Kerala Impose Disaster Cess
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Key Points of 32nd GST Council Meeting
Organizations engaged in supply of goods get relaxation from GST Registration. The existing threshold limit of Rs. 20 lakhs for obtaining the GST registration and levy of GST has been increased to Rs. 40 lakhs. The GST Council Meeting has given a choice to the States to choose the applicable threshold limit from Rs. 20 lakhs or Rs. 40 lakhs. The States have to take a decision on this within a week. No such relaxation has been given to supplier of services. The Government shall provide a free accounting-cum-billing software to small taxpayers. The limit of annual turnover, in the preceding financial year, for availing of the compositions scheme for goods has been increased from Rs. ...
No choice for assessees to opt for particular tax administration under GST
The division of assesses between Centre and State is decided by the Centre and State Governments. GSTN got an application developed using which Central and State tax authorities have uploaded the data on allocation of migrated taxpayers in the GST System database. As on 8th March, 2018 data on division of 60,89,534 migrated taxpayers has been entered into GST System. In order to ensure single interface for assesses under GST, the State Level Committees comprising of Chief Commissioner/ Commissioner of Central Tax and Commissioner of State tax have assigned the taxpayers to be under either the Central Tax or State Tax administration based on the turnover of the assesses on a proportionate ...
GST Council extends tax exemptions for exporters upto October 1, 2018
The GST Council in its 26 meeting decided to extend the available tax exemptions on imported goods for a further 6 months beyond 31.03.2018. Thus, exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports upto 01.10.2018, by which time an e-Wallet scheme is expected to be in place to continue the benefits in future. In a related development which would benefit the exporters, the Council reviewed the progress in grant of refunds to exports of both IGST and Input Tax Credit. The Council appreciated that the pace of grant of IGST refund has picked up. Thereafter, the Council directed GSTN to expeditiously forward the balance re...
E-way bill relief for now to E-commerce & courier firms
Small orders that are part of a large consignment of multiple deliveries will not require generation of an electronic-way bill from April 1. A relief to e-commerce, courier companies and the like. Only, this relaxation might be temporary. At its meeting on Saturday, the Goods and Services Tax (GST) Council decided to make it mandatory for inter-state movement of goods worth over Rs 50,000 to have e-way bills from April 1. The requirement for such bills in intra-state movement would be implemented in a phased manner. Giving details of the decision, the finance ministry said, "At present (from April 1), there is no requirement to generate an e-way bill where an individual consignment value i...
The Competition Commission of India (CCI) imposes penalties upon Jet Airways, InterGlobe Aviation & Spice Jet.
The Competition Commission of India (CCI) imposes penalties upon three Airlines for concerted action in fixing and revising fuel surcharge (FSC) on cargo transport. The Competition Commission of India (CCI) has imposed penalties upon 3 Airlines for concerted action in fixing and revising Fuel Surcharge (FSC) - a component of freight charges. The Final Order was passed by CCI on an information filed by Express Industry Council of India against Jet Airways (India) Ltd., InterGlobe Aviation Limited, Spice Jet Limited, Air India Limited and Go Airlines (India) Limited alleging cartelisation. The CCI noted in its Order that the aforesaid Airlines acted in a concerted manner...
Cabinet Approves Fugitive Economic Offenders Bill, 2018
Cabinet Approves Fugitive Economic Offenders Bill,2018 The Union Cabinet chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Ministry of Finance to introduce the Fugitive Economic Offenders Bill, 2018 in Parliament. The Bill would help in laying down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. Who are Fugitive Economic Offenders? A Fugitive Economic Offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal p...
27-07-2017 -MCA amends norms for shifting of registered office under Companies Act, 2013
he MCA has issued notification on 27th July, 2017 amending Companies (Incorporation) Rules, 2014, Amendments have been made with respect to: Rule 28 - Shifting of registered office within same state but from one ROC to another and Rule 30 - Shifting of registered office from one State/UT to another. I. Major changes in provisions for Shifting of registered office within State (Rule 28): Under the amended rules, MCA has done away with the requirement of: 1) Publishing of notice for shifting of registered office in daily newspaper published in English as well as in principal local language. 2) Issuing of individual notices to debenture holders, creditors and depositor for intimating if pro...
29-07-2017 – BRICS’ heads of revenue sign tax co-operation pact; hail India’s GST move
Heads of revenue of BRICS nations have signed a pact to identify areas of cooperation in tax matters among members of the group, and hailed India's indirect tax reform GST, finance ministry said on Friday. The meeting of the BRICS (Brazil, Russia, India, China and South Africa) Heads of Revenue and Tax Experts was held at Hangzhou,China from July 25-27. India was represented by Revenue SecretaryHasmukh Adhia. A Memorandum of Cooperation (MoC) in respect of tax matters identifying areas of cooperation, namely, coordination in international forums, capacity building, experience sharing and regular interaction was also signed by the BRICS Heads of Revenue, the ministry said. They also delibe...
29-07-2017 – Scope exists for consolidating GST rates: former Bengal FM Asim Dasgupta
Former West Bengal Finance Minister Asim Dasgupta, who chaired the Empowered Committee of State Finance Ministers that prepared the first draft of the Goods and Services Tax (GST) framework in 2009, says there is "scope for consolidating existing GST rates" to improve the present structure and suggests the highest slab of 28% be brought down to 18. "The present GST structure has multiple rates of 5%, 12%, 18% and 28%. The GST Council can consider whether the rate structure can be simplified and consolidated a bit. It can also look at whether there is any scope of bringing down the highest 28% rate and merge it with the 18% slab," Dasgupta told IANS in an interview. Having chaired the Empow...
29-07-2017 – Online petition demands roll back of GST on Kashmir handicrafts
Member of committee of administration, J&K region at Carpet Export Promotion Council ( CEPC) and a leading exporter Sheikh Ashiq has filed an online petition demanding roll back of Goods and Services Tax (GST) imposed on handicrafts. In GST list of goods and services, handicrafts have been taxed at 12 percent and come under Integrated State Goods and Service Tax (IGST) category. The online petition filed on www.change.org, globally renowned public petition platform, has received a good response with hundreds of people signing it within a few hours of it being filed. Ashiq has been previously president of Kashmir Chamber of Commerce and Industry. "There are no buyers and takers for the f...
28-07-2017 – GST will boost the insurance sector’s fortunes
The new nationwide goods and services tax (GST) to be rolled out from July 1 will create one of the world's biggest single markets. This makes GST, the biggest indirect tax reform since independence, stand out as a big driver towards formalization and transparency. For the multi-billion dollar Indian insurance industry, GST is expected to boost economic activities in the medium to longer term. As the well-being of the insurance sector is directly proportional to economic activities, it's but imperative that the insurance industry will also see significant growth. Such positive effects should ultimately help increase the penetration of insurance in India, where per capita premium underwritten...
27-07-2017 – GST: Global FMCG heads back reform, talk of short blip
India's goods and services tax (GST) has a found mention in the quarterly earnings calls and statements of global chiefs of nearly half a dozen consumer goods MNCs, as they cited the disruption caused by the transition to the new tax regime in a market whose profile has risen steadily within their global operations. The country accounts for 2-9% of the global sales of Unilever BSE -2.14 % , Colgate BSE -0.52 % , GlaxoSmithKline, Coca-Cola, Nestle BSE -0.14 % and Reckitt Benckiser, and is potentially a highgrowth market for them. Some of these companies said the impact of the GST rollout weighed down their overall global performance, highlighting India's importance as a key revenue generat...
27-07-2017 – Integrated Tax
Sections in force-Notification No. 3/2017 The Central Government has notified that provisions of sections 4 to 13, 16 to 19, 21, 23 to 25 of The Integrated Goods and Service Tax Act, 2017 shall come into force from 1st July 2017. Provisions of CGST will also apply for IGST- Notification No. 4/2017 The Integrated Goods and Services Tax Rules, 2017 have been notified and are deemed to have come into force retrospectively from 22nd June 2017. The Central Goods and Services Tax Rules, 2017, for carrying out the provisions specified in section 20 of the Integrated Goods and Services Tax Act, 2017 shall, so far as may be, apply in relation to integrated tax as they apply in relatio...
27-07-2017 -HSN Codes-Notification 12/2017
Every registered person with turnover more than 1.5 crores must mention the HSN Codes in each and every invoice. However, the numbers of digits to be mentioned in the Invoice depends on the annual turnover in the preceding financial year. Turnover in previous FY No. of digits Upto Rs. 1.50 Cr NIL More than Rs. 1.50 Cr. & upto Rs. 5 Cr 2 digits More than Rs. 5 Cr 4 digits The same notification has also been made under IGST (notification 6). Common Portal- Notification 4 /2017 It is notified that the website of the Common Portal is www.gst.gov.in managed by Goods and Services Tax Network. Modes of verification-Notification 6 & 11/2017 The m...
27-07-2017 – Latest GST Notifications
Central Tax Notifications Reverse Charge- Notification 5/2017 The persons who only supply goods/services on which reverse charge applies, are exempted from registering under GST registration. For example, For example, Ola Cabs enlist drivers to ply their cars. Drivers are providing chauffeur/driving services to Ola and Ola is the service receiver. Ola pays GST on the drivers’ services on reverse charge basis. Drivers are not required to register under GST thus removing the burden of tax compliance from individuals with limited resources (drivers) to large companies (Ola) with enough resources. Sections coming into force-Notification 1 & 9/2017 With the Notification of 1...
19-07-2017 – GST to benefit auto, retail, cement sectors, bad for oil and gas: Fitch
New indirect tax regime GST is likely to be beneficial for auto, cement and organised retail sectors, but will have a negative impact on oil and gas, and SME sectors, Fitch Ratings said today. In contrast, the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors, it said. "The national service tax (GST), is unlikely to lead to rating changes for any of Fitch's internationally rated corporates despite being negative for certain sectors," it said. However, implementation risks will remain over the next 12 months due to the complexities of adopting the new system amid a culture of poor compliance, particularly among the tradition...
13-07-2017 – GST eats into restaurant business, sales down 25%
Family outing on dinner once a week at a decent city hotel was a routine for Sunil Kumar Batra, a senior executive with a private company posted in the state capital. But, after the new tax regime under Goods andService Tax (GST) was rolled out on July 1, he is thinking twice before stepping out with family for dining. There are many people in the city like Batras, who are yet to come to terms with the new tax regime and have cut down their visits to the favourite restaurants and hotels. Thus, the losers are the medium class hotels. Business of these hotels has been hit by more than 25% post GST regime. Though, it is too early to reach a conclusion, but hoteliers say the initial trend during...
13-07-2017 – Government to keep an eye on price rise & GST glitches
Government to keep an eye on price rise & GST glitches Keep an eye on price rise and shortage of any commodity, report immediately in case of software glitches and complaints from traders, and file weekly reports by Sunday - this is a fresh directive to all central ministries from cabinet secretary PK Sinha, who has initiated a mechanism to keep ground level checks on the implementation of the goods and services tax regime. Sinha has written to secretaries of all ministries to put in place a grassroots mechanism to report price rise post-GST, software glitches, trader complaints, shortage of commodities and stakeholders who still have not switched to the new taxation regime. "To make t...
15-06-2017 – GST bonanza: Electronics, branded apparel cheaper, thanks to clearance sales
If you have been bitten by the shopping bug, you can't be blamed. Well, at least, not this year. After all, it is not often that retail stores offer steep discounts in the months of May-June. While monsoon sales by apparel stores usually start by end of June and electronic stores do have some clearance sales in June-July, this year with the Goods and Services Tax (GST) starting from July 1, discounts are bigger than before. For instance, electronic stores like Vijay Sales, Kohinoor and Digi1 are offering up to 50 per cent off on certain models or till stocks last. Snehanjali, another Mumbai-based electronic chain is advertising its offer as the pre-GST sale with a warning thrown in for good...
15-06-2017 – Paytm, 1mg, Shopclues offer discounts to clear stock ahead of GST roll-out
Online retailers like Paytm are offering special discounts to consumers to ensure that their sellers' stock is cleared before the goods and services tax (GST) regime sets in from July 1. Paytm has a 'Pre-GST Sale' going on, hosting over 6,000 retailers across more than 500 brands. Consumers can get discounts and cashback on a range of product categories like TV, laptops, mobile phones, ACs, refrigerators, DSLRs and footwear, among other items. "This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective," Paytm said in an emailed response. Even online drug marketplace, 1mg has joined the bandwago...
15-06-2017 – Govt to go soft on GST monitoring for a few months, let traders settle down
There will be some leniency in monitoring and implementation of the new goods and services tax in initial months to allow businesses to settle into the new tax regime, a review of GST preparations by a group of senior ministers was told. The discussions held on Wednesday saw the ministers being given a presentation of the planning done by the government so far, with officials informing that more than 4,500 meetings had been held all over the country to familiarise traders and businesses with the landmark tax reform. With the review going over feedback such as lack of internet connectivity in some parts which could affect uploading of data and the sheer novelty of the new measures, the mini...
15-06-2017 – GST registration for biz to reopen on June 25 as 1st deadline ends tomorrow
If you have not been able to register for the Goods and Services Tax Network (GSTN) within the deadline ending tomorrow, do not panic! There's one more chance coming your way as the registration for existing excise, service tax and value-added tax (VAT) payers will reopen on June 25. There are about 80 lakh excise, service tax and VAT assessees at present, of which 64.35 lakh have already migrated to the GSTN portal — the company that is readying the information technology backbone of the GST regime. The window for migration to the GSTN, which opened on June 1, will close on Thursday and during the fortnight, 4.35 lakh taxpayers have enrolled taking the total to 64.35 lakh. However, this...
14-06-2017- Manufacturer was eligible to credit of service tax paid on gardening services for maintaining green belt
CENVAT : Manufacturer of cement is eligible to CENVAT Credit of service tax paid on gardening services received by it for maintaining green belt as per government requirement CENVAT : In view of exclusion of renting of motor vehicle from definition of 'input service' from 1-4-2001, assessee would not be eligible to avail cenvat credit of service tax paid on hiring of tractors, for watering gardens [2017] 82 taxmann.com 34 (Hyderabad - CESTAT) CESTAT, HYDERABAD BENCH My Home Industries Ltd. v. Commissioner of Central Excise, Customs & Service Tax, Hyderabad* MS. SULEKHA BEEVI C.S., JUDICIAL MEMBER FINAL ORDER NO. A/30453/2017 APPEAL NO. E/30214/2016 MARCH 8, 2017 Rule 3 of ...
14-06-2017 – Don’t believe rumours: GST will roll out from July 1, says government
The government on Tuesday emphasised that Good and Services Tax will be rolled out from July 1 and preparations are in full swing for its smooth implementation, as it sought to dispel rumours of a possible deferment. There have been demands from certain sections of the industry for a deferment of GST rollout. West Bengal Finance Minister Amit Mitra too had proposed to postpone GST by a month. "The Government of India has emphasised that GST is scheduled to roll out on July 1, 2017. The Central Board of Excise and Customs (CBEC) in coordination with the state governments have increased their outreach programmes so as to reach the last trader," a finance ministry statement said. In a tweet,...
14-06-2017 -Please note! Imported garments to become 5-6% cheaper with GST
Imports are likely to remain 5-6 per cent cheaper than locally made apparel, despite the goods and services tax providing input credits to the textile industr. Apparel imports are subject to a countervailing duty (CVD) of 6 per cent on cotton and 12.5 per cent on polyester, which importers receive as a central value-added tax credit. The CVD is optional at a flat 2 per cent if the importer does not claim a set-off against input costs. The government has provided a 40 per cent abatement on this optional flat duty, which works out to 0.8 per cent. Thus, the total applicable tax is 1.2 per cent for importers who do not claim the set-off. This apart, importers pay a 4 per cent special additiona...
14-06-2017 – GST: Traders wary of building inventory
A sustained fall in prices of farm produce on expectations of a bumper kharif output is hurting farmers nationwide. Traders are not buying even at low prices due to tight liquidity and expectations of even lower prices after the GST is imposed. The government's decision to place essential food in the "zero" tax GST bracket has brought trade to a standstill. "Uttar Pradesh levies a purchase tax on wheat and Haryana and Jharkhand levy VAT on rice. Gujarat, Maharashtra, Karnataka, Tamil Nadu and Madhya Pradesh levy VAT on oilseeds. Many such commodities fall in the zero-tax GST bracket. Stockists are wary of building inventory on concerns that VAT credit will not be allowed," said Unupom Kausi...
13-06-2017 – Govt rules out centralised registration for banks under GST
The government on Monday ruled out centralised registration for banks under the Goods and Service Tax (GST) and has mandated separate registration for each state they operate in. Banks have been demanding a single centralised registration system, like at present, as they feel multiple registrations would create procedural and compliance problems. "They have no choice. They have some issues relating to registration which will be resolved in due course," said a top finance ministry official. At a meeting of finance ministry with the heads of public sector banks here today, a separate session was held on issues related toGST. "We have eased some of their problems. GST will be rolled out as ...
13-06-2017 – Traders need to declare only GSTIN for export, import
After the implementation of the Goods and Services Tax, traders would have to declare only their GST Identification Number at the time of import or export, the commerce ministry said on Monday. Currently, all exporters and importers declare their IEC (import-export code). With the implementation of the GST, it said GSTIN would be used for purposes of credit flow of IGST on import of goods; refund or rebate of IGST related to export. Registration number under GST is GSTIN. It is a 15-digit alpha numeric number code with PAN prefixed by state code and suffixed by 3 digit details of business verticals of the PAN holder. "It has been decided that importer/exporter would need to declare only...
13-06-2017 -Single GST rate on cinema exhibition, plead multiplexes
The goods and services tax (GST) cut for movie tickets below Rs 100 by the GST Council on Sunday has come as a breather for largely single-screen operators. From 28 per cent, this rate was reduced to 18 per cent. Close to 75 per cent of the 8,500-9,000 screens in India are single ones i.e. 6,000 to 6,500. Multiplex operators are disappointed. The revenue from tickets priced above Rs 100 is higher than that from tickets below Rs 100. While PVR and Inox Leisure, two of the country's leading multiplex operators, drive six to seven per cent of their revenue from movie tickets priced below Rs 100, for Mukta A2 Cinemas (from the Mukta Arts stable), the revenue from tickets priced below Rs 100 is...
13-06-2017 – 10% hike too little, we want more to offset GST impact, say pharma players
The pharmaceutical industry has sought permission to increase prices of non-scheduled drugs by more than the stipulated 10 per cent in a year, as the tax rate on most drugs was raised to 12 per cent under the proposed GST regime from the current nine per cent. In a meeting held by the Department of Pharmaceuticals with the drug industry, pharma representatives raised this issue. As per the Drug Price Control Order (DPCO) 2013, pharmaceutical companies can increase the price of non-scheduled drugs by upto 10 per cent each year. While 80 per cent of drugs have been put under the 12 per cent GSTrate, essential drugs are in the 5 per cent bracket. The industry also raised the issue of refund...
10-06-2017 – Pharma market grows 7% in May, beats pre-GST fears
The organised pharma retail market witnessed a decent growth of over 7% in May, debunking fears of a slower growth with GST around the corner. In fact, the market continued with its trend of steady growth this year, starting in January with 10%, then 7% in February , nearly 10% in March, and 8.3% in April. The growth was buoyed by 10 therapies including gastrointestinal drugs, which outgrew the market, and anti-diabetic drugs showing strong double-digit growth. There were fears that the market may witness a lower growth in May before GST kicks in, as there would be ostensible attempts to maintain a low inventory at both distributors' level and across retail pharmacies. It seems the retail m...
10-06-2017 – GST a worry for phone manufacturers bullish on India
GST a worry for phone manufacturers bullish on India Eighteen months after it cleared out of Tamil Nadu with its sole buyer the Nokia factory downing shutters, Taiwanese phone maker Foxconn has now matched the peak job creation levels it had touched while Nokia was operational in Chennai. Foxconn has 12,000 workers now putting smartphones together from inside five factory units of Foxconn in Andhra Pradesh's Sri City. It makes well over one lakh phones a day. Foxconn was one of the large factories to close down in Tamil Nadu and re-emerge within two months across the border in Andhra Pradesh to make smartphones. It started off in a small way, not dissimilar to a trail unit, to make smartp...
10-06-2017 – GST review sought on hybrid cars
Ahead of the GST Council's meeting on Sunday, the auto industry has sought an "urgent review" of the GST rate on hybrid electric vehicles, seeking a duty differential of 10% from the conventional ones. The industry body, in a letter to the Finance Ministry, has also requested that 15% cess recommended by the GST Council on luxury vehicles should not be levied on hybrid electric vehicles above four metres. "SIAM has requested that [for] all vehicles falling under the 28% GST bracket, their hybrid version should be levied a 10% lower GST rate of 18%, without any cess," an industry official said. SIAM said it had suggested a duty differential "to encourage new technology." Without such diffe...
10-06-2017 – GST: Tobacco growers to stall auctions today
Farmers in the traditional tobacco growing areas in Prakasam district, who have grown tobacco much against odds after a bad cropping season in the last two years, on Friday decided to stall auctions in all platforms in the Southern Black Soil (SBS) region on Saturday fearing steep fall in the market in the wake of the Centre imposing GST on tobacco leaves and unmanufactured tobacco. Farmers from different auction platforms in the SBS region took stock of the situation arising out of 5% GST on reverse basis on tobacco leaves and 28% on unmanufactured tobacco, and decided not to bring their produce to the market on the eve of the June 11 GST Council meeting to be chaired by Union Finance Mini...
10-06-2017 – Car leasing firms seek transition to GST to avoid being saddled with stiff levies
Car leasing firms seek transition to GST to avoid being saddled with stiff levies Companies that lease vehicles, including Uber, Ola and LeasePlan, have asked the government to provide a transition to the goods and services tax (GST) to avoid being saddled with stiff levies once the new tax regime is in place on July 1. For employees using cars leased by employers or companies leasing vehicles for their usage, the proposed goods and services tax (GST) could bite because there's no transition provision for the leasing industry. That could result in double taxation and sudden price shock for consumers once GST is rolled out. Under the proposed framework for GST on services, the transfer of ...
09-06-2017 – Industry gets 90 days to claim credit for GST transition stock
Industry gets 90 days to claim credit for GST transition stock Traders and retailers can file declarations within 90 days claiming a tax credit for transition stock after the GST rolls out from July 1. The draft transition rules for the Goods and Services Tax (GST) regime had pegged the time at 60 days. The transition rules approved by the GST Council provides that "every registered person entitled to take credit of input tax shall, within 90 days of the appointed day, submit a declaration electronically, specifying separately, the amount of input tax credit to which he is entitled...". It also gives commissioners the power to extend this period by further 90 days on the recommendation...
09-06-2017 – GST not to have much impact on prices of paints: IPA
Implementation of Goods and Services Tax (GST) is unlikely to have any significant impact on the price of paints for end-consumers. In fact, a short term disruption in supplies can be expected for a one to two month period, according to the Indian Paint Association. According to Abhijit Roy, MD and CEO, Berger Paints and the President of the Indian Paint Association, paints are being taxed under the 28 per cent slab in case of GST; which is closer to the effective rate of tax that the industry is paying at present. With VAT, excise and VAT on excise all put together, the effective rate previously was around 29 per cent. "As such there will be no impact on prices for end-consumers. The ta...
09-06-2017 – Interest on FD kept with bank as margin money to obtain letter of credit to be taxed as ‘income from other source’
IT : Interest earned on FDR kept with bank as margin money for obtaining letter of credit to purchase machinery was taxable as income from other sources IT : Where assessing Officer allowed assessee's claim for set off of interest earned on FDR kept with bank to obtain letter of credit against interest payable on borrowed fund without even examining under which provision of Act said set off had been claimed, Commissioner was justified in passing revisional order setting aside assessment in question [2017] 81 taxmann.com 478 (Rajasthan) HIGH COURT OF RAJASTHAN Commissioner of Income-tax v. Bhawal Synthetics (India), Udaipur* GOVIND MATHUR AND VINIT KUMAR MATHUR, JJ. D.B. IT APPEAL N...
09-06-2017 – Sec. 54 relief was available even if investment was made in new property before execution of sale deed
IT : Where pursuant to agreement of sale, possession of flat was handed over and sale consideration was received, it amounted to sale of flat within meaning of section 2(47) even though sale deed was executed subsequent thereto and, in such a case, when sale proceeds were invested by assessee in construction of new flat even prior to execution of sale deed, same was eligible for deduction under section 54 [2017] 82 taxmann.com 164 (Chennai - Trib.) IN THE ITAT CHENNAI BENCH 'B' Devichand Kanthilal Shah v. Income-tax Officer, Chennai N.R.S. GANESAN, JUDICIAL MEMBER AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER IT APPEAL NO. 3353 (MDS.) OF 2016 [ASSESSMENT YEAR 2013-14] MAY 31, 2017 ...
09-06-2017 – Payment of interest due to failure in handing over flat to buyer isn’t financial debt under Bankruptcy code: NCLT
CL : Where petitioner entered into agreement with respondent company for purchase of a flat in residential project to be developed by it and an assured amount of return had been promised as interest in case property was not handed over to buyer within prescribed time period, 'payment of interest' would not acquire status of a 'financial debt' under section 2(h) so as to initiate insolvency resolution process against respondent [2017] 82 taxmann.com 15 (NCLT - New Delhi) NATIONAL COMPANY LAW TRIBUNAL, NEW DELHI Devesh Singh v. Mega Soft Infrastructure (P.) Ltd. MS. INA MALHOTRA, JUDICIAL MEMBER AND S.K. MOHAPATRA, TECHNICAL MEMBER CO. APPLICATION NO. (IB) 70(ND)/2017 MAY 8, 2017 ...
09-06-2017 – Govt fixes GST rates on all items: Impact on sectors and stocks
Finance Minister Arun Jaitley over the weekend announced GST rates for a number of commonly-used items, including footwear, apparels and gold, following the 15th meeting of the GST Council. We have analysed the impact on some of the major commodities. Gold, gold jewellery, silver and diamond will be taxed at a GST rate of 3% against the current effective rate (excise plus VAT) of 2%. A higher rate would have enhanced tax evasion and smuggling. While this would make buying jewellery costlier, the move to levy higher tax would benefit the larger players in the organised sector. Retailers believe that consumer durables like TVs, ACs and Washing Machines, which will be taxed at a higher rate u...
07-06-2017 – GST rates fixed: 3% tax on gold, 5% on clothes costing less than Rs 1,000
The Goods and Services Tax (GST) Council on Saturday cleared the pending rules for the rollout of the new indirect tax regime from July 1. The include transition provisions and returns. All states have agreed to the July 1 rollout timeline. "Transition rules have been cleared and everybody has agreed for July 1 roll out," Kerala Finance Minister Thomas Isaac told said. Finance Minister Arun Jaitley chaired the 15th meeting of the GSTCouncil, where the rates of tax and cess on gold, biscuits, footwear and textiles were decided. Finance Minister Arun Jaitley explained the math of GST rate. Here are the highlights: * Packaged food items sold under registered trademarks to be taxed at 5 per c...
07-06-2017 – GST regime: Additional tax by states to impact margins, says United Spirits
Liquor major United Spirits has said its margins will be impacted by goods and services tax (GST), which is to be implemented from next month, on account of additional tax on input materials and services. Although the government has put portable alcohol or alcohol for human consumption out of the ambit of GST, state governments will continue to impose certain taxes. "Our initial assessment on GST suggests that, while alcohol for human consumption has been excluded from GST, the additional tax on input materials and services will result in stranded taxes, and impact margins," the Diagio-controlled firm said in an investor presentation. The firm said it will continue to work with the centra...
07-06-2017 – IT hardware prices to rise at proposed 28% GST rate: Industry
IT hardware firms have asked the government that uniform GST rate of 18 per cent should be applied on IT products, like monitors and printers, instead of 28 per cent proposed for some items, which will make them expensive. The IT hardware industry body MAIT has also sought clarity from the government on two rates of proposed for printers under goods and services tax (GST), and demanded that IT products should be covered under lower slab of 18 per cent, which is closer to the current tax levels imposed on them. "It is recommended that the list of IT goods as provided in the Information Technology Agreement...To which India is a signatory be subject to GST at the rate of 18 percent. This wil...
07-06-2017 – Govt fixes GST rates on all items: Impact on sectors and stocks
Finance Minister Arun Jaitley over the weekend announced GST rates for a number of commonly-used items, including footwear, apparels and gold, following the 15th meeting of the GST Council. We have analysed the impact on some of the major commodities. Gold, gold jewellery, silver and diamond will be taxed at a GST rate of 3% against the current effective rate (excise plus VAT) of 2%. A higher rate would have enhanced tax evasion and smuggling. While this would make buying jewellery costlier, the move to levy higher tax would benefit the larger players in the organised sector. Retailers believe that consumer durables like TVs, ACs and Washing Machines, which will be taxed at a higher rate u...
07-06-2017 – GST brings Diwali early as retailers offer upto 40 per cent discount
GST brings Diwali early as retailers offer upto 40 per cent discount For shoppers of white goods, the singeing summer has brought a cool Diwali gift. Costly home appliances are now available at 20-40 per cent discounts, as electronic-goods retailers rush to clear their old inventories ahead of the July 1 rollout of the goods and services tax (GST) and minimize their losses. Television-sets, refrigerators, air-conditioners and washing machines now have their price tags slashed. Discounts vary, depending on the life of the old stock and the cost price: Retailers say they would make a loss of about 6 per cent on unsold stock purchased before May, and about 14 per cent on one-yearold inventori...
07-06-2017 – Khadi yarn, Gandhi topi and national flag will be exempted from GST
GST - KHADI YARN, GANDHI TOPI, NATIONAL FLAG EXEMPT FROM GST PRESS RELEASE, DATED 4-6-2017 Khadi yarn, Gandhi topi, India's national flag will not attract any tax under the GST regime, while imitation jewellery, pearls and coins will carry 3 per cent levy from the next month. Besides, the GST Council yesterday decided to include rudraksh, wooden khadau, panchamrit, tulsi-kanthi mala, panchgavya, sacred thread and vibhuti — sold by religious institutions — in the definition of 'puja samagri' and maintained that these items would be exempt under the Goods and Services Tax (GST). Also chandan tika, unbranded honey and wick for diya have been exempt under the new indirect tax regime, ...
07-06-2017 – Amendments in GST rate schedule for goods
GST - ADDENDUM TO GST RATE SCHEDULE FOR GOODS [AS PER DISCUSSIONS IN THE GST COUNCIL MEETING HELD ON 3-6-2017] PRESS RELEASE, DATED 5-6-2017 The following amendments/additions are required to be made to the aforesaid document: 1. In Chapter 15, in the 18% rate column, the part entry from 1517 relating to edible mixtures of vegetable fats or oils, that is "edible mixtures or preparations of vegetable fats or vegetable oils or of fractions of different vegetable fats or vegetable oils of this Chapter, other than edible fats or oils or their fractions of heading 1516 [1517]" may be shifted to the 5% rate column [wherein all vegetable fats and vegetable oils at 5%]. [This will ensure that...
07-06-2017 – Circular No. 14 of CBDT on section 10(23C) relief doesn’t override provisions of Income Tax Act : ITAT
IT: Where assessee-educational institution was already availing exemption under section 10(22)/10(23C)(iiiab), and, thus, Commissioner (Exemptions) was already satisfied about actual existence of assessee as an educational institution, approval under section 10(23C)(vi) could not be denied invoking provisos to section 10(23C)(vi) IT: Where CBDT Circular No. 14/2015 cannot be said to be overriding provisions of Act [2017] 81 taxmann.com 474 (Amritsar - Trib.) IN THE ITAT AMRITSAR BENCH Kanya Mahavidyala v. Commissioner of Income-tax (Exemptions), Chandigarh* A.D. JAIN, JUDICIAL MEMBER AND T.S. KAPOOR, ACCOUNTANT MEMBER IT APPEAL NOS. 523,526 TO 528 (ASR.) OF 2016 FEBRUARY 22, 2017...