CBDT allows AMCs to directly manage offshore funds out of India

Source: The Hindu Business Line, May 19, 2019

New Delhi: Asset management companies (AMCs) can now graduate from being mere ‘advisors’ to offshore funds to becoming a direct, “full fledged manager” of such funds out of India. This comes after the Central Board of Direct Taxes (CBDT) removed a taxation related constraint that prevented Indian AMCs from taking up direct fund management activity for the offshore funds.

The CBDT has clarified that SEBI-approved asset management companies will be designated as ‘eligible fund manager’ and therefore entitled for benefits under Section 9A of the income tax law. This would mean that fund management activities carried for offshore funds by such AMCs would not be regarded as having a ‘business connection’ and would not result in a taxable presence of such offshore funds in India.

Even if the overseas fund is managed by AMCs from India there will be no adverse tax consequences for the overseas funds here. Hence, their global incomes will not be subjected to tax in India. Read the rest of this entry »

GST collection jumps to Rs 1.13 lakh crore in April, the highest since its rollout

Source: The Economic Times, May 01, 2019

The GST collections in April jumped to its highest level of Rs 1,13,865 crore since its roll out in 2017. While collections have been gradually increasing since August, they hit a record high last month of Rs 1.06 lakh crore, up from Rs 97,247 crore in the previous month, on the back of high compliance and increased number of returns.

The total gross GST revenue collected in the month of April, 2019, is Rs 1,13,865 crore of which CGST is Rs 21,163 crore, SGST is Rs 28,801 crore, IGST is Rs 54,733 crore, the ministry of finance said in a statement.

The ministry said the total number of GSTR 3B Returns filed for the month of March up to 30th April, 2019 is 72.13 lakh. The Centre has settled Rs 20,370 crore to CGST and Rs 15,975 crore to SGST from IGST as regular settlement. Rs 12,000 crore has been settled from the balance IGST available with the Centre on provisional basis in the ratio of 50:50 between Centre and the States.

India notifies pact with US for exchange of reports on tax evasion by MNCs

Source: Business Standard, Apr 30, 2019

New Delhi: India has notified the inter-governmental agreement with the US for exchange of country-by-country (CbC) reports on multinational companies regarding income allocation and taxes paid in order to help check cross-border tax evasion.

The agreement, which was signed by Central Board of Direct Taxes Chairman P C Mody and US ambassador to India Kenneth Juster in March, was notified by the revenue department on April 25.

This agreement for exchange of CbC reports, along with the Bilateral Competent Authority Arrangement, will enable both the countries to automatically exchange CbC reports filed by the ultimate parent entities of multinational enterprises (MNEs) in the respective jurisdictions, pertaining to the years commencing on or after January 1, 2016. Read the rest of this entry »

Finance Ministry brings in changes in e-way bill system to check GST evasion

Source: ETRetail.com, Apr 24, 2019

The Finance Ministry has introduced changes in the e-way bill system, including auto calculation of distance based on PIN codes for generation of e-way bill and blocking generation of multiple bills on one invoice, as it seeks to crack down on GST evaders.

Touted as an anti-evasion tool, the electronic way or e-way bill was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.

With instances of malpractices in e-way bill generation getting detected, the revenue department decided to rework the system for generation of e-way bill by transporters and business. Read the rest of this entry »

Capital gains tax relief likely for investors exiting startups

Source: The Economic Times, Apr 24, 2019

The government is considering exempting investors from tax on capital gains accrued when they exit a startup, in a bid to attract more funds into the sector. The Department for Promotion of Industry and Internal Trade (DPIIT) is weighing two alternatives to deliver this incentive — one, a blanket exemption, and two, a conditional exemption based on funds redeployed. The latter would be on lines of the benefits offered to nascent firms in the UK.

“We want to recommend that they should be exempt from capital gains while exiting,” an official told ET, adding that DPIIT is yet to make this recommendation to the revenue department. DPIIT will moot the idea when the new government takes over. The final budget for FY20 is likely early in July. Read the rest of this entry »

Service providers can opt for GST composition scheme by April 30: CBIC

Source: The Economic Times, Apr 07, 2019

The tax department has given service providers with turnover of up to Rs 50 lakh time till April 30 to opt for the composition scheme and pay 6 per cent GST.

The option to pay Goods and Services Tax (GST) at reduced rate of 6 per cent would be effective from the beginning of the financial year or from the date of obtaining new registration during the financial year.

Service providers opting for the composition scheme can charge a lower tax rate of 6 per cent from customers, as against the higher rates of 12 and 18 per cent for most services under GST. Read the rest of this entry »

GST mop up hits a record ₹1.06-lakh crore in March

Source: The Hindu Business Line, Apr 01, 2019

New Delhi: GST collections for March have hit a record high of over ₹1.06 lakh-crore. On the other hand, direct tax collections (personal income-tax and corporate tax) are likely to miss the Budget estimates.

According to a Finance Ministry statement, GST revenue in March 2019 grew 15.6 per cent year-on-year. The revenue for the March 2019 quarter was 14.3 per cent higher YoY. Read the rest of this entry »