moneycontrol.com 2018-12-06 23:32:00
The Confederation of All India Traders (CAIT) said it has urged finance minister Arun Jaitley to extend the last date for filing annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the finance minister, CAIT said that the format of filing of annual GST return is not available anywhere including the GST website. In fact, the option itself is not available. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. CAIT also urged that format should be made available in regional languages. It noted that the concept is till unclear to a large number of traders and most are not even aware of the obligation of filing annual GST return. Moreover, they are unaware that annual return is the last opportunity for assessees to rectify their previously filed return with the department for the concerned year.
thehindu.com 2018-12-06 19:51:00
December 07, 2018 01:21 07, 2018 01:21 IST more-in Golden Rock Railway Workshop in Tiruchi ties up with cement factory for disposal of polymeric waste The Southern Railway Workshop, Golden Rock, has adopted a scientific method to dispose tonnes of zero-value non-hazardous polymeric waste accumulated over the years on its sprawling campus in Tiruchi. The 85-year-old workshop entered into an agreement with UltraTech Cement Limited at Ariyalur district last year, paving the way for the safe disposal of non-hazardous waste to the cement unit for use in its kilns as an alternative fuel in what is being seen as a "win-win situation" for both. Huge relief The decision has come as a huge relief to the workshop which, until last year, virtually had no clue as to how to dispose the non-hazardous waste that kept piling over the last two decades, posing a huge environmental and safety hazard. Engaged in POH (periodic overhaul) of 1,200 broad gauge passenger coaches and 120 broad gauge diesel locomotives, the British-built workshop has also become a manufacturing unit, rolling out new container wagons for the Railways and the Container Corporation of India. It produces steam locomotives for the heritage Nilgiri Mountain Railway (NMR) and also overhauls them. Piling materials While ferrous and non-ferrous waste generated in the workshop, spread over 200 acres, were being sold through auction every year, it was the piled up zero-value non-hazardous waste in the form of cushions, artificial leather, seat covers, rubber belts and other rubber products that posed a fire as well as an environmental hazard, said chief workshop manager P.N. Jha. A solution finally emerged last year when the workshop came to know that non-hazardous waste could be disposed of scientifically by way of "co-processing" at cement plants. Negotiations with UltraTech Cement fructified, leading to an agreement between the two to dispose of 5,000 metric tonnes of accumulated zero-value non-hazardous waste, said Mr. Jha. Since January, when the first load of waste was dispatched to the cement unit, around 1,500 metric tonnes of accumulated waste has so far been safely transported to the unit, Mr. Jha said. The remaining accumulated waste would be sent in the coming months. The cement unit utilises the waste after shredding as an alternative fuel in its kilns. The waste in the kilns is burnt at a very high temperature of nearly 1,400 centigrade, which would leave behind no residue, he said. TNPCB nod The workshop has also obtained the clearance from the Tamil Nadu Pollution Control Board for the disposal mechanism. The cement factory for its part had received clearance from the Central Pollution Control Board for co-processing, the official said. With nearly 25% to 30% of accumulated waste being cleared so far, the workshop has been successful in reclaiming nearly 50,000 sq. ft. area where it has currently embarked on a green drive, planting saplings of various species.
moneycontrol.com 2018-12-06 19:18:00
Anand Rathi Securities As expected, the RBI maintained status quo on key policy rates at its December 2018 monetary policy meet. It also announced a calibrated 150bp cut in the SLR. The tone of the policy was largely dovish. While the "calibrated tightening" stance of the interest rate policy continues, the RBI remains accommodative regarding liquidity. We expect it to keep rates unchanged in FY19. The backdrop The overwhelming weight of events since the last monetary policy meeting seems to have prompted RBI to maintain status quo on rates for the second successive time. Retail inflation is well below its projected target. The sharp slump in global crude oil prices also minimises the risk of a fuel-price-led spike in inflation. The strengthening of the rupee eases the risk of imported inflation as well. While there are doubts about whether the US Federal Reserve Chairman has actually communicated a dovish stance, the consensus is that tightening in the US will be far more contained than what was expected a few months ago. On the top of this, the real growth rate in the quarter ending September 2018 has been more than a percentage point lower than that in the quarter before. Therefore, it was not a surprise that the RBI held the policy rates at its December monetary policy meeting. RBI forecloses the option of a rate cut As an explicitly inflation-targeting central bank, the clear mandate of the monetary policy is to take necessary measures to keep inflation around 4 percent. Moreover, the RBI is obliged to target retail and not any other form or component of inflation. With the current retail inflation is substantially lower than this target and the RBI's own projection of a further fall in the inflation during the rest of FY19, it is pertinent to question whether the central bank could explore a rate cut in a period when the real interest rate is at a historic high. Unfortunately the RBI has foreclosed this option. While moving from a 'neutral' to a 'calibrated tightening' stance at the last policy meet, the bank explained that the transition means that the 'rate cut' option is off the table. Interestingly, the 'calibrated tightening' phrase, on to its own admission, pertains only to the policy rate and not the liquidity. The latter turned accommodative post-August 2018 on the backdrop of upheavals in the corporate debt market and among the NBFCs. NBFCs may continue to need support; SLR cut negative for bonds The RBI has taken numerous general and NBFC-specific measures to ease the liquidity situation for NBFCs. The outcome has so far been on desired lines. Yet, problems faced by NBFCs would require considerable recasting of balance sheets and would be a long-drawn process. It is to be seen the extent to which the RBI aids this process. The phased statutory liquidity ratio (SLR) cut announced on December 5 would help the banking system with a seriously stretched credit-deposit ratio. This is also in line with the RBI's long-term objective to reduce pre-emption of banks' resources by the government without undermining the quality of banks' balance sheets. Yet, the process would potentially reduce bank holdings of the government by Rs 2 trillion by mid-2020 and may therefore be negative for the bond market. Outlook The RBI is likely to keep the policy interest rate unchanged for the current financial year. We feel that its change in policy stance from accommodative to neutral was ahead of the curve as also the move from neutral to calibrated tightening. As a data-dependent explicitly inflation-targeting central bank, the RBI should not procrastinate on reverting to the easing stance if inflation continues to hold below the target. The author is Chief Economist at Anand Rathi Securities.
thehindu.com 2018-12-06 17:10:00
December 06, 2018 22:22 22:40 IST more-in Format unavailable, say traders The Confederation of All India Traders (CAIT) has written to Finance Minister Arun Jaitley asking him to push the deadline for filing of annual GST returns to March 31, 2019 from December 31, 2018, now. "It is to bring to your kind notice that till today the format of filing of annual GST Return and even option is not available anywhere including on GST website as well," CAIT wrote in the letter. "The annual GST return assumes much significance as it gives last opportunity to assessees to rectify their previous return filed with the department for the concerned year." "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as such, we request your good self to extend the last date of filing annual GST return up to 31 March, 2019 for the period 2017-18," CAIT said. CAIT further said that a large number of traders in the country were not even aware that they had to file an annual return. "While urging for extension of last date, we also request that a widespread national campaign should be launched by the government to make assesses aware about the liability of filing annual GST return and its process," CAIT added.
thehindubusinessline.com 2018-12-06 16:03:00
PTI T+ T- Mumbai, December 6 The Confederation of All India Traders (CAIT) on Thursday said it has urged Finance Minister Arun Jaitley to extend the last date for filing the annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the Finance Minister, CAIT said the format of filing of annual GST return is not available anywhere including the GST Website. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. Published on
thehindubusinessline.com 2018-12-06 15:52:00
UP announces procedure for SGST relief to multiplexes T+ T- New Delhi, December 6 Shishir Sinha Multiplexes such as PVR, INOX and GGN can heave a sigh of relief as the Uttar Pradesh Government has announced detailed procedures for refund mechanism under Goods and Services Tax (GST) for multiplexes in the State. It is the second State after Rajasthan to announce such a mechanism. There are over 8,700 screens (both multiplexes and single screen) in India, out of which nearly 500 are in Uttar Pradesh alone. The basic principle of GST does not promote exemption, but prescribes for deposit of taxes due. However, both the Centre and States can prescribe refund mechanism in lieu of exemption to continue promoting industrial activities in their respective region. Accordingly, beneficiaries will first have to deposit the tax and then they will be given refund. The UP Government, in its Cabinet meeting on November 20, decided to have such a mechanism for the multiplexes/cinema theatre and has come out with details about "the limits and procedures of grant-in-aid given as an incentive to multiplexes/cinema theatres after the GST regime." This will be applicable to both running and under-construction entities. The need for such a policy arose after the entertainment tax was subsumed in the GST. Prior to introduction of GST, the State Government offered incentive in the form of five-year tax exemption to multiplexes. As part of the scheme of exemption, multiplex companies were allowed to retain 100 per cent of the entertainment tax charged in the first year, 75 per cent in the second and third years, and 50 per cent charged in fourth and fifth year of operations, respectively. There was question mark on continuation of such incentive post GST which forced many multiplexes to seek legal recourse for the continuation of the scheme. The Yogi Government then came out with the detailed procedure. Abhishek A Rastogi, partner at Khaitan & Co, who is the arguing counsel for various petitioners, termed this a big step forward towards the promises made to businesses and said that UP has lived up to the expectations. "It is to be seen whether the Central Government also offers similar benefit. However, the quantum of benefit granted is not the same as that promised in the past and hence the dispute to that extent may remain before the courts in case of few multiplexes. The State may consider extension of time to meet the deficit," he said. How reimbursement works According to circular dated December 3, the licence holders for the multiplexes/cinema theatres need to deposit the SGST (State Goods and Services Tax) collected from the viewers in State treasury. Within a month, by the pre-determined procedure and as per the allocated budgeted, the equivalent amount of the SGST collected from the viewers will be transferred in the account of the concerned multiplexes/cinema theatres. For all such units covered under incentives schemes before the application of GST regime and have incentive in the form of grants-in-aid, the amount of SGST deposited by them will be reimbursed as permissible on annual percentage basis. Various multiplex have different dates for the beginning of such incentives which will continue for five years. A senior State Government official said under the new mechanism, effort is to ensure commitment for the period as promised during the pre- GST regime. Earlier, the Rajasthan Government, in its new policy, decided to refund 50 per cent of the State GST collected on tickets to multiplex owners, who were promised exemptions. Published on
thehindubusinessline.com 2018-12-06 13:14:00
It has over 150 hospitals and around 17,000 beds for patients across the country New Delhi, Dec 6 The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. Recruitment It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. Exemption limit enhancement In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry. Published on
legaleraonline.com 2018-12-06 13:10:00
View PDF The Reserve Bank of India (RBI) recently issued a Press Release on December 05 reporting the Statement on Developmental and Regulatory Policies. This Statement sets out various developmental and regulatory policy measures for strengthening regulation and supervision; broadening and deepening of financial markets; and enhancing customer education, protection, and financial inclusion.The Release states: I. Regulation and Supervision 1. External Benchmarking of New Floating Rate Loans by BanksThe Report of the Internal Study Group to Review the Working of the Marginal Cost of Funds based Lending Rate (MCLR) System (Chairman: Dr. Janak Raj) released on October 4, 2017 for public feedback, had recommended the use of external benchmarks by banks for their floating rate loans instead of the present system of internal benchmarks [Prime Lending Rate (PLR), Benchmark Prime Lending Rate (BPLR), Base rate and Marginal Cost of Funds based Lending Rate (MCLR)]. As a step in that direction, it is proposed that all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks from April 1, 2019 shall be benchmarked to one of the following:"¢ Reserve Bank of India policy repo rate, or"¢ Government of India 91 days Treasury Bill yield produced by the Financial Benchmarks India Private Ltd (FBIL), or"¢ Government of India 182 days Treasury Bill yield produced by the FBIL, or"¢ Any other benchmark market interest rate produced by the FBIL.The spread over the benchmark rate "” to be decided wholly at banks' discretion at the inception of the loan "” should remain unchanged through the life of the loan, unless the borrower's credit assessment undergoes a substantial change and as agreed upon in the loan contract. Banks are free to offer such external benchmark linked loans to other types of borrowers as well. In order to ensure transparency, standardisation, and ease of understanding of loan products by borrowers, a bank must adopt a uniform external benchmark within a loan category; in other words, the adoption of multiple benchmarks by the same bank is not allowed within a loan category. The final guidelines will be issued by the end of December 2018.2. Mandatory Loan Component in Working Capital FinanceWith a view to promoting greater credit discipline among working capital borrowers, it was proposed in the Statement on Developmental and Regulatory Policies announced on April 5, 2018 to stipulate a minimum level of 'loan component' in fund-based working capital finance for larger borrowers. Accordingly, the draft guidelines in this regard were issued on June 11, 2018 for comments of the stakeholders. Taking into account the views of the stakeholders, the final guidelines which take effect from April 1, 2019 are being issued today.3. Aligning Statutory Liquidity Ratio with Liquidity Coverage RatioAs per the existing roadmap, scheduled commercial banks have to reach the minimum Liquidity Coverage Ratio (LCR) of 100 per cent by January 1, 2019. Presently, Statutory Liquidity Ratio (SLR) is 19.5 per cent of Net Demand and Time Liabilities (NDTL). Further, the assets allowed to be reckoned as Level 1 High Quality Liquid Assets (HQLAs) for the purpose of computing the LCR of banks, inter alia, include (a) Government securities in excess of the minimum SLR requirement; and (b) within the mandatory SLR requirement, Government securities to the extent allowed by RBI under (i) Marginal Standing Facility (MSF) [presently 2 per cent of the bank's NDTL] and (ii) Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) [presently 13 per cent of the bank's NDTL]. In order to align the SLR with the LCR requirement, it is proposed to reduce the SLR by 25 basis points every calendar quarter until the SLR reaches 18 per cent of NDTL. The first reduction of 25 basis points will take effect in the quarter commencing January 2019.4. Board of Management in Primary (Urban) Co-operative Banks (UCBs)The Expert Committee on licensing of new Urban Co-operative Banks (2010) under the chairmanship of Shri Y.H. Malegam had recommended, inter alia, that a Board of Management (BoM) be constituted in every Primary (Urban) Co-operative Bank (UCB), in addition to the Board of Directors (BoD) with a view to strengthening governance in the UCBs. This was reiterated by the High Powered Committee on Urban Co-operative Banks (Chairman: Shri R. Gandhi) constituted in January 2015.Reserve Bank of India had released draft guidelines on constituting BoM in UCBs on June 25, 2018 inviting comments from banks and other stakeholders. It is proposed in the guidelines to require UCBs to make a provision in their bye laws for setting up a BoM. The guidelines also propose that regulatory approvals such as expansion of area of operation and opening of new branches may be allowed only for UCBs that have made such a provision in their bye laws. Taking into consideration the responses received, it is proposed to issue final guidelines by the end of December 2018. II. Financial Markets 5. Access for Non-Residents to the Interest Rate Derivatives MarketIt was proposed in the Statement on Developmental and Regulatory Policies announced on April 5, 2018 that non-residents shall be given access to the Rupee Interest Rate Derivatives (IRD) market in India. The draft directions in this regard propose allowing non-residents to hedge their rupee interest rate risk flexibly using any available IRD instrument. Non-residents will also be permitted to participate in the Overnight Indexed Swap (OIS) market for non-hedging purposes, subject to a macro-prudential limit on exposure of all non-residents in terms of the interest rate risk undertaken (measured as PV01). Draft directions are being issued today for public feedback.6. Measures to Improve Liquidity Management by BanksCurrently, the Cash Reserve Ratio (CRR) balance of banks at the end of the day is being disclosed with a lag of 2-3 days, while the details of the currency in circulation are being released with a lag of one week. In order to enable banks to forecast their liquidity requirements with a greater degree of precision, it has been decided that the Reserve Bank will provide information on daily CRR balance of the banking system to market participants on the very next day. Accordingly, the daily Money Market Operations press release will contain the CRR figure for the previous day, with effect from December 6, 2018.7. Rationalisation of Borrowing and Lending Regulations under FEMA, 1999As part of the ongoing efforts at rationalising multiple regulations framed over a period of time under FEMA, 1999, it is proposed to consolidate the regulations governing all types of borrowing and lending transactions between a person resident in India and a person resident outside India in both foreign currency and INR, in consultation with the Government. The proposed regulations, viz., Foreign Exchange Management (Borrowing or Lending) Regulations, 2018 shall subsume the existing Notification No. FEMA. 3/2000-RB dated May 3, 2000, Notification No. FEMA. 4/2000-RB dated May 3, 2000 and Regulation 21 of Notification No. FEMA. 120/RB-2004 dated July 7, 2004, and rationalise the extant framework for external commercial borrowings and Rupee denominated bonds with a view to improving the ease of doing business. The consolidated regulation and guidelines will be issued by the end of December 2018. III. Customer Education, Protection and Financial Inclusion 8. Ombudsman Scheme for Digital TransactionsWith the digital mode for financial transactions gaining traction in the country, there is an emerging need for a dedicated, cost-free and expeditious grievance redressal mechanism for strengthening consumer confidence in this channel. It has therefore been decided to implement an 'Ombudsman Scheme for Digital Transactions' covering services provided by entities falling under Reserve Bank's regulatory jurisdiction. The Scheme will be notified by the end of January 2019.9. Framework for Limiting Customer Liability in respect of Unauthorised Electronic Payment Transactions involving Prepaid Payment InstrumentsThe Reserve Bank has issued instructions on limiting customer liability in respect of unauthorised electronic transactions involving banks and credit card issuing non-banking financial companies (NBFCs). As a measure of consumer protection, it has been decided to bring all customers up to the same level with regard to electronic transactions made by them and extend the benefit of limiting customer liability for unauthorised electronic transactions involving Prepaid Payment Instruments (PPIs) issued by other entities not covered by the extant guidelines on the subject. The guidelines will be issued by the end of December 2018.10. Expert Committee on Micro, Small and Medium EnterprisesMicro, Small and Medium Enterprises (MSMEs) contribute significantly to employment, entrepreneurship and growth in the economy. They remain, by their predominantly informal nature, vulnerable to structural and cyclical shocks, at times with persistent effects. It is important to understand the economic forces and transactions costs affecting the performance of the MSMEs, while often the rehabilitation approach to the MSMEs stress has focused on deploying favourable credit terms and regulatory forbearances. To this end, an Expert Committee will be constituted by the Reserve Bank of India to identify causes and propose long-term solutions for the economic and financial sustainability of the MSME sector. The composition of the Committee and its Terms of Reference will be finalised by the end of December 2018 and the report will be submitted by the end of June 2019.To view the entire Official Press Release in detail, please view the file attached herein.
btvi.in 2018-12-06 12:25:00
ESIC allows people other than subscribers to avail OPD services at its hospitals ESIC allows people other than subscribers to avail OPD services at its hospitals File photo: Logo of ESIC is seen in this illustration photo. Dec 06 2018 1 hrs ago New Delhi: The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry.
taxguru.in 2018-12-06 07:49:00
Annuity received from annuity policy purchased on maturity of the NPS account. For the employees who receive pension from their ex-employer is fully taxable under the head salaries. So it is not only the active employees whose salaries are taxed under the head Salaries but also the pension receive by ex-employees is also taxed under the same head. Like Salaried employees, the pensioners are also entitled to the benefit of standard deduction available upto forty thousand rupees every year which has been introduced from this year, against the pension received by them. You are entitled to commute certain portion of your pension and receive the present value of such commuted value of pension at the time of your retirement. For government employees and those working with government companies the entire value of commute pension is exempt. However for other employees commuted value of 1/3 of pension is exempt in case the employee receives any gratuity. In case the employee does not receive any gratuity, he can commute pension upto 50% of the pension and claim the same as exempt. Pension received under superannuation policy or employee pension scheme In case your employer had contributed towards superannuation fund or ha purchased superannuation policy for you, the pension received by your from the insurance company is taxable under the head Salary as it is received as a result of your employment. Even for the 1/3 of the commuted portion of pension receivable under the superannuation is fully exempt. Likewise the pension received by you under the EPS based on your contribution towards EPF is fully taxable in your hand. Since this pension is received as a result of your employment, you are entitled to claim standard deduction as discussed above. Family pension Pension received by the dependent of an employee is called family pension and is fully taxable in the hands of the dependent recipient/s. However as the pension is not received due to services rendered by the dependent the same is taxable under the head "Income From Other Source". However the dependent person who receives the pension is entitled to claim a deduction of 1/3 of the pension received subject to a maximum of fifteen thousand rupees against the deduction of forty thousand rupees available to retired employees. Annuity received from insurance company on the annuity policy purchased by you In order to ensure that you receive a certain sum at a fixed period, you can buy an annuity plan from an insurance company which in turn will pay the agreed amount at the agreed interval which is annuity but loosely called pension. The amount of pension received under an annuity plan is fully taxable under the head "income from other Sources." Since this amount does not have any co-relation with any employment, you are not entitled to claim standard deduction against this amount. Annuity received from annuity policy purchased on maturity of the NPS account. The employees who have opted for NPS instead of EPF account have to mandatorily buy an annuity plan from an Indian insurance company for 40% of the accumulated corpus. The pension received by these employee should be taxable under the head Salaries but since the employee can continue to contribute to his NPS account even after he leaves his employment or even when he turns self employed, it is doubtful whether in such situation the annuity received will become taxable under the head Salaries or it should be taxable under the head "Income From other Sources". Likewise even a self employed person can also contribute towards the NPS account and receive pension. Presently the income tax law does not have any clear cut provision as to the head under which the annuity received for annuity policy bough on retirement should be taxed. In my opinion for the salaried the pension should be taxable under the head Salaries and should also be entitled for standard deduction upto Forty thousand rupees. But Since the law is silent on this aspect it is risky to offer it under the head Salaries for claiming the standard deduction. Additionally salaried and self employed both can contribute additional fifty thousands to claim deduction under Section 80 CCD(1B) so the head under which the pension received will become taxable and whether one will be entitled to claim standard deduction is a grey area and clarificatory amendment of the law is needed to clear the clouds. The writer is tax and investment expert. Author Bio Qualification : CA in Job / Business Company : N/A
legaleraonline.com 2018-12-06 06:58:00
Twitter December 06, 2018 Report on listing of equity shares of companies incorporated in India on foreign stock exchanges, vice versa: SEBI View PDF The Securities and Exchange Board of India (SEBI) had on June 12, 2018 constituted an 'Expert Committee for listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated outside India on Indian stock exchanges', with a view to facilitating companies incorporated in India to directly list their equity shares on foreign stock exchanges and companies incorporated outside India to list on Indian stock exchanges, in view, particularly, of the ongoing evolution and internationalization of capital markets across the globe.The Committee recommended a framework for direct listing of equity shares of companies incorporated in India on foreign stock exchanges and vice versa. The Committee submitted its report to SEBI on December 4, 2018. The broad 'Terms of Reference' of the Committee were to: a) Examine in detail the economic case for permitting direct listing of Indian companies overseas and vice versa;b) Examine various legal, operational, and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa; and c) Make recommendations for a suitable framework in which to facilitate such direct listing. The Report States: "¢ The existing legal framework in India does not permit the direct listing of equity shares of companies incorporated in India on foreign stock exchanges. Similarly, companies incorporated outside India cannot directly list their equity shares on Indian stock exchanges."¢ The only available routes for companies incorporated in India to access the equity capital markets of foreign jurisdictions is through the American Depository Receipts ("ADR") and Global Depository Receipts ("GDR") regime. Companies incorporated in India can list their debt securities on foreign stock exchanges directly through the masala bonds and/or foreign currency convertible bond ("FCCB")/foreign currency exchangeable bonds ("FCEB") framework. On the other hand, companies incorporated outside India can access the Indian capital markets only through the Indian Depository Receipts ("IDR") framework."¢ A well-developed, smoothly operating capital market plays an important role in contributing to the health and efficiency of an economy. In addition, there is a strong positive relationship between capital market development and economic growth. Equity listings by companies incorporated in India on foreign stock exchanges would allow them to access foreign capital at a lower cost. The Indian economy, in turn, will experience added growth and economic development. Similarly, equity listings of companies incorporated outside India on Indian Stock Exchanges would improve the efficient allocation of capital and diversification for investors across the Indian economy."¢ As a result, SEBI felt it appropriate to consider facilitating companies incorporated in India to directly list their equity shares on foreign stock exchanges and companies incorporated outside India to list on Indian stock exchanges, in view, particularly, of the ongoing evolution and internationalization of capital markets across the globe."¢ Accordingly, to analyze this proposal in detail, SEBI constituted the 'Expert Committee for listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated outside India on Indian stock exchanges' on June 12, 2018."¢ Various sub-groups were formed to deliberate on specific issues and formulate a roadmap for the framework contemplated in this Report: One sub-group was tasked with preparing the "economic case" in favor of the intended direct listing framework, while another focused on examining the suitability of the extant legal framework in India and suggest appropriate changes to the existing laws, rules, and regulations. Another sub-group looked into the financial requirements and tax-related aspects. The Report is classified into different chapters as follows: 1. Chapter 1 covers the background and economic rationale for liberalizing the current framework to facilitate direct listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated outside India on Indian stock exchanges.i. This chapter presents an economic case for liberalizing the framework to permit direct listing of equity shares under different scenarios, viz. (i) listing of companies incorporated in India on foreign stock exchanges, and (ii) listing of companies incorporated outside India on Indian stock exchanges.ii. The economic case delves into the benefits that may accrue to all the stakeholders, i.e. the investors, issuers and various other market participants, to the companies incorporated in India as also those incorporated outside India and to the Indian economy as a whole.2. Chapter 2 deals with listing of companies incorporated in India on foreign stock exchanges.i. This chapter identifies the foreign jurisdictions and the stock exchanges where listing of equity shares of companies incorporated in India may be considered. It also identifies the primary policy issues under various statutes including Foreign Exchange Management Act, 1999 ("FEMA"), and laws formulated by other Indian regulators, such as, the Reserve Bank of India ("RBI"), SEBI and the Ministry of Corporate Affairs ("MCA"). Further, it also touches upon investor protection measures, investor KYC mechanism and the taxation regime.3. Chapter 3 outlines the general framework for the Committee's proposals on listing of equity shares of companies incorporated outside India on Indian Stock Exchanges.i. Similar to chapter 2, this chapter identifies the jurisdictions whose companies may be permitted to list their equity shares and the Indian stock exchanges for such listing. It also identifies the regulations, which will require amendments to allow companies incorporated outside India to list their equity shares on Indian stock exchanges and for Indian investors to invest in such companies, and also includes the key changes required in these regulations.4. Chapter 4 summarizes the major recommendations of the Committee.To view the entire Official Notification in detail, please view the file attached herein.
indiatimes.com 2018-12-06 06:53:00
By Archit Gupta The Central Board of Indirect tax and Customs ( CBIC ) has issued the format of annual returns under the Goods and Service Tax ( GST ). The Taxpayers have to file their first GST annual returns pertaining to the Financial Year 2017-18 by December 31, 2018. The government has introduced different types of annual return keeping in mind the various categories of taxpayers. For instance, GSTR-9 for regular taxpayers and GSTR-9A for composition scheme taxpayers have been issued. All the taxpayers registered under GST except input service distributors, casual taxable persons, non-resident taxable persons and persons liable to deduct tax at source, and are required to file the annual returns. Here are some key points one must keep in mind before filing the annual returns for the FY 2017-18: Reconciliation of the books of accounts and tax invoices are issued during July 2017 to Mar 2018 is of utmost importance; this should match the turnover declared in the audited financial statements. It is important for the figures in the books of accounts and the invoices to match or else the GST paid will be incorrect. Along with the invoices, debit and credit notes shall also be in agreement with books of accounts. Stock transfer between the units/branches of the company should be matched with the books of accounts to avoid any discrepancy in the stock-in-hand balance of the books and that of the GST data. Matching of e-way bill data with the tax invoices issued during the period is also very necessary. The e-way bill data state-wise should be carefully mapped with the invoices to keep track of the goods transported and GST paid thereon. Taxpayers should ensure that all the purchase & other service invoices are accounted for in the books of accounts and input tax credit has been duly availed. Any disparity between the input tax credit claimed and tax paid on purchases will result in an incorrect claim of ITC in GST returns. Once the purchase invoices are in agreement with the books of accounts, the taxpayers should ensure that the purchase data is duly uploaded by the suppliers; this data will be reflected in the GSTR-2A form. Before going forward with filing the annual returns, the taxpayers should reconcile all the monthly or quarterly GST returns with the books of accounts. The taxable, exempted and non-GST turnover should be carefully matched. Any difference should be immediately corrected. Ensure that the invoices on which input tax credit has been claimed should be paid within 180 days to the suppliers. If not, the credit availed on the same will be reversed and the taxpayers will be liable to pay such amount along with the interest and penalty if any. While reconciliation the GST paid by electronic cash or credit ledger, the taxpayers should also account for GST paid under Reverse Charge Mechanism (RCM) on the applicable expenses. Make sure that you follow the tips mentioned above, before the December 31, 2018. The rationale behind the filing of the annual return is to consolidate and declare all the information furnished in the monthly or quarterly GST returns during the year. (The writer is Founder & CEO ClearTax)