New direct tax code to benefit corporates, income tax payers

Source: LiveMint.com, May 13, 2018

New Delhi: Businesses and low-income earners will stand to gain the most from the new direct tax code that the government is working on, two people familiar with the matter said.

The proposed direct tax code, the draft of which will be ready by July, will take forward the government’s agenda of lowering corporate tax rate to 25% for all businesses and seek to give further relief to individual income tax payers.

The idea is to moderate tax rates for assessees without squandering the recent gains in revenue growth and tax base. Therefore, the proposed tax rate cuts will be incremental over a period of time as compliance and revenue collections grow. Between fiscal 2014 and fiscal 2018, income tax returns filed have risen over 80% to 68.4 million.

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Google tax may be broadened to cover non-digital MNCs

download.jpgSource: The Economic Times, May 08, 2018

MUMBAI: A budgetary proposal to tax multinationals with a substantial user base in India such as Google and Facebook is now being widened to include non-digital companies.

This could mean that any company that merely sells goods or services in India could see domestic taxes of up to 42% on their profits, said two people with direct knowledge of the matter.

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Central Board of Direct Taxes releases simplified ITR forms for FY19

download (3)Source: Business Standard, Apr 05, 2018

New Delhi: The Central Board of Direct Taxes (CBDT) on Thursday released a one-page simplified Income Tax Returns (ITR) Form-1(Sahaj) for the assessment year 2018-19, similar to that of the previous assessment year.

This initiative, the CBDT said, benefited around three crore taxpayers, who filed their return in this simplified Form.

Therefore, for the assessment year 2018-19 also, the CBDT released a one-page simplified ITR Form-1(Sahaj), which can be filed by an individual having income up to Rs 5 million and who is receiving income from salary, one house property / other income such as interest and so on.

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Cabinet clears tax pact between India-Iran

Source: The Economic Times, Mar 15, 2018

NEW DELHI: The Union Cabinet today cleared a double taxation avoidance agreement between India and Iran which will promote investment flow and curb tax evasion.

The agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income between India and Iran was approved by the Cabinet, headed by Prime Minister Narendra Modi, an official statement said.

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GSTN simplifies GSTR-3B filing process

download.jpgSource: The Economic Times, Feb 21, 2018

NEW DELHI: The GST Network today said it has simplified filing of sales return form 3B whereby businesses will now be able to see input tax credit balance on the return forms.

“One area where a few taxpayers were making errors frequently was utilisation of input tax credit (ITC) and computation of balance payment in cash. By improving the user interface and redesigning the process, filing of GSTR-3B has been made considerably convenient,” GSTN CEO Prakash Kumar said.

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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 »