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NBFCs facing liquidity crunch call for ease in securitisation norms

The NBFC sector wants securitisation guidelines to be amended to do away with the prescribed minimum holding period and minimum retention requirement. NBFCs are demanding relaxation of securitisation norms to ease funding woes and to defer the rules on working capital loans which they say are compounding their problems inflicted by the credit squeeze. The NBFC sector wants securitisation guidelines to be amended to do away with the prescribed minimum holding period and minimum retention requirement. The sector wants minimum holding period for loans with maturity of 2-5 years be reduced from 6 months to 3 months. On December 5, RBI issued a circular asking for compulsory bifurcation of the working capital for borrowers enjoying an aggregate fund-based working capital finance of Rs 150 crore and above from the banks. In a letter to RBI governor, the NBFC sector has asked for a year delay in implementation of the new working capital norms keeping in mind the criticality of the sector for …

Retail inflation rises to 6-month high, poses uncertainty for rate cut

The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items The beginning of the financial year 2019-20 saw a bit of rising inflationary pressures, but the rate of price rise was still below the average of the Reserve Bank of India’s (RBI’s) mandate of 2-6 per cent. Experts are divided whether the monetary policy committee (MPC) of the RBI will cut the policy rate in June. The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items. However, food inflation was still 1.1 per cent in the month against 0.3 per cent in the previous month. It was in March that food inflation broke the five-month trend of deflation. This may augur well for farmers who faced rural distress. Inflation in urban areas rose to 4.64 per cent in April from 3.47 per cent in the previous month, which may not go down well with the middle class, if the trend persists. Much of the inflation in food items is generally at…

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and…

May Due Dates of Income Tax , Goods and Service Tax & Providend Fund

Event DateActApplicable FormObligation07/05/2019Income TaxChallan No. ITNS-281Payment of TDS Deducted in April11/05/2019Goods and Service TaxGSTR-1Outward supplies of taxable goods and/or services for the Month of April 2019 turnover exceeding 1.5 Cr.) Monthly Return.13/05/2019Goods and Service TaxGSTR-6Return by Input Service Distributor15/05/2019Providend FundElectronic Challan cum Return (ECR)E-Payment of PF for Apr15/05/2019ESIESI ChallanPayment of ESI of Apr15/05/2019Income TaxReturn No. 27EQTCS Return of all collectors for March Quarter15/05/2019Income TaxForm No.27C (TCS)Exemption from TCS15/05/2019Income TaxForm No. 16 BDue date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of March, 201920/05/2019Goods and Service TaxGSTR-3BGSTR return for the month of April 201930/05/2019Income TaxForm - 49CStatement by Non-resident having Liaison Office in India (u/s 285)30/05/2019Income TaxForm 26QBDeposit of TDS/TCS of previous month on purchase of prope…

I-T Dept, GSTN to Ink MoU for Sharing Info

Data confidentiality part of pact The Income Tax Department will now share information — such as reported turnover and gross income declared — with the Goods and Services Tax Network (GSTN) to check tax evasion. The I-T Department and GSTN will enter an agreement on the modalities of information sharing. The Central Board of Direct Taxes (CBDT) has said the agreement will include provisions for confidentiality, a mechanism for safe preservation of data and timelines for furnishing information. CBDT has left the onus of data-sharing on the principal director general of income tax (systems) or director general of income tax (systems). “Spontaneous exchange of data (is in the works), the modalities of which shall be decided by the concerned specified authorities,” an order issued by the CBDT said. Details captured in returns, status of filing income tax returns (ITR) and turnover ratio will form part of the information package to be shared with GSTN. The data can be matched with the busine…

EPFO to challenge order on higher pension outgo

Contributions to EPS limited and is not adequate to pay a higher pension, says EPFO The Employees Provident Fund Organisation (EPFO) plans to move the Supreme Court to review a high court order that allowed workers to draw pension on a wage above the current salary ceiling of Rs.15,000 per month. The current monthly contribution toward employees pension scheme (EPS) is limited and is not adequate to pay a higher pension, according to the retirement fund body. Any binding order on it will make the organisation financially unviable, two government officials said requesting anonymity. “We are readying for a review petition. Pension contribution by EPFO subscribers is based on a Rs.15,000 salary ceiling. If pension outgo is calculated on the total salary above the Rs.15,000 threshold, it will be tough to maintain. It will be a negative cash flow and we may fall short of several thousand crores every year,” said one of the two officials mentioned above. At present, every month an organized se…

Cos Face Queries Over Input Tax Credit Claims

India Inc could face a tax landmine with authorities beginning to question input tax credit claimed by companies in lieu of Goods and Services Tax paid by their vendors. The authorities have already started sending notices to businesses, confirming fears that scrutiny will increase in the new financial year as the government looks to plug leakages. Experts said notices have been sent in Gujarat, Telangana, Andhra Pradesh, Haryana and some other states. The issue has its origin in the provisions of the GST law that warrant a reversal of input tax credit claimed by a business if its vendor has not paid the tax for which credit is being claimed. Currently, there is no mechanism to ascertain if vendors have paid GST. The GST Network Portal allows viewing of the return-filing status of a registered person, but payment of tax cannot be determined. At best, buyers can only verify whether vendors have included the invoice in their GST filings. Effectively, while a business may have paid the tax…