Directorate set up under CBEC for data analytics and nabbing evaders

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The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation

The government has set up a new wing under the indirect taxes body to provide intelligence inputs and carry out big data analytics for taxmen for better policy formulation and nabbing evaders.

The Directorate General of Analytics and Risk Management (DGARM) will be under the Central Board of Excise and Customs (CBEC), mainly to use internal and external sources for detailed data mining to generate actionable inputs, the revenue department said in an office memorandum. The DGARM, set up on July 1, coinciding with the roll-out of the GST regime, has four verticals headed by an official of rank of additional director general or principal ADG. It will function as an apex body of CBEC for data analytics and risk management, and report to the CBEC chairman.

Incidentally, the CBEC is to be renamed as the Central Board of Indirect Taxes and Customs (CBIC) after excise duty along with service tax and a dozen other central and state levies were subsumed into GST.

“The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation. The field formations of CBEC are expected to gainfully and effectively utilise the data and other inputs shared by the DGARM,” the memorandum said.

As part of the DGARM, a National Targeting Centre has been set up, which is responsible for application of a nationally coordinated approach to risk analysis and targeting of risky goods and passengers crossing the borders of the country. “It shall provide 24×7 operational risk interdiction supports to field formations of the CBIC,” it said.

The centre in question will institutionalise coordination with other government departments and other stakeholders for sharing databases, information, intelligence and reports to build risk profile of entities. A Centre for Business Intelligence and Analytics has also been set up and will be responsible for identification of information requirements of the CBEC. It will utilise data feeds from internal sources.

It shall be responsible for providing analytical inputs to support identification, targeting and risk management functions of the National Targeting Centre, the Risk Management Centre for Goods and Services Tax, and the Risk Management Centre for Customs.

The third vertical of the DGARM is the Risk Management Centre for Goods and Services Tax, which will institutionalise mechanism to collect necessary inputs, adopt coordinated approach and share the outcome for risk-based identification for the purpose of scrutiny, audit and enforcement functions.

Besides, the Risk Management Centre for Customs will be responsible for assessment and targeting of risky cargo crossing the borders through sea, air and land. The DGARM will do detailed data mining and analysis to generate outputs for focused and targeted action by field formations and investigation wings of the CBEC.

Source: http://economictimes.indiatimes.com/articleshow/59577530.cms

SME lending: YES Bank ties up with US-based OPIC, Wells Fargo

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YES Bank has teamed up with the Overseas Private Investment Corporation (OPIC) and Wells Fargo on an agreement to lend up to $150 million to small and medium enterprises (SMEs) in India.

Under the agreement, OPIC will provide $75 million in financing and up to $75 million in syndicated financing jointly with Wells Fargo to YES Bank.

Specifically, $50 million of the financing will be used to expand support to women-owned businesses, while another $50 million will be used for financing SME businesses in low-income States, YES Bank said in a statement.

It added that this will ensure access to funding for women-owned businesses and SMEs in India.

OPIC is the US government’s development finance institution. San Francisco-headquartered Wells Fargo is a diversified, community-based financial services company with $2 trillion in assets.

Rana Kapoor, Managing Director and CEO, YES Bank, said: “This facility will support financing to women entrepreneurs in India for driving future economic growth and job creation.”

Dev Jagadesan, OPIC’s Acting President and CEO, said, “OPIC’s facility will help YES Bank expand its SME lending capacity, specifically enabling them to reach both women and entrepreneurs in low-income States who have much to contribute to India’s economic activity.”

According to the statement, this is the third transaction between OPIC and YES Bank and comes close on the heels of last year’s $265-million OPIC facility, which the bank will use to extend SME financing in India.

The private sector bank said it has also partnered with International Finance Corporation and Women Entrepreneurs Opportunity Facility by drawing a $50-million loan in March 2016 for mobilising capital for women entrepreneurs.

 

Source: http://www.thehindubusinessline.com/money-and-banking/sme-lending-yes-bank-ties-up-with-usbased-opic-wells-fargo/article9768685.ece

Taxpayers have to opt for GST composition scheme by July 21

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Small businesses with turnover of up to Rs. 75 lakh have time till July 21 to opt for composition scheme under the Goods and Services Tax regime, GST Network said.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select ’Application to opt for the Composition Scheme’ under ’Services’ menu, a GSTN statement said.

“Any person who has been granted registration on a provisional basis and has turnover not exceeding Rs. 75 lakh, and who wishes to opt for the composition levy, is required to electronically file an intimation, duly signed or verified through EVC, at the GST portal on or before July 21, 2017,” GSTN Chairman Navin Kumar said.

Under composition scheme, traders, manufacturers and restaurants can pay tax at one per cent, two per cent and five per cent, respectively in the new indirect tax regime.

Businesses opting for composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses.

There are over 69 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which ushered in on July 1.

Besides, there are over 4.5 lakh new taxpayers who have registered in the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.

GSTN also clarified that taxpayers who have been given provisional IDs must complete all parts of the enrolment at the GST portal and submit the same along with the required documents with digital signature or EVC.

Once the form is completed and submitted, the enrolled taxpayer will be issued the final Certificate of Registration which would mark completion of migration under GST.

In case an enrolled taxpayer fails to submit the duly filled form with the requisite documents, his provisional registration is liable to be cancelled.

“A period of three months is allowed to complete the enrolment procedure by September 22, 2017. In the interim, they can issue tax invoice using the provisional ID already allotted to them,” Kumar said.

Source: http://www.thehindubusinessline.com/economy/policy/taxpayers-have-to-opt-for-gst-composition-scheme-by-july-21/article9767610.ece

GSTIN display on sign boards must for businesses

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The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Traders and businesses will have to display the GST registration number on their business sign boards and the registration certificate in premises.

Also, composition dealers will have to mention that they are availing the composite scheme and are not entitled to collect taxes from people.

“Every taxable person is required to display his GSTIN number on name board or sign board of business and is also required to display his registration certificate in business premises so that a citizen can easily find out whether a person is registered or not,” a tax official said.

The composition dealer is required to mention in the business premises along with registration certificate that he is not entitled to collect tax from taxpayers.

“That is the legal requirement. So that the citizen can find out whether the person from whom he is buying is entitled to collect tax from him or not,” the official added.

The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Initially, a business is given a provisional ID on logging into the portal and within 3 months the business has to complete the registration process by giving details of business. This provisional ID is then converted to GSTIN.

Revenue Secretary Hasmukh Adhia said that if a business entity does not generate certificate of registration within 90 days then the provisional ID will stand cancelled.

The GST, which subsumes service tax, excise and VAT, have been implemented from July 1.

Source : http://economictimes.indiatimes.com/articleshow/59531590.cms

GST impact on companies: Gloom and doom vanishes, India Inc at ease

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Contrary to gloomy predictions, the roll-out of the goods and services tax (GST) has been a much smoother affair and the industry has adapted to it without major hassles.

Contrary to gloomy predictions, the roll-out of the goods and services tax (GST) has been a much smoother affair and the industry has adapted to it without major hassles. As FE spoke to a cross-section of the industry, several government officials and the administrative and field levels, tax experts and analysts, some things came out clearly: The gap between the country’s existing indirect tax assessee base and those registered on the GST Network has almost vanished, indicating that even large sections of small businesses that had the option of composition scheme decided to join the GST bandwagon. Grouses over the compliance burden that the new tax has imposed on small businesses are fast disappearing except for the cavils of those not wanting to report their entire transaction volume for fear of increased income tax liability. There are of course some niggling issues like how to compute the tax liability under the reverse charge mechanism but these too are getting resolved.

FE spoke to Delhi-based companies consisting of electronics dealers, auto parts dealers, small chartered accountant (CA) firms among others. While most of the businesses were VAT assessees in the previous era, the CA firm registered on the GSTN portal as a first-time taxpayer.

“Migrating to GSTN was a simple process that only took ten minutes,” Nitin Gupta of Siyaram Bros, a company sells automobile parts to retailers across the country. Gupta said with over `30 crore in annual turnover, his company has had a smooth ride in the first ten days of the new indirect taxation regime, that marks a giant leap towards a one-nation- one-tax regime. Although, businesses have often stated that filing returns in GST would be complicated, Gupta said that most of the processes are similar to what companies were doing under the VAT system. “We are still a month away from filing the first return but I don’t see a problem,” he said.

Govind Kumar of Baba Computers and Sandeep Mittal of Mittal Sandeep and Associates, a CA firm, concurred.

For them, the GSTN registration did not involve any glitches. Both the companies had been using accounting and tax software from Tally, and have now switched to GST-enabled version of the same. The software solution is expected to cost about `11,000 per year.

Gupta, however, added that those retailers the company deals with have been in state of panic largely due to lack of awareness. The company expects smooth flow of input tax credits as it buys from big businesses who are expected to be GST-compliant. “Some of the retailers who we sell to may not be ready, which could impact our sale volume,” Gupta said.

Mittal, who runs the CA firm, said that most of his clients were assessees before and have migrated to GSTN without a hiccup. Among other issues, his firm has advised small businesses on whether to opt for general GSTN registration or become a taxpayer under composition scheme.

The scheme allows easier compliance for certain businesses with annual turnover of less than Rs 75 lakh. However, according to the law, firms under the scheme can neither avail input tax credit nor supply to other states.

“Most of my client deal with inter-state supplies and hence they aren’t eligible for the composition scheme so far,” Mittal said. He added that he has advised a few firm to opt for the scheme based on a cost-benefit analysis but even these businesses are keen to avail input tax credits.

Speaking about the the issues faced by his business, Gupta admitted that he wasn’t quite clear about the reverse charge mechanism and how to deposit tax collected under it with the government at the time of filing returns.

According to GST law, a recipient is required to collect and deposit taxes under reverse charge mechanism for certain services including transportation. Of the 81 lakh existing taxpayers, 68 lakh have migrated to GSTN while nearly 2 lakh new taxpayers have also registered on the portal at the end of June. The GST tax base appearing smaller than in the previous regime is a misnomer. Earlier, a large section of the taxpayers needed to register seperately with the Centre (for excise, countervailing duty on imports and service tax) and states (for VAT). The GST has removed these duplications.

Source: http://www.financialexpress.com/economy/gst-impact-on-companies-gloom-and-doom-vanishes-india-inc-at-ease/758103/

EPFO’s new enrolment scheme works, 10 million members added in three months

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The government’s idea of including the number of Employees Provident Fund Organisation (EPFO) subscribers to calculate formal jobs is likely to swell the latter’s formal number.

 

For, the PF body has added a little more than 10 million members in the past three months, taking its membership to around 48 mn, from 37 mn on March 31.

 

This has been due to EPFO’s new enrolment scheme. Under it, employers got the opportunity to file declarations for unregistered employees with a nominal fine of Rs 1 per annum. According to data reviewed by Business Standard, the body has added 10,131,453 subscribers under the new scheme, higher than its expectation of 10 mn new ones. Most of the rise has come from urban areas such as Mumbai, Delhi and Bengaluru — Mumbai has added the highest number of subscribers, at 1,287,500.

 

NITI Aayog vice-chairman Arvind Panagariya had earlier said a task force for calculation of employment would use other data sources such as EPFO, National Pension System and other private pension schemes for formalisation of the workforce, beside existing sources like the National Sample Survey Office and labour bureau.

 

The panel is headed by Panagariya himself. It was set up to suggest a revamp of employment data surveys, to ensure timely and reliable data for policy making. There was a view within the government that the current surveys did not provide a real picture on job creation.

 

However, the EPFO subscriber base might only be showing a formalisation of the workforce, not an addition to the job numbers. “As a result of this (our move), workers who earlier were out of the social protection coverage will now get these benefits,” V P Joy, the central PF commissioner, told Business Standard.

 

Source: http://www.business-standard.com/article/economy-policy/epfo-s-new-enrolment-scheme-works-10-million-members-added-in-three-months-117071000045_1.html

GST impact: Dismantling of check posts save 24-36 hours of trucking time

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The Goods and Services Tax (GST) is saving fleet owners between 24-36 trucking hours, besides around Rs 7,500 per trip at the tax check posts which have since been dismantled.

The Goods and Services Tax (GST) is saving fleet owners between 24-36 trucking hours, besides around Rs 7,500 per trip at the tax check posts which have since been dismantled, an industry association said on Monday.

“Our quick check has shown that on an average a lorry or truck runs for 10-12 hours a day and should cover a distance of about 2,200 km between, say, Delhi-Chennai in three days.” “However, traversing through different states and braving the stoppages at several check posts of VAT, Octroi, other local taxes it was taking five to six days,” Associated Chambers of Commerce and Industry of India (Assocham) said here in a statement. At least 24-36 hours would easily be saved for these trunk routes after dismantling of the check posts, it said after interacting with the fleet owners and transport intermediaries.

“Besides, the bigger nuisance of corruption at each of the check posts and through various states would have meant an additional expenditure of Rs 5,000-7,500 per trip. That has also been done away with.” “For now, it has come as a big relief for the transporters who say, the ultimate advantage is accruing to the customers and to the trade and manufacturing value supply chain,” Assocham said.

The interaction with the fleet owners revealed that before start of a trip, the crew, comprising driver(s) and helpers was given “out of pocket” or “petty cash” of at least Rs 10,000 for the trunk routes of Delhi-Mumbai, Delhi-Kolkata, Mumbai-Jaipur, Ahmedabad-Delhi, Bengaluru- Delhi routes and so on. On completion of the trip, the driver would give his account that would include the expenses at each of the forced halt points.

Assocham hoped that further improvement would be done in this direction in terms of improving other infrastructure. “For instance, the ‘no entry’ traffic restrictions can be done away if high class dedicated bye-passes are constructed around the major cities so that the truckers can ply seamlessly,” Assocham Secretary General D.S. Rawat said.

Improvement in freight movement through road and rail would not only result in a huge cost saving for the trade and industry but would also take India quite high on the global index of Ease of Doing Business, the chamber said.

Source: http://www.financialexpress.com/economy/gst-impact-dismantling-of-check-posts-save-24-36-hours-of-trucking-time/757083/