Centre working to make glitch-free e-way bill take off in 2-3 months

Source: The Hindu Business Line, Feb 06, 2018

New Delhi: The e-way bill under the Goods and Services Tax (GST), a mechanism to avert tax evasion on inter-State movement of goods, is likely to be re-notified in two to three months once the technical glitches are addressed.

Further, to ensure that IT problems do not hold up the system in future, the government is looking at an alternative option that can be used by businesses if they are unable to generate the e-way bill, which is an online ticket for movement of goods over ₹50,000 for distances over 10 km.

“A final date for making the e-way bill mandatory will be notified once the problems are sorted out and further tests are carried out,” said an official.

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GST: E-way bill system becomes mandatory for transporters

Source: Financial Express, Feb 01, 2018

After a fortnight of trial run, the crucial anti-evasion measure under the goods and services tax (GST), e-way bill, will become mandatory for transporters across the country from Thursday, 1st Feb. According to a steady-state estimate, 7-8 lakh such bills will be generated daily. Under the e-way bill system, every inter-state movement of goods with a value of over Rs 50,000 and being moved beyond 10 km, the transporter will have to generate an electronic bill on the designated portal. The bill will have the details of consignment, supplier and recipient, which is expected to help the tax department in verifying self-assessed tax returns filed by taxpayers. During the trial period that began from January 16, almost all states had come on board and the system generated 28.4 lakh bills till Tuesday. GST Network, the IT backbone for GST, saw 3.4 lakh e-way bills being generated on Tuesday. Read the rest of this entry »

Foreign or local, digital services companies equal before tax law

Source: The Economic Times, Feb 02, 2018

New Delhi: India has prepared a firm ground to tax the income of foreign digital service companies to shore up revenue and boost the concerted global move towards ending multinational company practices collectively dubbed as base erosion and profit-shifting.

The Budget has proposed an enabling rule, which broadly says that a MNC could have a business connection in India even without a physical presence in the country. Read the rest of this entry »

Traders say delay of billions in tax refunds slows India exports

index.jpgSource: The Economic Times, Nov 27, 2017

India’s exporters are a worried lot.

Four months after India’s biggest tax overhaul, traders are still waiting for 500 billion rupees ($7.7 billion) they say the government owes them in refunds, leaving them short of operating capital as overseas sales suffer.

“It’s an alarming situation,” said A. Sakthivel, regional chairman of the Federation of Indian Exporters Organisation in southern India. “Our working capital is stuck, we’re losing revenues and now we’re having to let workers go.” More than 10,000 workers have lost their jobs in the Tirupur export hub that employs half a million in the state of Tamil Nadu, according to Sakthivel.

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Income Tax Act set for overhaul

Source: LiveMint.com, Nov 23, 2017

New Delhi: After the indirect tax regime was transformed by the implementation of the goods and services tax (GST), the 56-year-old Income Tax Act is now set for an overhaul.

On Wednesday, the finance ministry sets up a six-member task force to draft a new direct tax law that will better serve the country’s economic needs by widening the tax base, improving compliance and ease of doing business.

Prime Minister Narendra Modi observed at a tax officials’ conference in early September that the Income Tax Act of 1961 was over half-a-century old and needed to be re-drafted.

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Tax clarity for subsidiary model of foreign banks

Source: Business Standard, Nov 20, 2017

New Delhi: The government has proposed to make it clear which foreign banks converting their branches in India into subsidiaries would be exempt from capital gains tax. Experts said this would address the tax concerns of foreign banks planning to operate in India via the subsidiary route. But non-tax matters would still guide their plans.

After the RBI had issued a framework for converting foreign banks’ branches into subsidiaries in 2013, only DBS Bank and State Bank of Mauritius had received in-principle approval to adopt this route. The income-tax department recently came out with a draft notification that gave detailed operational conditions to ensure foreign banks converting branches into subsidiaries were exempted from capital gains tax. It also proposed to allow carry forward of minimum alternate tax credit.

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Approvals to start-ups for tax sops multiply as govt softens stand

Source: The Hindu Business Line, Aug 18, 2017

New Delhi: Faced with criticism over the slow pace of approvals to start-ups for tax sops, the government has speeded-up the process with as many as 55 ventures getting the go-ahead in the on-going fiscal so far as opposed to just 10 approved in the last financial year.

“Approvals will be even faster in the coming months as now the inter-ministerial board (IMB) is giving reasons to applicants for non-approval and is allowing start-ups to apply again by making changes in their original proposals,” a government official told BusinessLine. The Prime Minister’s ‘Start Up India’ campaign launched in January 2016 with the objective of boosting entrepreneurship and creating more jobs across the country has been losing some sheen because of the low levels of tax incentives on offer and the handful of start-ups that qualified for it.

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