement on this. J.N. Gupta, managing director, Stakeholders Empowerment Services (SES), says: “Sebi will

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in the previous years, said sources. The RBI had retained  Rs  13,190 crore towards risks and reserves during 2016-17. It increased to  Rs  14,190 crore in 2017-18. Together, retained amount is  Rs  27,380 crore.  The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said. Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects  Rs  28,000 crore from the RBI as interim dividend during the current fiscal. The RBI, which follows July-June financial year, has already transferred  Rs  40,000 crore in the current fiscal.  If the central board of the RBI approves transfer of  Rs  28,000 crore requested by the government as interim dividen