Forex reserves hit life-time high at $365.49 bn

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Cross Border Transactions, M&As, Joint Ventures, Economy, Business Updates, Corporate Affairs, India & International - Corporate updates | 0

Country’s foreign exchange reserves rose by USD 2.81 billion to reach a life-time high of USD 365.49 billion in the week to July 29, helped by rise in foreign currency assets, the Reserve Bank said today.

In the previous week, the reserves had dropped by USD 664 million to USD 362.69 billion.

Foreign currency assets (FCAs), a major component of the overall reserves, rose USD 2.79 billion to USD 341.04 billion in the reporting week, RBI data showed.

FCAs, expressed in dollar terms, include the effect of appreciation/depreciation of non-US currencies such as euro, pound and yen held in the reserves.

Gold reserves remained unchanged at USD 20.58 billion.

The country’s special drawing rights with International Monetary Fund increased by USD 8.5 million to USD 1.48 billion while the reserve position rose by USD 13.6 million to USD 2.39 billion, RBI said.

Source: http://www.financialexpress.com/industry/banking-finance/forex-reserves-hit-life-time-high-at-365-49-bn/339688/

RBI launches website Sachet to tackle fraud

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0

The Reserve Bank of India (RBI) on Thursday launched a website from which anyone can obtain information regarding entities that are allowed to accept deposits, lodge complaints, and share information regarding illegal acceptance of deposits by unscrupulous entities.

 

Named Sachet, the website is expected to be helpful in coordination between regulatory authorities and law enforcement agents throughout the states so any unscrupulous money-raising activities can be curbed. Collective investment schemes (CISs) have come under the scanner and the regulators, particularly Securities and Exchange Board of India (SEBI) has cracked down on such activities after millions were duped by Sahara, Sarada, Pearl Agro, and such schemes.

 

Launching the website, RBI governor Raghuram Rajan once again warned the public not to fall prey to phishing emails that solicit money from unsuspecting people, in return for a fortune. Phishing is the activity of tricking people by getting them to give their identity, bank account numbers, etc over the Internet or by email, and then using these to steal money from them. “Please don’t fall prey for these fly-by-night operators who promise you the moon,” Rajan said. “Every day I get five or six such emails asking me the money I apparently promised … Reserve Bank does not give money. I don’t give my money to anyone,” Rajan said. The RBI governor stressed the need to stop such crime in progress and sites like Sachet will help curb that, Rajan said. Sebi wholetime member S Raman said the markets regulator has almost eliminated illegal CISs and complaints regarding these are now a trickle.

 

“The push factor behind these schemes was the agent commission. We have found that 30-35 per cent as agent commission was being given. And of course, legal loopholes were exploited too,” Raman said.

 

“The push factor we brought to the notice of the standing committee of the Parliament, which has recently submitted a report for a new legislation to the central government. One of the factors they have accepted is the existing of this push factor. And now, very soon, if the legislation is passed and when it is passed, commission of anything more than 3-5 per cent of any types of raising funds in this country will be deemed illegal,” Raman said.

 

Source: http://www.business-standard.com/article/finance/rbi-launches-website-sachet-to-tackle-fraud-116080500030_1.html

CBDT signs bilateral APAs with Japanese trading firm arm

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Cross Border Transactions, M&As, Joint Ventures, Income Tax,e-Filing- Individuals, Firms, Companies, India & International - Corporate updates | 0

The Central Board of Direct Taxes has signed bilateral advance pricing agreements with Indian arm of a Japanese trading company, a move that will help bring down transfer pricing disputes relating to intra-group transactions.

“The Central Board of Direct Taxes (CBDT) entered into a bilateral advance pricing agreement (APA) on August 2, 2016, with Indian subsidiary of a Japanese trading company. This is the first bilateral advance pricing agreement with a Japanese company having a rollback provision in it,” a finance ministry statement said today.
Overall, it is fourth bilateral APA signed by CBDT.

Signing of the pact is an important step towards ascertaining certainty in transfer pricing matters of MNC cases and dispute resolution, the statement noted.

The APA scheme was introduced in the Income-Tax Act in 2012 and the rollback provision in 2014.

The scheme intends to provide certainty to taxpayers in the domain of transfer pricing by specifying methods of pricing and setting the prices of international transactions in advance.

Its progress strengthens the government’s mission of fostering a non-adversarial tax regime, the statement said.

CBDT expects more APAs to be concluded and signed in the near future.

An APA, usually for multiple years, is signed between a taxpayer and the tax authority (CBDT in India) on an appropriate transfer pricing methodology for determining the price and ensuing taxes on intra-group overseas transactions.

Source: http://www.business-standard.com/article/pti-stories/cbdt-signs-bilateral-apas-with-japanese-trading-firm-arm-116080400879_1.html

EPF Act to be amended to include firms with 10 workers

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs | 0

New EPF Act may oblige small firms with 10 or more staff to deduct PF from workers’ salary

Government plans to amend the Employees Provident Fund Act to bring more workers under the ambit of retirement fund body EPFO by reducing the threshold for coverage of firms to 10 workers, Lok Sabha was informed today.

Labour and Employment Minister Bandaru Dattatreya said the plan is to amend the law so that firms with ten employees can also be brought under the ambit of EPFO to ensure more workers come under the umbrella of social security.

At present, it is mandatory under the Employees’ Provident Fund and Miscellaneous Provisions Act for firms having 20 or more workers to subscribe to social security schemes run by the Employees’ Provident Fund Organisation.

In his written reply, he said no proposal is under the consideration of the government to allow EPFO subscribers to contribute voluntarily towards pension scheme in addition to their employers’ mandatory contribution.

He said effort is on to bring more unorganised workers under the ambit of various social security schemes for which more projects are being unveiled. “There is more focus on these workers,” he said.

Responding to the ‘plight’ of beedi workers following the introduction of 85 per cent pictorial norm on tobacco products, Dattatreya said the Labour Ministry is working to impart vocational skills to beedi workers.

He said several representations were received regarding “adverse consequences” of the Health Ministry’s notification prescribing 85 per cent pictorial warning on tobacco products.

He said at a meeting chaired by him in April, concerns were raised by stakeholders. The report of the meeting was conveyed to the Health Ministry.

He said beedi workers are covered under group insurance scheme and provided assistance of Rs 10,000 in case of natural death and Rs 25,000 in case of accidental death. Rs 1500 is also provided for the funeral of deceased workers.

Financial assistance of Rs 5000 is given to widows or widowers of beedi workers under social security schemes for wedding of their first two daughters.

Source: http://economictimes.indiatimes.com/articleshow/53489861.cms

Today is the last day to file Income tax return, know easy steps if you haven’t filed yet

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The last date for filing income-tax returns was extended to August 5, and it ends today. Tax returns for 2015-16 (assessment year 2016-17) were originally to be filed by July 31. But in view of the day-long strike at public sector banks, the deadline was extended to August 5. However, the deadline for Jammu and Kashmir will be August 31 in view of the ongoing turmoil in the state.

The return is mandatory if your taxable income is above Rs 2,50,000.

The Revenue Authorities have introduced new reporting requirements for FY 2015-16 for Assets and Liabilities for individuals with income above Rs 50,00,000. In case of this, the individual has to disclose the cost value of all the assets above the specified amount, in the tax form, as well as disclose the debts associated with these assets- land, building, cash-in-hand, jewellery, bullion, vehicles, yachts, boats and any aircraft owned. It is advisable that you retain the purchase receipt of any of these assets.

It has almost become a ritual for people to delay filing their income tax returns till the last date and for the government to extend the same due to “popular demand”. However, the long queues that used to be another annual feature of the tax filing week has become a thing of the past due to the growing popularity of income tax e-filing.

The incometaxindiaefiling.gov.in has made it really easy for people to file their returns from the comfort of their homes.

If you have not yet filled you returns, here are some easy and essential steps to do it before the time ends.

Step 1: Select the right form: You have to select the form based on your source of incomes. So ITR-1 is for salaried individuals whose get a salary or a pension along with income from a house/property or from other sources, things like lottery. This is not for those with multiple houses/properties, income from winning a lottery, agricultural income of above Rs 5000, income from business. Tax payers filing for double tax relief should also not use this.

ITR-2A, introduced this year, is for those individuals who have income from more than one house property. ITR-2 can be used by individuals with no income from business / profession. ITR-3 is for individuals partnering in a firm, but not for those earning income from a proprietorship form. ITR-4 is for those individual earning income from a proprietorship firm. ITR-5 and 6 are for use by companies alone.

Step 2: Get your Form 16 ready: This form given by your employer shows your saving as well as the tax deducted. There will be multiple forms if you have changed jobs over the assessment year.

Step 3: Additional documents: You might need your bank statements, interest certificates, and your housing loan certificate (in case of housing loan).

Step 4: Download Form 26AS from the e-filing website to see which taxes are deducted at source

Step 5: Filing/uploading: Individuals with over Rs 5,00,000 income have to e-file their tax returns. You will get an automatic acknowledgement once the return is successfully uploaded. Verify this and submit the acknowledgement online, ideally with e-verification. This completes the process of filing your income-tax return.

Source: http://indianexpress.com/article/business/business-others/income-tax-return-filling-last-date-steps-to-file-it-2955207/

GST Bill passed: India gets tax regime that’s globally competitive, economically gainful

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0

Time was when an importer had to fork out as much as 220% customs duty and individuals were made to pay up to 97% income tax. The Indian tax system has undergone a sea change since then and the passage of the GST Bill by the Rajya Sabha on Wednesday capped the struggle of successive governments for a tax regime that is globally competitive and economically gainful.

From an abysmal level of less than 5% in 1960s, the country’s tax-to-GDP ratio rose to an all-time high of 11.89% in 2007-08 and stood at 10.7% in the last fiscal. While it’s still less than the 18-19% in some developed nations, the proposed GST regime promises to change it for the better. And as India gears up to embrace this regime, a look at the evolution of its tax system over the years suggests there are plenty that can be looked at with optimism.

One of the country’s most important indirect tax reforms started in one of its darkest hours, by one of its most eminent economist-finance ministers. In 1991, when the country was on the cusp of a balance of payment crisis, Manmohan Singh presented his “epochal budget”, drastically cutting the peak customs duty from 220% to 150%. He offered tax concessions for software exports and set up a commission under Raja Chelliah to suggest tax reforms.

He announced: “The time has come to expose Indian industry to competition from abroad… As a first step in this direction, the government has introduced changes in import-export policy, aimed at a reduction of import licensing, vigorous export promotion and optimal import compression.” The country’s peak customs duty now stands at 13.5%; for non-agricultural goods, the peak customs duty is even lower, at 10%.

While the steady reduction in the customs duties since 1991-92 forced the domestic industry to improve their competitiveness, the tax concessions announced by Singh led to the emergence of global IT giants like TCS, Infosys and Wipro. Even Chelliah, who later suggested broadening the tax base and levying lower and less differentiated rates, came to be called by some “the father of India’s tax reforms”.

In 1994, Singh also introduced a service tax (5%) on three services—telephone bills, non-life insurance and tax brokerage—seeking to cash in on the fast-growing services segment, which was making up for some 40% of the country’s economy. The service tax base and rates were steadily raised over the years. It’s no wonder that the service tax collection rose from a paltry R400 crore in 1994-95 to R2,10,000 crore in the last fiscal.

In 2000, the then finance minister Yashwant Sinha effected major rationalisation in the excise duty structure to introduce a single Cenvat rate of 16%. In 2004, with the integration of service tax with the Cenvat chain government sought to reduce the cascading effect of indirect taxes on ultimate consumer of goods and services. In 2005, the value-added tax regime kicked in, as the government decided to rationalise the sales tax system.

Continued

SEBI proposes changes in ITP norms to attract more firms

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0

The Securities and Exchange Board of India (Sebi) on Friday proposed changes to the Institutional Trading Platform (ITP), to draw more companies to it. Comment on the discussion paper has been invited till August 14.

Introduced in 2013, the platform allows companies, particularly in information technology (IT), to list without necessarily doing an Initial Public Offer of equity. So far, only around 40 companies are listed on the ITP platforms of the BSE or the National Stock Exchange.

IT companies to qualify on this platform need Qualified Institutional Buyer (QIB) shareholding of at least 25 per cent; other companies need 50 per cent. Sebi has proposed to expanded the definition of QIBs to investors such as family trusts and individual foreign investors. Also, to do away with the 25 per cent cap on single investors listed on the platform.

Further, it proposes to reduce the minimum institutional investor participation, from 75 per cent to 50 per cent. Also, to increase the ceiling on allotment to individual institutional investors from 10 per cent to 25 per cent to a single entity. Sebi has also proposed to make market making compulsory for a minimum of three years for an issue size of less than Rs 100 crore.

More important, it has proposed to ease trading lots on the ITP platform from Rs 10 lakh to Rs 5 lakh. Interestingly, Sebi has also proposed to rename ITP as  ‘high-tech start-up & other new business platform’.

Source: http://www.business-standard.com/article/markets/sebi-proposes-changes-in-itp-norms-to-attract-more-firms-116072901316_1.html