Coaching classes do not get any exemption from Goods and Service Tax (GST), this position was reiterated by a ruling given by the Andhra Pradesh bench of the Authority for Advance Rulings (AAR). A similar stand has been taken earlier, including by the Maharashtra bench of the AAR. Entry No 66 of the relevant notifications provides exemption to educational services, if these are provided by an educational institution, subject to certain conditions.
Central Government vide Notification No. 60/2020- Central Tax dated 30thJuly, 2020 has substituted the “FORM GST INV-01” with new “FORM GST INV – 1” & vide Notification No. 61/2020- Central Tax dated 30th July, 2020 and made it applicable for registered persons having aggregate turnover above 500 crore rupees (with enhanced aggregate turnover) in a financial year w.e.f 1st Oct, 2020. Further SEZ units have been excluded from the requirement of issuance of E-invoice. Earlier it was mad applicable to the registered persons whose aggregate turnover in a financial year exceeds 100 crore rupees.
Income Tax department is ready to crack the whip on evaders, following the gradual lifting of the lockdown. It will act on information received from whistle-blowers and informers for the first half of 2020. The move will help the department shore up revenue, clear backlogs, and resume probe in pending matters. CBDT, in a recent communication, directed officials to start scrutinising information from tax evasion petitions (TEPs), and take them up on a priority basis.
Ministry of Finance on July 15, 2020 has issued a clarification on applicability of GST rate on alcohol based hand sanitizers at the rate of 18%. Sanitizers are disinfectants like soaps, anti-bacterial liquids, dettol etc. which all attract duty standard rate of 18% under the GST regime.
The Ministry of Corporate Affairs after a due examination has considered the extension of the last date of filing of Form NFRA-2, which is required to be filed under Rule 5 of the National Financial Reporting Authority Rules, 2018.
Income Tax Dept's argument that the waiver of a loan constitutes an operational subsidy which is taxable is not correct. Therefore, even if a “loan” is written off or waived, which can be for various reasons, it cannot partake the character of a “subsidy”. The waiver of a loan cannot be brought to tax u/s 28(iv) of the Act (Favour of Assessee) Essar Shipping Limited vs. CIT (Bombay High Court).
Delhi high court has issued notices to the Union government and the GST Council on a petition filed against retrospective amendment in the GST law. The amendment relates to limiting the transitional input tax credit to 90 days form the roll out of the goods and services tax (GST) from July one, 2017. The petition has challenged the constitution validity of this amendment,
CBDT has issued a notification amending rules to allow taxpayers who are opting for the new tax regime to claim exemption for allowance to meet cost of travel and daily expenses on transfer, tour allowance for travel for official purposes to meet the travel and daily expenses, and conveyance allowance for meeting conveyance expenditure incurred in course of performing official duties. Besides, transport allowance for handicapped employee to commute to and from office is also tax exempt.
Central Board of Indirect Taxes and Customs issued an Order No. 01/2020-Central Tax dated June 25, 2020, for providing opportunity for revocation of cancellation of GST Registration. For the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration and where cancellation order was passed up to June 12, 2020, the later of the following dates shall be considered:-a) Date of service of the said cancellation order; or b) August 31, 2020.
A domestic company buying goods from abroad and selling to another country will have to pay GST on such transactions even if the said products are not entering the Indian territory, the Authority for advance ruling (AAR) has said. On an application filed by Sterlite Technologies, the Gujarat-Bench of AAR has ruled that GST is payable on goods sold to customer located outside India.
Start-ups can now issue equity shares to their employees for up to 10 years from the date of their incorporation or registration. The Ministry of Corporate Affairs (MCA) has amended the Companies (Share Capital and Debentures) Rules, 2014, to allow start-ups to issue sweat equity shares not exceeding 50 per cent of its paid-up capital.
Under Section 10 (10D) of the Income Tax Act, the sum assured and any bonus paid on maturity or surrender of the life insurance plan is tax free. Maturity proceeds continue to be exempt under Section 10(10D) even in the new regime. The maturity amount including interest received on the Sukanya Samriddhi Yojana will not attract any tax.
Income tax department has released the ITR-1 utility (e-form) on its e-filing website. The ITR-1 form is available in Excel and Java formats. One point to note about the latest ITR-1 form is that it allows individuals to claim the deductions on tax-saving investments made between April 1, 2020 and June 30, 2020 under the DI Schedule.
CBDT informed that it has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on 14th April 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 2019-2020 till 31st March 2020 totalling Rs 1.84 lakh crore. The CBDT further informed that about 1.75 lakh more refunds are in the process of issuance which would get credited directly to the taxpayer bank account in 5-7 business days from issuance.
Sebi is unlikely to agree to India Inc’s demand of waiving financial results disclosures for the first quarter of this financial year. Industry bodies Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci) had requested the regulator to relax the norms due to the disruption caused by Covid-19.
ICAI Volume-I of revised Code of Ethics (revised counterpart of Part-A of Code of Ethics, 2009) will be applicable from 1.7.2020. One of the provisions of the revised Code pertaining to self-interest threat resulting from receipt of more than 15% Fees from single client has been much deliberated recently. In this regard, a clarification was also issued on 11.5.2020, which is appearing at https://www.icai.org/new_post.html?post_id=16505&c_id=219.
CESTAT, Bangalore branch gave an important judgment that Refund of CENVAT is allowed wherein the GST credit has been reversed under GST return regarding refund claim of unutilized cenvat credit of service tax in case of JMT Consultant Detailing (P.) Ltd. v. Commissioner of Central Tax, Bengaluru 113 taxmann.com 220.
CBIC has invited views of the stakeholders on the concept paper of Faceless e-Assessment for imported goods. The concept has been introduced to bring uniformity in assessments across the country and is introduced as a part of ‘Turant’ Customs reform. After the successful run of the pilot project, countrywide implementation of the project is in the way.
GST: There cannot be two parallel investigations under the State Act as well as the Central Act. As per clause (b) of sub-section (2) of section 6 of the Goods and Services Tax Act, Case Name: Sureshbhai Gadhecha Vs State of Gujarat (Gujarat High Court).
CBDT vide Circular No. 6/2020 dated 19.02.2020 condones the delay in filing the Return of Income by Trust for the Assessment Year 2016-17 onwards under Section 119(2)(b) of Income Tax Act 1961 where form 9A & From 10 has been filed and, the Return of Income has been filed on or before 31st March of respective Assessment Year 2016-17, 2017-18 & 2018-19.
PAN-Aadhaar Inter-Linking: As per New Rule 114AAA of the Income Tax Rules, if a PAN is not linked with Aadhaar No at the Website of the Income Tax Dept ; then such PAN shall become inoperative from April-01-2020. The PAN shall again become active upon the intimation of Aadhaar Number to the ITD.
New Income Tax Forms- (a) Form No. 10-IC and (b) Form No.10-ID Notified: In order to choose the Option of Lower 22% Corporate Tax Rate for the AY 2020-2021, a Domestic Company shall be required to file Form No.10-IC as per the provisions of Section 115BAA; and; In order to choose the Option of 15% Corporate Tax Rate, a New Domestic Manufacturing Company shall be required to file its Application on Form No.10-ID as per the provisions of Sec.115BAB.
GSTN has set up a consultation committee to provide feedback on new functionalities in the GST system. Suggestions will be related to policy and technology. The committee, which will include representatives from selected states recommended by the GST Council, member secretary of GSTN, representatives from the CBIC and independent experts, will provide suggestions related to policy and technology.
RBI allowed a one-year extension of the date of commencement of commercial operations (DCCO) for project loans, which are delayed for reasons beyond the promoters’ control. The DCCO is significant because repayment schedules are linked to it. RBI also said the asset classification of project loans need not be downgraded by lenders during this period.
Budget Tax Audit Requirement -U/S 44AB of the Income Tax Act, every person carrying on a business or profession is required to get its accounts audited if the total sales, turnover or gross receipts in business exceed INR 1 Cr or, in case of a profession, exceed INR 50 Lac in any previous year. To reduce the compliance burden on small and medium enterprises, it is proposed that the threshold limit for persons carrying on business shall be increased from Rs 1 Cr to 5 Cr provided the aggregate of; all receipts including sales, turnover and gross receipts in cash does not exceed 5% of total receipts; and all payments including expenditure in cash does not exceed 5% of total payments.
SEBI has further tightened norms for commodity futures trading by categorising commodities based on its volatility and imposing identical margins across exchanges. Due to wide variation in liquidity and volatility among different commodity derivatives, SEBI has categorised commodities as per their realised volatility and has prescribed floor values of initial margin and IMPOR (initial margin period of risk) depending upon their categories.
Employer could soon start deducting 20 per cent of salary in case employee fail to provide PAN and Aadhaar details to them. This latest rule of the CBDT, which came into effect on January 16, will be applicable for all those who earn above Rs 2.5 lakh per annum.
Reserve Bank of India on Wednesday defended in the Supreme Court its 2018 circular directing banks to desist from dealing in any transactions involving crypto currencies, insisting that it had always been consistent in its opposition to allowing any other payments systems and undermining the integrity of the banking system.
Income tax commissioners in Mumbai decided to allow “deserving” assessees pay in instalments the amount they are required to fork out after challenging a tax demand order. After receiving a demand order from the assessing officer of the Income Tax department, a tax payer has to pay 20% of the demand within a month once the order is challenged before the CIT (Appeals). This amount can now be paid in multiple instalments till end March.
Ahmadabad bench of National Company Law Tribunal has admitted a petition filed by IDBI bank to initiate corporate insolvency resolution process (CIRP) against Anil Ambani's Reliance Naval and Engineering Limited (RNEL) for failing to repay the debt.
Bombay High Court has appointed a committee for speedy disposal of assets of Housing Development and Infrastructure Ltd.—a borrower to crisis-hit Punjab and Maharashtra Cooperative Bank. The three-member committee will determine how proceeds from the sale of the properties will be used.
Income tax department now wants to know not only about your earnings and investments but also about your expenses in new income tax return (ITR) forms. Although the finance ministry has relaxed eligibility conditions for filing ITR-1 and ITR-4 forms, yet no changes have been made in the new ITR forms which were notified last week.
SEBI is considering relaxing the March 31 deadline for listed companies to separate the positions of chairman and managing director (CMD). While the market regulator gave ample time to India Inc to adhere to the rule, not many corporate houses have complied with it.
MCA has extended the time offered to companies to provide information about persons who control 10% or more stakes in the entity by 3 months. The process of informing the MCA about significant beneficial owners (SBOs) is part of the exercise to bring in more transparency about persons with significant control over a firm.
Revenue Department has brought to the notice of the Directorate General of Foreign Trade (DGCF) instances of ‘mis-availment’ of Integrated Goods & Services Tax (IGST) refunds, based on fake invoices, by some exporters holding ‘star’ status. It has also advised the DGFT, under the Commerce Ministry, to make the exporters’ accreditation system more robust.
Non-filing of GST returns may lead to attachment of bank accounts and even cancellation of registrations. This is part of the Standard Operating Procedure (SOP) issued by the Finance Ministry to be followed in case of non-filing of returns. The GST law makes it mandatory for a registered person to file returns either monthly (normal supplier) or on a quarterly basis (supplier opting for composition scheme).
Sebi has recently alerted custodians that it has come across instances where foreign portfolio investors (FPI) are believed to have indulged in shortselling stocks. In an email to foreign and local custodians, which function as a vital link between offshore funds and the Indian stock market, Sebi has told them to adhere to the regulatory guidelines which bar FPIs from such shortselling in the Indian market.
ICAI has clarified that statutory auditors of listed entities and their material subsidiaries are required to comply with SEBI Circular dated 18 October 2019 regarding “Resignation of statutory auditors from listed entities and their material subsidiaries” which prescribes various conditions to be satisfied by listed entities, their material subsidiaries and their statutory auditors. The announcement will come into force from immediate effect.
MahaRera vide its Circular No. 26/2019 dated 1st November, 2019 has mandated the quoting of Membership Number of Self-Regulatory Organization by the Promoter while registering the project on or after 1st December, 2019. Registration of Project shall not be granted unless the mandatory requirement of quoting membership number of SRO is disclosed by the Promoter. Till date Two SRO (Self-Regulatory Organization) namely NAREDCO and CREDIA MCHI has been allotted SRO Registration by MahaRera.
Government is going to take several steps to stop GST theft and has decided to take a decisive step. The government can cancel more than 11 lakh GST registrations which have not filled GST Return 6 times or more than 6 times. In fact, the GST thieves have chosen the government for @ 10,000 crores.
Finance Ministry said that computer software, mining and three other business segments will not be eligible for the 15 per cent corporate tax rate. Now, it is clear that the new 15 per cent corporate regime is only for the new manufacturing businesses.
Income Tax Section 56(2)(vii) will have application to the ‘property’ which is in the nature of a capital asset of the recipient and therefore would not apply to stock-in-trade, raw material and consumable stores of any business of such recipient. Case Name : Shri Satendra Koushik Vs I.T.O. (ITAT Jaipur).
Selling land does not attract the Goods and Services Tax, but if some one develops and sells a parcel, then it comes under the GST ambit, according to the Authority of Advance Ruling (AAR) in Karnataka. Bengaluru-based Maarq Spaces Private Ltd.
SEBI revises Timelines of Activities to be adhered in T+6 listing by streamlining the Process of Public Issue of Equity Shares and convertibles. SEBI has granted extension of timeline for implementation of Phase II of Unified Payments Interface with Application Supported by Blocked Amount till March 31, 2020.
Punjab & Haryana HC directed the respondents to permit the petitioners to file or revise where already filed incorrect TRAN-1 either electronically or manually statutory Form(s) TRAN-1 on or before 30th November 2019. The Respondents are at liberty to verify genuineness of claim of Petitioners but nobody shall be denied carrying forward legitimate claim of CENVAT / ITC on the ground of non-filing of TRAN-I by December 27, 2017.
Mandatory requirement for generating a computer generated Document Identification Number (DIN) by the GST Department on the body of any communication by any officer under the Board to a taxpayer or any other person on or after 8th day of November 2019 in the case of Search, authorization, summons, arrest memo, inspection notice and letters issued in the course of any enquiry.
Punjab and Haryana High Court has permitted filing or revising Form TRAN I for transitional credit by November 30, 2019, irrespective of whether the form was filed, incorrectly filed or not filed at all. “Article 300A provides that no person shall be deprived of property saved by authority of law. While right to the property is no longer a fundamental right but it is still a Constitutional right,”
Indirect tax department (CBIC) will quote a computer-generated document identification number (DIN) for its communications with taxpayers starting Friday. The system, which is expected to bring transparency and shield taxpayers from harassment, has already been implemented by the direct tax department.
CBIC has directed to appoint a nodal officer in each CGST and Customs Commissionerate to sort out taxpayer grievances. Industry and tax experts have hailed the decision saying that the move would ensure an escalation point for taxpayers in case their grievances are not addressed at designated level.
PMO and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) to be scrapped and a review of existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).
MCA extends the last date for filing of CRA-4 (cost audit report) for all eligible companies for the FY 2018-19, without payment of additional fee till 31st December, 2019 vide General Circular No. 12/2019 Dated:- 24th October, 2019. General Circular No. 12/2019.
CBDT has launched a computer-generated documentation identification number (DIN) system which will be mandatory for every type of communication with the income tax department, be it a notice, a letter, an order and summon, or any other correspondence.
CBDT has inserted a new sub rule 37BA (3A) to provide that the credit for the tax deducted at source from cash withdrawal under section 194N shall be allowed to the person from whose account it has been deducted. Further, such credit shall be allowed in the year of deduction.
Govt. notified a scheme to revamp the assessment of income-tax (I-T) returns by making it completely faceless. The e-assessment Scheme 2019, however, would provide an opportunity to the assessee to seek a personal hearing but it would have to be conducted exclusively through video conferencing.
CBDT notified that it is mandatory to quote your Aadhaar number while filing ITR unless specifically exempted. The notification further specifies that tax return cannot be filed either electronically or manually without quoting Aadhaar number. To quote your Aadhaar number in your ITR, additional spaces have been provided.
CBDT given relief to Non- resident individuals and foreign companies have now been given a compliance relief as part of the government’s efforts to attract more investment fund activity in the International Financial Services Centre (IFSC) located in India.
Madras High Court upheld the tax demand of over Rs. 2,500 crore as dividend distribution tax (DDT) raised by the income-tax department on Cognizant Technology Solutions (CTS) on account of share buyback undertaken by it. The case stems from the demand for payment of tax at the rate of 15% on the remittance of Rs 19,415 crore to its non-resident shareholders in the US and Mauritius, against buyback of equity shares.
SEBI has tightened the rules for usage of client funds by brokerages. As per the new rules, brokers have been asked to transfer the securities to their client accounts within one day of receiving payment. In case if the client defaults on the payment, brokers have been asked to hold the securities up to five days post which they can liquidate the securities in the market and recover dues
CBDT has issued directive dated 14th June 2019 wherein it has specified the guidelines for compounding of offences u/s 279(2) of the Income Tax Act. The Guidelines supercede the earlier guidelines on the subject. The Guidelines shall come into effect from 17.06.2019 and shall be applicable to all applications for compounding received on or after the aforesaid date. Applications received before 17.06.2019 shall continue to be dealt with in accordance with the Guidelines dated 23.12.2014.
To make the Annual Return filing process easy on GST portal, a facility has been provided for downloading the Form GSTR-9/9A system computed summary & filed Form GSTR 4/ GSTR 1/ GSTR 3B summary in PDF format by clicking download button. This will help you check it with your actual data for accuracy and in case of difference; you may edit such data before filing the Annual Return. You will not be able to edit tax paid data.
In the absence of clarification from the Government, and to avoid any omission due to aggressive interpretation, it is prudent to understand that the turnover limits prescribed for audit i.e., Rs. 2 crores one should consider aggregate turnover for the whole of the financial year which would also include the first quarter of the financial year 2017-18.
Income Tax department extended the deadline for employers to issue Form 16 TDS certificate for financial year 2018-19 to its employees by 25 days till July 10. Also the due date of filing of TDS statement by employers to Income Tax department in Form 24Q for financial year 2018-19 has been extended by a month till June 30, 2019.
GSTN allowed small businesses, with a turnover of 1.5 crore or lower, to download a software that would help create invoices and account statements, manage inventory and prepare GST returns. Six firms are listed on the GSTN website which will offer software free of cost to the targeted 8 million small businesses, or nearly a seventh of India's estimated 55 million SME base.
MCA clarifies that last date for filing ACTIVE (INC-22A) expires on 15th June 2019 and no further extension would be provided. In case ACTIVE is not filed on or before the said date, the compliance status for such companies shall be marked as ‘ACTIVE Non-compliant’ and Directors of such ‘ACTIVE non-compliant’ companies shall be marked as ‘Director of ACTIVE non-compliant company’.
Securities and Appellate Tribunal (SAT) Said on SEBI for branding companies as ‘shell’ without any investigation and putting trading curbs. Latest it set aside SEBI and BSE’s directions against SVC Industries, which was branded as ‘shell’ merely based on the fact that the company had not done any production since 2000.
RBI formed a committee to review the existing state of mortgage securitisation and suggest ways to develop the market. The committee has been mandated to examine the existing structure for mortgage-backed securitisation transactions in India, including legal, tax, valuation and accounting-related issues.
MCA is looking to amend the Companies Act in an effort to tighten regulations for auditors. The role of auditors, who sign off on the books of companies, has come under scrutiny following a string of high-profile cases such as the IL&FS fraud.
Modi Govt may re-introducing the much-flayed instrument of the banking cash transaction tax (BCTT) to discourage cash transactions.Further, the tax authorities are considering levying the estate tax on inherited property in line with global practices.
CBDT set a fresh income-tax revenue collection target for the current fiscal year, aiming to garner 20 per cent more than in the previous year. The target for the current fiscal has been set at Rs.13.80 lakh crore. For 2018-19, the target was Rs.11.50 lakh crore.
GST Authority has come out with a draft of a new and simplified return form. The new form is expected to be formally rolled out in July. Through this exercise, made public on Wednesday, the authority aims to obtain feedback on the user interface and its functionalities.
RBI board sought to create a specialised oversight cadre while reviewing the current structure of supervision at the regulator. With a view to strengthening the supervision and regulation of commercial banks, urban cooperative banks and NBFC, the Board decided to create a specialised supervisory and regulatory cadre within the RBI.
SEBI has issued norms for participation of mutual fund in commodity derivatives like gold, silver, crude, copper, guar, mentha etc. However, MFs won’t be allowed to take positions in sensitive commodities like agri products subject to frequent government intervention and the Essential Commodities Act. Effective May 21.
Delhi High Court issued a notice to the Centre and the Delhi government on the issue of ‘blocked credits’ under the GST regime. Such a mechanism is affecting hotels and malls. The GST Act has a provision, under Section 16, for ITC, which helps businesses deduct the tax paid on inputs at the time of paying tax on output, thus lowering the tax paid in cash.
Central government has moved the Supreme Court challenging a Delhi High Court decision to stay proceedings against Gautam Khaitan, an accused in the AgustaWestland VVIP chopper scam, under the Black Money Act of 2016. The HC had stayed the proceedings on the basis of a petition filed by Mr. Khaitan challenging a government notification that gave retrospective effect to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act from July 2015.
RBI has asked NBFCs with asset size of more than Rs.5,000 crore to appoint a chief risk officer (CRO) with clearly specified role and responsibilities, in view of the increasing role in direct credit intermediation of these companies. The RBI directive comes in the backdrop of the IL&FS imbroglio and its ripple impact on NBFCs.
Delhi High Court restrained the Income Tax Department from taking any action against VVIP chopper deal scam accused Gautam Khaitan against whom a black money case has been lodged. Court said Khaitan, an advocate by profession, has made out a "good prima facie" case for grant of interim relief and grave prejudice would be caused to him if the authorities are not restrained at this stage from proceeding further.
CBIC has come out with another set of frequently asked questions (FAQs) to clear the air on GST on real estate If you have got an occupancy certificate (OC) for your house before April 1 this year, the payment of pending dues would draw 12% GST rate and the builder will be able to avail of input tax credit.
ITAT Delhi in the matter of Vinod Soni vs. ITO: TDS- Four individuals having jointly purchased undivided equal shares in an immovable property vide single sale deed for Rs. 1,50,00,000/-, the consideration referable to each transferee is only Rs. 37,50,000/- i.e. less than Rs.50,00,000/- and therefore, section 194-1A is not applicable to the facts of the case.
Section 44AB of the Income-tax Act, 1961 requires specified persons to furnish the tax audit report along with the prescribed details in Form no. 3CD. The existing Form 3CD was amended by the Central Board of Direct Taxes (CBDT) vide notification no. 666(E) dated 20-07-2018.
Delhi High Court in the matter of Sonka Publication India Pvt. Ltd. v. Union of India and Ors. WP (C) 10022/2018, setting aside ruling of AAR, that the books published and sold by the are classifiable under HSN 49.01 (Printed Books- Exempt) and not HSN 48.02 (Exercise Books- Chargeable to GST at 6%).
GSTR-9 is merely a compilation of data filed in GSTR-3B and GSTR-1. As per the instructions of the form GSTR-9, it is stated that information of outward supplies ‘may’ be derived from Form GSTR 1. Hence, so far as Outward supplies and tax payable in the annual return is concerned, the same are to be extracted from Form GSTR 1 only.
Empanelment with the O/o C&AG of India for the year 2019-2020 will be available from April 29th 2019 to May 08th 2019 on the website www.care.cag.gov.in Representations, if any, for rectification of clerical mistakes in the online data may be sent by email at firstname.lastname@example.org by 08.05.2019. For further query/issue, please contact to O/o C&AG at 011-2350 9223/240
CBDT vide order dated 30th April 2019 stated that Income Tax department to share ITR data with GSTN to detect tax evasion by business persons. The move aims at curbing tax evasion by the businesses by cross-checking data between their GST returns and ITR.
CBIC has clarified vide its Circular, that IGST Credit will be first used to offset IGST Liability and thereafter it can be used to offset CGST and SGST/UGST liability in any order and in any proportion as per newly inserted Rule 88A of the CGST Rules vide Notification No. 16/2019-Central Tax dated 29th March, 2019.
Bombay High Court & ITAT ruled out that the transfer of a subsidiary’s share cannot be ‘slump sale’ of an undertaking. The court and tribunal rulings could deter income tax officials from branding every large equity transaction as a slump sale of a business to a third party and levy capital gains tax under section 50B of the Income Tax Act.
GST department has allowed businesses whose GST registration has been cancelled due to non-filing of tax returns to apply for its revocation by July 22, provided they file their pending returns and pay due taxes for those entities for whom cancellation order has been passed up to March 31, 2019.
SEBI has reduced the minimum subscription requirement as well as defined trading lots for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). REITs have to offer their units in lots worth at least Rs 50,000 in initial and follow on public offers. The minimum value of a single lot should be Rs 1 lakh in the case of InvITs.
GST Council in its 28th GST Council meeting held at New Delhi on 21.07.2018 has decided to Extend the exemption granted on outward transportation of all goods by air and sea by another one year i.e. upto 30th September, 2019 as relief to the exporter of goods.
United Bank of India invites application from eligible Chartered Accountant firms to undertake Concurrent Audit, Revenue Audit. The CA firms empanelled with the bank in the year 2017& 2018 need not apply again. Submit online application latest by 10.05.2019.
CBDT has notified a new format for Form 16 – the salary TDS certificate – requiring a detailed break up of tax exempt allowances paid to the employee and also of all tax breaks claimed by him/her. The earlier format allowed companies to give consolidated figures or break-up in different formats for both these thereby leaving some ambiguity regarding their individual composition.
RBI has released a draft framework for setting up a regulatory sandbox (RS) or live testing of products or services by fintech firms. The draft framework suggested that areas that can potentially get a thrust from the RS include microfinance, innovative small savings and micro-insurance products, remittances, mobile banking and other digital payments.
CBDT has notified amendments in Form 16 which acts as certificate for TDS and Form 24Q quarterly TDS statement for salaries. The new forms require taxpayers to provide more details related to bifurcation of exemptions under Section 10 of the Income Tax Act, various deductions under Chapter VI-A, disclosure of standard deduction amount and other income.
Businesses with an annual turnover of over Rs 2 crore can now start filing GST audit reports for fiscal year 2017-18 as GST Network has made its format available on its portal. The GST Council in December extended the last date for filing these forms by three months to June 30.
MCA has clarified that the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules 2014, w.r.t submission of e-form DIR-3-KYC is an annual compliance and required to be filed by every director, every year.
Non-filing of ACTIVE Form may attract Section 12 (8) penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees. And Section 12 (9) physical verification of the registered office of the company.
Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits.
India and USA has entered into an agreement for furnishing of Country-by-Country report in accordance with Section 286(2), which shall come into effect when both the countries notify in this respect. Further, the due date for furnishing of report under Section 286(4), in respect of transactions between constituent subsidiaries of US parent co., has been extended by the CBDT.
Payment gateway charges paid to a bank for swiping credit cards are in the nature of fees for banking services and not "commission" or "brokerage". Accordingly, no TDS is deductible from the said charges u/s 194H and no disallowance u/s 40(a) (ia) can be made.
1. Income Tax Department has barred directors as well as those who have invested in unlisted companies from filing income tax return forms Sahaj and Sugam. The directors in both listed and unlisted companies will be required to file their returns in ITR-2 to disclose details of DIN, PAN and equity holding with the names of the companies.
2. Income Tax department has notified I-T return forms for individuals and companies for the assessment year 2019-20. While there has been no change in ITR-1 or Sahaj, which is to be filled by the salaried class, some sections in ITR 2, 3, 5, 6 and 7 have been rationalised.
GST rule 46 implies that with the start of new financial year 2019-20 a new invoice series, unique for the financial year is to be started by the GST taxpayers. Similar provision is there in Rule 49 of the CGST Rules 2017, in respect of issue of Bill of Supply by registered taxpayers availing Composition Scheme or supplying exempted goods or services or both.
Mumbai has once again emerged as the top contributor to the exchequer and accounted for 32 per cent of the overall tax collection in the financial year ended March. It was up 17 per cent in FY19 at Rs.10.95 lakh crore against Rs.9.36 lakh crore logged in FY18.
RBI asked banks to disclose bad loan divergences in their financial statements if the additional provisioning exceeds 10% of profit before provision and contingencies. In a notification, the RBI said it is observed that some banks, on account of low or negative net profit after tax, are required to disclose divergences even where the additional provisioning assessed by RBI is small, which is contrary to the regulatory intent that only material divergences should be disclosed.
Govt relaxed the norms for e-way bills. Rules regarding validity have been changed, while a facility has been provided for auto-calculating the route distance. Under the GST regime, an e-way bill has to be generated if goods worth over Rs 50,000 are transported.
Govt on extended the deadline to impose higher customs duties on 29 products, including almond, walnut and pulses, originating in the US. The department of commerce had recommend the finance ministry to extend the deadline for levying higher tariffs worth $235 million.
There is no provision that once a voting is made, after the final result, if it comes to the conclusion finally in absence of approval of the plan, the ‘Corporate Debtor’ may be ordered for liquidation. It is always open to the ‘Committee of Creditors’ to change their opinion within a period of CIRP.
SEBI came out with guidelines for business continuity plan and maintaining disaster recovery site for market infrastructure institutions, including clearing corporations. In June 2012, the watchdog prescribed framework for Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) for stock exchanges and depositories.
SEBI asked the Indian stock exchanges to bar foreign portfolio investors who have failed to submit the names of beneficial owners to custodians. FPI assets worth $5 billion have been blocked on account of failure to adhere to the March 20 deadline of providing the aforementioned details.
The RBI, vide notification dated 27.12.2018, had advised all banks to complete filing all types of security interests with CERSAI latest by 31.03.2019. Any security interest be it mortgage of immovable property, intangible assets, stock, book debts, plant & machinery, furniture & fixtures and interest in any under construction building by any agreement or instrument is required to be filed with CERSAI. You should verify whether the same has been completed by 31.03.2019.
Income Tax Department's newly set-up Centralised Verification Centre (CenVC) is planning to send the first set of e-tax notices to 'non-filers', starting this week. The notices will be issued under section 133C of the Income-Tax Act, which was notified last week. The returns filed during the AY 2017-18 are being dealt with first.
Non-filing of GST returns for six consecutive months will soon be barred from generating e-way bills for movement of goods. The GST Network is developing an IT system such that businesses that have not filed returns for two straight returns filing cycles would be barred from generating e-way bills.
New web se1vice "RUN" Rese1ve Unique Name) for reserving 'name of proposed company and for changing name of existing company' will be launched by MCA, w.e.f. 26th January, 2018.
Further the following forms are being revised and will be available on MCA21 website from 26th January, 2018:
• Forms SPICe (INC-32) – Incorporation of Company
• SPICe MoA (INC-33) – Electronic form of Memorandum of Association
• SPICe AoA (INC-34) - Electronic form of Articles of Association
• INC-3- One Person Company- Nominee Consent Form.
• INC-22- Notice of situation or change of situation of registered office.
• INC-24- Application for approval of central Government for change of name.
• DIR-3- Application for Allotment of Director Identification Number.
• DIR-12- Particulars for Appointment of Directors and Key Managerial Personnel and changes among them.
• GNL-1- Applications made to Registrar of Companies.
The information is available at www.mca.gov.in
Ministry of Corporate Affairs vide notification dated 23rd January, 2018 has appointed 26th January, 2018 as the date on which the provisions of Section 1 and Section 4 of the Companies (Amendment) Act 2017 shall come into force.
Section 1(2) confers powers on Central Government to appoint different dates for enforcement of different provisions of the Act.
Section 4 of the Companies (Amendment) Act 2017, amends Section 4 (5) (i) of the Companies Act 2013, which relates to Name Reservation by the registrar. After the notification, the period for which name is reserved by the registrar has been amended from “Sixty days” from the date of application to “Twenty days” from the date of approval or such other period as may be prescribed.
The said notification is available at MCA website at http://www.mca.gov.in/Ministry/pdf/NotificationComapniesAct_23012018.pdf
Name Reservation- MCA is designing front office service for Name reservation and change of name of companies capturing essential information from the applicants.
Incorporation of companies - where names have been reserved using INC-1 they may use SPICe for incorporation immediately, lastly by 17.01.18. Spice has allowed only one submission which as to be completed by 25.01.18
DIR-3- DIN allotment should be done only at the time of their appointment as Directors (if they do not possess a DIN).
Application for DIN would be applicable for the allotment of DIN to individuals in respect of existing companies only and shall be filed by the company in which the proposed director is to be appointed.
DINs to the proposed first directors in respect of new companies would be mandatorily required to be applied for in SPICe forms (subject to ceiling of 3 new DINs only).
DIR – 3 shall be modified permitting allotment upto 2 new DINs only in respect to producer companies.
The government has notified the timeline for furnishing final tax returns for July and August under the Goods and Services Tax (GST) regime. The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, had in June allowed businesses extended timeline for filing final GST returns in forms GSTR-1, GSTR-2 and GSTR-3 for July and August. In the interim period, businesses have to file GSTR-3B which is a summary of self-assessed tax liabilities with consolidated details of outward supplies and input credit. The Central Board of Excise and Customs (CBEC) has now notified the dates for filing the GST returns forms. As per the notification, outward supplies in Form GSTR-1 for the month of July will have to be filed between September 1-5. For August, it is to be filed between September 16-20. The original date for filing GSTR-1 was 10th of the next month. Details of inward supplies in Form GSTR-2 for July will have to be filed between September 6-10.
The government's demonetisation drive and the subsequent “Operation Clean Money“ seem to have smoked out those avoiding taxes, resulting in a massive jump in the number of returns filed this year as well as individuals paying taxes. The income tax department said on Monday there was a 24% rise in the number of returns filed until August 5, the deadline, one of the highest growth rates in recent years. In all, 2.82 crore returns were filed by the extended deadline, compared to 2.27 crore in the same period last year, a rise of 24.2%. Last year, the growth was just a shade under 10%. In the case of individuals, the increase was to the tune of 25.1%, with the number of returns filed estimated at 2.79 crore. This translates to an increase of nearly 56.5 lakh returns so far this year, with assessees having the option to file returns for a few more months without having to pay any penalty .
Union Minister Arun Jaitley today said the rollout of Goods and Services Tax (GST) was 'extremely smooth' in the country. "It has been an extremely smooth turnover without any disruption" the Union Finance Minister told reporters here. He rejected the argument that trade registration under GST was less and said a record number of registrations have taken place. He rejected the argument that trade registration under GST was less and said a record number of registrations have taken place. "We are the only political party in the country, which,as part of self-introspection, takes action, he said, adding that in several states, people have been caught for improprieties and parties were strongly trying to defend them. "If a party sets a precedent by dismissing a member for irregularities, it is a good action and also a good step in Indian politics", Jaitley said.
The government is closely monitoring daily price variations in over two dozen essential commodities - from wheat to tea - to check at early stage any abnormal movement in rates post GST rollout, CBEC Chairperson Vanaja Sarna said. Prices have remained by-and-large under check post Goods and Services Tax (GST) implementation on July 1 and there has been no big instance of supply disruption, the chairperson of the indirect tax body told PTI. The roll out of the biggest tax reform since Independence has been "relatively smooth" with multi-layer monitoring and officers of the tax department have been working overtime to weed out major bottlenecks in the implementation, she said. GST unified 17 different levies including central excise, service tax and VAT and there were apprehensions of initial hiccups.
If you aren’t getting your company-branded writing pads or pens, blame the scarcity on the Goods and Services Tax (GST). For tax advisors and in-house finance teams, dealing with vendors that supply pens, writing pads, pencils, staplers, and printing paper-rolls has turned out to be a major challenge after the national rollout of the single producer levy. Tax rates and codes for most stationery items are now different. Companies cannot just enter a combined cost of stationery, but will have to compare codes of each item and enter them separately for raising invoices. Due to this, several companies have decided they would stop or reduce the amount of stationery provided to employees, while a few others are looking to not take credit for these purchases. For major companies with large and distributed operations, not availing input credits would be costly, with such expenses running into several crores of rupees every year.
The GST Council is likely to lower tax rate tomorrow on job works making fabric to garments to 5 per cent and put in place a mechanism for online registration of goods above a certain value before they can be transported. The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the new Goods and Services Tax (GST) regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumer interest. Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said movement of goods between states has smoothened with 25 out of 29 states abolishing checkposts. "About 25 states have removed those checkposts. So far, it has been going all right," she told PTI here. This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented.
It’s not unusual to form an investment company for buying an expensive residential apartment. But in the case of a city Golf Link Road apartment, the ultimate beneficiary was found to be director in an investment company —living in a modest house in Seelampur, earning less than Rs 1 lakh a year and not owning a car or a credit card. Income-tax officials suspected it to be a benami transaction, a property bought by a businessman in his driver’s name. Uncovering the culprit would take them through a confounding maze of data — phone records, credit card and PAN details, tax returns and even social media platforms. Here’s where data analysts and number crunchers come into play. “It’s virtually impossible to go through various structured and unstructured data sources and make sense of them,” said an official. “But data collected via various sources leaves a pattern and analytics can raise red flags that tax officers can investigate further.”
The integrated goods and services tax (IGST) would not be levied on sale of goods on high seas but would be charged when they are brought for customs clearance, authorities have clarified, much to the relief of oil and gas, power and telecom companies. The Central Board of Excise and Customs (CBEC) has issued a circular to this effect after receiving references on the issue as all inter-state transactions are subject to IGST. 'High sea sale' is a common trade practice where in original importer sells goods to a third person before they are customs cleared. Final customs clearance is filed by the final owner. This means that IGST would be payable on the value for the last buyer in the chain. The importer would be required to furnish the entire chain of documents such as original invoice, high-seas-sale contract, details of service charges, commission paid, etc. to establish a link between the first contracted price of the goods and the last transaction
Companies have hundreds of crores of rupees in input tax credit but they may still need to pay the goods and services tax (GST) for July and August in full, potentially disrupting working capital flows. Companies will thus be unable to adjust the tax paid against their liability. Companies such as those in auto sector have hundreds of crores of rupees in such credit. The GST Council, the apex decision-making body for the new tax regime, had approved a liberal transition framework to ensure smooth sailing when making the switch. Any entity can claim credit of service tax or VAT paid in the previous regime against GST liability. If it does not have proof of payment of tax, it can take advantage of the deemed benefit norm. The key benefit of GST is that there is no cascading of tax through seamless availability of input tax credit. Companies have to file form GSTR 3B, a summarised return, for July by August 20. That for August has to be filed by September 20.
Finance minister Arun Jaitley has introduced two bills in Lok Sabha that would extend the GST regime to Jammu and Kashmir.
The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill, 2017, would provide for levy of the GST on goods sold and services rendered in the state, while Integrated GST (Extension to Jammu and Kashmir) Bill, 2017 seeks to levy inter-state movement of goods. Jammu and Kashmir passed a resolution adopting the constitutional amendment only on July 5. The President issued an ordinance extending provisions to the state. The two laws will replace the ordinances.
Over 12 lakh businesses have applied for fresh registration under the Goods and Services Tax (GST) regime, Revenue Secretary Hasmukh Adhia has said. Of these, while 10 lakh applications for registration have been approved, 2 lakh are still pending approval. "The figure of new registrations approved in GST crosses 10 lakhs today. About 2 lakh applications pending in process,". Businesses have time till July 30 to register under the GST. Also during the course of the year, if a business becomes liable to register under GST, it needs to apply for registration within 30 days from becoming liable for it. When a business registers under GST, it is given a provisional GSTIN. After that, in the second stage, the business has to log in to the GSTN portal and furnish details of its business including the main place of business, additional place, directors and bank account details.
GST impacts almost all types of industries and professional are no exception. Until recently, professionals enjoyed the benefit of centralised service tax registration for all their offices located across India. The compliance and report ing requirements for professionals will also increase under GST. Under the erstwhile service tax regime, professionals could file half-yearly service tax returns requiring disclosure of the revenue and eligible input tax credit on an aggregate basis. Though the tax rate under GST has increased from 15% to 18%, there’s good news for professionals, as they will now be entitled to higher input tax credit due to withdrawal of non-creditable state taxes such as VAT/CST/entry tax/octroi on procurement of goods and certain cesses levied by central government. Besides the above compliances, professionals will also have to comply with reverse charge provision in case of purchases from unregistered dealers.
Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for taxpayers under the composition scheme, non-resident taxpayer, taxpayer registered as an “input service distributor”, a person liable to deduct or collect the tax (TDS/TCS) and a person granted Unique Identification Number. So taxpayers are required to file returns depending on the activities they undertake.However, for the first two months, the return filing process has been simplified by requiring all taxpayers to provide just the summary details in form GSTR-3B while the forms for outward and inward supplies—GSTR-1 and GSTR-2, respectively—can be filed 25 days after they are first due.
The Income Tax department will soon share PAN and ITR details of companies with the corporate affairs ministry, amidst the government stepping up efforts to curb the menace of black money. As per the order, accessed by PTI, the department will "share PAN (Permanent Account Number), Income Tax Returns (ITRs) and audit reports of corporates under section 44AB of the I-T Act as well as SFT (statement of financial transaction) relating to these companies". "The department will also share identified PAN and Corporate Identification number (CIN), PAN-Director Identification Number (DIN) and any other information considered necessary for identifying dormant companies," it said. "A senior I-T department official said that the move aims at checking and identifying shell companies and bogus firms that have been indulging in generation of black money. The corporate affairs ministry implements the Companies Act, under which all firms need to get registered.
Over 6.83 lakh companies have permanent account number (PAN) but did not file income tax returns for assessment year 2016-17. The number of companies which have PAN but do not file income tax returns have increased over the past five years from 4.09 lakh in assessment year 2012-13, to 4.60 lakh (AY 2013-14).The number was 5.19 lakh in AY 2014-15, 5.73 lakh (AY 2015-16) and 6.83 lakh (AY 2016-17). "Nonfiling of return of income by a company does not necessarily indicate its indulgence in money laundering activities. Under the Companies Act, notices have been issued to all those companies which were prima facie not carrying out any business or operation for a period of two immediately preceding financial years and had failed to file their financial statement for the said period. "Consequently, names of a large number of companies have been removed (struck off) from the Registrar of Companies," he said.
A selection committee under the chairmanship of the cabinet secretary has been set up to select eligible persons for appointment as the chairman and members of the National Anti-Profiteering Authority under the Goods and Services Tax. The proposed authority will have the responsibility to ensure that the full benefits of a reduction in tax on supply of goods or services flow to the consumers. Any complain of profiteering shall be examined by a standing committee. The standing committee is empowered to refer the cases requiring detailed enquiry to Director General of Safeguards, CBEC who shall give his recommendation for consideration of the National Anti-profiteering Authority. In the event the National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed along with the interest to the recipient of the goods or services, the ministry said.
The Income Tax returns filed after November 8 last year were scrutinised against their earlier tax compliance following which these cases were detected, he said "We are taking action in these instances," Chandra told reporters on the sidelines of an event to mark the 157th Income Tax day here. Under the Operation Clean Money, the I-T department is contacting those whose bank account deposits were seen to be suspicious post the note ban. "We have found that they (assessees) have got more accounts they have given less accounts in their replies (to the department). "It is a very reasonable rate of taxation. I do not think we can lower it at present," he said. Talking about the department's action under the newly enacted Benami Transactions Act, Chandra said the taxman has made attachments worth Rs 840 crore in 233 cases till now. "We have found that many shell companies are owning such (benami) properties. Action will be taken," he added.
Traders' body CAIT today released a white paper on Goods and Services Tax (GST) to disseminate information about the new indirect tax regime.
The 'GST White Paper' consists of all the important aspects of GST and its compliance, the Confederation of All India Traders (CAIT) said in a statement.
The white paper assumes significance as large number of traders across the country still remain unaware about the basic fundamentals of GST and the compliance obligations, it said.
CAIT Secretary General Praveen Khandelwal said though GST is going to be implemented in less than a week from today, yet large number of traders are still unaware about not only the basic fundamentals of GST but even the compliance obligations.
CAIT has also launched a 'Digital Rath' to educate small businesses and the trading community on adoption of digital payments.
The commerce ministry is working on a proposal to allow special economic zone (SEZ) units to sell products outside these tax-free enclaves at concessional duty rates.
An SEZ area is considered to be a foreign territory for trade operations and duties and are mainly set up for the export purpose.However, goods can be supplied from an SEZ unit to a DTA (domestic tariff area or outside SEZ) buyer on payment of appropriate Customs duty as products coming from these zones are treated as imports into the country. The SEZ players have demanded that they be allowed to sell their goods in DTA on same terms as applicable under free trade agreements (FTAs) signed by India with different countries.
Do not expect any compensation for theft or burglary of valuables in safe deposit boxes of public sector banks as the locker hiring agreement absolves them of all liability. This bitter truth was disclosed in an RTI response by the Reserve Bank of India (RBI) and 19 PSU banks. Stung by the revelation, the lawyer who had sought information under the transparency law has now moved the Competition Commission of India (CCI) alleging "cartelisation" and "anti-competitive practices" by the banks in respect of the locker service. He has informed the CCI that the RTI response from the RBI has said it has not issued any specific direction in this regard or prescribed any parameters to assess the loss suffered by a customer. Even under the RTI response, all public sectors banks have washed their hands of any responsibility. The banks have contended that in such a relationship, the lessor is responsible for his or her valuables kept in the locker which is owned by the bank.
With the July 1 deadline to provide creche facilities under the amended maternity benefit law nearing, a survey by ProEves indicates a large majority (81%) of companies are considering day care tieups, while another 10% are investing in an on-site set up. Certain small and medium-sized organisations had conveyed concerns around incurring high costs on account of the new law, but progressive companies believe the greater outcome of retention of women employees in the workforce far outweighs the cost factor.
If this employee does not return back or quits after return, the employer will spend an additional 12% as hiring cost. The total cost of post maternity employee loss could be Rs 10-60 lakh per maternity case across management. The average being Rs 30 lakh per employee.“ Agarwal said few of the progressive companies are investing Rs 10,00015,000 per maternity employee.
Days before the goods and services tax (GST) is rolled out, the government will rush an ordinance to amend the law for special economic zones to align it with incoming tax regime.
The government is also working on a scheme that will directly transfer some taxes paid by exporters to their accounts to ensure a smooth ride for exporters when this reform is rolled out.The SEZ Act is yet to be aligned with the GST, which seeks to replace central taxes such as central excise duty, service tax, counter vailing duty and a number of cesses and state taxes with one single levy. Separately, the government is putting in place a scheme to pass on some subsidy to exporters in lieu of taxes that will not be reimbursed through the refund scheme. The commerce department is working out the scheme that could be announced as part of the new Foreign Trade Policy. The official said the government would soon notify the rate schedule and rules.
A leading consumer appliances maker will stop taking fresh orders from its dealers starting Thursday. Companies across several sectors have decided to stop dispatches or keep them to a minimum during the last days of June to ensure they are ready for the switchover to GST and their dealers and distributors are not saddled with excess stocks. For products dispatched before July 1 but sold after that date, dealers will have to bear an additional tax burden.All organisations which have ERP (enterprise resource planning software) will undergo a black out of the systems for three-four days. There will be no invoicing, stock transfer and supply orders till the systems go live again from July 1. So, for all practical purpose we may see stoppage of sale, purchase and stock movement for almost seven-eight days," said Rituparno Mukhopadhyay, executive director at consulting firm PwC.
Days ahead of rollout of Goods& ServiceTax, government today notified sections in GST Act dealing with mandatory registration of current indirect tax payers in new regime. As many as 18 sections relating to registration of current central excise, service tax & VAT payers with GST-Network (GSTN) as well as transitional provisions were notified today. The Sections in Central GST Act notified provide for all suppliers, anyone making any inter-state taxable supply & every existing licence holder & business entity, to register for GST. Input service distributor, e-commerce operator & person supplying online information & data base access or retrieval service are also required to register. It also exempts any person engaged exclusively in business of supplying goods or services or both that is not liable to tax or wholly exempt from tax.PAN is mandatory for GST registration except for a non-resident person who can get GST registration on the basis of certain other documents.
A decade in the making, the GST would bring down barriers between more than 30 states and territories, unifying India's $2 trillion economy and 1.3 billion into a single market. The government says it will boost both commerce and state revenues. "We have been saying for the last six months it would be July 1 - nobody has any business not to be ready," Jaitley told reporters. "If he's still not ready, then I'm afraid he does not want to be ready." To ease the transition, a GST coordination panel agreed on Sunday to allow companies to file simplified, aggregate tax returns in July and August before they have to comply fully with the GST from September. If companies struggle to comply, that could block the flow of input tax credits that are a new feature of the tax, experts and business groups say. This would force firms to pay tax on the full cost of an item rather than just value added, tying up working capital and cutting into profits.
Central Board of Excise and Customs will soon notify new procedural framework for countries over $650-billion trade sector, which will be among first to face tax regime change from July 1. IGST will be sum of central GST & State GST levied on a local product & will be in addition to basic customs duty. IGST replaces countervailing duty, special additional duty levied in lieu of central excise. I-GST on imports will be completely administered by Centre’s customs officials. Separately, changes to forms in line with those announced by director general of foreign trade (DGFT) as also others would be notified this week, official said. DGFT has already made permanent account number as new Import Export Code or IEC, which will also facilitate migration to GSTIN (GS Tax Identification Number) that will be needed for payment of IGST or claiming refund or rebate.
Finance Minister highlighted some new changes in upcoming GST launch at a press conference. Here are some of major points Finance Minister talked about: 1. Official launch of GST will take place on midnight of 30 & 1 at function in Delhi 2. Relaxation in Return filing time-line for first 2 months. 3. GSTR-1 with invoice level details needs to be filed for the month of July by 5th September & for month of August by 20th September.4. 28% limit in hotels will start from Rs 7,500; between Rs 2,500-7,500 rates will be 18% 5. GST on restaurants in these hotels will be at par with other air-conditioned restaurants (18%) 6. State run lotteries will be taxed at 12% of face value & state authorised lotteries @ 28% 7. GST Council cleared 6 rules, including anti profiteering. 8. There will be further consultation on e-way bills, till then an alternative or transient rule will prevail 9. Traders to get relaxation on filing of returns 10. IGST rate of 5% on Ship with full ITC will be applicable.
The government is working to set-up a toll free phone number 14442 for grievance redressal of customers related to digital payments. The Ministry of Electronics and IT along with National Payments Corporation of India is working on a mechanism to provide a common number 14442, where customers of all digital payments platform, including mobile wallets, Unified Payments Interface and BHIM, will be able to register their complaint, according to official sources."The Department of Telecom has allocated 14442 to NPCI for setting up its grievance redressal mechanism for customers of all digital payments. The government's efforts to curb blackmoney in the country has pushed digital transaction on various platforms by up to 8,800 per cent.Digital payments on UPI platform have grown from Rs 3,721 till November 8, 2016 to Rs 3.31 lakh as on May 17, 2017.
Consumer durables such as smart phones that are imported could see a temporary spike in prices as India transitions to the goods and services tax (GST) that’s set to be rolled out from July 1. That’s because the benefit of the special credit transfer scheme has been restricted to manufacturers. The latest transition rules approved by the GST Council allow full credit for central excise duty paid on goods over Rs 25,000 that have a chassis number or any other identification for tracking the product. But this facility is available only for manufactured goods. Thus, those selling imported goods will need to claim deemed credit of 60% or 40% of the central GST paid, depending on the tax rate levied on the products.They will not be able to claim credit of the entire amount of countervailing duty and additional customs duty paid on such imported goods, possibly leading to a sudden spike in prices of transition stock.
The GSTCouncil has set up 18 sectoral groups to interact with sectors like telecom, banking and export & sort out their issues in a time-bound manner for a smooth transition to the new indirect tax regime. These sectoral working groups consist of senior officers from Centre and states and they will interact and examine representations received from trade & industry associations/ bodies of their respective sector.
"These 18 sectoral groups representing various sectors of the economy & containing senior officers of the Centre and states are being set up to ensure smooth implementation of GST by timely responding to the issues and problems of their respective sectors," a finance ministry statement said. The other sectors which would be looked into by the group include IT and ITes, textiles, gems and jewellery, food processing, e-commerce, oil and gas, pharma and MSME.
India is close to imposing basic customs duty (BCD) of at least 10% on smartphones, making imported devices more expensive than locally made ones and bringing relief to the likes of Foxconn & Wistron that have invested heavily in factories in the country. The move is also expected to stimulate investments of more than Rs 1,000 crore that have been on the fence for lack of clarity on price differential incentive as India shifts to goods & services tax (GST) regime. Officials in the ministries of commerce, revenue, and IT and electronics said the Centre is close to a final decision. It's expected shortly before GST rollout. "There have been discussions. We would take a call soon," a finance ministry official told ET. Two government officials, who did not wish to be named, confirmed that the commerce department had recommended customs duty higher than peak rate of 10% on smartphones. They also said the ministry suggested duty between 10% and 20% on some other electronic products.
As many as 20 Indian firms have been named in the top 100 of Nikkei Asian Review's Asia 300 companies list, which was topped by Taiwan's Largan Precision.
According to the Nikkei Asian Review's second annual Asia 300 Power Performers Ranking - a compilation of the most powerful and valuable listed companies in Asia, as many as three Indian companies have made it to the top 10 list, while none had made the cut in the previous financial year.
"India's rise in the rankings is remarkable," Nikkei said, adding Indian players held 10 of the top 30 spots, outperforming their Chinese and Southeast Asian counterparts.
The list was topped by Taiwan's Largan Precision, the world's leading maker of lenses for smartphone cameras.
Indian IT service provider HCL Technologies came in at the second place, followed by Zee Entertainment Enterprises and Tata Consultancy Services at the third and fourth place respectively.
• The GST Registration process is open at GST Portal (www.gst.gov.in) from 1 June, 2017 to 15 June 2017 and will again re-open on 25 June 2017, to give another opportunity to remaining taxpayers. Further, the taxpayers who had enrolled but could not digitally sign the enrollment form also can now complete the process of enrollment.
• Taxpayers those who are unable to enroll/ register at the GST Portal within the extended deadlines upto 15 June 2017, need not panic. Such taxpayers will get another opportunity as per GST law, i.e. all taxpayers registered under VAT, Service Tax, Excise, etc. will be given a valid GST registration, if they have a valid PAN.
The Securities and Exchange Board of India (Sebi) has asked the government to tighten rules related to the removal of independent directors in companies. The capital market regulator has written that boards should be allowed to remove independent directors only through a special resolution. Sebi has asked for changes in the Companies Act 2013 to this effect. The Companies Act stipulates that an independent director can be appointed through an ordinary resolution. But if an independent director is eligible for reappointment, a second term needs a special resolution. An independent director can be removed from the board by passing an ordinary resolution, under the Companies Act. The resolution may be proposed by the company or by shareholders. An ordinary resolution requires a simple majority to be passed. A special resolution needs a super majority or 75% members in favour of the proposal.
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