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No. Press Release Dated: 27-9-2016


Government of India Ministry of Finance Department of Revenue

Central Board of Direct Taxes

New Delhi, 27th September, 2016.

Press Release

Sub: CBDT Extends working Hours on 30th September, 2016 for IDS Declarations -reg

The Income Declaration Scheme, 2016 came into effect from 1st June, 2016. It provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets.

Declarations can be made online as well in printed copies of the prescribed form up to midnight on 30th September, 2016.

In order to facilitate the declarants who would like to file the declaration in paper form, the CBDT has issued instructions to all Principal Chief Commissioners of Income Tax across India to ensure that arrangements are made for receiving such declarations till midnight of 30-09-2016.

Accordingly, the counters for receiving declarations under the Income Declaration Scheme – 2016 shall be functional till 12:00 midnight on 30th September, 2016.

(Meenakshi J Goswami)

Commissioner of Income Tax

(Media and Technical Policy)

Official Spokesperson, CBDT.

No. 9/2016 Dated: 27-9-2016


The Income Declaration Scheme, 2016 – Undisclosed Income Invested in Acquisition of such Capital Asset – Order-Instruction – Dated 27-9-2016 – Income Tax

 

Instruction No.9 of 2016

F.No.142/8/2016-TPL

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Direct Taxes)

***

New Delhi, the 27th September, 2016

To,

All The Principal Chief Commissioners of Income-tax

Sub.: The Income Declaration Scheme, 2016 – reg.

Instances have been brought to the notice of the Board that some taxpayers are of the view that if a capital asset acquired out of undisclosed income is sold before 01.06.2016 and the sale proceeds so received are held in cash, then the amount of undisclosed income required to be declared under the Scheme shall be the amount of undisclosed income invested in acquisition of such capital asset as increased by the capital gain arising on sale of such asset determined in accordance with the provisions of the Income-tax Act, 1961 (i.e. sale consideration less indexed cost of acquisition).

2. In this context, it is clarified that the above method for arriving at the amount of undisclosed income for declaration under the Scheme is not in accordance with the provisions of the Scheme and clarificatory circulars issued by the Board from time-to-time.

3. The Board hereby reiterates the provisions contained in section 183(2) of the Scheme that where the income chargeable to tax is represented in the form of investment in any asset, the fair market value of such asset as on 01.06.2016 shall be deemed to be the undisclosed income for the purposes of the Scheme. In this context, it may be noted that cash in hand is an asset for the purposes of the Scheme.

4. This instruction may be brought to the notice of all the officers concerned and other stakeholders.

5. Hindi version of the instruction will follow.

(Dr. T.S. Mapwal)

Under Secretary (TPL-IV)

GST: Life insurers want exemption; general differential rates : 27-09-2016


As the GST rollout plans gathers momentum, life insurers sought exemption from the new taxation regime on premium income, while general insurers have demanded differential rates for their products.

Life insurers, who are set to write to the Prime Minister seeking exemption from the new tax regime, feel that their premium income has remained stagnant since the industry was brought under service tax in 2012.

Since life insurers are passing on service tax to customers, it has impacted their premium income growth which has been stagnant since then. The present service tax rate is 14.5 per cent and 0.5 per cent ‘Swachh Bharat’ cess.

A resolution to this effect was passed during the annual general meeting of the Life Insurance Council held here on September 16.

The demand comes as the first two-day GST Council meeting that ended on Friday in the National Capital, decided to meet on October 17-19 to finalise the maximum and minimum rates in the single national taxation regime.

Finance Minister Arun Jaitley has been repeatedly calling for ending tax exemptions to have lower GST rates as exemptions are forcing the government to impose higher rate of tax on other taxable items/sectors.

The Life Insurance Council, which is the umbrella body of 24 life insurers, is all set to write to the Prime minister in this regard shortly, as their representations to the finance ministry in the past have not been successful, a senior council executive said.

“Life insurers’ new business premium has remained stagnant at around Rs 1.25 trillion per annum since 2012 after the service tax was imposed by the government on premium income. This is in spite of the fact that earning capacity of the people has been constantly increasing,” Life Insurance Council secretary V Manickam told PTI.

“We have to pass it on to customers and they don’t find investing in insurance attractive anymore,” he added.

Forget service tax, the government has imposed a host of other taxes on life insurance premium which include income tax and ‘Swachh Bharat’ cess, he said and pointed out that in contrast, other financial products like fixed deposits, debentures, mutual funds, equities, NPS etc are exempted from these taxes.

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Moreover, investment under NPS is exempt from any tax under section 80(C) and even a special window has been opened under section 80 (C)(C)(D) which allows one to invest Rs 50,000 extra to save income tax payment.

Similarly, PF, at a time when an employee retires is not taxable at all. Similarly, the pension fund at the time of annuity is also tax free.

“Keeping this in view, we feel that a step-motherly treatment is being meted out to us and hence we are all set to write a letter to Prime Minister Narendra Modi soon,” Manickam said, adding “we have already made a host of representations on the topic to the finance ministry in the past.”

“We have been urging the government to exempt insurance premium from GST because we are doing a yeoman service to the nation. In fact, we are doing what the government was supposed to do by covering social security needs of the public,” he said.

Life insurers are making 50 per cent of their investments in central and state securities. As of March 2016, life insurers exposure to such debt instruments stood at Rs 15 trillion. While G-secs offer only an annual interest of around 7 per cent, corporate bonds get them 9 per cent or even more, thus losing 200 bps by investing in government bonds, he said.

Life insurers have paid Rs 7,000 crore in service tax to the government last year. When one includes other taxes like stamp duty, income tax and other such taxes and levies by 2.5 lakh employees of life insurance companies, the industry has paid Rs 25,000 crore in the form of taxes alone, he said.

Meanwhile, non-life insurers have already submitted their recommendations before the GST Council, the first meeting of which was held in New Delhi on September 22-23, demanding differential rates for their products.

There are four state-owned, and 17 private sector and two specialised general insurers in the country and majority of them are participating in the government-run scheme like Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Fasal Bima Yojana.

“We want differential rating for our various types of products looking at the end beneficiary of these schemes,” General Insurance Council secretary R Chandrasekaran said.

“If it is a government-run scheme through which the government wants to reach out to the poor, then the GST rate must be on a lower side,” he said, adding, “we also want a centralised registration facility in GST as we are operating nationally.”

Source : Business Line

GST Council to finalise registration, other rules on September 30 : 27-09-2016


Moving on fast track to meet the April 2017 GST rollout deadline, the tax department today came out with draft rules relating to registration, invoice and payment which will be finalised by the GST Council on Friday.

“We intend to have these rules approved by the GST council in its meeting on September 30 so that business systems can be modified by all,” Revenue Secretary Hasmukh Adhia tweeted.

The draft rules, on which the Central Board of Excise and Customs (CBEC) has invited comments by Wednesday, come less than a week after the first meeting of the GST Council.

“Business community may view them and give quick comments, if any, by 28th night on gst-cbec@gov.in,” Adhia said.
The draft rules provide for online registration by residents within three days of submission of application.

The non-residents, who will come under the purview of GST, will be required to electronically submit the application for registration at least 5 days prior to the commencement of business and deposit full tax liability in advance.

The government aims to implement the new indirect tax regime Goods and Services Tax (GST) from April 1, 2017, and to that effect the GST Council will hold its second meeting on September 30. The meeting would finalise rules for GST.

The draft rules also provide that if a tax official fails to take action on registration application within a stipulated time-frame, the application for grant of registration shall be deemed to have been approved.

As per the draft norms, the applicant seeking registration will have to submit PAN, mobile number, email address on the common portal or through a facilitation centre.

The tax authorities will use PAN, one time password and Aadhaar number to verify the details of the applicant.

In case all documents are in order, the tax official will approve GST registration in three working days from the date of submission of application.

Source : PTI

CBEC will take up 50% posts in GST Secretariat, says Najib Shah : 27-09-2016


The Central Board of Excise and Customs (CBEC) has said the department will take up 50 per cent of the posts in the Secretariat of the GST Council and will also depute officers in the GST Network (GSTN).

This was stated by CBEC Chairman Najib Shah in a recent letter to his officers, where he also urged them to “welcome” the Goods and Services Tax.

“As a Central service, CBEC will continue to collect the Central GST and integrated GST…We are in the process of encardering 50 per cent of all posts in the GST Council Secretariat for CBEC,” he said, adding that the department has also called for willing officers to take up some more posts in the GSTN.

The GST Secretariat, located here, will be the administrative headquarters of the GST Council that will decide on all key issues related to the tax.

“The Directorate of Systems is in the process of being strengthened, the IT infrastructure is being revamped and upgraded to meet the requirement of GST. The GSTN already has CBEC officers on deputation,” he said.

Shah also expressed dismay at concerns being expressed in some quarters and asked his officials to “rise up to the challenges” to ensure the success of the indirect tax reform. “We are at the cusp of the most historic change in the indirect tax structure and should welcome the opportunity,” he said.

An association representing officers of the Indian Revenue Service (IRS) had written to Finance Minister Arun Jaitley, seeking the transfer of the management of GSTN to the Directorate General Systems of CBEC.

Shah also noted that petroleum and tobacco products, which account for substantial revenues, will continue to attract Central excise duty and will be out of the ambit of GST.

The CBEC is in the process of restructuring its central excise and service tax commissionerates for the rollout of GST from April 1, 2017, under which there will be a single uniform levy replacing the two Central levies, State value added tax and other local cesses and levies.

The CBEC is also likely to be renamed as the Central Board of Indirect Taxes.

In this context, the CBEC Chairman said the changes must be embraced and the officials must take the lead in the restructuring. “Change management will be of paramount importance. We will have to provide a lead role in meeting the implementation challenges, training the officials and trade and industry, holding workshops, acquiring and imparting necessary IT skills.”

He further said that about 60,000 tax officials of both the Centre and the States will be trained in the next few months on GST law.

Source : Financial Express

Notification No : 42/2016 Dated: 26-09-2016


Non-levy of service tax on the services by way of advancement of Yoga – 42/2016 – Dated 26-9-2016 – Service Tax

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF EXCISE AND CUSTOMS)

NOTIFICATION No. 42/2016-Service Tax

New Delhi, the 26th September, 2016

G.S.R. 914(E).- Whereas, the Central Government is satisfied that in the period commencing on and from the first day of July, 2012 and ending with the 20th day of October, 2015 (hereinafter referred to as the said period) according to a practice that was generally prevalent, there was non-levy of service tax on the services by way of advancement of Yoga provided by entities registered under section 12AA of Income-tax Act, 1961 (43 of 1961) and this service was liable to service tax, in the said period, which was not being paid according to the said practice.

Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (32 of 1994), the Central Government hereby directs that the service tax payable under section 66B of the Finance Act, 1994, on the service by way of advancement of Yoga provided by entities registered under section 12AA of Income-tax Act, 1961 (43 of 1961) in the said period, but for the said practice, shall not be required to be paid.

[F. No. 137/37/2016-Service Tax]

RAJEEV YADAV, Director

Finmin may talk to EC before finalising Budget date : 26-09-2016


Before fixing a new date for the presentation of Union Budget 2017-18, the government is likely to hold discussions with the Election Commission to avoid any clash with the schedule of five states headed for polls.

Assembly elections are due to be held in February in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur.

“When we traditionally had the Union Budget presentation on the last day of February, the Election Commission always knew of it and would weave around poll schedule accordingly. Now that the government has decided to advance the Budget, some kind of consultations need to happen with Election Commission,” a top official said.

The elections in five states, he said, are likely to be held in phases and the government in no way wants any of them to clash with the Budgetary exercise.

The Cabinet last week agreed to advance the presentation of the Budget to complete the legislative exercise before the beginning of new financial on April 1 as it would help plan spending on schemes better and boost economy. The new date is yet to be decided.

The Finance Ministry has proposed that the Budget presentation be fixed for February 1 and the entire exercises be completed by March 24.

It wanted the Budget Session of Parliament to begin before January 25 and go in for a three-week break between February 10 and 15 before reconvening between March 10 and 15 to complete the legislative exercise.

But with assembly elections in five states likely to be held in phases, this Budget schedule may clash with the campaigning and polling. So the government wants to get a fix on the likely dates after speaking to Election Commission.

While tenure of Punjab, Manipur and Goa assemblies is due to end on March 18, 2017, that of Uttarakhand is till March 26, 2017. Uttar Pradesh assembly tenure expires on May 27.

The Cabinet had on September 21 in-principle decided to end the colonial-era tradition of presenting Union Budget on last day of February and advance it to help complete the legislative approvals for the annual spending plans and tax proposals before the beginning of the new financial year on April 1.

It also decided to scrap 92-year old practice of having a separate railway budget and merge it with general budget.
Presently, the Budget approval process happens in two parts extending to the second or third week of May, hampering early implementation of schemes and spending programmes.

To facilitate early presentation of the Budget, the finance ministry had proposed that the Budget Session of Parliament be convened sometime before January 25, a month ahead of the current practice.

Consequently, the preparation for the Budget would now start in early October and GDP estimates made available on January 7 instead of February 7.

Source : PTI

Modi promises to ratify Paris Agreement on Oct 2 : 26-09-2016


Prime Minister Narendra Modi on Sunday announced the country would ratify the Paris Agreement on October 2, Mahatma Gandhi’s birth anniversary.

This marked an end to uncertainty and flip flops that had gripped India’s climate change diplomacy ever since the failure to attain the Nuclear Suppliers Group (NSG) membership in June this year.

Modi announced his government’s decision in Kozhikode, Kerala, at the national conclave of the Bharatiya Janata Party (BJP).

The ratification requires a simple Cabinet approval at a time of the prime minister’s choosing and not a Parliamentary approval.

The announcement comes after the government’s attempt to link country’s ratification of Paris Agreement with the US putting its weight behind India’s bid to win a NSG membership came to naught.

A successful linkage was hinged on two factors.

One, that the outgoing US President Barack Obama is keen to have the Paris Agreement come in to force before his term gets over as his legacy; and two, India’s ratification would be essential for it.

The linkage, drawn up at the highest level in the government in June, lacked credibility to start with. India’s emission reduction commitments under Paris Agreement do not require a substantial increase of nuclear power in the future energy mix.

After linking the ratification to producing more nuclear power, implying the need for NSGmembership (and a more robust support from the US for it), the government changed its tone in September. On the side-lines of G20 talks, the government claimed ratification would not be possible this year because of procedural concerns.

Regardless of the reason proffered in public, the decision at the highest level to not ratify the Paris Agreement left the rest of government to mull the consequences within the climate diplomacy arena.

But within days, the government re-calibrated its line in public yet again, claiming it was making all the efforts to ratify but remained uncertain if it could do so in time for end-2016. The diluted line was to deflect from the obvious reading that India was playing a manoeuvre against the US in the hope of getting better support for its NSG membership.

It was the first sign of emerging understanding in the government that the gambit was failing. And, the gambit did fail when about 30 more countries ratified the Paris Agreement last week taking the total tally to 60.

This included almost all major emerging economies including China, Brazil, Argentina and others. EU remained the only key developed country group yet to join, but it, too, on Friday announced that it would collectively ratify the global climate compact before November.  This promised to leave India isolated and embarrassed about the brinkmanship around climate talks as US President Obama looked on track to get the legacy gift without India’s help.

The agreement requires 55 countries accounting for 55 per cent of the global greenhouse gasemissions to ratify in order for the pact to come into force. 60 countries adding up to 48 per centemissions have already done so and both the necessary thresholds would have been crossed by countries by October leaving India behind — risking global opprobrium. The annual climate negotiations are to begin on November 7 and an informal meeting of environment ministers is planned for October — both in Morocco.

Source : Economic Times

Change in law to ease exporters : 26-09-2016


The finance ministry has revised the declarations to be furnished by exporters who manufacture export goods by using inputs procured from domestic sources without payment of excise duty or under claim of rebate of excise duty paid on them. The amendment aims to remove an unnecessary difficulty that exporters face.

Till September 17, 2010, the notifications governing duty drawback at All Industry Rates (AIR) provided that the rates of drawback in the drawback schedule would not be applicable to products manufactured or exported by availing the rebate of the central excise duty paid on materials used in the manufacture of export goods in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of central excise duty under Rule 19(2) of the Central Excise Rules, 2002. The exporters were required to give a declaration in form ARE-2 (the form they are required to fill out before removal of export goods manufactured from inputs they had procured without payment of excise duty or under claim of rebate of excise duty paid on them) that they shall not claim any drawback.

Exporters said they were being denied the Customs component of the AIR drawback although the manufacturers had taken only the rebate of central excise duties in respect of their inputs/procured the inputs without payment of central excise duties, and that the Customs duties which remained unrebated should be provided through the AIR drawback route.

Since September 17, the notifications granting duty drawback at AIR allow Customs component of AIR drawback even if the rebate of central excise duty paid on raw material used in the manufacture of export goods has been taken in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of Central Excise duty under Rule 19(2) of the Central Excise Rules, 2002.

However, this benefit did not accrue to exporters as the declarations the exporters had to give in the ARE-2 form remained un-amended. They had to either forego the customs portion of the drawback or pay the duty on the inputs used in the manufacture of the export product. Now, after almost six years the government has removed that difficulty by amending the declaration prescribed in the ARE-2 form.

The Central Board of Excise and Customs (CBEC) has issued a detailed circular explaining the position. It says that when diesel is procured without duty payment as an input or where input stage rebate is claimed on diesel, no drawback will be available because a part of the excise duty is already factored into the Customs component of the drawback.

The CBEC has also clarified that when export oriented units supply their manufactured goods without duty payment to advance authorisation holders, the duty exempted on their inputs need not be recovered. It is again a useful clarification that has come about after a lot of delay.

In the meantime, the Director General of Foreign Trade has notified 2901 more items for benefits under Merchandise Exports from India Scheme and raised the duty credit entitlement rates for 575 items under the scheme.

Overall, last week was a good one for exporters.

Source : Business Standard

Here’s how Narendra Modi govt is looking to cut your festive season food bill : 24-09-2016


In a bid to boost supplies and check prices of agricultural commodities during the upcoming festive season, the government on Friday cut import duty on wheat and potato to 10% while reducing it by 5% on crude as well as refined palm oils.

The move would help in importing the commodities once their prices start going up.

The Central Board of Excise and Customs (CBEC) in a notification stated that the import duty on wheat has been reduced from 25% to 10% till February 2017. It also said that the import duty on potatoes has been reduced to 10% from 30% till October 2016.

According to the notification, duty on crude palm oil has been reduced to 7.5% from 12.5% and on refined palm oil to 15% from 20%.

It’s noteworthy that in case of wheat, the government has reduced the import duty despite reported higher domestic production of 93.50 million tonne (MT) in the 2015-16 crop year (July-June).

Earlier, the food ministry had proposed the cut in wheat import duty as the procurement by the government-owned agencies like FCI had dropped sharply to close to 23 MT this year, from 28 MT reported last year.

 Industry sources said that the flour millers had demanded withdrawal of the import duty citing 5 MT shortfall in the domestic output. FE earlier this week had reported that the government would soon take a call on restricting sale of wheat stock by FCI through open market sale scheme (OMSS) to bulk buyers mainly because of inadequate stock level.

In FY16, FCI had sold 7.1 MT of wheat through OMSS while in the 2014-15, the corporation had sold more than 4.2 MT of grain to bulk purchasers. The food ministry in consultation with FCI is set to decide on continuing with OMSS for wheat to bulk buyers such as flour millers and food companies shortly.

Sources told FE that even prior to commencement of coming festive season when demand for wheat usually picks up, FCI has sold close to 2.2 MT of wheat under OMSS in the current fiscal so far.

In case of potato, the government reduced the import duty to improve the domestic availability. As per the official data, potato output has declined by 9% to 43.7 MT in 2015-16 crop year (July-June) compared to 48 MT last year.

Edible oil industry body Solvent Extractors Association of India has opposed the import duty cut on refined palm oil. It stated that higher duty difference between crude and refined palm oil would encourage domestic refining.

Currently the country’s half edible oil requirement is met through palm oil import from Malaysia and Indonesia. The country is set to import record 15 MT in the current 2015-16 oil year ending October.

Source : PTI

States happy with outcome of GST Council’s first meeting : 24-09-2016


Left-ruled Kerala on Friday sought a decision on the formula for compensating states for any loss of revenue post the implementation of goods and services tax (GST) before a rate is decided even as most others hailed the decisions taken at the first Centre-State council meeting on the new tax regime.

At the first meeting of the GST Council, states proposed certain formulae based on their revenues for calculating compensation while the Centre proposed compensating states if the revenue growth rate falls below 12 per cent.

“The Centre had suggested an average of last three years of revenue, some states said it should be best of three years out of five. Then the Centre went back and suggested that it should be based on pan-India revenue growth rate of 12 per cent. Almost all states are in agreement that it has to be the best of three years out of five,” Kerala Finance Minister Thomas Isaac said.

The compensation needs to be thrashed out before deciding the rate, he said.

Gujarat Minister of State for Finance Rohit Patel proposed the formula of the best three of the last 10 years for calculating compensation to states while West Bengal put it at the best three of the last 6 years.

Chhattisgarh Finance Minister Amar Agrawal said all states were on board for GST implementation by April 1, 2017.

States and the Centre on Friday agreed to Rs 20 lakh as the turnover limit for exemption from GST, with states saying their share of revenue would be protected.

“Delhi wanted that the exemption threshold should be kept at Rs 25 lakh, but the Council decided on Rs 20 lakh. Our revenues will be protected,” Delhi Deputy Chief Minister Manish Sisodia said.

Uttar Pradesh Minister of State for Skill Development Abhishek Mishra said the state is happy with the Rs 20 lakh figure and it would be hassle free for traders.

Haryana Finance Minister Captain Abhimanyu too said there will be no loss of revenue to the state.

“We would like to be fully compensated and the Centre has given that assurance. Now only the broad modalities are to be decided,” he said.

Odisha Finance Minister Pradeep Kumar Amat said the central government will compensate for five years for revenue loss and this will be discussed in the next meeting.

According to the West Bengal Finance Minister Amit Mitra, three alternatives were discussed.

A state can be compensated if the revenue under GST falls short of the average tax earnings in the best three years out of the past five.

Second, of the five years, two outliers are left out and an average is taken. If the revenue under GST is short of this, then states get compensated.

Third, a base year can be fixed and a particular growth rate decided for all states. If the revenue falls short of that, then compensation kicks in.

The base year for compensation has been agreed as 2015-16 and the average of five years will be taken, he said, adding that if for some reasons the base year becomes 2016-17, then the average would be taken for 6 years.

The GST Council, chaired by Union finance minister, will meet again on September 30 and discuss the compensation issue. In the October 17-19 meeting, the Council will decide on the rates.

The officials of both the Centre and states are working on thrashing out a consensus on the compensation formula.

Source : Business Standard

GST threshold fixed at Rs 20 lakh in GST council’s meet, rate to be decided in October : 24-09-2016


The Centre and states made substantial progress on the goods and services tax by arriving at several decisions on the levy at the first meeting of the GST Council, bolstering expectations that the government will be able to meet an April 1, 2017 deadline for its rollout.

The two-day inaugural meeting of the council, consisting of state and central representatives, has set the stage for a discussion on rules and what the eventual rates will be. The council will meet next on September 30 to finalise rules and subsequently on October 17-19 to thrash out the rates.

Given that views among the states and the Centre vary widely on rates, that meeting could see some tough negotiations. The government doesn’t want to set the rate too high as that could be inflationary and make it a harder sell, while states are wary of losing too much revenue with a low rate.

On Friday, the council agreed to an exemption threshold of Rs 20 lakh for all states barring the north-east and hill-area states. It also adopted a cross-empowerment model for tax administration, a formula for compensating states and agreed to subsume all cesses into the new tax.

“All decisions were taken by consensus at the first GST Council meeting spread over two days,” Finance Minister Arun Jaitley told reporters on Friday after the meeting ended. “We did not require voting on any issue.” Jaitley, who is chairman of the council, said significant progress had been made on all agenda items.
On Thursday, the first day of the meeting, the council bound itself to rules of functioning and agreed to a work and agenda schedule.

The GST threshold was set at Rs 10 lakh for the north-east and hill states, which had been given a carve-out in the constitutional amendment that paved the way for GST. “We discussed the issue informally before the meeting and then it was formally taken up,” Jaitley said. “It was decided that those with turnover below Rs 20 lakh would be exempted under GST.”

Some states including UP had favoured a lower threshold than the Rs 25 lakh proposed earlier. “We will try to finalise the rates and the slabs during our meeting on October 17, 18 and 19,” said the finance minister.

Experts welcomed the raft of decisions at the first council meeting. “The inclusion of cesses in the GST would significantly benefit all businesses and would increase the available pool of credits which can be used to offset the GST liability,” said MS Mani, senior director at Deloitte Haskins & Sells LLP.

“Industry would also welcome the move to have a single assessing authority, instead of having a dual system of assessment and scrutiny, which was a major concern for businesses,” said Pratik P Jain, leader, indirect tax, PwC India. “The decision that all cesses would also be subsumed in GST provides much-needed clarity to industry.”

Dual Control issue

The cross-empowerment model will allow taxpayers to restrict their interaction to a single tax authority for central GST, state GST and integrated or iGST. Central and state GST are two components of a single GST levied on intra-state sales, while iGST will apply to inter-state sales.

“This has been a very complicated issue… The empowered committee of state finance ministers had also deliberated on the issue for months,” Jaitley said, adding that the council decided on “cross-empowerment with single interface.” Jaitley said all 11 lakh service providers registered with the tax department will be assessed by central tax authorities and new ones will be shared with state authorities after due training.

This could, however, mean dual control for companies that have both services and goods supplies, said Harishanker Subramaniam, national leader, indirect tax, EY India. Assessees with a turnover of less than Rs 1.5 crore annually will be assessed by state tax authorities and those above that through the new cross-empowerment model.

Under this model, tax administrators will use a formula to decide which assessees they will audit or register. The taxpayer will then have to interact with one authority. “Principle has been agreed and details will be worked out,” Jaitley said.

Compensation design

The Centre is required to compensate states for any loss of revenue for the first five years. Jaitley said the draft compensation formula has been decided and the Centre has agreed to states’ demand that FY16 be set as the base year for measuring these losses apart from the payment of compensation at regular intervals on a quarterly basis.
The growth rate formula in revenue is yet to be worked out. “We have taken all suggestions about method of projecting revenues and have to decide on one… Officials will discuss on these and come up with a presentation,” he said. Some states want the three best of the last five years to be taken up, others want two outliers among five.

Source : Economic Times

 

Notification No: G.S.R 908(E) [F.NO.01/34/2013-CL-V-P Dated: 23-9-2016


COMPANIES (MANAGEMENT AND ADMINISTRATION) AMENDMENT RULES, 2016- AMENDMENT IN RULES 3, 9, 13, 17, 20, 22, 25 AND FORM MGT-6

NOTIFICATION NO. GSR 908(E) [F.NO.1/34/2013 CL-V-PART-I], DATED 23-9-2016

In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Management and Administration) Rules, 2014, namely:—

1. (1) These rules may be called the Companies (Management and Administration) Amendment Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Management and Administration) Rules, 2014 (hereafter referred to as principal rules), in rule 3,—

(a) in sub-rule (1), for the proviso, the following proviso shall be substituted, namely:—
“Provided that in the case of a company existing on the commencement of the Act, the particulars as available in the register of members maintained under the Companies Act, 1956 shall be transferred to the new register of members in Form No.MGT-1 and in case additional information, required as per provisions of the Act and these rules, is provided by the members, such information may also be added in the register as and when provided.”;
(b) in sub-rule (2), for the proviso, the following proviso shall be substituted, namely:—
“Provided that in the case of a company existing on the date of commencement of the Act, the particulars as available in the register of members maintained under the Companies Act, 1956 shall be transferred to the new register of members in Form No.MGT-1 and in case additional information, required as per provisions of the Act and these rules, is provided by the members, such information may also be added in the register as and when provided.”,

3. In the principal rules, in rule 9,—

(a) in sub-rule (1), the words “in duplicate” at both places where they occur, shall be omitted.
(b) in sub-rule (2), the words “in duplicate”, at both places where they occur, shall be omitted.

4. In the principal rules, for rule 13 the following rule shall be substituted, namely:—

“13. Every listed company shall file with the Registrar, a return in Form No.MGT-10, with respect to changes in the shareholding position of promoters and top ten shareholders of the company, in each case, representing increase or decrease by two per cent or more of the paid-up share capital of the company, within fifteen days of such change. ”

5. In the principal rules, in rule 17, in sub-section (2), in the Explanation, for the words “on working day”, the words “on any day except national holiday” shall be substituted.

6. In the principal rules, in rule 20, for sub-rule (2), the following sub-rule shall be substituted, namely:—

“(2) Every company which has listed its equity shares on a recognised stock exchange and every company having not less than one thousand members shall provide to its members facility to exercise their right to vote on resolutions proposed to be considered at a general meeting by electronic means:

Provided that a Nidhi, or an enterprise or institutional investor referred to in Chapter XB or Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 is not required to provide the facility to vote by electronic means:

Explanation.— For the purpose of this sub-rule, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies.”

7. In the principal rules, in rule 22, sub-rule (7) and sub-rule (14) shall be omitted.

8. In the principal rules, in rule 25, in sub-rule (1), in clause (e), the words “or such other place as may be approved by the Board” shall be omitted.

9. In the principal rules, for Form MGT-6, the following Form, shall be substituted, namely:—

FORM NO. MGT-6

[Pursuant to section 89(G) of The Companies Act, 2013 and pursuant to rule 9(3) of

The Companies (Management and Administration) Rules, 2014]

Return to the Registrar in respect of declaration under section 89 received by the company

 

Paris environment pact closer to coming into force : 23-09-2016


The world moved a step closer to bringing the Paris Agreement into force, with 60 countries in all ratifying the global contract on climate change.

These countries add up to 48 per cent of the global emissions. The chances of India standing isolated by the end of the year as the only large economy not to ratify increased as its partners, Brazil and Argentina, also ratified the agreement, along with 29 others at a special event organised by the UN secretary general in New York.

The agreement requires at least 55 countries, representing at least 55 per cent of the total greenhouse gas emissions, to ratify it before it comes into force. The first threshold has now been met, and observers, going by political commitments from other countries, estimate that the second threshold, too, would be met by the year end.

India’s big partners in the two key country groupings – BASIC and the Like Minded Developing Countries — have all now ratified the agreement. Other large economies such as Germany and the UK, too, have committed to come on board quickly, though the ratification by entire EU block within the year remained uncertain.

The increasing possibility of the Paris Agreement coming in to force without India promised to rob the National Democratic Alliance government of using the ratification as a negotiating card against the US.

Outgoing US President Barack Obama has pushed hard to ensure a legacy stamp on global climate negotiations before the end of his tenure. Obama’s push has been threefold — bringing the Paris Agreement into force, getting a deal on refrigerant gases through the Montreal Protocol, and a pact on greenhouse gas emissions from aviation. On all three fronts, US seemed to have got the better of India at the moment by locking in premature political agreements at the head-of-state levels.

The Indian government signed on to a weak Paris Agreement in 2015 – where Indian priorities such as climate justice got marginalised — only to try and hold back on the ratification in 2016, feeling let down by US’s not so robust support for its bid to join the Nuclear Supply Group. Initially, Foreign Minister Sushma Swaraj linked the need for nuclear power, and therefore a membership of the NSG to India’s commitments under Paris Agreement — a rather blunt signal to the US. Later, at the G20 meeting in China, India’s tone softened a bit even though it continued to hold out the threat of not ratifying the agreement this year — India said it couldn’t do so due to time taking domestic compliance issues. But soon after, it toned down further, claiming it was yet undecided if it could or could not ratify the agreement by end of 2016.

Diplomatic sabre-rattling aside, tactically, the chances of India being left off the negotiating table at the next round of climate negotiations remained dimmed because that would entail several dozen other countries that have also not ratified the Paris agreement being left out in the cold. But, the risk that India would be singled out in public domain by green groups turned only higher after the recent round of sing ups to the Paris Agreement in New York.

In the domestic policy arena, the Indian government has already set up five committees to assess the legal and other requirements that would have to be put in place once the ratification is done. The ratification itself requires only a short and simple Cabinet approval and therefore hinges on a political signal from the top of the government to be completed.

Holding back from the ratification process till the US presidency chances brings one advantage to India at the climate talks, its negotiators have assessed. In the case the next US President opts out of Paris Agreement — it takes only an executive order on his part to do so — India would not be left stuck to bear the burden of greenhouse gas emissions reduction without the biggest polluter in the ring.

Source : Business Line

FICCI women delegation begins NZ visit to explore business opportunities : 23-09-2016


An all-women business delegation today began a 14-day visit to New Zealand to explore business opportunities in sectors like education, textile, gems and jewellery, real estate and infrastructure.

The delegation of FICCI Ladies Organisation (FLO), the women’s wing of the industry body, consists of 42 women entrepreneurs and professionals.

They will be visiting multiple cities, including Auckland, Wellington, Queenstown, Franz Josef and Christchurch.

The business interest of the delegates include areas like education, textile, gems and jewellery, chemical, agriculture, waste management, real estate and infrastructure.

“We will have business meetings with businesswomen in areas of manufacturing, agriculture, education and knowledge transfer. The delegation will also be visiting and speaking at the Parliament. We will also interact with Parliamentarians and the Indian diaspora in New Zealand,” FLO President Vinita Bimbhet said.

Source : Financial Express

Govt appoints 3 academics to monetary policy panel : 23-09-2016


The next policy rate to keep the Consumer Price Index (CPI)-based inflation within two to six per cent would be fixed by the Monetary Policy Committee (MPC), headed by the Reserve Bank of India (RBI) governor. The government, on Thursday, appointed three academics to the panel. The RBI has already appointed its members to the panel.

The government nominees are Chetan Ghate, professor, Indian Statistical Institute; Pami Dua, director, Delhi School of Economics; and Ravindra H Dholakia, professor, Indian Institute of Management-Ahmedabad (IIM-A).

The RBI has already appointed Michael Patra as MPC member. The other two members are the RBI Governor Urjit Patel and Deputy Governor R Gandhi.

In the MPC, each member has one vote; the policy rate, currently at 6.5 per cent, would be fixed by a majority vote. In case of a tie, the RBI governor has a casting vote. At present, the governor takes feedback from a five-member technical advisory committee, while setting rates. But, he is not legally bound to go by their advice.

The RBI’s fourth bi-monthly monetary policy review for 2016-17 is scheduled on October 4. The CPI-based inflation fell to a five-month low of 5.05 in August, gross domestic product growth was five-quarter low of 7.1 per cent in April-June 2016 and the Index of Industrial Production contracted 2.4 per cent in July, according to the latest data.

Of the appointments made by the government, Ghate was part of a technical advisory committee.

Ghate, the winner of the 2014 Mahalanobis Memorial Gold Medal, awarded by the Indian Econometric Society, has done extensive research on monetary and fiscal policy in developing and emerging market economies and economic growth and development.

His ongoing research, expected to be published shortly, would deal with monetary transmission in India and fiscal policy, debt and business cycles.

Dholakia had held the RBI chair of industrial economics at IIM-A from May 2002 to April 2008. His research focused on demand analysis and forecasting, social cost-benefit analysis, analysis of macroeconomic environment and policy, analysis of economic growth and productivity, international trade-related issues, fiscal policy and public debt.

Dua has written extensively on macroeconomic developments and forecasting, including interest rate modelling and forecasting. One of her colleagues described her as an empirical macroeconomist, who is not beholden to any school of thought. In that sense, she is not ideological and more data-oriented.

The MPC was set up by amending the Reserve Bank of India Act, 1934, through this year’s Finance Act.

The government has also given a legal backing to the monetary policy agreement under which the RBI has to rein in CPI-based inflation in the range of two to six per cent. Any departure from this for three consecutive quarters would force the RBI to explain the failure to the government. The agreement has come into force from August this year and would be effective till March 2021.

The idea of setting up the MPC and inflation targeting was mooted by an RBI-appointed committee in February 2014, led by Urjit Patel, who was then deputy governor. It had recommended a five-member committee with three members from the RBI and two external members to be appointed by the RBI governor and the deputy governor in-charge.


MONETARY POLICY COMMITTEE: A PRIMER

  • It is a panel headed by the RBI governor to decide policy rate
  • It’s a six-member panel, three each  from the RBI, including the governor, and central appointees
  • Policy rate is to be fixed by a majority vote
  • The RBI governor will have the casting vote, but no veto power
  • The MPC was constituted after an amendment to the RBI Act
  • Earlier, there was opposition to the Financial Sector Legislative Reforms Commission’s suggestion on a seven-member MPC, with four appointees from the Centre
  • India has since moved to inflation targeting, given the RBI has to rein in inflation in the band of 2-6%, starting August this year till March 2021
  • Inflation targeting was first recommended by a panel headed by RBI Governor Urjit Patel

KNOW YOUR MPC MEMBERS

CHETAN GHATE

A professor of economics with the Planning Unit of the Indian Statistical Institute in New Delhi, he is currently a member of the technical advisory committee on monetary policy at the RBI. Ghate was a member of the Urjit Patel panel, which had recommended a shift to inflation targeting.

RAVINDRA DHOLAKIA

A professor at the Indian Institute of Management-Ahmedabad, he previously held the RBI chair of industrial economics from May 2002 to April 2008. A PhD in economics from M S University, Baroda, he was previously a member of the 6th Pay Commission – the expert committee on restructuring of state public sector units as well as the public debt management committee.

PAMI DUA

A professor and director at the Delhi School of Economics, she’s also PhD in economics from the London School of Economics. She has extensively written on contemporary developments such as global recession and the Eurozone debt crisis, interdependence of international financial markets, interest rate modelling and forecasting in India. Her research focus is on business cycle tracking and macroeconomic forecasts.

Source : Business Standard

MFs struggle to meet Sebi deadline on disclosure : 23-09-2016


It’s a race against time for mutual fund industry to meet market regulator Securities and Exchange Board of India (Sebi)’s requirement related to disclosure of commissions paid to distributors. Despite numerous representations by Association of Mutual Funds in India (Amfi), Sebi has stuck to the October 1 deadline for providing information related to commissions in consolidated account statements.

Fund houses are busy identifying past six months’ costs related to distributors. “It’s not going to be an easy task at all. It’s a significant challenge and we need luck and miracle to beat the deadline,” said chief executive of a public bank-sponsored fund house.

Source :

Notification No : 41/2016 Dated: 22-09-2016


Seeks to exempt taxable service provided by State Government Industrial Development Corporations/ Undertakings by way of granting long term (thirty years, or more) lease of industrial plots to industrial units from so much of service tax which is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease – 41/2016 – Dated 22-9-2016 – Service Tax

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION No. 41/2016-Service Tax

New Delhi, the 22nd September, 2016

G.S.R 902 (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of service tax leviable thereon under section 66B of the said Act, as is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

[F. No. 354/51/2016 -TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Cabinet okays signing of tax info exchange pact with Samoa : 22-09-2016


The Union Cabinet on Wednesday gave its nod for signing and ratification of tax information exchange agreement (TIEA) with Samoa, which is considered as the world’s most secretive tax haven.

Negotiations for entering into TIEA were finalised between India and Samoa in June 2016.

The agreement will stimulate the flow of exchange of information between India and Samoa for tax purposes which will help curb tax evasion and tax avoidance, an official release said.

The proposed TIEA also provides for mutual agreement procedure “for resolving any difference or for agreeing on procedures under the agreement’’.

The concept of TIEA is a result of the work undertaken by Paris-based Organisation for Economic Cooperation and Development to address harmful tax practices.

An objective of TIEA is to promote international co-operation in tax matters through exchange of information. The nature of this information varies from agreement to agreement.

Source : Business Line

India to host BRICS agriculture meet : 22-09-2016


  India will host a meeting of BRICS countries — Brazil, Russia, India, China, South Africa — on agriculture and agrarian development this week focussing on areas such as food security, climate change and agriculture technology.

The two-day conference, beginning on September 22, will include a ministerial meeting to be attended by the Agriculture Ministers of all the five countries.

“The areas of cooperation include creating basic agricultural information exchange system, strategy for ensuring access to food for the most vulnerable population, reducing negative impact of climate change on food security and adaptation of agriculture to climatic changes, enhancing agricultural technology cooperation and innovation, trade and investment promotion,” an official release said.

Detailed discussions will also be held on the BRICS Agricultural Research Centre, which is likely to be set up in India.

The proposed centre is expected to work on agricultural science, policy research and development extension, technology transfer, training and capacity building and scientific information sharing.

Source : Financial Times

Web-based system for MF on NSE : 22-09-2016


Leading stock exchange NSE has decided to shift its mutual fund services platform to web-based system from January 2 next year. Currently, the bourse is operating the MF platform through its fully automated screen trading system — National Exchange for Automated Trading (NEAT).

The move to shift to a web-based mechanism would help to centralise transactions in mutual funds as well as streamline operational activities.

“NEAT MFSS (mutual fund service system) shall be discontinued with effect from December 30, 2016, (end of business hours),” NSE said in a recent circular.

“Only web-based MFSS platform shall be available for transactions in MFSS segment with effect from January 2, 2017,” it added.

Source : The Hindu

Notification No.63/2016-S.O. 3019(E) 22-9-2016


Section 35AC – Eligible projects or schemes – recommendations of the National Committee for Promotion of Social and Economic Welfare – 63/2016 – S.O. 3019(E)

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION No. 63/2016

New Delhi, the 22nd September, 2016

S.O. 3019(E).-In exercise of the powers conferred by sub-section (I) read with clause (b) of the Explanation to Section 35 AC of the Income Tax Act, 1961 (43 of 1961), the Central Government, on the recommendation of the National Committee for Promotion of Social and Economic Welfare, under sub-rule (5) of Rule 11M of the Income Tax Rules, 1962 hereby notifies the extension of the projects/schemes for a further period and/or enhanced sanctioned cost for the existing projects/schemes for exemption under section 35 AC of the Income Tax Act, 1961, in respect of the associations and institutions approved by the said National Committee, mentioned in the Table below.

TABLE

Sl. No Name & address of the Institution Project or Scheme Notification No. and date and sanctioned cost with validity Maximum amount of cost and extended period of approval recommended by the Committee

(1)

(2)

(3)

(4)

(5)

1 CRY (Child Rights and You), 632, 2nd Floor, Lane No.3, Westend Marg, Saiyad-Ul- Ajaib, New Delhi-110030. CRY supported development project all over India. · S.O.521 (E) dated 14.07.1994 for a period of three years till financial year 1996-1997; For ₹ 425.00 lakh.

· S.O. No.388(E) dated 19.5.1997 for a period of three financial years ending till 2000-01 alongwith enhancement in the approved cost from ₹ 425.00 lakh to ₹ 1650.00 lakh;

· S.O. 634(E) dated 5.7.2000 for a period of three financial years till 2003-04 alongwith enhancement in the approved cost from ₹ 1650.00 lakh to ₹ 2773.00 lakh;

· S.O.692 (E) dated 13.6.2003 for a period of three financial years till 2006-07 alongwith enhancement in the approved cost from “Rs.27.73 crores” to “Rs. 53.73 crores”

· S.O. 146(E) dated 3.2.2006 by enhancing the approved cost from “Rs. 53.73 crores” to “Rs.58.73 crores”

· S.O. 1415(E) dated 04.09.2006 for a period of three  financial years till 2008-09 along with an enhancement in the project cost from ₹ 58.73 crore to ₹ 120.85 crore

· S.O. No.2049 (E) dated 06.08.2009 for three financial years till 2011-12 along with an  enhancement of the project cost from ₹ 120.85 crores to ₹ 188.39 crores, · S.O. 1075 (E) dated 14.05.2012 for three financial years till 2014-15;

· SO No. 662(E) 12.3.2013 enhancement in project cost from ₹ 188.39 crore to ₹ 255.14 crore.

· S.O. 1476 (E) dated 4.06.2015 for three financial years till 2017-18.

Till financial year 2016-17 with enhancement in the approved cost of  ₹ 255.14 Crore to ₹ 334.60 crore including corpus fund of ₹ 1.12 crore.
2 Oxfam India, Plot No.1, Community Centre, 2nd Floor, (above Sujan Mahinder Hospital), New Friends Colony, New Delhi 110 025. Oxfam India Humanitarian Response and Disaster Risk reduction. S.O. No. 627(E) dated 12.03.2013 for a period of three financial years till 2014-15. For ₹ 16.98 crore Till financial year 2016-17 without any change in the approved cost of ₹ 16.98 crore. Since the financial year 2015-16 has already lapsed, it is notified that no exemption shall be available for the said financial year 2015-16.
3 Saurashtra Kidney Hospital B.T.Savani Kidney Hospital Near University Gate, University Raod, Rajkot – 360005, Gujarat. B.T. Savani Kidney Hospital. · S.O. No. 466(E) dated 29.03.2007 for a period of three financial years till 2009-10; For ₹ 2.96 Crore

S.O. No. 1137(E) dated 17.05.2010 for a period of three financial years till 2012-13 along with an enhancement in the project cost from ₹ 2.96 crore to 3.91 crore ;

· S.O. No. 3171(E) dated 17.10.2013 for a period of three financial years till 2015-16 along with an enhancement in the project cost from ₹ 3.91 crore to ₹ 8.50 crore.

Till financial year 2016-17 with enhancement in the approved cost of ₹ 8.50 Crore to ₹ 20.56 Crore.
4 Maharaja Agrasen Medical Education and Scientific Research Society Rauanand Bhawan, 3/5, Asaf Ali Road, New Delhi – 110 002. Construction of Maharaja Agrasen Hospital · S.O. No.602(E) dt. 12-08-93 for a period of three financial years till 1995-96; For ₹ 17.57 crore

· S.O. No.94(E)  dated 02-02-1996 for a period of two financial years till 1997-98;

· S.O. No.200(E) dated 12-03-1998 for a period of three financial years till 2000-01 alongwith enhancement in project cost from ₹ 17.57 crore to ₹ 40.00 crore;

· S.O. No.1269 (E) dated 28-12-2001 for a period of three financial years till 2003-04;

· S.O. No. 129(E) dated 02-02-2005 for a period of three financial yeas till 2006-07;

· S.O. No. 1299(E) dated.4.06.2008 for a period of three financial years till 2009-10;

· S.O. No. 651(E)  dated 22.03.2010 for a period of three financial years till 2012-13;

· S.O. 3166(E) dated 17.10.2013 for a period of three  financial years till 2015-16.

· S.O. No. 93(E) dated 6.01.2015  project cost has further been enhanced from ₹ 40.00 crore to ₹ 154.00 crore

Till financial year 2016-17 without any change in the approved cost of ₹ 154.00 crore.
5 Help Age India C-14, Qutab Institutional Area, New Delhi – 110016. Medical care to old persons, leprosy and cancer patients, provision of home to old persons, rehabilitation of destitute old women, conductingeye camps. · SO.No.602(E) dated 12.08.1993 for a period of two financial years till 1994-95; For ₹ 12.95 lakh

· SO.No.17(E) dated 11.11.1994 the project cost was enhanced from ₹ 12.95 lakh to ₹ 1295.00 lakh

· SO.No.405(E) dated 03.05.1995 for a period of three financial years till 1997-98;

· SO.No.220(E) dated 16.03.1998 for a period of three financial years till 2000-01;

· SO.No.510(E) dated 26.5.2000 the project cost was enhanced from ₹ 1295.00 lakh to ₹ 2000.00 lakh

· SO.No.553(E) dated 20.06.2001 for a period of three  financial years till 2004-05;

SO.No.1046(E) dated 18.10.2001 project cost enhanced from ₹ 2000.00 lakh to ₹ 4000.00 lakh;

· SO.No.82(E) dated 24.01.2005 for a period of three financial years  till 2006-07 with an enhancement from ₹ 40.00 crore to ₹ 65.00 crore;

· SO.No.482(E) dt. 29-3-2007 for a period of three financial years till 2009-10;

· S.O No.2199(E) dated 12.12.2007 the project cost was further enhanced from ₹ 65.00 crore to ₹ 95.00 crore

· S.O No. 2616(E) dated 14.10.2009 the project cost was further enhanced from ₹ 95.00 crore to ₹ 120.00 crore;

· S.O.No. 646(E) dated 22.03.2010 for a period of three financial years till 2012-13;

· S.O.No. 880(E) dated 27.04.2011 the project cost was enhanced from ₹ 120.00 crore to ₹ 170.00 crore;

· S.O.No. 3146(E) dated 17.10.2013 for a period of three financial years till 2015-16 with an enhancement in the project cost from ₹ 170.00 crore to ₹ 270.00 crore.

Till financial year 2016-17 with enhancement in the approved cost of ₹ 270.00 crore to ₹ 450.00 Crore.
6 Vedanta Foundation, Opposite Niranjan Building, Corner of ‘E’ Road, Marine Drive, Mumbai – 400 002 Vedanta Computer Education and Vedanta Bal Shakti Angawadi Project · S.O. No. 1052 (E) dated 11.05.2010 for a period of three financial years till 2012-13; ₹ 31.36 crore.

· S.O. No. 3176(E) dated 17.10.2013 for a period of three financial years till 2015-16.

· S.O. 1052(E) dated 12.11.2015 the project “Vedanta Computer Education’ was renamed as ‘Vedanta Computer Education and Vedanta Bal Shakti Angawadi Project’.

(i) Extension till financial year 2016-17 without any change in the approved cost of ₹ 31.36 crore  (ii) widening the scope of activity under the said project by allowing the Foundation to supply install, commission and demonstrate 2000 nos. of solar power back up for individual households in the peripheral villages of Vedanta Lanigarh Unit, Orissa to help lighten their houses. In addition the Trust is taking up the responsibility of up gradation &  construction of modern Anganwadi centres, which is the service delivery unit established under the ICDS scheme.
7 Bhaorao Deoras Seva Nyas, Saraswati Kunj, Nirala Nagar, Lucknow 226020, U.P. Madhav Seva Ashram (Assistance for medical relief) · S.O. 1649(E) dated 12.7.2010 for a period of three financial years till 2012-13; for ₹ 13.00 crore including ₹ 10.00 crore as corpus fund

· S.O. 486(E) dated 11.2.2015 for a period of three financial years till 2015-16

Till financial year 2016-17 without any change in the approved cost of ₹ 13.00 crore including ₹ 10.00 crore as corpus fund.
8 Society of the Servants of the Holy Spirit, Holy Spirit Hospital, Mahakali Caves Road, Andheri (E), Mumbai 400 093. Holy Spirit Cancer Centre · S.O. No.2545(E) dated 6.10.2009 for a period of two financial years till 2010-11; For ₹ 42.50 crore.

· S.O. No.864(E) dated 27.4.2011 for a period of two financial years till 2012-13;

· S.O.  No.3137(E) dated  17.10.2013 for a period of three financial years till 2015-16.

Till financial year 2016-17 without any change in the approved cost of ₹ 42.50 crore.
9 Shri Ramnarainka Sewa Kendra 717-718, Tulsiani Chambers, 7th floor, Nariman Point Mumbai – 400021 RSK Trust School for People with Disability · S.O. No. 3696(E) dated 18.12.2013 for a period of three financial years till 2015-16. for ₹ 696.43 lakh (i) Extension till financial year 2016-17 without any change in the approved cost of ₹ 696.43 lakh and (ii) widen the scope of activity by renaming the title of the project as “Ramnarainka Sewa Kendra Evam Nand Ghar Pariyojna”.
10 Shree Baldevdas Charitable Trust 18, Ravpura Soceity, Behind Memnagar Fire Station, Navrangpura, Ahmedabad-380009. Purchase of Ambulance, Instruments and running of welfare activities (Medical aid/camps, contribution of food grain and cloths) · SO.No.422(E) dated 19.05.1998 for a period of three financial year till 2000-01; For ₹ 75.00 lakh

· SO.No.558(E)  dated 20.06.2001 for a period of three financial years till 2003-04,

· SO.No.788(E) dated 05.07.2004 for a period of three financial year till 2006-07 along with an enhancement in the project cost from ₹ 75.00 lakh to ₹ 175.00 lakh,

· S.O.No. 1801 (E) dated 23.10.2007 for a period of three financial year till 2009-2010 with an enhancement in the project cost from ₹ 175.00 lakh to ₹ 325.00 lakh including a corpus fund of ₹ 30.00 lakh,

· S.O.No.1150(E) dated 17.5.2010 for a period of three financial year till 2012-13,

· S.O. No. 2405(E) dated 18.10.2011 enhancement in the project cost from ₹ 325.00 lakh including a corpus fund of ₹ 30.00 lakh to ₹ 490.00 lakh including a corpus fund of ₹ 30.00 lakh,

· S.O.No.3178(E) dated 17.10.2013 for a period of three financial years till 2015-16.

Till financial year 2016-17 without any change in the approved cost of ₹ 490.00 lakh including a corpus fund of ₹ 30.00 lakh,
11 Jamia Islamia

Ishaatul Uloom,

Amlibari Molgi

Road,

A/P, Akkalkuwa,

District Nandurbar,

Maharashtra –425

415

Nour

Charitable

Hospital and

Research

Centre.

· S.O. No. 1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 32.19 crore

including a corpus fund of ₹ 1

crore

· S.O. No. 3165(E) dated 17.10.2013

for a period of three financial years

till 2015-16

Till financial year 2016-17

without any change in the

approved cost of Rs.

32.19 crore including a

corpus fund of ₹ 1 crore.

12 Sirajul Huda

Educational Complex,

Kuttiadi P.O.,

Kozhikode District,

Kerala State –673

508.

Expansion,

Upgradation and renovation

of existing

institutions in

order to

accommodate

more incoming

students and to

provide free

education with

free hostel

facilities to the

students

hailing from

the

underprivilege

d families of

rural areas

· S.O. No. 614(E) dated 18.3.2010

for a period of three financial years till 2011-12; For ₹ 37.03 crore

· S.O. No. 2407(E) dated 18.10.2011

for three financial years till 2014-15

Till financial year 2016-

17 without any change in the approved cost of Rs.

37.03 crore.

Since the financial year

2015-16 has already

lapsed, it is notified that

no exemption shall be

available for the said

financial year 2015-16

13 Bethlehem Abhaya

Bhavan Charitable

Society,

Koovappady,

Perumbavoor,

Ernakulam district –

683 544,

Kerala State.

Renovation

and Expansion

of the Charity

Home for the

mentally

challenged.

· S.O. 1253(E) dated 16.5.2013 for a

period of three financial years till

2015-16. For ₹ 22.43 crore

Till financial year 2016-

17 without any change in

the approved cost of Rs.

22.43 crore.

14 The Victoria

Memorial School for

the Blind,

73, Tardeo Road,

Opp. Film Centre,

Tardeo, Mumbai –

400 034,

Maharashtra.

Victoria

Memorial

School for the

Blind

 S.O. No. 3033(E) dated 7.10.2013 for a

period of three financial years till 2015-

16; For ₹ 7.92 crore including corpus

fund ₹ 718.29 lakh

Till financial year 2016-17

without any change in the

approved cost of Rs.

7.92 crore including

corpus fund ₹ 718.29

lakh.

15 Empathy

Foundation,

405, Krushal

Commercial

Complex,

Above shopper’s

Stop, G.M Road,

Chembur (West),

Mumbai 400 089

School Project.

(Renovation,

construction,

major repairs

of Zila

Parishad/Muni

cipal

Corporation,

NGO’s and

Gram

Panchayat’s

school)

· S.O. No.1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 7.60 Crore

· 3839(E) dated 27.12.2013 for a

period of three financial years till

2015-16 alongwith an enhancement

in the project cost from ‘Rs.7.60

crore’ to ‘Rs.18.42 crore’

· S.O. No. 451 (E) dated 11.2.2015

enhancement from ‘Rs.18.42 crore’

to ₹ 79.00 crore

Till financial year 2016-17

with permission to spend

up to ₹ 3.00 crore for

construction of Bore wells,

fixing submersible pumps

and installation of water

tanks in rural

Maharashtra out of the

total approved amount of

Rs.79.00 crore.

16 Gram Bharati Samiti

(GBS),

Amber Bhawan,

Amber,

Jaipur 302028,

Rajasthan

A research

(including

testing of

water, soil and

temperature

etc.) on the

endangered

plan species of

medicinal

values found

in the Aravalli

region in

district Jaipur

and their use

in Ayurvedic

medicines

· S.O. No. 406(E) dated 9.3.2012 for

a period of three financial years till

2014-15; For ₹ 3.40 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

3.40 Crore.

Since the financial year

2015-16 has already been

lapsed it is notified that no

exemption shall be

available for the said

financial year 2015-16

17 Markazu Ssaquafathi

Ssunniyya,

Kunnamangalam

Panchayat,

Door No. K.P.6/561,

Kozhikode district,

Kerala-673571

Care of

Orphans &

Health

Schemes for

Rural Poor

· S.O. No. 3021 (E) dated 23.12.2010

for a period of three years financial

year till 2012-13; For ₹ 44.05

Crore

· S.O. No. 3125 (E) dated 17.10.2013

for a period of three financial years

till 2015-16

Till financial year 2016-17

without any change in the

approved cost of Rs.

44.05 Crore

18 Vishwatmak Jangli

Maharaj Ashram

Trust,

Chaitanyapuri

(Shirdi-Kopargaon

Road),

At-Kokamthan,

Post-Jeur Kumbhari,

Tal-Kopargaon,

District-Ahmednagar

Maharashtra 414001

Om Gurudev

Rural Hospital

& Research

Centre

· S.O. No. 2349 (E) dated 28.09.2010

for a period of three financial years

till 2012-13; For ₹ 7.00 crore

including a corpus fund of Rs.

128.64 lakh

· S.O. No. 3173 (E) dated 17.10.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-

17 without any change in

the approved cost of Rs.

7.00 crore including a

corpus fund of ₹ 128.64

lakh.

19 The Leprosy

Mission Trust India,

The Leprosy

Mission,

CNI Bhavan,

16, Pandit Pant

Marg,

New Delhi – 110001

Supporting the

Leprosy

Mission

Hospitals

· S.O. No. 92(E) dated 02.02.1996 for

a period of three financial years till

1997-98; for ₹ 62.00 lakh

· S.O. No. 320(E) dated 11.05.1999

for a period of three financial years

till 2000-01,

· S.O. No. 976(E) dated 10.09.2002

for a period of three financial years

till 2003-04,

· S.O. No. 396(E) dated 23.03.2005

for a period of three financial years

till 2006-07,

· S.O.No.1310(E) dated 04.06.2008

for a period of three financial years

till 2009-10,

· S.O.No. 1151(E) dated 17.5.2010

for a period of three financial years

till 2012-13.

· S.O. No. 2884(E) dated 27.12.2011

the project cost was enhanced from

₹ 62.00 lakh to ₹ 5.00 crore

· S.O.No.3857(E) dated 27.12.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-

17 without any change in

the approved cost of Rs.

5.00 Crore.

20 Late Atmaram

Dongarchand Shah

(Dungekar) Seva

Sanstha,

Tal. Karveer

District-Kolhapur,

C.S No.2622, A-B,

Near Gokhale

College,

Subhash Road,

Kolhapur,

Maharashtra

Vocational

Training for

unemployed

Rural Women,

Entrepreneursh

ip training to

school leavers.

· S.O. 743(E) dated 11.4.2011 for a

period of three financial years till

2013-14. For ₹ 8.14 crore

(including corpus fund of ₹ 80.00

lakh).

Till financial year 2016-

17 without any change in

the approved cost of Rs.

8.14 Crore (including

corpus fund of ₹ 80.00

lakh). Since the financial

years 2014-15 and 2015-16

has already lapsed, it is

notified that no exemption

shall be available for the

said financial year 2014-15

and 2015-16.

21 Visamo Kids

Foundation,

Opposite

Inductotherm,

Bopal, Ahmedabad -

380058.

Visamo Kids

Foundation

· S.O.1370(E) dated 14.6.2011 for a

period of two financial years till

2012-13; For ₹ 38.58 lakh

· S.O. 84(E) 6.1.2015 for a period of

three financial years till 2015-16 alongwith enhancement in project

cost from ₹ 38.58 lakh to ₹ 1.97

crore.

Till financial year 2016-17

without any change in the

approved cost of Rs.

1.97 crore.

22 DAMIEN

FOUNDATION

INDIA TRUST

14, Venugopal

Avenue, Spur Tank

Road

Chetput, Chennai

Tamil Nadu – 600

031.

Damien

Foundation

Urban Leprosy

and TB Centre

· S.O. 3696(E) dated 18.12.2013 for

a period of three financial years till

2015-16. For ₹ 5.88 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

5.88 crore.

23 Royal Educational

Society,

Borli Panchatan,

Taluka Shriwardhan,

District Raigad

402403,

Maharashtra.

Renovation

and Expansion

of Existing

school

building for

girls and boys

hostel and

vocational

technical

training for

girls

· S.O. No. 1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 12.25 crore

including corpus fund of ₹ 2.00

crore.

· S.O. No. 3152 (E) dated 17.10.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-17

without any change in the

approved cost of Rs.

12.25 crore including

corpus fund of Rs.

2.00crore.

24 Navsari Cancer Care

Foundation,

5th Floor, Aditya

Complex,

Near Fuwara

Telephone

Exchange,

Navsari –396445.

Navsari

Cancer Care

Foundation

Oncology

Wing.

· S. O No. 466(E) dated 29.03.2007

for a period of three financial years

till 2009-10, For ₹ 4.00 crore

· S.O. No.2359(E) dated 29.09.2010

for a period of three financial years

till 2012-13 alongwith an

enhancement in the project cost

from ₹ 4.00 crore to ₹ 18.72

crore including a corpus fund of Rs.

10.00 crore;

· S. O No. 3872(E) dated 27.12.2013

for a period of three financial years

till 2015-16 alongwith enhancement

to ₹ 25.42 crore including a

corpus fund of ₹ 14.00 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

25.42 crore including a

corpus fund of ₹ 14.00

crore

25 Association for

Advancement and

Rehabilitation of

Handicapped

(AAROH)

224, Vasant Enclave,

New Delhi-110057.

Construction,

equipment,

furnishing of

Navjyoti

Centre for

Mentally

Handicapped

· S.O.791(E) dated 18-09-1995 for a

period of three financial years till

1997-98. For ₹ 51.00 lakh

including corpus fund of ₹ 30.00

lakh.

· S.O. 683(E) dated 11-08-98 for a

period of three financial years till

2000-01,

· S.O. 909(E) dated 20-09-2001 for a

period of three financial years till

2003-04,

· S.O.378(E) dated 23-05-2005 for a

period of three financial years till

2006-07;

· S.O.1795(E) dated 23.10.2007 for a

period of three financial years till

2009-2010;

· S.O. 865(E) dated 27-04-2011 for a

period of three financial years till

2012-13;

· S.O. 444(E) dated 11.02.2015 for a

period of three financial years till

2015-16 alongwith enhancement in project cost from ₹ 51.00 lakh

including corpus fund of ₹ 30.00

lakh to ₹ 1.20 crore plus a corpus

fund of ₹ 1.20 crore

Till financial year 2016-

17 without any change in

the approved cost of

Rs.1.20 crore plus a

corpus fund of ₹ 1.20

crore.

26 Menaba Charitable

Trust,

26, Mahavir Jain

society,

Near Amber

Cinema, Bapunagar,

Ahmedabad 380

024, Gujarat

Rehabilitation

of physically

challenged

girls

· S.O. No. 1030(E) dated 7.5.2012 for

a period of three financial years till

2014-15; For ₹ 3.62 crore

including corpus fund of ₹ 1.00 crore

· S.O. No. 1584(E) dated 15.6.2015

for a period of three financial years

till 2017-18.

Till financial year 2016-17

alongwith enhancement of

project cost from 3.62

crore (including corpus

fund of ₹ 1 crore) to Rs.

7.10 crore (including

corpus fund of ₹ 1 crore).

27 Vedanta Foundation,

Opposite Niranjan

Building,

Corner of ‘E’ Road,

Marine Drive,

Mumbai – 400002

College of

Management

and

Information

Technology

· S.O. 3696(E) dated 18.12.2013 for a

period of three financial years till

2015-16 for ₹ 32.08 crore

Till financial year 2016-

17 without any change in

the approved cost of Rs.

32.08 Crore.

28 Anjali,

(Society for Rural

Health &

Development),

Ranasan, Via Harsol,

Taluka- Prantij,

Sabarkantha –

383305, (Gujarat).

Construction

of tutorial and

children

activity

hall/compound

wall,

equipment,

vehicle,

furnishing and

running of

Anjali

Hospital, TB

centre and

children and

educational

activities at

Ranasan,

Harsol,

Sabarkantha.

· S.O. 591(E) dated 20.8.1997 for a

period of three financial years till

2000-01; For ₹ 33.00 lakh plus a

corpus fund of ₹ 25.00 lakh

· S.O 872(E) dated 21.9.2000 for a

period of three financial years till

2003-04

· S.O. 350(E) dated 31.3.2003 for a

period of three financial years till

2006-07;

· S.O .1003(E) dated 05.07.2006 for

a period of three financial years till

2008-09 the project cost was

enhanced from ₹ 33.00 lakh plus a

corpus fund of ₹ 25.00 lakh to Rs.

171.00 lakh including a corpus fund

of ₹ 25.00 lakh;

· S.O No.241(E) dated 21.01.2009

for a period of three financial years

till 2011-12;

· S.O. No.1140 (E) dated 18.05.2010,

the project cost was enhanced from

₹ 171.00 lacs including a corpus

fund of ₹ 25.00 lakh to ₹ 571.00

lakh including a corpus fund of Rs.

25.00 lakh;

· S.O No.1092(E) dated 14.5.2012

for a period of three financial years

till 2014-15;

· S.O No.1955(E) dated 20.7.2015

for a period of three financial years

till 2017-18.

Till financial year 2016-

17 with enhancement in

the approved cost of Rs.

571.00 lakh (including a

corpus fund of ₹ 25.00

lakh) to ₹ 626.00 lakh

(including a corpus fund

of ₹ 25.00 lakh).

II. This notification shall remain in force for the period of and in relation to financial year in respect of the projects or schemes mentioned above against the respective institutions/projects.

III. The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules, 2014.

[ F.No.V.27015/4/2016-SO (NAT.COM)]

S. R. SHARMA, Director (National Committee)

Notification No.61/2016-S.O. 3018(E) 22-9-2016


Section 35AC – Eligible projects or schemes – recommendations of the National Committee for Promotion of Social and Economic Welfare – 61/2016 S.O. 3018(E) – Dated 22-9-2016 – Income Tax

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION No. No. 61/2016

New Delhi, the 22nd September, 2016

S.O. 3018(E).-In exercise of the powers conferred by sub-section (I) read with clause (b) of the Explanation to Section 35 AC of the Income Tax Act, 1961 (43 of 1961), the Central Government, on the recommendation of the National Committee for Promotion of Social and Economic Welfare, hereby notifies the institutions approved by the said National Committee, mentioned in column (2) of the Table below, and approves the eligible projects or schemes specified to be carried on by the said institutions and the estimated cost thereof as mentioned in column (3) of the said Table, and also specifies in the column (4) of the Table the maximum amount of such cost which may be allowed as deduction under the said section 35 AC for the period of approval, namely:-

TABLE

Serial No.

Name        of         the          Institution/ Organization Project or scheme and estimated cost thereof Maximum amount of cost to be allowed as deduction under section 35AC and period of  approval

(1)

(2)

(3)

(4)

1

Charities Aid Foundation IndiaPlot/Site No. 2, First Floor.

Sector-C (OFC Pocket)

Nelson Manela Marg, Vasant Kunj,

New Delhi – 110070

Health, Livelihood, Education,Disability, Women Empowerment,

Environment, Animal Welfare, Disaster

Management, Skill Development,

Culture & Heritage and Community &

Participatory Development’

Rs.49.50 crore

Approved the cost of₹ 49.50 crore for

financial year 2016-17.

2

Srinivasa Educational AcademyR.V.S. Nagar, Murukambattu Post

Tirupathi Road, Chitoor Andhra

Pradesh-517127

Expansion of present activities of RVS.Rs.4.70 crore Approved the project atthe estimated cost of

₹ 4.70 crore for

financial year 2016-17.

3

Sarvodaya Kelvani Mandal, UmaralaAT: Umarala, District Bhavnagar

Gujarat-364330

Extension and support of educational activities in Rural areas    ₹ 633.00 lakh Approved the project at the estimated cost ₹ 633.00 lakh for the financial year 2016-17.

4

Geetanjali Cancer Center – Geetanjali University  Village Manwa Kera, Near Eklingpura Chouraha,  NH-8, the Girwa, Distt. Udaipur  Rajashtan-313001 Geetanjali Cancer Center (for Oncology Centre)  Unit of Geetanjali  University   ₹ 2982.84 lakh Approved the project at the estimated cost of  ₹ 2982.84 lakh for financial year 2016-17.

5

Gnanadharshan Seva Foundation for the Disabled No.28/67, Ameeerjan Streeet, Choolaimedu Chennai-600094 Tamilnadu Construction of Hostel Building for Physically Challenged Women            Rs.  57.00 lakh Approved the project at an estimated cost of   Rs.  57.00 lakh for the financial year 2016-17.

6

Jeevan Parakash13/5, Avanti Apartments,

Flank Road,

Near Shanmukhanand Hall Sion(E),

Mumbai-400022

Jeevan PrakashRs.  2.00 crore Approved the project at an estimated cost of    Rs.  2.00 crore for the financial year 2016-17.

7

Kantalaxmi Mohanlal PathakFoundation Sanchalit

Dr. Bhanuben Nanavati Hospital-

Chorvad

504, Dalamal Chambers, 29, New

Marine Lines, Mumbai-400020

Dr. Bhanuben Nanavati Hospital(Rural General Hospital) – Chorvad

Rs.  1.50 crore

Approved the project at an estimated cost of   Rs.  1.50 crore  for the financial year 2016-17.

8

Maxvision Social welfare Society774/2, Ashok Vihar-III

Street No.2, Railway Station Road

Gurgaon

Haryana-122001

Education support to slum children and children form weaker section of the society    ₹ 5.30 crore Approved the project at an estimated cost of   Rs.  5.30  crore for the financial year 2016-17.

9

Bhaktivedanta Gurukula and International  School (BGIS), an educational activity of ISKON Raman Reti, Vrindavan Utttar Pradesh-281121 Vocational Education and Skill Development CenterRs.  18.80 crore Approved the project at an estimated cost of   Rs.  18.80 crore for the financial year 2016-17.

10

Shri Shivaji Shikshan Prasarak Mandal, Saswad Tal. Purandar District Pune  Maharashtra  411002 Children & Youth Education,Career Guidance and counseling Center      Rs.  5.58 crore Approved the project at an estimated cost of   Rs.  5.58  Crore for the financial year 2016-17.

11

Rudreshwar Tarachand Charitable Trust, At.-Takali, Tq. Nandgaon,  P.O. Bangaon Dist: Nashik, Maharashtra Awareness Camps On HIV/Aids And TB Patients, Medical Camps & Health Awareness, Cancer Patient Camp And Ambulance Service For Weaker  Section PeoplesRs.  2.96 crore Approved the project at an estimated cost of  Rs.  2.96 crore for the financial year 2016-17.

12

Manas FoundationA-501-A502, SDF-1, 4th Floor Paridhan Garment Park, 19, Canal South Road, Kolkatta700015 Project Manas FoundationRs.  400.00 lakh Approved the project at an estimated cost of   Rs.  400.00  lakh for the financial year 2016-17.

13

V.H.B.P. Pandurang Kate Ptatishthan Pimple Saudagar, Kate Nagar, Tal- Haveli, Dist- Pune -27 (Maharashtra) “Jeevan Sudhar”{“Providing Quality education to Special, Needy Children & Social and Intellectual up-liftment of Girls/Women from low socio-economic background in & around PuneRs.  4.12 crore   Approved the project at an estimated cost of   ₹ 4.12 crore for the financial year 2016-17.

14

Mahila Unnati Kendra  Brahma Memories, C-5/G-1, Bhosale Nagar, Pune – 411 007  Maharashtra Mahila Unnati Kendra Vocational Training CenterRs.  4.25 crore Approved the project at an estimated cost of  Rs.  4.25 Crore for the  financial year 2016-17.

15

Mann Deshi Foundation Khaswad, Tal : Mann District Satara, Maharashtra-415509 Mann Deshi BandharaRs.  6.00 crore Approved the project at an estimated cost of   Rs.  6.00 crore for the financial year 2016-17.

16

Canara High School Association Ammembal Subba Rao Pai Road, Kodialbail, Mangalore Karnataka-575003 Construction of additional infrastructural buildings to the existing engineering college – project to provide engineering education to the weaker section of the society Rs.  25.00 crore Approved the project at an estimated cost of   Rs.  25.00 crore for the financial year 2016-17.

17

Upekshit Kshetra Utthan Nyas   Pragya Sadan, Saraswati Bal Mandir  Nehru Nagar, M.G. Road New Delhi-110065 Developing School Building in PAN IndiaRs.  8.50 crore Approved the project at an estimated cost of  Rs.  8.50 crore for the financial year 2016-17.

18

Shantilal Shanghvi FoundationF.P. 145, Rammandir Road,

Vile Parle (East)

Mumbai-400057 Maharashtra

“Samajik  Shikshan Yojana” – (Providing Education, Health & Food for Urban Poor Children)    Rs.  25.00 crore Approved the project at an estimated cost of  Rs.  25.00 crore for the financial year 2016-17.

19

Ved Vignan Maha Vidya Peeth  No.19, 39th A Cross 11th Main, IV T Block Jayanagar,  Bangalore 560041 Free Education Project, VVMVPRs.  151.42 crore Approved the project at an estimated cost of Rs.  151.42 crore for the financial year 2016-17.

20

Vikram A. Sarabhai Community Science Centre (VASCSC) Opp. Gujarat University, Navrangpura Ahmedabad-380009 Innovative Programmes for Improving Quality of Science Education  Rs.  27.92 crore Approved the project at an estimated cost of  Rs.  27.92  crore for the financial year 2016-17.

21

Ahmednagar Jilha Talim SanghMisal Galli, Sarjepura,

Ahmednagar-414001

Maharashtra

Wrestling Competion, adoption of children and free distribution of notebooks and cattle feed and water tank and Construction of Stadium at Ahmednagar.Rs.  2.53 crore Approved the project at the estimated cost of Rs.  2.53 crore for the financial year 2016-17. 

22

Maa Madhuri Brij Warissewa Sadan Sansthan Village Bajera, Tehsil Noh Bachamadi, Bharatpur, Rajasthan 321203 ‘Apnaghar’ Ashram   Rs.  24.16 crore Approved the project at an estimated cost of Rs.  24.16 crore for the financial year 2016-17.

23

Shree Umiya Parivar Education Trust At Village : Sidsar-360530 Taluko : Jamjodhpur District : Jamnagar Gujarat  361001 Adarash Gram – The dream of Honourable Prime Minister   ₹ 5.00 crore Approved the project at an estimated cost of  Rs.  5.00 crore for the financial year 2016-17.

24

Campassion Charitable  Trust  35, Bombay Pune Road,  Anupam Nagari ,  27/1, Khadki, Pune – 411003 Rehabilitation cum Recreational Home for child beggars and Underprivileged Street dwelling children Rs.  2.66 crore Approved the project at an estimated cost of  Rs.  2.66 crore for the financial year 2016-17.

25

J.M. Institute of Speech & Hearing Road No.05, House No.04,  Indrapuri, P.O. Keshri Nagar   Patna-800024 Establishment of composite Health & Rehabilitation  Rs.  22752.31 lakh Approved the project at an estimated cost of  Rs.  22752.31 lakh for  the financial year  2016-17.

26

Mission for Vision  27, Gandhikunj Society,   2nd Floor, Near Shreyas Rly Crossing Bhudrapura Road, Ambawadi Ahmedabad Gujarat-380001 Eradication of Child labour from Ahmedabad City Rs.  36.32 lakh Approved the project at an estimated cost of     Rs.  36.32 lakh for the financial year 2016-17.

II. This notification shall remain in force for the period of and in relation to financial year in respect of the projects or schemes mentioned above against the respective institutions/projects.

III. The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules, 2014.

[F.No.V.27015/4/2016-SO (NAT.COM)]

S. R. SHARMA, Director (National Committee)

Notification No.63/2016-S.O. 3019(E) 22-9-2016


Section 35AC – Eligible projects or schemes – recommendations of the National Committee for Promotion of Social and Economic Welfare – 63/2016 – S.O. 3019(E)

 

MINISTRY OF FINANCE (Department of Revenue)

NOTIFICATION No. 63/2016

New Delhi, the 22nd September, 2016

S.O. 3019(E).-In exercise of the powers conferred by sub-section (I) read with clause (b) of the Explanation to Section 35 AC of the Income Tax Act, 1961 (43 of 1961), the Central Government, on the recommendation of the National Committee for Promotion of Social and Economic Welfare, under sub-rule (5) of Rule 11M of the Income Tax Rules, 1962 hereby notifies the extension of the projects/schemes for a further period and/or enhanced sanctioned cost for the existing projects/schemes for exemption under section 35 AC of the Income Tax Act, 1961, in respect of the associations and institutions approved by the said National Committee, mentioned in the Table below.

TABLE

Sl. No Name & address of the Institution Project or Scheme Notification No. and date and sanctioned cost with validity Maximum amount of cost and extended period of approval recommended by the Committee

(1)

(2)

(3)

(4)

(5)

1 CRY (Child Rights and You), 632, 2nd Floor, Lane No.3, Westend Marg, Saiyad-Ul- Ajaib, New Delhi-110030. CRY supported development project all over India. · S.O.521 (E) dated 14.07.1994 for a period of three years till financial year 1996-1997; For ₹ 425.00 lakh.

· S.O. No.388(E) dated 19.5.1997 for a period of three financial years ending till 2000-01 alongwith enhancement in the approved cost from ₹ 425.00 lakh to ₹ 1650.00 lakh;

· S.O. 634(E) dated 5.7.2000 for a period of three financial years till 2003-04 alongwith enhancement in the approved cost from ₹ 1650.00 lakh to ₹ 2773.00 lakh;

· S.O.692 (E) dated 13.6.2003 for a period of three financial years till 2006-07 alongwith enhancement in the approved cost from “Rs.27.73 crores” to “Rs. 53.73 crores”

· S.O. 146(E) dated 3.2.2006 by enhancing the approved cost from “Rs. 53.73 crores” to “Rs.58.73 crores”

· S.O. 1415(E) dated 04.09.2006 for a period of three  financial years till 2008-09 along with an enhancement in the project cost from ₹ 58.73 crore to ₹ 120.85 crore

· S.O. No.2049 (E) dated 06.08.2009 for three financial years till 2011-12 along with an  enhancement of the project cost from ₹ 120.85 crores to ₹ 188.39 crores, · S.O. 1075 (E) dated 14.05.2012 for three financial years till 2014-15;

· SO No. 662(E) 12.3.2013 enhancement in project cost from ₹ 188.39 crore to ₹ 255.14 crore.

· S.O. 1476 (E) dated 4.06.2015 for three financial years till 2017-18.

Till financial year 2016-17 with enhancement in the approved cost of  ₹ 255.14 Crore to ₹ 334.60 crore including corpus fund of ₹ 1.12 crore.
2 Oxfam India, Plot No.1, Community Centre, 2nd Floor, (above Sujan Mahinder Hospital), New Friends Colony, New Delhi 110 025. Oxfam India Humanitarian Response and Disaster Risk reduction. S.O. No. 627(E) dated 12.03.2013 for a period of three financial years till 2014-15. For ₹ 16.98 crore Till financial year 2016-17 without any change in the approved cost of ₹ 16.98 crore. Since the financial year 2015-16 has already lapsed, it is notified that no exemption shall be available for the said financial year 2015-16.
3 Saurashtra Kidney Hospital B.T.Savani Kidney Hospital Near University Gate, University Raod, Rajkot – 360005, Gujarat. B.T. Savani Kidney Hospital. · S.O. No. 466(E) dated 29.03.2007 for a period of three financial years till 2009-10; For ₹ 2.96 Crore

S.O. No. 1137(E) dated 17.05.2010 for a period of three financial years till 2012-13 along with an enhancement in the project cost from ₹ 2.96 crore to 3.91 crore ;

· S.O. No. 3171(E) dated 17.10.2013 for a period of three financial years till 2015-16 along with an enhancement in the project cost from ₹ 3.91 crore to ₹ 8.50 crore.

Till financial year 2016-17 with enhancement in the approved cost of ₹ 8.50 Crore to ₹ 20.56 Crore.
4 Maharaja Agrasen Medical Education and Scientific Research Society Rauanand Bhawan, 3/5, Asaf Ali Road, New Delhi – 110 002. Construction of Maharaja Agrasen Hospital · S.O. No.602(E) dt. 12-08-93 for a period of three financial years till 1995-96; For ₹ 17.57 crore

· S.O. No.94(E)  dated 02-02-1996 for a period of two financial years till 1997-98;

· S.O. No.200(E) dated 12-03-1998 for a period of three financial years till 2000-01 alongwith enhancement in project cost from ₹ 17.57 crore to ₹ 40.00 crore;

· S.O. No.1269 (E) dated 28-12-2001 for a period of three financial years till 2003-04;

· S.O. No. 129(E) dated 02-02-2005 for a period of three financial yeas till 2006-07;

· S.O. No. 1299(E) dated.4.06.2008 for a period of three financial years till 2009-10;

· S.O. No. 651(E)  dated 22.03.2010 for a period of three financial years till 2012-13;

· S.O. 3166(E) dated 17.10.2013 for a period of three  financial years till 2015-16.

· S.O. No. 93(E) dated 6.01.2015  project cost has further been enhanced from ₹ 40.00 crore to ₹ 154.00 crore

Till financial year 2016-17 without any change in the approved cost of ₹ 154.00 crore.
5 Help Age India C-14, Qutab Institutional Area, New Delhi – 110016. Medical care to old persons, leprosy and cancer patients, provision of home to old persons, rehabilitation of destitute old women, conductingeye camps. · SO.No.602(E) dated 12.08.1993 for a period of two financial years till 1994-95; For ₹ 12.95 lakh

· SO.No.17(E) dated 11.11.1994 the project cost was enhanced from ₹ 12.95 lakh to ₹ 1295.00 lakh

· SO.No.405(E) dated 03.05.1995 for a period of three financial years till 1997-98;

· SO.No.220(E) dated 16.03.1998 for a period of three financial years till 2000-01;

· SO.No.510(E) dated 26.5.2000 the project cost was enhanced from ₹ 1295.00 lakh to ₹ 2000.00 lakh

· SO.No.553(E) dated 20.06.2001 for a period of three  financial years till 2004-05;

SO.No.1046(E) dated 18.10.2001 project cost enhanced from ₹ 2000.00 lakh to ₹ 4000.00 lakh;

· SO.No.82(E) dated 24.01.2005 for a period of three financial years  till 2006-07 with an enhancement from ₹ 40.00 crore to ₹ 65.00 crore;

· SO.No.482(E) dt. 29-3-2007 for a period of three financial years till 2009-10;

· S.O No.2199(E) dated 12.12.2007 the project cost was further enhanced from ₹ 65.00 crore to ₹ 95.00 crore

· S.O No. 2616(E) dated 14.10.2009 the project cost was further enhanced from ₹ 95.00 crore to ₹ 120.00 crore;

· S.O.No. 646(E) dated 22.03.2010 for a period of three financial years till 2012-13;

· S.O.No. 880(E) dated 27.04.2011 the project cost was enhanced from ₹ 120.00 crore to ₹ 170.00 crore;

· S.O.No. 3146(E) dated 17.10.2013 for a period of three financial years till 2015-16 with an enhancement in the project cost from ₹ 170.00 crore to ₹ 270.00 crore.

Till financial year 2016-17 with enhancement in the approved cost of ₹ 270.00 crore to ₹ 450.00 Crore.
6 Vedanta Foundation, Opposite Niranjan Building, Corner of ‘E’ Road, Marine Drive, Mumbai – 400 002 Vedanta Computer Education and Vedanta Bal Shakti Angawadi Project · S.O. No. 1052 (E) dated 11.05.2010 for a period of three financial years till 2012-13; ₹ 31.36 crore.

· S.O. No. 3176(E) dated 17.10.2013 for a period of three financial years till 2015-16.

· S.O. 1052(E) dated 12.11.2015 the project “Vedanta Computer Education’ was renamed as ‘Vedanta Computer Education and Vedanta Bal Shakti Angawadi Project’.

(i) Extension till financial year 2016-17 without any change in the approved cost of ₹ 31.36 crore  (ii) widening the scope of activity under the said project by allowing the Foundation to supply install, commission and demonstrate 2000 nos. of solar power back up for individual households in the peripheral villages of Vedanta Lanigarh Unit, Orissa to help lighten their houses. In addition the Trust is taking up the responsibility of up gradation &  construction of modern Anganwadi centres, which is the service delivery unit established under the ICDS scheme.
7 Bhaorao Deoras Seva Nyas, Saraswati Kunj, Nirala Nagar, Lucknow 226020, U.P. Madhav Seva Ashram (Assistance for medical relief) · S.O. 1649(E) dated 12.7.2010 for a period of three financial years till 2012-13; for ₹ 13.00 crore including ₹ 10.00 crore as corpus fund

· S.O. 486(E) dated 11.2.2015 for a period of three financial years till 2015-16

Till financial year 2016-17 without any change in the approved cost of ₹ 13.00 crore including ₹ 10.00 crore as corpus fund.
8 Society of the Servants of the Holy Spirit, Holy Spirit Hospital, Mahakali Caves Road, Andheri (E), Mumbai 400 093. Holy Spirit Cancer Centre · S.O. No.2545(E) dated 6.10.2009 for a period of two financial years till 2010-11; For ₹ 42.50 crore.

· S.O. No.864(E) dated 27.4.2011 for a period of two financial years till 2012-13;

· S.O.  No.3137(E) dated  17.10.2013 for a period of three financial years till 2015-16.

Till financial year 2016-17 without any change in the approved cost of ₹ 42.50 crore.
9 Shri Ramnarainka Sewa Kendra 717-718, Tulsiani Chambers, 7th floor, Nariman Point Mumbai – 400021 RSK Trust School for People with Disability · S.O. No. 3696(E) dated 18.12.2013 for a period of three financial years till 2015-16. for ₹ 696.43 lakh (i) Extension till financial year 2016-17 without any change in the approved cost of ₹ 696.43 lakh and (ii) widen the scope of activity by renaming the title of the project as “Ramnarainka Sewa Kendra Evam Nand Ghar Pariyojna”.
10 Shree Baldevdas Charitable Trust 18, Ravpura Soceity, Behind Memnagar Fire Station, Navrangpura, Ahmedabad-380009. Purchase of Ambulance, Instruments and running of welfare activities (Medical aid/camps, contribution of food grain and cloths) · SO.No.422(E) dated 19.05.1998 for a period of three financial year till 2000-01; For ₹ 75.00 lakh

· SO.No.558(E)  dated 20.06.2001 for a period of three financial years till 2003-04,

· SO.No.788(E) dated 05.07.2004 for a period of three financial year till 2006-07 along with an enhancement in the project cost from ₹ 75.00 lakh to ₹ 175.00 lakh,

· S.O.No. 1801 (E) dated 23.10.2007 for a period of three financial year till 2009-2010 with an enhancement in the project cost from ₹ 175.00 lakh to ₹ 325.00 lakh including a corpus fund of ₹ 30.00 lakh,

· S.O.No.1150(E) dated 17.5.2010 for a period of three financial year till 2012-13,

· S.O. No. 2405(E) dated 18.10.2011 enhancement in the project cost from ₹ 325.00 lakh including a corpus fund of ₹ 30.00 lakh to ₹ 490.00 lakh including a corpus fund of ₹ 30.00 lakh,

· S.O.No.3178(E) dated 17.10.2013 for a period of three financial years till 2015-16.

Till financial year 2016-17 without any change in the approved cost of ₹ 490.00 lakh including a corpus fund of ₹ 30.00 lakh,
11 Jamia Islamia

Ishaatul Uloom,

Amlibari Molgi

Road,

A/P, Akkalkuwa,

District Nandurbar,

Maharashtra –425

415

Nour

Charitable

Hospital and

Research

Centre.

· S.O. No. 1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 32.19 crore

including a corpus fund of ₹ 1

crore

· S.O. No. 3165(E) dated 17.10.2013

for a period of three financial years

till 2015-16

Till financial year 2016-17

without any change in the

approved cost of Rs.

32.19 crore including a

corpus fund of ₹ 1 crore.

12 Sirajul Huda

Educational Complex,

Kuttiadi P.O.,

Kozhikode District,

Kerala State –673

508.

Expansion,

Upgradation and renovation

of existing

institutions in

order to

accommodate

more incoming

students and to

provide free

education with

free hostel

facilities to the

students

hailing from

the

underprivilege

d families of

rural areas

· S.O. No. 614(E) dated 18.3.2010

for a period of three financial years till 2011-12; For ₹ 37.03 crore

· S.O. No. 2407(E) dated 18.10.2011

for three financial years till 2014-15

Till financial year 2016-

17 without any change in the approved cost of Rs.

37.03 crore.

Since the financial year

2015-16 has already

lapsed, it is notified that

no exemption shall be

available for the said

financial year 2015-16

13 Bethlehem Abhaya

Bhavan Charitable

Society,

Koovappady,

Perumbavoor,

Ernakulam district –

683 544,

Kerala State.

Renovation

and Expansion

of the Charity

Home for the

mentally

challenged.

· S.O. 1253(E) dated 16.5.2013 for a

period of three financial years till

2015-16. For ₹ 22.43 crore

Till financial year 2016-

17 without any change in

the approved cost of Rs.

22.43 crore.

14 The Victoria

Memorial School for

the Blind,

73, Tardeo Road,

Opp. Film Centre,

Tardeo, Mumbai –

400 034,

Maharashtra.

Victoria

Memorial

School for the

Blind

 S.O. No. 3033(E) dated 7.10.2013 for a

period of three financial years till 2015-

16; For ₹ 7.92 crore including corpus

fund ₹ 718.29 lakh

Till financial year 2016-17

without any change in the

approved cost of Rs.

7.92 crore including

corpus fund ₹ 718.29

lakh.

15 Empathy

Foundation,

405, Krushal

Commercial

Complex,

Above shopper’s

Stop, G.M Road,

Chembur (West),

Mumbai 400 089

School Project.

(Renovation,

construction,

major repairs

of Zila

Parishad/Muni

cipal

Corporation,

NGO’s and

Gram

Panchayat’s

school)

· S.O. No.1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 7.60 Crore

· 3839(E) dated 27.12.2013 for a

period of three financial years till

2015-16 alongwith an enhancement

in the project cost from ‘Rs.7.60

crore’ to ‘Rs.18.42 crore’

· S.O. No. 451 (E) dated 11.2.2015

enhancement from ‘Rs.18.42 crore’

to ₹ 79.00 crore

Till financial year 2016-17

with permission to spend

up to ₹ 3.00 crore for

construction of Bore wells,

fixing submersible pumps

and installation of water

tanks in rural

Maharashtra out of the

total approved amount of

Rs.79.00 crore.

16 Gram Bharati Samiti

(GBS),

Amber Bhawan,

Amber,

Jaipur 302028,

Rajasthan

A research

(including

testing of

water, soil and

temperature

etc.) on the

endangered

plan species of

medicinal

values found

in the Aravalli

region in

district Jaipur

and their use

in Ayurvedic

medicines

· S.O. No. 406(E) dated 9.3.2012 for

a period of three financial years till

2014-15; For ₹ 3.40 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

3.40 Crore.

Since the financial year

2015-16 has already been

lapsed it is notified that no

exemption shall be

available for the said

financial year 2015-16

17 Markazu Ssaquafathi

Ssunniyya,

Kunnamangalam

Panchayat,

Door No. K.P.6/561,

Kozhikode district,

Kerala-673571

Care of

Orphans &

Health

Schemes for

Rural Poor

· S.O. No. 3021 (E) dated 23.12.2010

for a period of three years financial

year till 2012-13; For ₹ 44.05

Crore

· S.O. No. 3125 (E) dated 17.10.2013

for a period of three financial years

till 2015-16

Till financial year 2016-17

without any change in the

approved cost of Rs.

44.05 Crore

18 Vishwatmak Jangli

Maharaj Ashram

Trust,

Chaitanyapuri

(Shirdi-Kopargaon

Road),

At-Kokamthan,

Post-Jeur Kumbhari,

Tal-Kopargaon,

District-Ahmednagar

Maharashtra 414001

Om Gurudev

Rural Hospital

& Research

Centre

· S.O. No. 2349 (E) dated 28.09.2010

for a period of three financial years

till 2012-13; For ₹ 7.00 crore

including a corpus fund of Rs.

128.64 lakh

· S.O. No. 3173 (E) dated 17.10.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-

17 without any change in

the approved cost of Rs.

7.00 crore including a

corpus fund of ₹ 128.64

lakh.

19 The Leprosy

Mission Trust India,

The Leprosy

Mission,

CNI Bhavan,

16, Pandit Pant

Marg,

New Delhi – 110001

Supporting the

Leprosy

Mission

Hospitals

· S.O. No. 92(E) dated 02.02.1996 for

a period of three financial years till

1997-98; for ₹ 62.00 lakh

· S.O. No. 320(E) dated 11.05.1999

for a period of three financial years

till 2000-01,

· S.O. No. 976(E) dated 10.09.2002

for a period of three financial years

till 2003-04,

· S.O. No. 396(E) dated 23.03.2005

for a period of three financial years

till 2006-07,

· S.O.No.1310(E) dated 04.06.2008

for a period of three financial years

till 2009-10,

· S.O.No. 1151(E) dated 17.5.2010

for a period of three financial years

till 2012-13.

· S.O. No. 2884(E) dated 27.12.2011

the project cost was enhanced from

₹ 62.00 lakh to ₹ 5.00 crore

· S.O.No.3857(E) dated 27.12.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-

17 without any change in

the approved cost of Rs.

5.00 Crore.

20 Late Atmaram

Dongarchand Shah

(Dungekar) Seva

Sanstha,

Tal. Karveer

District-Kolhapur,

C.S No.2622, A-B,

Near Gokhale

College,

Subhash Road,

Kolhapur,

Maharashtra

Vocational

Training for

unemployed

Rural Women,

Entrepreneursh

ip training to

school leavers.

· S.O. 743(E) dated 11.4.2011 for a

period of three financial years till

2013-14. For ₹ 8.14 crore

(including corpus fund of ₹ 80.00

lakh).

Till financial year 2016-

17 without any change in

the approved cost of Rs.

8.14 Crore (including

corpus fund of ₹ 80.00

lakh). Since the financial

years 2014-15 and 2015-16

has already lapsed, it is

notified that no exemption

shall be available for the

said financial year 2014-15

and 2015-16.

21 Visamo Kids

Foundation,

Opposite

Inductotherm,

Bopal, Ahmedabad -

380058.

Visamo Kids

Foundation

· S.O.1370(E) dated 14.6.2011 for a

period of two financial years till

2012-13; For ₹ 38.58 lakh

· S.O. 84(E) 6.1.2015 for a period of

three financial years till 2015-16 alongwith enhancement in project

cost from ₹ 38.58 lakh to ₹ 1.97

crore.

Till financial year 2016-17

without any change in the

approved cost of Rs.

1.97 crore.

22 DAMIEN

FOUNDATION

INDIA TRUST

14, Venugopal

Avenue, Spur Tank

Road

Chetput, Chennai

Tamil Nadu – 600

031.

Damien

Foundation

Urban Leprosy

and TB Centre

· S.O. 3696(E) dated 18.12.2013 for

a period of three financial years till

2015-16. For ₹ 5.88 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

5.88 crore.

23 Royal Educational

Society,

Borli Panchatan,

Taluka Shriwardhan,

District Raigad

402403,

Maharashtra.

Renovation

and Expansion

of Existing

school

building for

girls and boys

hostel and

vocational

technical

training for

girls

· S.O. No. 1649 (E) dated 12.07.2010

for a period of three financial years

till 2012-13; For ₹ 12.25 crore

including corpus fund of ₹ 2.00

crore.

· S.O. No. 3152 (E) dated 17.10.2013

for a period of three financial years

till 2015-16.

Till financial year 2016-17

without any change in the

approved cost of Rs.

12.25 crore including

corpus fund of Rs.

2.00crore.

24 Navsari Cancer Care

Foundation,

5th Floor, Aditya

Complex,

Near Fuwara

Telephone

Exchange,

Navsari –396445.

Navsari

Cancer Care

Foundation

Oncology

Wing.

· S. O No. 466(E) dated 29.03.2007

for a period of three financial years

till 2009-10, For ₹ 4.00 crore

· S.O. No.2359(E) dated 29.09.2010

for a period of three financial years

till 2012-13 alongwith an

enhancement in the project cost

from ₹ 4.00 crore to ₹ 18.72

crore including a corpus fund of Rs.

10.00 crore;

· S. O No. 3872(E) dated 27.12.2013

for a period of three financial years

till 2015-16 alongwith enhancement

to ₹ 25.42 crore including a

corpus fund of ₹ 14.00 crore

Till financial year 2016-17

without any change in the

approved cost of Rs.

25.42 crore including a

corpus fund of ₹ 14.00

crore

25 Association for

Advancement and

Rehabilitation of

Handicapped

(AAROH)

224, Vasant Enclave,

New Delhi-110057.

Construction,

equipment,

furnishing of

Navjyoti

Centre for

Mentally

Handicapped

· S.O.791(E) dated 18-09-1995 for a

period of three financial years till

1997-98. For ₹ 51.00 lakh

including corpus fund of ₹ 30.00

lakh.

· S.O. 683(E) dated 11-08-98 for a

period of three financial years till

2000-01,

· S.O. 909(E) dated 20-09-2001 for a

period of three financial years till

2003-04,

· S.O.378(E) dated 23-05-2005 for a

period of three financial years till

2006-07;

· S.O.1795(E) dated 23.10.2007 for a

period of three financial years till

2009-2010;

· S.O. 865(E) dated 27-04-2011 for a

period of three financial years till

2012-13;

· S.O. 444(E) dated 11.02.2015 for a

period of three financial years till

2015-16 alongwith enhancement in project cost from ₹ 51.00 lakh

including corpus fund of ₹ 30.00

lakh to ₹ 1.20 crore plus a corpus

fund of ₹ 1.20 crore

Till financial year 2016-

17 without any change in

the approved cost of

Rs.1.20 crore plus a

corpus fund of ₹ 1.20

crore.

26 Menaba Charitable

Trust,

26, Mahavir Jain

society,

Near Amber

Cinema, Bapunagar,

Ahmedabad 380

024, Gujarat

Rehabilitation

of physically

challenged

girls

· S.O. No. 1030(E) dated 7.5.2012 for

a period of three financial years till

2014-15; For ₹ 3.62 crore

including corpus fund of ₹ 1.00 crore

· S.O. No. 1584(E) dated 15.6.2015

for a period of three financial years

till 2017-18.

Till financial year 2016-17

alongwith enhancement of

project cost from 3.62

crore (including corpus

fund of ₹ 1 crore) to Rs.

7.10 crore (including

corpus fund of ₹ 1 crore).

27 Vedanta Foundation,

Opposite Niranjan

Building,

Corner of ‘E’ Road,

Marine Drive,

Mumbai – 400002

College of

Management

and

Information

Technology

· S.O. 3696(E) dated 18.12.2013 for a

period of three financial years till

2015-16 for ₹ 32.08 crore

Till financial year 2016-

17 without any change in

the approved cost of Rs.

32.08 Crore.

28 Anjali,

(Society for Rural

Health &

Development),

Ranasan, Via Harsol,

Taluka- Prantij,

Sabarkantha –

383305, (Gujarat).

Construction

of tutorial and

children

activity

hall/compound

wall,

equipment,

vehicle,

furnishing and

running of

Anjali

Hospital, TB

centre and

children and

educational

activities at

Ranasan,

Harsol,

Sabarkantha.

· S.O. 591(E) dated 20.8.1997 for a

period of three financial years till

2000-01; For ₹ 33.00 lakh plus a

corpus fund of ₹ 25.00 lakh

· S.O 872(E) dated 21.9.2000 for a

period of three financial years till

2003-04

· S.O. 350(E) dated 31.3.2003 for a

period of three financial years till

2006-07;

· S.O .1003(E) dated 05.07.2006 for

a period of three financial years till

2008-09 the project cost was

enhanced from ₹ 33.00 lakh plus a

corpus fund of ₹ 25.00 lakh to Rs.

171.00 lakh including a corpus fund

of ₹ 25.00 lakh;

· S.O No.241(E) dated 21.01.2009

for a period of three financial years

till 2011-12;

· S.O. No.1140 (E) dated 18.05.2010,

the project cost was enhanced from

₹ 171.00 lacs including a corpus

fund of ₹ 25.00 lakh to ₹ 571.00

lakh including a corpus fund of Rs.

25.00 lakh;

· S.O No.1092(E) dated 14.5.2012

for a period of three financial years

till 2014-15;

· S.O No.1955(E) dated 20.7.2015

for a period of three financial years

till 2017-18.

Till financial year 2016-

17 with enhancement in

the approved cost of Rs.

571.00 lakh (including a

corpus fund of ₹ 25.00

lakh) to ₹ 626.00 lakh

(including a corpus fund

of ₹ 25.00 lakh).

II. This notification shall remain in force for the period of and in relation to financial year in respect of the projects or schemes mentioned above against the respective institutions/projects.

III. The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules, 2014.

[ F.No.V.27015/4/2016-SO (NAT.COM)]

S. R. SHARMA, Director (National Committee)

F. No. 275/29/2016-CX.8 A: 21-09-2016


F. No. 275/29/2016-CX.8 A


GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE & CUSTOM (LEGAL CELL), NEW DELHI

Dated: September 21, 2016

INSTRUCTION

To

All Principal Chief Commissioners/Chief Commissioners and Principal Directors General/Directors General under CBEC
All Joint Secretaries and Principal Commissioners/Commissioners in D/o Revenue / CBEC, New Delhi
Web-master, CBEC

Sub: Non compliance of the sub-section 2 of Section 32K of Central Excise Act, 1944 also made applicable to Service Tax matters by virtue of Section 83 of the Finance Act, 1994 and sub-section 2 of Section 127H of the Customs Act, 1962-Immunity granted to a person from prosecution, penalty and fine-Reg.

As per sub-section 2 of Section 32K of the Central Excise Act, 1944 also made applicable to Service Tax matters by virtue of Section 83 of the Finance Act, 1944 and sub-section 2 of Section 127H of the Customs Act, 1962, immunity granted to a person from prosecution, penalty and fine shall stand withdrawn if such person fails to pay any sums specified under order of settlement within the stipulated time. In this regard, it has been brought to the notice of the Board that the conditions subject to which the immunity has been granted have not been complied with by the applicants in some cases, thereby rendering the order of settlement void.

2. In view of the above, field formations are instructed to closely monitor and ensure strict compliance with the conditions stipulated in the order of Settlement Commission. In cases of any violations, the jurisdictional Commissioner should initiate necessary action under the relevant law after bringing it to the notice of the Commission.

(Harsh Vardhan)
Senior Analyst (Legal)

No. F.No.282/227/2016-IT (Inv.V) 26/2016 Dated: 21-9-2016


Order under section 119 of the Income-tax Act, 1961 – Income Declaration Scheme, 2016 – Order-Instruction – Dated 21-9-2016 – Income Tax

Circular

F.No.282/227/2016-IT (Inv.V) 26/2016

Government of India

Ministry of Finance

Department of Revenue Central Board of Direct Taxes

(Investigation Division)

New Delhi, dated 21st September, 2016

Circular No.17 of 2016 dated 20.05.2016 relating to the Income Declaration Scheme, 2016 (the Scheme) clarifies that a person shall be eligible to make declaration under the Scheme for assessment years other than the assessment year(s) for which a notice under section 142(1)/143(2)/148 of the Income-tax Act, 1961 (the Act) has been served on or before 31.05.2016.

In this context, concerns have been raised that if declaration under the Scheme is made for years not under assessment on an identical issue which is pending assessment under section 143(3)/147 of the Act, then, whether such declaration shall tantamount to acceptance by the assessee of concealment of income on the said issue for the year under assessment. Doubts have also been raised that declaration under the Scheme on an identical issue in other years may lead to levy of penalty and initiation of prosecution for the year in which assessment is pending.

In this regard, attention of all concerned is invited to the provisions of section 273A of the Act which provides for power to reduce or waive penalty in certain cases. Attention is also invited to the provisions of section 279(1A) of the Act which provides that a person shall not be proceeded against for an offence under section 276C or section 277 in relation to the assessment for an assessment year in respect of which the penalty imposed or imposable under section 271(1)(iii) or 270A has been reduced or waived by an order under section 273A.

Section 273A inter-alia provides that the Principal Commissioner or Commissioner shall reduce or waive penalty in case the assessee has co-operated in any enquiry relating to the assessment of his income for the relevant assessment year and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence to the assessment order passed under the Act in respect of the relevant assessment year. It is clarified that where a declaration is made under the Scheme for years not under assessment on an identical issue which is pending assessment under section 143(3)/147 of the Act and the person offers to pay the tax and interest, if any, on such issue for the year pending assessment under section 143(3)/147 of the Act, the person shall be treated as having “co-operate in any enquiry” within the meaning of section 273A of the Act. Therefore, the Principal Commissioners or Commissioners are advised to take a lenient view on receipt of a valid application under section 273A of the Act in respect of an issue for the said assessment year which is identical to the issue on which a valid declaration has been made under the Scheme for other assessment year(s) subject to payment of the entire amount payable under the Scheme.

(Mamta Bansal)

Director (Inv.V)

Notification No. SO 3029(E) 21-09-2016


SECTION 4 OF THE SPECIAL ECONOMIC ZONES ACT, 2005 – ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD

NOTIFICATION NO. SO 3029(E) [F.NO.F.1/12/2016-SEZ], DATED 21-9-2016

WHEREAS, the Central Government had notified/de-notified the Special Economic Zone named M/s. Mundra Port and Special Economic Zone Limited at Mundra in the State of Gujarat under the following notifications of the Government of India in the Ministry of Commerce and Industry (Ministry of Commerce), namely:—

(1) S.O. number 1365 (E) dated 27th May, 2009;
(2) S.O. number 583 (E) dated 26th March, 2012;
(3) S.O. number 1443 (E) dated 31st May, 2013;
(4) S.O. number 3379 (E) dated 11th December, 2015;

AND, WHEREAS, the name of the SEZ was changed from M/s. Mundra Port and Special Economic Zone Limited (MPSEZL) to M/s. Adani Ports and Special Economic Zone Limited vide approval letter No. F.1/15/2011-SEZ dated 27th March, 2012;

AND, WHEREAS, the Central Government has decided to consolidate all the Special Economic Zones notified vide S.O. number 1365(E) dated 27th May, 2009; S.O. number 583(E) dated 26th March, 2012; S.O. number 1443(E) dated 31st May, 2013; S.O. number 3379(E) dated 11th December, 2015 referred in preceding paragraph for administrative convenience and without affecting rights obligations and fiscal benefits of the Developer(s);

NOW, THEREFORE, the Central Government, in exercise of the powers conferred by second proviso to sub-section (1) of section 4 of the Special Economic Zones Act, 2005 (28 of 2005) (hereinafter referred to as the said Act, read with rule 8 of the Special Economic Zones Rules, 2006, and in supersession of the notification number S.O. number 1365(E) dated 27th May, 2009; S.O. number 583(E) dated 26th March, 2012; S.O. number 1443(E) dated 31st May, 2013; S.O. number 3379(E) dated 11th December, 2015, referred to the first paragraph, except as respects things done or omitted to be done for such supersession, the Central Government on being satisfied that the requirements under sub-section (8) of section 3 of the said Act and other related requirements are fulfilled, hereby consolidates the Special Economic Zones mentioned in the notifications referred to the first paragraph, and re-notifies following areas comprising following survey numbers given in the table below as a Special Economic Zone, namely:

TABLE

A (Multi Product)
Sl. No. Name of Village/Area Taluka Survey No./Details Area in Hectares
1. Dhrub Mundra North: Navinal CreekSouth : GMB-GAPL land

East: GMB-GAPL land

West: 175 acre Land

121-40-43
2. Dhrub Mundra North : GMB – GAPL Land and GAPL RoadSouth :GMB – GAPL Land 70-81-92
East: 300 Acre Land

West: 325 Acre Land

3. Dhrub Mundra North :GMB – GAPL Land and GAPL Road

South :GMB – GAPL Land

East: GAPL Road and 175 Acre Land

West: GMB – GAPL Land

131-52-13
4. Navinal Island Land Mundra North : Navinal Creek and GMB-GAPL landSouth : Gulf of Kutch

East : GAPL road and 325 acres ACL land

West : Creek and Forest Area

406-29-97
5. Navinal Island Land Mundra North : Forest LandSouth : Navinal Creek

East : GAPL Road

West : Forest Land

80-93-62
6. Mundra and Old Bharat Salt and Chemical Ltd. Land Mundra North: Traverse Land S.No. 169 of Village – Dhrub

and Traverse land S. No. 141 of

Village – Mundra South: Bocha Creek &

Old Mundra Port East: Old Mundra Port Road

West: Navinal Creek and GAPL Road

320-75-02
7. Dhrub Mundra 169 150-54-13
8. Mundra Mundra 141 part, 141 Part 71-44-64
9. Baroi Mundra 207, 207 Part 39-87-12
10. Govarsama Mundra 27, 28/2, 28/3, 28/4, 28/5, 28/6, 28/7, 33/1, 33/2, 33/3, 33/4, 33/5, 34/2, 34/3, 34/4, 34/5, 34/6, 34/7, 34/8, 34/9 Part, 34/9 Part, 34/10, 34/11, 52/8, 52 Part, 28/1, 52 Part, 52 Part (old) 43-75-61
11. Shekhadiya Mundra 81/1, 81/2, 120/1 04-04-68
12. Luni Mundra 162, 163 Part, 165/1, 165/2, 166, 167 Part, 168, 169 Part, 177/2, 235 Part, 237/1, 237/2, 258, 238, 239/1 Part, 243 Part, 244, 245/2, 245/1, 246 Part, 247 Part, 248 Part, 254/2 Part, 256/1 Part, 257, 259, 262, 263, 264, 265, 266, 267/1, 267/2, 274/2, 277 Part, 278/1, 278/2, 279 Part, 280, 281, 282, 342 Part, 342 Part, 236, 468 Part, 468 Part, 468 Part 183-68-47
13. Vadala Mundra 120 Part, 177/1, 177/2, 178, 179 Part, 180/1, 180/2, 180/3, 181, 184, 185 Part, 185 Part, 186 Part, 187, 188/1, 189/1, 189/2, 190/1, 190/2, 191, 192, 193, 195 Part, 196/1, 196/2, 197/1, 197/2, 197/3, 197/4, 198, 199 Part, 200, 243/2, 244/2, 245/1 Part, 245/1 Part, 245/2, 251/2 Part, 254, 255/1, 255/2 Part, 256 Part, 257, 258/1, 259, 260/1, 260/2, 261/1, 261/2, 262, 263/1 Part, 264/1, 264/2, 264/3, 404, 405, 406/1 Part, 406/2 Part, 406/3, 406/4, 138-02-66
423/2, 424, 425/1, 425/2, 425/3 Part, 431 Part, 432/1 Part, 432/2, 432/3, 433, 434, 435 Part, 446 Part, 447, 448, 449/1, 449/2, 450 Part, 465 Part, 467 Part, 468 Part, 469 Part, 470 Part, 478 Part, 526/1, 527 Part, 528/1, 528/2, 529 Part, 530, 533, 534 Part, 376, 466 Part, 472, 202, 466 Part
14. Pavadiyara Mundra 10/1 Part, 11, 12/3, 12/4, 12/5, 12/6, 13/1, 13/2, 13/3, 14/1 Part, 15, 16 Part, 30, 32/1 Part, 39 Part, 41, 42/1, 42/2, 43/1, 43/2, 44 Part, 17 Part, 29, 31/1, 31/2 26-22-33
15. Bharudia Mundra 168 Part, 173/1, 173/2, 174 Part, 176, 177 Part, 210, 211 Part, 212, 214, 217 Part, 217 Part, 178 Part 27-01-25
16. Bhadreshwar Mundra 54 Part, 55 Part, 57, 60, 153/1, 154/2, 63/1 Part, 63/2 Part,82/1, 82/3, 84/1, 85/1 Part,85/2, 86/1, 89 Part, 90, 96 Part,97 Part, 98 Part, 99, 102/1 Part, 125/1,151/2, 130/1, 131/1,132/2,132/3,133,134/2,137/2 Part, 137/3, 138, 139,140,152/1,152/2,153/2,153/3, 153/4, 157/1, 157/3,86/2, 88, 95, 100, 134/1(137/3),137/1, 84/2, 130/3, 143/4, 144,145, Unsurveyed Land of 25 acres 119-23-93
17. Bitawaladia (Athamnowas) Anjar 255 Part, 260/1, 263, 264 Part, 284/1 Part, 284/2, 285 Part, 289 61-24-85
Part, 290, 291 Part, 292/1, 292/2, 293/1 Part, 294 Part, 297/1 Part, 295 Part, 298/1, 298/2, 302 Part, 304 Part, 299 Part, 300 Part, 301, 306/1 Part, 308 Part, 309 Part, 309 Part, 312 Part, 292/3, 345, 347, 334, 342, 346
18. Bitawaladia (Ugamanowa ) Anjar 5/1 Part, 6 Part, 8 Part, 9 Part, 9 Part, 10 Part, 11/1 Part, 11/2 Part, 11/3, 18/1Part, 18/2 Part, 18/3, 19, 21, 22/2Part,22/3, 22/4, 22/5, 23 Part, 55Part, 184/1 Part, 184/2 Part, 186 Part, 187/1 Part, 220, 221 Part, 222, 223 Part, 224 Part, 225 Part, 225 Part, 338, 401 Part, 401Part, 7, 43, 220, 405 Part, 20, Unsurveyed land of 10 acres 61-60-25
19. Kumbharia Anjar 101 Part, 102, 103, 104, 105 Part, 112 Part, 113, 114 Part, 115, 116, 117, 118, 119, 120 Part, 266 Part, 123, 147, 148 Part, 149 Part, 157, 158, 159/1 Part, 159/2 Part, 160 Part, 161 Part, 162 Part, 163 Part, 164 Part, 169 Part, 171, 172, 174 Part, 251 Part, 252 Part, 253 Part, 254, 255, 256, 257, 258, 259 Part, 265 Part, 267 Part, 270 Part, 268, 269, 271, 274 Part, 275 Part, 276 Part, 152, 111, 136 67-70-31
20. Devalia Anjar 4, 8/1, 9, 10, 11/1, 11/2, 45 Part, 46 Part, 47, 48, 49/1, 49/2, 335 Part, 335 Part, 338/1, 338/2, 338/3 Part, 340 Part, 341 Part, 342/1, 342/2, 348/2 Part, 384/2, 342/3, 343, 344, 346, 347, 348/1 Part, 349, 350, 351, 352 Part, 353 Part, 354 Part, 355, 356, 357, 358/1, 358/2, 358/3, 359, 360, 361, 362, 363, 364, 365, 367 Part, 369/2 Part, 369/3, 370 Part, 384/4 Part, 387 Part, 395/1 Part, 397 Part, 398, 399, 400, 403, 404 Part, 405 Part, 489 Part, 401, 489 Part 169-42-98
21. Shynoi Anjar 514 3-37-91
22. Anjar SIM Anjar 717/1 Part, 717/2 Part, 718 Part, 723, 724, 725 Part, 728, 734 Part, 735 Part, 736, 737Part, 738 Part, 761, 762 Part,867, 868/1 Part, 868/2, 869Part, 870 Part, 872 Part, 873 Part,874/1 Part, 875/1, 875/2, 875/3, 875/4Part, 984 Part,722/4, 727, 866, 984 Part, 1026,1058, 1005 Part, 1024 Part,1025, 1026, 1027, 1010, 1005 Part, 1024 Part 89-14-11
23. Meghpar – Kumbhardi Anjar 43 Part, 51/2, 52 Part, 57/1 Part, 63 Part, 68 Part, 69/1 Part, 69/2 Part, 70/1 Part, 70/3 Part, 122/2, 124/1 Part, 124/2 Part, 124/3 Part, 124/4, 140/1 Part, 140/2, 141 Part, 142/4, 163 Part 18-67-60
24. Mundra Port (GAPL) Port Limits - As per following existing notifications:

(i) No. 17/99-CC dated 23- 09-1999 issued by the Office of the Commissioner of Customs, Gujarat, Ahmedabad

(v) No. PT/2008/69/WKS/432007/ G/488/ GH/1 dated 11- 12-2008 issued by Ports and Transport Department, Government of Gujarat.

(vi) No. 03/2003 dated 7th March 2003 issued by the Office of the Commissioner of Customs (Prev.), Jamnagar.

(vii) No. 09/2003 dated 20th May 2003 issued by the Office of the Commissioner of Customs (Prev.), Jamnagar.

25. Mundra Mundra 141 Paiki 251-43-08
26. Mundra Mundra 141 Paiki 74-61-45
27. Dhrub Mundra 169 Part 105-01-93
28. Dhrub Mundra 169 Part 16-18-80
29. Dhrub Mundra 169/P51/P1/P3 14-16-41
30. Dhrub Mundra Unsurveyed Land 28-93-61
31. Zarpara Mundra 689/7 41-92-69
32. Zarpara Mundra 689/29 48-42-72
33. Zarpara Mundra 689/30 24-31-16
34. Zarpara Mundra 689/36 63-70-79
35. Zarpara Mundra 689/47 21-04-38
36. Zarpara Mundra 689/48 74-46-25
37. Zarpara Mundra 689/49 70-51-68
38. Zarpara Mundra 689/50 41-65-27
39. Zarpara Mundra 689/52 16-19-08
40. Zarpara Mundra Unsurveyed Land 269-03-89
41. Zarpara Mundra 689/P92/P2/P2 87-20-05
42. Navinal Mundra 55/1 1-22-42
43. Navinal Mundra 56/2 0-23-27
44. Navinal Mundra 64/1 0-98-14
45. Navinal Mundra 102/1 2-30-67
46. Navinal Mundra 102/2 1-11-29
47. Navinal Mundra 110/3 0-84-98
48. Navinal Mundra 115/3 1-02-18
49. Navinal Mundra 130 3-24-76
50. Navinal Mundra 223/part 134-29-94
51. Navinal Mundra Unsurveyed Land 58-22-79
52. Navinal Mundra 224 & 225 Part 93-48-29
53. Siracha Mundra 120 2-12-46
54. Siracha Mundra 121/1 1-16-35
55. Siracha Mundra 121/3 1-04-21
56. Siracha Mundra 121/4 1-95-26
57. Siracha Mundra 125/1 1-74-02
58. Siracha Mundra 131 2-54-95
59. Siracha Mundra 295 Part 103-67-08
60. Siracha Mundra 124 1-86-16
61. Siracha Mundra 125/2 1-60-86
62. Siracha Mundra 126 2-22-58
63. Siracha Mundra 129 5-62-52
64. Siracha Mundra 135 2-60-01
65. Siracha Mundra 137 1-63-90
66. Siracha Mundra 138/1 3-65-23
67. Siracha Mundra 140 4-24-92
68. Siracha Mundra 141 2-24-60
69. Siracha Mundra 142 2-68-11
70. Siracha Mundra 143 4-14-81
71. Siracha Mundra 144/1 3-83-44
72. Siracha Mundra 144/2 1-39-62
73. Siracha Mundra 147 2-92-39
74. Siracha Mundra Unsurveyed Land 64-72-85
75. Siracha Mundra 295/P6/P3 73-35-18
76. Tunda Mundra 180/P 77-52-50
77. Tunda Mundra Unsurveyed Land 506-94-82
78. Mundra Mundra 141 Paiki 607-05-00
79. Mundra Mundra 141 Paiki 84-17-55
80. Mundra Mundra GMB/GAPL Land (Old Bharat Salt Land) 382-95-00
81. Tunda Mundra 180 Paiki 231-60-98
82. Siracha Mundra 295/1 Paiki 62-27-12
83. Baroi Mundra 238 P 20-23-50
84. Baroi Mundra 207 P 21-70-16
85. Govarsama Mundra 52 P 189-25-95
86. Govarsama Mundra 53 P 27-01-51
Total of A 6456.3349 Ha
B (FTWZ)
87. Dhrub - 169/36 168.41
Total of B 168.41 ha

 

C ( New Multi Product)
88. Mundra Forest Unsurveyed Land 1228.00.00
89. Mundra Forest Unsurveyed Land 227.00.00
90. Mundra Forest Unsurveyed Land 385.00.00
Siracha Unsurveyed Land 1.59.37
Navinal Unsurveyed Land 6.99.95
91. Zarpara Unsurveyed Land 2.86.92
Zarpara 689/P92/P2 5.07.11
Total of C 1856.53.35
Total area of (A+B+C) 8481.2784

 

Cabinet approval for merger of Rail budget with Union budget likely today : 21-09-2016


The Union Cabinet will on Wednesday consider the finance ministry’s proposals to reform the entire budgetary process, including advancing the date of budget presentation, merging the Railway budget with general budget and dropping the plan and non-plan distinction.

The finance ministry has proposed that the budget be presented on February 1 as opposed to the current practice of last working day of February, allowing the process to be completed before the new financial year begins,  a senior government official told ET.

Under the current system, the budget process is usually over by mid-May, which delays the start of the spending process in the new financial year that begins on April 1. If the budget is presented one month early, the process can be over by the time the fiscal year starts.

This will mean that the winter session of Parliament will have to be advanced. Since this is a political consideration, the proposal is likely to be examined by the Cabinet Committee on Political Affairs.

The budget session could begin just after the Republic Day or even a day earlier, on January 25. The presentation of the Economic Survey would start the process.

This will imply that the budget process will have to begin a month earlier as opposed to end-September now, and the finance ministry will have to speed things up if the change in date is to be implemented from the coming budget.

This will also require a change in India’s statistical calendar. The advance estimates of GDP for the year that are released on February 7 annually are used for calculations that go into the budget.

The nominal GDP is the most relevant as it goes into calculating the most-watched fiscal deficit numbers. The presentation of advance GDP numbers will also need to be advanced by a month to January 7, though the downside will be that numbers are likely to be less accurate.

Similarly, the mid-year review of spending by ministries and departments would need to be completed a month ahead, by the end of November.

The plan envisions that Parliament should pass the Appropriation Bill and the Finance Bill by March 24 so that proposals can start from April 1.

As per the plan, Parliament would get a three-week break — starting sometime in the second week of February — for various parliamentary committees to vet the proposals.

If the government sticks to the April 1 deadline for the goods and services tax, the budget would become simpler with indirect taxes replaced by a single GST.

Source : PTI

New smart city list a huge boost for realty sector: NAREDCO : 21-09-2016


Realtors’ body NAREDCO today hailed the government’s announcement of 27 more cities for the development of smart cities, saying the move would provide business opportunities for the real estate developers.

Prime Minister Narendra Modi’s Lok Sabha constituency Varanasi along with holy cities of Amritsar and Ajmer has made it to the list of 27 smart cities announced today.

Under the Smart City Mission, the government aims to have 100 smart cities by 2022. Sixty have been chosen so far, including 20 in January and 13 in May this year.

NAREDCO President Parveen Jain said the inclusion of cities like Agra, Amritsar, Ujjain, Varanasi, Tirupati and Vellore etc will boost the tourism sector as well as bringing up these cities on global tourism map.

He said the development of smart cities would lead to well planned urbanisation with aesthetic beauty comparable to international standards.

National Real Estate Development Council (NAREDCO) sees immense opportunities for the real estate industry in transforming these selected cities.

Commenting on the development, Arindam Guha, Senior Director, Deloitte in India, said: “The Smart City Challenge continues to generate significant enthusiasm throughout the country. With the addition of these 27 cities, a total of 60 cities are now eligible for funding under the programme.”

The high interest and participation levels in the Smart City plan development phase now needs to be sustained through quick implementation on the ground, he added.

Shrinivas Kowligi, Partner – Smart Cities and Urban Transformation, EY India, said: “With now 60 cities across India eligible for funding support from government of India, the biggest challenge is going to be talent and expertise – both within and outside the government.”

The competencies needed for addressing the myriad challenges Indian cities face, and to handhold them in their journey to get smart, requires diverse technical skills, project development and management expertise.

“Ministry of Urban Development now needs to drive transformational initiatives to scale up human resource capacity in the country to address this challenge,” Kowligi said.

Source : Financial Express

Finance Ministry to look into tax issues, suggestions of FPIs: Shaktikanta Das : 21-09-2016


The finance ministry has promised to look into some taxation issues raised by foreign investors, some of which may be addressed in the budget next year, economic affairs secretary Shaktikanta Das said on Tuesday.

“They are looking at bigger opportunities for investing in Indian market. So overall outlook, I would say, is very, very positive,” Das told reporters after a threehour meeting between foreign portfolio investors and officials.

“Nobody had reservations about fundamentals and the robustness of where Indian economy is today positioned,” he said. As many as 35 foreign portfolio investors including Citi, JP Morgan and Goldman Sachs participated in the interaction where the main focus of the meeting was the government’s drive to improve ease of doing business.

Foreign investors came up with anumber of specific suggestions on process simplification as well as other issues. They also raised some taxation issues the revenue department also participated in the meeting. “We will examine and look at the suggestions they have made,” Das said. “The government would like to consolidate India’s position and attract more of investment. We will interact among ourselves with agencies like RBI (Reserve Bank of India) and Sebi (Securities and Exchange Board of India) who were present at  the meeting.

And whatever decisions are required we will take,” Das said. Asked if their suggestion would reflect in the next budget, he said: “We are coming closer to the budget, some suggestions may merit a look in the context of budget.” Das also said Tuesday’s meeting will be followed by interaction with domestic investors as well.

Source : Economic Times

1048/35/2016-CX – 20-9-2016


GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

(CENTRAL BOARD OF EXCISE AND CUSTOMS) NEW DELHI

CIRCULAR NO

1048/36/2016-CX, Dated: September 20, 2016

To

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners of Central Excise (All)
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners of Central Excise & Service Tax (All)

Sub: Service Tax Certificate for Transportation of goods by Rail (STTG Certificate)-reg.

Kind attention is invited to Notification No. 45/2016-CE (N.T.) dated 20.09.2016 wherein clause (fa) in sub-rule (1) of rule 9 of CENVAT Credit Rules, 2004 has been substituted and the requirement of enclosing photocopies of the railway receipts (RRs) with the STTG certificate, as a document for availing CENVAT credit, has been amended such that railway receipts would not be required to be enclosed with the STTG certificate. The following procedure is hereby prescribed for availing CENVAT credit of service tax paid on transportation of goods by rail:

i) The STTG Certificate shall be issued to rail customer (consignor/ consignee, whosoever makes the payment of Service tax) by the Railways for the purpose of availing CENVAT credit. A proforma containing the format of STTG certificate to be filled by the consignor/ consignee is enclosed herewith as Annexure-A.

ii) The STTG certificate shall capture various details such as name of the customer, no. of RRs issued, total service tax/ cess paid, Service Tax code, registration no., details of the certifying authority from railways etc.

iii) The STTG certificate shall also contain details of RR(s) in a tabular form annexed to the STTG certificate (enclosed as Annexure-B). The details shall inter alia include RR number, date, name of the consignee, freight, service tax/ cess paid etc. The said list of RR(s) shall be certified by competent Railways Authority.

iv) In cases where the Service Tax is paid by the consignor and he intends to avail the CENVAT credit, he may avail the same on the strength of the STTG certificate issued in his name in the format prescribed above.

v) In case if the Service Tax has been paid by the consignor but CENVAT credit is to be availed by the consignee, who is eligible for such credit as per the rules, the consignor shall make a written request to Railways for issue of consignee-wise STTG certificate duly indicating the RR details pertaining to the consignee in the format prescribed above. The competent Railway Authority shall issue the STTG certificate accordingly, even though it will require issuance of more than one STTG certificates to the customer (consignor) for a particular month. The consignor shall transfer the consignee-wise ‘STTG certificate’ in original to the consignee concerned. The consignee may avail the CENVAT credit on the strength of this certificate.

vi) Where a consolidated STTG Certificate has been issued in terms of clause (iii), no STTG Certificate consignee-wise in terms of clause (v) shall be issued and vice-versa.

2. Difficulty faced, if any, in implementing the circular should be brought to the notice of the Board.

Hindi version will follow.

(F. No. 267/09/2016-CX.8)

(Rohan)
Under Secretary to the Govt. of India

No legal infirmity in GST notifications, says Hasmukh Adhia : 20-09-2016


Setting at rest confusion over levy of excise duty, the finance ministry today said there is no “legal infirmity” in the notifications issued by the government with regard to the GST Constitution Amendment Act.

Some experts have raised doubt about the legality of levying excise duty by the Centre on various commodities till implementation of the goods and services tax (GST) from April 1, 2017, after the government on September 16 notified certain provisions of the Act.

“DoR (department of revenue) examined the validity and implications of notifications dated September 10 and 16 with respect to existing taxes imposed by the Union and states. There is no legal infirmity in these notifications,” Revenue Secretary Hasmukh Adhia tweeted.

He further said the law department has confirmed that “there appears to be no legal requirement to issue any further clarification or notification in this regard”.

The confusion arose following the notification with regard to amendment of Entry 84 of the Union List following which the Centre can levy excise only on petroleum crude, high-speed diesel, petrol and natural gas.

Earlier, Entry 84 of the Union List of the Constitution allowed the Centre to levy excise duty on tobacco and other goods with the exception of potable alcohol, opium and narcotic drugs.

In view of these amendments, it was speculated whether the government could legally collect excise duty till the day GST, which will subsume excise duty in addition to service tax and other levies, is implemented.

The other view, however, was that the Centre has widespread power under Entry 97 of the Union List to levy taxes on goods which are not mentioned in any List under the Seventh Schedule of the Constitution.

Entry 97 says the Centre will have powers on “any other matter not enumerated in List II or List III, including any tax not mentioned in either of those lists”.

List II under the Seventh Schedule of the Constitution deals in subjects on which states have legislative powers while List III is the concurrent list wherein both the Centre and states can make laws.

Nangia & Co Director Rajat Mohan said, “The government may say the power to levy excise, service tax could be drawn from Entry no. 97 from the Union List which is residuary entry. The power to levy state taxes i.e. VAT, entry tax and Octroi etc could be drawn from Section 19 of The Constitutional (One Hundred and First Amendment) Act, 2016.”

Source : Financial Express

FinMin says no need to re-notify Act on GST : 20-09-2016


The finance ministry on Monday clarified that there are no legal problems involved in the notification of the Constitution amendment Act on the goods and services, a day after speculations were raised that the government might have to re-notify the Act as existing wordings would not allow it to impose excise duty on goods even now.

“DoR (the department of revenue) examined the validity and implications of notifications dated 10th and 16th September with respect to existing taxes imposed by the Union and states. There is no legal infirmity in these notifications,” revenue secretary Hasmukh Adhia said in his tweets.

Source : PTI

GST Council to decide on cess treatment : 20-09-2016


Cess, including the Krishi Kalyan Cess and the Swachh Bharat Cess, might not be subsumed under the goods and services tax (GST).

The proposed indirect tax regime would subsume several taxes such as central excise duty, services tax, additional customs duty and state-level value added tax.  But, finance ministry officials said, the Constitution amendment Act on GST does not state how a cess is to be treated under the new regime. The Act leaves it to the GST Council to decide which cess may be subsumed in GST.

In the current financial year, the government has budgeted Rs 10,000 crore as revenue from Swachh Bharat Cess, Rs 5,000 crore from Krishi Kalyan Cess and Rs 3,000 crore from Infrastructure Cess.

Satya Poddar of EY said the Centre can retain these cess, if it wants to.  Explaining this, he said surcharge is a tax on tax and hence would go once entries containing the principal taxes are deleted. However, a cess is not a tax and it does not go into the Consolidated Fund of India, he explained.

Cess is imposed for specific purpose such as education, cleanliness etc. The Constitution amendment Act  on GST omit entry 92 C of the Seventh Schedule under which the union government imposes services tax. Similarly, it amends entry 84 of the Seventh Schedule under which the union government levies excise duty to keep only some petroleum and tobacco and its products under it.  So, any surcharges imposed on these would automatically go.

However, the Act does not amend relevant entries of cess, including entry 97 of the Seventh Schedule, which deals with residuary powers of the Union government. So, if the Centre decides they can retain these.” The statement and objects of the Act also talk about subsuming cess into GST. “Hence there is inconsistency in the Act and its statement and objects,” Poddar added.

A government official said if the taxes continue, these would be levied on GST, instead of only services or goods. “These cesses were put in place by the government for a very specific purpose, whether it is infra cess, Krishi Kalyan or Swachh Bharat,” he said.  Talks are on with the ministries concerned on a compensation mechanism if these cess are discontinued. “We are talking to agriculture ministry, drinking water and sanitisation ministry and others to get their views.”

The Centre does not share cess with states, while all taxes under GST will have to be shared with the states.

In 2014-15, Rs 75,232 crore came in as cess and surcharge, or 8.32 per cent of total tax revenue, after adjusting for states’ share.  As petroleum is expected to be taxed at zero under the GST regime initially, the Centre will continue with the cess on crude oil and other related additional duties.

GST may have multiple rates initially, no RNR too: Hasmukh Adhia : 19-09-2016


The goods and services tax (GST) may have multiple rates on the lines of some European countries and a revenue neutral rate will not be possible initially, Revenue Secretary Hasmukh Adhia said here today.
The uniform indirect tax is expected to be rolled out from April next year.

Adhia, however, said the final decision on this will be taken by the just-constituted GST Council comprising the Union finance minister and state finance ministers.

“Instead of a single GST rate, there are multiple GST rates in some European countries. We too may have to begin with multiple rates and this is required to protect the poor and the middle class,” Adhia reasoned, adding that a revenue neutral rate (RNR) will not be possible initially.

Addressing the Gujarat Chamber of Commerce and Industry here, he further said the rate structure will be such that “the overall burden of tax will come down in most commodities. But a final decision on this will be taken by the GST Council”.

He expressed optimism that the proposed tax regime will be effective next fiscal year and the GST software will be ready for testing by January 1.

“The IT network being created for the Centre and the states is being monitored, and by January 1, the GST software will be ready for testing wherein we will do live testing of return filings, and by April 1, we will complete the entire process of rolling out GST,” Adhia asserted.

He said the state finance ministers will meet on September 22 and 23 in New Delhi to discuss the pending issues on GST such as tax structure, exemption limits and the like.

Adhia also said the exemption limit for GST is being raised to Rs 25 lakh, from Rs 10 lakh as proposed earlier, and most states are on board.

Source : Fimamcial Express

Modi bats for GST implementation : 19-09-2016


Deputy chief minister and chairman of the Empowered Committee of state finance ministers on Goods and Services Tax (GST) Sushil Kumar Modi on Sunday said states should not be frightened of implementing the GST, as the proposed new tax regime would bring lots of benefits, including reduction in number of indirect taxes and minimization of tax incidence. The GST would also put a check on the “cascading effects” of tax on tax, besides simplifying the taxation mechanism.

Addressing a national seminar on ‘GST-Key Issues and Challenges’ as the chief guest, Modi said the concern raised by many states about their ‘fiscal autonomy’ was not a big issue and could be resolved. “When 27 nations of European Union (EU), who have separate constitutions, can come under one Euro currency and common tax regime, why 28 states of India that have one constitution, can’t come under one restructured taxation system?” Modi said, wondering why Bharat can’t become a national market.

The daylong seminar was jointly organized by the Eastern India Regional Council and Patna Chapter of the Institute of Cost Accountants of India (ICAI).

Replying to a query by a panel speaker when the GST would be implemented, Modi said he could not give any deadline. In his almost hourlong address, Modi spoke in detail about the status of the related constitution amendment Bill, reason behind delay in its passage in the Parliament, role of the Centre and role of the Empowered Committee headed by him and the concerns raised by the states.

He said the implementation of GST was delayed not because of the Empowered Committee and the states, but because of the Centre which had to pass a constitution amendment Bill in both houses of the Parliament. The related Bill was presently with the Standing Committee of finance ministry headed by Yashwant Sinha.

“Even if the Standing Committee returns the Bill to the Parliament by mid-August and it is passed by both houses of the Parliament in the coming monsoon session, it would take another 8 to 10 months to implement because the constitution amendment Bill will have to be ratified by at least 50% of the state assemblies,” Modi pointed out. He also said, as the Union government presently didn’t enjoy two-third majority in Parliament, it would have to garner support of other parties to get the Bill passed.

Modi also said the states’ demand for central sales tax (CST) compensation was genuine and the Centre should look into it to win the trust of state governments before going for implementation of the GST.

He said the Empowered Committee of state finance ministers on Friday last asked the Centre to take a decision in favour of releasing CST compensation to states. Not doing so would impact rollout of the GST, he said.

The ICAI national president, M Gopalakrishnan, in his speech, lauded Modi for playing a vital role in ensuring tremendous economic growth and inclusive development in Bihar and said he hoped the nation would get a simplified GST from a leader like him.

Justice Shiva Kirti Singh of the Patna high court, chief secretary Navin Kumar, ICAI national vice-president Rakesh Singh, its past president B M Sharma, its east regional council chairman Saswata Dasgupta and Patna chapter president Amar Nath Singh also expressed their views on the GST at the seminar.

Source : PTI

Simplify ease of doing biz regulations for MSMEs – CII : 19-09-2016


The Confederation of Indian Industry has called for simplification and rationalisation of inspection and regulations for the micro, small and medium enterprises (MSMEs).

The industry has also released a white paper on the same issue. “The government has accorded high priority to ease of doing business for Indian businesses and simplification of compliances and inspections for MSMEs would greatly enhance their efficiency and reduce their operation costs,” Chandrajit Banerjee, Director General of CII, said.

CII has shared the white paper with various government departments and Ministries which says that a simplification in the inspection system is crucial for improving ease of doing business.

Pollution control

“A manufacturing company in India, on an average, has to comply with nearly 70 laws and regulations and as many as 40 inspectors and government functionaries may visit factories under an assortment of laws and acts,” the CII white paper stated. The industry body recommends that environment and pollution related compliances should be ensured by building awareness amongst MSMEs for such issues.

CII suggests an encouragement of State-level labour law reforms, building of linkages between departments for sharing of information common to compliances.

Source : Economic Times

Look for new promoters for stressed assets, Arun Jaitley tells public sector banks : 17-09-2016


Underlining the resolution of stressed assets, finance minister Arun Jaitley on Friday asked public sector banks (PSBs) to augment their efforts to find alternative promoters or managers for straying businesses. After reviewing the performance of these banks for the June quarter with their chiefs, the minister, however, said that once the economy recovered, a part of their non-performing assets (NPAs) could be “de-provisioned” in order to improve their lending ability. The gross domestic advances of PSBs declined 2.5% in the June quarter from the previous one, even as the economy is in dire need of private investments in various sectors.

The Reserve Bank of India (RBI) had earlier advocated “creative search” for new management teams, including from the public and private sectors, to resuscitate stressed assets. “Where there are multiple banks involved with a particular debtor, the lead banker with the support of the department of financial services, if so necessary, would do the coordination (for finding buyers for assets),” Jaitley said.

Both public as well as private sector companies could make a commercial judgement on many running businesses that banks are trying to dispose of, he said. Bankers have not been able to sell many running businesses under default due to a steep haircut demanded by prospective buyers, the chairman of a leading PSB told FE, asking not to be identified.

The gross NPAs of 27 PSBs had doubled to R5.97 lakh crore as on June 30, 2016, from the year ago period, after the RBI started the process of asset quality review (AQR) from Q3FY16 to clean up their balance sheets by March 2017. The fresh slippages of PSBs in the June quarter is nearly Rs 1 lakh crore. The gross domestic NPAs of PSBs rose to 11.24% of gross domestic advances as on June 30, 2016, from 9.84% as on March 31, 2016. This has taken a toll on the PSBs, which posted a net loss of R17,991 crore in FY16, against a net profit of Rs 30,869 crore in the previous year. In Q1FY17, they made net profit of only Rs 220 crore. “Banks will now have to take greater initiatives to recover bad loans,” Jaitley said.

With regard to higher capital infusion in PSBs, Jaitley said obviously “the more the merrier, but the budget has its limitation”. If PSBs don’t step up recovery, it could further put pressure on their capital, which government is augmenting (R70,000 crore in four years through FY19) in phases. According to rating agency Fitch, Indian banks would need $90 billion in capital to meet Basel III capital adequacy norms by March 2019.

With the highways and steel sectors showing signs of revival, Arun Jaitley said a lot of the provisioning itself would get deprovisioned, and the accounts itself would get upgraded, reducing additional capital requirements for banks.

Responding to a question on a likely rate cut by the RBI on the back of weak industrial output data and a fall in retail inflation, Jaitley said: “I expect when the policy review takes place next month, then RBI and hopefully if the monetary policy committee is constituted by then, they will collectively keep all these factors in mind.”

In its latest monetary policy review, the RBI maintained status quo on key rates citing upside risks to 5% inflation target for March 2017. In the meanwhile, retail inflation eased to a five-month low of 5.05% in August while factory output contracted 2.4% in July, raising hopes for a rate cut by RBI in its next policy review on October 4 to boost growth.

Source : Financial Express

Mauritius seeks India’s help, post tax treaty revision : 17-09-2016


Mauritius, the island nation that accounts for the second-largest FDI, has sought a line of credit and more investments from India as it gets ready for implementation of the revised tax treaty from April 2017.

Mauritian Minister of Finance and Economic Development Pravind Kumar Jugnauth yesterday met Finance Minister Arun Jaitley to discuss economic ties between the two countries and avenues to deepen co-operation.

“Now that the tax treaty is revised, Mauritius is  seeking a package in the form of line of credit and more investments from India to boost its economy and generate employment,” an official told PTI.

Following the decade-long negotiations, India in May reworked its tax agreement with Mauritius to introduce a levy to prevent investors using the island nation as a shelter to avoid taxes.

The 1983 Double Taxation Avoidance Convention (DTAC), which helped channelise a third of the India’s foreign direct investment in the past 15 years, was revised on May 10 to impose short-term capital gains tax at half the rate during the two-year transition from April 1, 2017.

The levy is currently at 15 per cent. The full rate will kick in from April 1, 2019.

This is the first visit of Mauritian Finance Minister after the revised treaty was signed between the two countries.

The official said after the revised DTAC kicks in, lesser number of companies are likely to route their funds into India using the Indian Ocean island nation and some could shut shop as well.

The LoC as well as strengthening of ties is a political call to be taken at the highest level, he said.

“It is a call to be taken on how well we want to manage our neighbours. One of the deciding factors will be China’s growing influence in the region, particularly among the nations that were considered friendly to India,” the official added.

India and Mauritius had been in negotiations about revising the three-decade-old tax treaty since 2006 to check misuse by some investors.

More than a third of the USD 278 billion India has received in foreign direct investment  in the past 15 years came via Mauritius.

The two nations in 1983 had signed the treaty seeking to eliminate double taxation of income and capital gains to encourage mutual trade and investment.

Mauritius, which has 43 double taxation treaties with different nations that allow companies registered in the two countries to pay taxes in only one, is seeking to reinvent itself as an investment destination and a financial services hub.

Source : PTI

WTO rules against India in solar case with US : 17-09-2016


In a setback to India, the World Trade Organization (WTO)’s appellate body upheld the rulings of a panel which stated the Indian government’s power purchase agreements with solar firms were “inconsistent” with international norms.

“The appellate body (of the WTO) upheld each of these panel conclusions appealed by India,” the WTO stated.

The US had, in 2014, filed the complaint before the global trade body alleging discrimination against American firms.

The US Trade Representative (USTR) Michael Froman said the WTO appellate body had issued a report in favour of the Obama administration’s challenge to India’s “domestic content requirements (DCR)” under its National Solar Mission (NSM). Since India enacted these requirements in 2011, which requires solar power developers to use Indian-manufactured cells and modules, American solar exports to India have fallen by more than 90 per cent, he said.

“This report is a clear victory for American solar manufacturers and workers, and another step forward in the fight against climate change,” Froman added.

The Obama administration, he said, strongly supports rapid deployment of solar energy worldwide, including in India. “Local content requirements are not only contrary toWTO rules, but actually undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment, making it more difficult for clean energy sources to be cost-competitive,” he alleged.

US-based National Association of Manufacturers (NAM) welcomed WTO’s rejection of India’s appeal and urged the Indian government to move quickly to dismantle its discriminatory DCR that have blocked access for US solar cell modules.

“As each and every previous ruling in this case has shown, India’s DCR are a clear violation of core WTO rules and today (Friday)’s victory will give an important boost to US manufacturing,” NAM said. “This decision also demonstrates why the strong rules-based WTO system and trade agreements with binding and strong enforcement rules are critical to open markets and eliminate unfair barriers overseas.”

Earlier in February this year, USTR said the WTO panel found India’s “localisation” rules discriminating against imported solar cells and modules under India’s NSM.

“The WTO appellate body rejected all of India’s defensive arguments,” USTR said. In particular, it upheld the panel’s finding that India’s DCR measures are not justified under the government procurement derogation of Article III:8(a) of the General Agreement on Tariffs and Trade 1994, because the Indian government does not itself procure solar cells or modules under the NSM, USTR said.

The case assumes significance as India recently dragged the US to the WTO over America’s DCR and subsidies provided by eight states in the renewable energy sector.

Source : Business Standard

1047/35/2016-CX – 16-9-2016


GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

(CENTRAL BOARD OF EXCISE AND CUSTOMS) NEW DELHI

CIRCULAR NO

1047/35/2016-CX, Dated: September 16, 2016

Subject: Rebate of duties paid on raw materials used in manufacture or processing of export goods and admissibility of duty drawback in such cases – reg.

Representations have been received from trade regarding difficulty in simultaneously availing drawback of Customs portion and rebate of duties of excise on raw material used in the manufacture or processing of goods exported. Declaration (d) of the Form A.R.E.2 viz. “we further declare that we shall not claim any drawback on export of the consignment under this application.” leads to cases of denial of Customs portion of drawback even when input stage rebate of only excise portion is claimed. The issue was discussed in last Tariff Conference where it was recommended that to put an end to the litigation on the subject, declaration (d) in Form ARE 2, relating to availment of drawback, needs to be reviewed.

2.1. The issue has been examined. Board has already vide circular no. 35/2010-Cus dated 17.09.2010 clarified that as per notification no 84/2010-Customs (N.T.) dated 17.09.2010, Customs component of AIR drawback shall be available even if the rebate of Central Excise duty paid on raw material used in the manufacture of export goods has been taken in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of Central Excise duty under Rule 19(2) of the Central Excise Rules, 2002. The circular no. 35/2010-Cus dated 17.09.2010 continues to be in operation and Customs portion of drawback so available are specified as per rates and caps under column (6) & (7) of the drawback schedule.

2.2. Further, s.no. (11) of notes and conditions of the drawback schedule notified vide notification no. 110/2015-Customs (N.T.) dated 16.11.2015 states that the rates and caps of drawback specified in columns (4) and (5) of the said schedule shall not be applicable to export of a commodity or products if rebate of duty on materials used in the manufacture or processing of such commodity or products is availed under rule 18 of Central Excise Rules, 2002 or if commodity or product is manufactured or exported in terms of sub-rule (2) of rule 19 ibid. However, drawback in such cases, as per rates and caps specified under columns (6) and (7) of AIR of the drawback schedule is admissible.

2.3. The declaration (d) of Form ARE-2 and para 1.5 of part-V of Chapter of me CBEC’s Excise Manual of Supplementary Instructions, 2005 arc at variance with legal position as explained in para 2.1 and 2.2 above. Accordingly, the said declaration (d) has been amended vide notification no. 44/2016-C.E. (N.T.) dated 16.09.2016. further, other consequential amendments in Form ARE-2 have also been made for the purpose of harmonising the provisions as per above legal position.

3. In terms of legal position explained in para 2.1 and 2.2 above, rates and caps as per column (4) and (5) of the drawback schedule are applicable only in cases where none of the following benefits namely CENVAT credit or facility of input stage rebate under rule 18 of the Central Excise Rules, 2002 or facility of procurement of inputs under bond under sub-rule (2) of rule 19 ibid has been availed.

4. A further exception to above clarification is that in cases where input stage rebate on diesel is availed or diesel is procured without payment of Central Excise duty under sub-rule (2) of rule 19 of the Central Excise Rules, 2002, no drawback shall be available either with reference to column (6) and (7) or column (4) and (5). The declaration (d) of Form ARE-2 has been amended to incorporate the same. This is because a part of Excise duty on diesel, which is non-cenvatable, is factored under Customs component of the drawback rates as per rates and caps specified under column (6) and (7} of the schedule.

5. Accordingly, it is clarified that:-

(i) Where in respect of exports, CENVAT credit is not availed on inputs but input stage rebate on excisable goods except diesel is availed under rule 18 of the Central Excise Rules, 2002, drawback of Customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible;

(ii) Where in respect of exports, CENVAT credit is not availed on inputs but the inputs except diesel, are procured without payment of Central Excise duty under sub-rule (2) of rule 19 of Central Excise Rules, 2002, drawback of Customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible;

(iii) Where in respect of exports, input stage rebate on diesel under rule 18 of Central Excise Rules, 2002 is availed or diesel is procured without payment of Central Excise duty under sub-rule (2) of rule 19 of Central Excise Rules, 2002, no drawback either under column (6) and (7) or column (4) and (5) of the drawback schedule shall be admissible.

(a) Divisional Assistant/Deputy Commissioner, Central Excise, while sanctioning the rebate claim should verify this aspect and in case of availment of any drawback, where input stage rebate on diesel under rule 18 of Central Excise Rules, 2002 is also availed shall deny the claim of rebate involved on diesel out of the rebate claimed, for violation of the declaration (d) of the ARE 2.

(b) In cases where diesel is procured without payment of Central Excise duty under sub-rule (2) of rule 19 of Central Excise Rules, 2002, and the goods are exported under claim of drawback the Central Excise duty involved on diesel shall be recovered for violation of the declaration (d) of the ARE 2, while examining the proof of export.

6. Hindi version of the circular would follow, Difficulty, if any, in implementation of the circular may be brought to the notice of the Board.

F.No. 268/01/2016-CX.8(Rohan)
Under Secretary to the Govt. of India

1046/34/2016-CX – 16-9-2016


GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

(CENTRAL BOARD OF EXCISE AND CUSTOMS)NEW DELHI

CIRCULAR NO

1046/34/2016-CX, Dated: September 16, 2016

Subject: Supply of goods manufactured by EOUs without payment of Central Excise Duty against Advance Licence/Authorisation- reg.

Representations have been received from trade and field formations regarding applicability of second proviso to para 6 of notification no. 22/2003-CE dated 31.03.2003 as amended, when goods manufactured by EOU are supplied to Advance Licence /Authorisation holder in DTA. The said proviso seeks to deny the exemption from central excise duty on inputs, in cases where goods cleared into DTA are either non-excisable or in case of imports attract NIL rate of Customs duty and additional Customs duty. Identical proviso exists under para 3 of notification 52/3003-Cus dated 31.03.2003 as amended to deny exemption from customs duties on similar grounds. The said proviso reads as under.

“Provided further that where such articles (including rejects, waste, scrap and remnants), are either non excisable or such articles (including rejects, waste, scrap and remnants), if imported, are leviable to nil rate of duty of customs specified under First Schedule to the Customs Tariff Act, 1975 and nil additional duty leviable under section 3 of the said Customs Tariff Act, read with exemption notification in this regard, if any, no exemption in respect of inputs utilized for the purpose of processing, manufacture, production or packaging of such articles (including rejects, waste, scrap and remnants) shall be available tinder this notification”

2. The issue was discussed in the last Central Excise Tariff Conference wherein it was decided that the same is required to be clarified by the Board.

3. The issue has been examined. It is seen that s.no. 22 of notification no. 23/2003-CE dated 31.03.2003 as amended, issued in respect of goods manufactured by EOUs and cleared in DTA, specifically exempts Central Excise duty when such manufactured goods are supplied to an Advance Licence/Authorisation Holder. In fact, clearance from EOU or DTA unit to Advance Licence/Authorisation holder has been allowed without payment of Central Excise duty, as both the cases are of “Import substitution.” In case of supply of goods to Advance Licence/Authorisation holder, the export obligation is cast upon person holding Advance Licence/Authorisation and in case of default in export obligation recovery from the person holding Advance Licence/Authorisation is provided for in law.

4. Further, if the EOUs are made liable to pay back the amount availed as exemption on the inputs in case of supplies to Advance Licence/ Authorisation Holder, with reference to the said proviso under notification no. 22/2003-CE dated 31.03.2003, then the EOUs would be placed in a disadvantageous position when compared to a DTA unit which supply manufactured goods to Advance Licence Holder without payment of Central Excise duty in terms of notification no 44/2001-CE(N.T.) dated 26.06.2001 and without reversal of the CENVAT credit availed on inputs. This position has been clarified by Board vide circular no. 785/18/2004-CX dated 17.05.2004.

5. Accordingly, it is clarified that the second proviso to para 6 of the notification no. 22/2003-CE dated 31.03.2003 and the proviso to para 3 of notification no. 52/2003-Cus dated 31.03.2003 (refer para 1 of the circular) would not be applicable, in case of supply of manufactured goods by EOU to Advance Licence/Authorisation holder in DTA, without payment of Central Excise duty.

6. Hindi version of the circular would follow. Difficulty, if any, in implementation of the circular may be brought to the notice of the Board.

[F.No.268/01/2016-CX.8]

(Rohan)
Under Secretary to the Govt. of India

CBDT clarifies unconfirmed reports speculating on the taxpayers response to the currently on-going (IDS) 2016


Certain sections of the press have been speculating on the taxpayers’ response to the currently on-going Income Disclosure Scheme (IDS) 2016 over the last couple of days. The Central Board of Direct Taxes (CBDT) would like to clarify that these are not based on any statements issued by the Department

The Department has since the commencement of the scheme, set to rest, various concerns of the taxpayers through public meetings and through the issue of FAQs over the last 3-1/2 months. The benefits of the scheme have also been publicised through print and electronic media, in both national and regional languages. The scheme has generated a good interest and the response of the taxpayers has been steadily growing. The last few days remaining for filing of declarations are expected to give good results.

The CBDT has so far refrained from issuing any statement regarding number of declarations received, amounts declared or taxes paid under the Scheme in order to ensure complete confidentiality. The confidential handling of declarations made under the Scheme is of utmost importance to the Income Tax Department and the CBDT is aware of its responsibility towards fulfilling this crucial role.

A formal and confirmed press release on the above aspects will be issued from the CBDT after the Scheme closes on 30th September, 2016

Source : Times of india

Notification No.84/2016 16-9-2016


Income-tax (22nd Amendment) Rules, 2016 – 84/2016 – Dated 16-9-2016

 

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION No. 84/2016

New Delhi, the 16th September, 2016

INCOME-TAX

S.O. 2979(E).-In exercise of the powers conferred by section 295 read with sub-section (4) of section 115UA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1.  (1) These rules may be called the Income-tax (22nd Amendment) Rules, 2016.

(2) They shall be deemed to have come into force from the 1st day of April, 2016.

2. In the Income-tax Rules, 1962, in the Appendix II,-

(i) in Form 64A, for items 8 to 15, following items shall be substituted, namely:-

“8. Aggregate income of the Business trust from all sources

(9+11+13+15)

9. Income by way of interest referred to in section 10 (23FC)

10. Proportion of 9 to 8

11. Income by way of renting or leasing or letting referred to in section 10(23FCA)

12. Proportion of 11 to 8

13. Income by way of Dividend referred to in section 115-O

14. Proportion of 13 to 8

15. Income other than that referred to in 9, 11 and 13

16. Proportion of 15 to 8

17. Details of persons being unit holders, referred to in sub-section (1) of section 115UA to whom the income is distributed, in the following format:-

S. No. Name(s) Address(es) PAN Total amount distributed Amount of income in the nature of interest referred to in section 10(23FC) [Column 5 × Sl. No.10] Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA) [Column 5 × Sl. No.12] Amount of income in the nature of Dividend referred to in section 115-O [Column 5 × Sl. No.14] Amount of other income [Column 5× Sl. No.16]

1

2

3

4

5

6

7

8

9”;

(ii) in Form 64B, for item 7, following item shall be substituted, namely:-

“7. Details of the income distributed by the business trust to the unit holder, during the previous year, in the following format:-

S. No. Amount distributed Date of distribution Amount of income in the nature of interest referred to in section 10(23FC) Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA) Amount of income in the nature of  Dividend referred to in section 115-O Amount of other income

1

2

3

4

5

6

7”.

[F. No. 142/10/2014-TPL]

NIRAJ KUMAR, Under Secy. (Tax Policy and Legislation)

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and was last amended vide notification number S.O. 2747(E) dated the 19th August, 2016.

Arun Jaitley to review performance of state-run banks today : 16-09-2016


Finance Minister Arun Jaitley is undertaking a quarterly performance review of state-run banks here on Friday not just to see the progress of various financial inclusion schemes, but also look at the overall health of the banking system, officials said.

The meeting is also expected to take up suggestions made during the last review of June 6 on topics such as non-performing assets, or bad loans, inter-operability of financial inclusion schemes, credit flow, and banks’ expansion  and consolidation, officials said.

Some movement forward is also expected in how to empower the banking system further – and encourage quick decision-making on bona fide matters — so that the issue of non-performing assets can be dealt with and fresh loans be disbursed in an environment that does not prove hostile later.

“Various suggestions have come up for empowering the banks, functioning in an environment, so that they can deal with the situation. The government is fully committed to support the banks in this regard,” Jaitley had said after the last meeting.

The meeting also comes against the backdrop of several state-run banks reporting huge losses for the quarter ended June 30, owing to a sharp rise in provisioning for non-performing assets on account of an asset quality review ordered by the Reserve Bank of India.

The meeting will also take stock of how well the capital infusion of Rs 22,915 crore for 13 state-run banks announced by the government last month — as part of the first tranche of such an exercise for this fiscal – has helped the system.

 ”The finance minister will also review the progress of credit, growth and asset quality especially with regard to priority sectors lending, including credit flow to agriculture, insurance sector, micro and small enterprises, minorities, SC and ST, education and housing loan,” the ministry said.

Source : PTI

Notification No.83/2016 16-9-2016


MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION NO. 83/2016

New Delhi, the 16th September, 2016

S.O. 2972(E).-In exercise of the powers conferred by clause (47) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies M/s. India Infradebt Limited as an infrastructure debt fund for the purposes of the said clause, for the assessment year 2013-14 and subsequent assessment years.

2. This notification shall be subject to the following conditions, namely:-

(i) that the infrastructure debt fund shall conform to and comply with the provisions of the Income-tax Act, 1961 and Rule 2F of the Income-tax Rules, 1962 and the conditions provided by the Reserve Bank of India in this regard;

(ii) that the infrastructure debt fund shall file its return of income as required by sub-section 4C of section 139 on or before the due date.

[F. No. 173/50/2013-ITA-I]

DEEPSHIKHA SHARMA, Director

Cabinet call on Budget overhaul next week : 16-09-2016


The Union Cabinet, headed by prime minister Narendra Modi, is likely to take a final call next week on advancing the date of Budget presentation and the merger of Union and railways Budgets.

A cabinet note detailing above proposals as well as elimination of plan and non-plan classifications of expenditure and shifting to outcome-based budgeting has been circulated for inter-ministerial consultations and is likely to be placed before the Cabinet as early as next week, government sources said.

Source : Business Standard

No. 11/2016 Dated: 15-9-2016


SECTION 135 OF THE COMPANIES ACT, 2013 – CORPORATE SOCIAL RESPONSIBILITY – CONSTITUTION OF STEERING COMMITTEE FOR CONDUCTING NATIONAL CORPORATE SOCIAL RESPONSIBILITY AWARD OF MINISTRY OF CORPORATE AFFAIRS

GENERAL CIRCULAR NO.11/2016 [F.NO.02/04/2016-CSR]DATED 15-9-2016

In pursuance to the approval of Hon’ble Corporate Affairs Minister, National CSR Award is being set-up by the Ministry of Corporate Affairs. A Steering Committee with the following composition is hereby constituted to oversee the whole process of the execution of ‘National Corporate Social Responsibility Award‘:

SI. No. Name Role
1. Secretary, MCA Chairman
2. Additional Secretary, MCA Member
3. Joint Secretary (Policy), MCA Member
4. Economic Adviser, MCA Member
5. Department of Public Enterprises represented by Officer not below Joint Secretary Level Member
6. Director General, IICA Member
7. Representatives of

FICCI
ASSOCHAM
CCI
PHD Chambers of Commerce
Member
8. Representatives of

ICSI
ICAI
ICWAI
Member
9. Nodal Officer of IICA Member Convener

Terms of Reference:

(i) To approve the ‘Implementation Strategy’ and draft agreement/Memorandum of Understanding with MCA.
(ii) To constitute and approve terms of reference of the Selection Committee.
(iii) To approve a Panel of external agencies for field visits/verification of the CSR Policy implemented by corporates.
(iv) To recommend a Panel of Grand Jury drawn from various fields of expertise alon gwith terms of reference for the Jury.
(v) To receive the list of Final Awardees from Grand Jury.
(vi) Any other matter indicated to above.

2. This issues with the approval of the Competent Authority.

 

Notification No.82/2016 15-9-2016


Central Government rescinds the Notification Number 4/2010 dated 28.01.2010 – 82/2016 – Dated 15-9-2016 – Income Tax

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION NO 82/2016

New Delhi ; Dated: September 15, 2016

S.O. 2961(E). In exercise of the powers conferred under clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby rescinds the notification of the Government of India, Ministry of Finance, Department of Revenue number 4/2010 dated 28.01.2010 published in the Gazette of India, Part II, Section 3, sub-section (ii) dated 28th of January, 2010 vide S.O. 348 with effect from 1st April, 2007 and shall be deemed that the said notification has not been issued for any tax benefits under the Income-tax Act, 1961 or any other law of the time being in force.

F.No. 203/64/2009/ITA.II

(Deepshikha Sharma)

Director to Govt of India

Inflation may further rise in coming months: India Inc : 15-09-2016


As wholesale prices inched up to a two-year high of 3.74 per cent in August, industry experts anticipate a further rise in coming months, leaving little room for interest rate cut.

“WPI inflation is expected to print between 4-4.5 per cent in the remainder of 2016, whereas CPI inflation would range within 4-5 per cent in the same months, closing the wedge between the two metrices,” Senior Economist at ICRA Aditi Nayar said.

The wholesale price-based inflation (WPI), reflecting the annual rate of price rise, rose as pulses and manufactured items showed uptick. It was (-)5.06 per cent in August 2015.

“RBI being guided by CPI, which has fallen sharply for August 2016 and reached at 5.05 per cent, may not be in a position to reduce the key interest rate since the fall in CPI is not yet sustained and it may rise above 6 per cent in coming months,” Assocham Secretary General D S Rawat said.

Rawat said the increase in retail inflation may be due to factors like the expected fall in money supply because of FCNR deposits maturing in September 2016, incremental effect of 7th pay commission and effect of policy announcements by central banks of the US, Japan, China and the European Union.

Foreign Currency Non-Repatriable (FCNR) account deposits are a Fixed Deposit Foreign Currency account and not a savings account. Deposits in an FCNR account can be made in any of the major global currencies like the US Dollar, UK Pound, Canadian Dollar, Deutsche Mark, Japanese Yen and Euro.

The chamber suggested that the Centre should take steps to address the structural issues of demand and supply within the industry to maintain inflation within the target range continuously for at least 6 months.

Retail inflation eased to a five-month low of 5.05 per cent in August, mainly because of a slower rate of price increase in vegetables as well as food and beverages.

The rate of price growth, based on the consumer price index (CPI), was the lowest since March 2016 when it stood at 4.83 per cent.

Wholesale price index (WPI) inflation in vegetables cooled to 0.17 per cent in August, from a spike of 28.05 per cent in July.

Pulses inflation continued to rule high at 34.55 per cent in August, according to the Commerce Ministry data.

Source : Business Standard

No. 8/2016 Dated: 15-9-2016


The Income Declaration Scheme, 2016 – reg. – Order-Instruction

Instruction No. 8 of 2016

F.No.142/8/2016-TPL

Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes)

***

New Delhi, the 15th September, 2016

To,

All The Principal Chief Commissioners of Income-tax

Sub.: The Income Declaration Scheme, 2016 – reg.

The Income Declaration Scheme, 2016 (the Scheme) has come into effect from 1st June, 2016 and is open for declarations upto 30.09.2016. Vide Circular No.16 of 2016 dated 20.05.2016; it was clarified that a person will not be eligible to file declaration under the Scheme for the assessment year(s) in respect of which a notice under section 142(1)/143(2)/148/153A/153C has been served upon him on or before 31.05.2016. It was also clarified that where a search has been conducted under section 132 or requisition has been made under section 132A or a survey has been carried out under section 133A of the Income-tax Act, in a previous year then the person shall not be eligible under the Scheme if the time for issuance of a notice under section 143(2)/153A/153C for the relevant assessment year has not expired.

2. In relation to the above, queries have been received from field formation and other stakeholders as to whether a declaration under the Scheme can be filed for an assessment year for which the proceedings under section 142(1)/143(2)/148/153A/153C were pending as on 31.05.2016 but the said proceedings have been completed.

3. In this context, it is clarified that a declaration under the Scheme can be filed in respect of the assessment year for which notice under section 142(1)/143(2)/148/153A/153C has been served on or before 31.05.2016 but the proceedings have been completed and the period of filing declaration under the Scheme has not expired. However, the declarant shall not be entitled to file the declaration in respect of the income which is the subject matter of the assessment order. It is reiterated that the cases where the time for issuance of a notice under section 143(2)/ 153A/153C pursuant to search, seizure or survey operation, as the case may be, for the relevant assessment year(s) has not expired shall not be eligible to avail the Scheme.

4. This instruction may be brought to the notice of all the officers concerned and other stakeholders.

5. Hindi version of the instruction will follow.

(Dr. T.S. Mapwal)

Under Secretary (TPL-IV)

12 nations to take aim at fishing subsidies at WTO : 15-09-2016


The United States and 11 other countries today announced the start of a drive at the World Trade Organization to eliminate harmful fishing subsidies that contribute to ocean depopulation.

The announcement fell on the eve of an annual conference in Washington on ocean governance and environmental preservation.

In a joint statement, the representatives of the 12 nations, which included Australia, Norway, Singapore and landlocked Switzerland, said they would begin talks to develop a WTO agreement on transparency and reporting of fisheries subsidies.

Thirty-one percent of the world’s fisheries are currently being harvested at biologically unsustainable levels and another 58 percent are fished at maximum levels which prevent growth, according to Food and Agriculture Organization figures cited by the statement.

“To address this urgent concern, we are taking action with the goal of eliminating harmful subsidies, including those subsidies that contribute to overfishing and overcapacity,” as well as illegal and unregulated fishing, the statement said.

The United States imports more than 90 percent of its seafood, according to the National Oceanic and Atmospheric Administration. The announcement did not say which countries might be targetted for alleged subsidies.

According to Greenpeace, China has nearly 2,500 fishing vessels at sea, ten times as many as the United States.

Greenpeace says unreported fuel subsidies to Chinese deepwater fishing fleets promote overcapacity.

Source : PTI

PM Narendra Modi takes stock of readiness for GST rollout : 15-09-2016


Prime Minister Narendra Modi today reviewed preparations for roll out of the new Goods and Services Tax (GST) regime, possibly from April 1 next year, with Finance Minister Arun Jaitley and his team making a presentation on the milestones achieved and the road ahead.

Jaitley, along with Finance Secretary Ashok Lavasa and Revenue Secretary Hasmukh Adhia, made a presentation to the Prime Minister on the state of readiness for creation of a national sales tax (or GST), the biggest tax reform since the Independence.

The presentation came within days of the Union Cabinet approving setting up of all powerful GST Council, which will decide on the tax rate, exempted goods and the threshold.

Official sources said besides listing milestones achieved so far, the presentation detailed the steps to follow including the timetable to get the supporting legislations approved.

Sources said the Prime Minister wanted to understand the main areas where he should focus his mind on. Also, he wanted an update on the revenue neutral rate, IT backbone being developed and concerns of the states.

The first meeting of the GST Council, which will be headed by Finance Minister, will be held on September 22-23, and the panel is to give its recommendations on the tax rate and other provisions within 60 days.

The Prime Minister was also briefed about the widespread demand for keeping GST rate at 18-19 per cent, expectations of states from the new regime and the impact of different tax slabs on the Centre in terms of compensation it has to pay states for loss of revenue.

The government is keen to implement the new regime from April 1 so as to ensure a smooth rollover to the changed tax structure from the beginning of the new fiscal and avoid mid- year alterations.

Sources said GST implementation is running ahead of schedule so far, within more than anticipated number of states ratifying the Constitutional amendment within the 30-day timeline set by the Centre.

The focus now shifts to creating the IT infrastructure and preparing traders, businessmen and companies to smoothly shift to the new taxation regime that will subsume an array of central and state levies including central excise duty, service tax, VAT and entry tax

Parallely, the supporting legislations — Central GST (CGST) and Integrated GST (IGST) — details the tax rates, exempted goods and bands, is planned to be approved in the Winter Session of Parliament in November, sources said.

Source : Economic Times

Narendra Modi government may back 18-19% GST standard rate : 14-09-2016


As the Centre and states kick off consultations to decide the crucial rate for the goods and services tax (GST), the Modi government is all set to back a pocket-friendly rate, amid indications that a standard rate of 18-19% might receive the government’s backing.

On Monday, the Cabinet cleared the establishment of the GST council, the panel headed by the Union finance minister with all state FMs as its members, setting the stage for nuts and bolts issues to be thrashed out with the government setting a two-month window for the exercise. States such as Kerala have been vocal in suggesting the levy should be upwards of 20% to ensure that state revenue collections are not impacted by the GST rollout from April.

“We need to ensure that the basket that makes up the consumer price index is not affected. The message is clear that gareeb ki thali (poor man’s plate) should not get expensive. The CPI (consumer price index) basket will not be impacted. There is commonality of focus (between the Centre and states) on this,” said a source, adding that the rate could be lowered but not raised at the expense of the common man’s “thali (meal)”.

Sources said the Centre would in any case compensate the states for any revenue loss for five years on account of GST implementation but added that the negotiations would be challenging. A consensus will quicken GST rollout but a stalemate over the rate and other issues such as exemptions, compensation formula and nitty-gritty of draft legislation will require more political negotiations.

The rates will be top of the agenda when the GST council holds its first meeting on September 22 and 23 although revenue secretary Hasmukh Adhia said the agenda is being finalised. The GST council will decide the standard rate along with the levy on essential goods, which will be lower, and a higher rate for demerit goods such as soft drinks and luxury items. For instance, the government wants to make a distinction in the levy on small cars, SUVs and luxury vehicles.

A panel headed by chief economic adviser Arvind Subramanian had estimated the revenue-neutral rate at 15-15.5% and suggested that the standard rate should be in the range of 16.9% to 18.9% with a lower band of 16.9-17.7% being the preferred option. The highest rate was pegged at 40%.

Apart from the rates, the Centre and states also need to agree on the final compensation structure, the list of exemptions, control over entities, the final draft of the three bills, India GST, Central GST and the state legislations, after factoring in the feedback received from industry.

While most states have come on board, including those ruled by the Congress which was stalling the reform move, others such as Tamil Nadu and West Bengal are holding out saying the proposed tax regime is not in their interest. Government officials, however, said states did not have a choice but to be part of the GST regime as the Constitution now mandates the levy.

Adhia said the government is on course to move to the new regime from April although there have been suggestions from certain quarters that the target may not be feasible.

Source : The Hindu

No. F.NO.225/195/2016/ITA.II Dated: 14-09-2016


Clarification req. u/s 119 of the Income-tax Act, 1961 dated 9th September 2016 – Order-Instruction – Dated 14-9-2016 – Income Tax

F.No.225/195/2016-ITA II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi

Dated the 14th of September, 2016

Clarification req. u/s 119 of the Income-tax Act, 1961 dated 9th September 2016

Central Board of Direct Taxes, vide order u/s 119 of the Income-tax Act, 1961 (‘Act’) dated 9th September, 2016, has extended the ‘due date’ for filing of income tax returns by the taxpayers whose accounts are audited u/s 44ABand who are required to furnish the returns of income for Assessment Year 2016-17 by 30th September, 2016 as per provisions of section 139(1) of the Act from 30th September, 2016 to 17th October, 2016. Clarifications are now being sought whether the said extension of ‘due date’ would also apply for getting the accounts audited in accordance with the provision of section 44AB.

Section 44AB of the Act, stipulates that the accounts are to be got audited by an accountant and furnished in the prescribed manner before the ‘specified date’. The ‘specified date’ under Explanation (ii) to that section has been defined to be the ‘due date’ for furnishing the return of income under subsection (1) of section 139. Therefore, the extended ‘due date’ as per CBDT order dated 9th September, 2016 would also apply for the purpose of section 44AB of the Act.

(Deepshikha Sharma)

Director to the Government of India

Notification No.62/2016-S.O. 2943(E) 14-9-2016


Corrigendum Notification No. S.O.2380(E) dated the 12th July 2016 – 62/2016-S.O. 2943(E) – Dated 14-9-2016 – Income Tax

MINISTRY OF FINANCE

(Department of Revenue)

Notification No. 62/2016

CORRIGENDUM

New Delhi, the 14th September, 2016

S.O. 2943(E).-In the notification of the Government of India, Ministry of Finance (Department of Revenue) number S.O.2380(E) dated the 12th July 2016, PUBLISHED IN THE Gazette of India, Extraordinary, Part – II, Section 3, sub-section (ii) dated 12th July 2016.

The Maximum amount of cost to be allowed as deduction under section 35AC indicated in the Col. No.(4) shall be substituted with the Maximum amount of cost to be allowed as deduction under Section 35AC as indicated in Col. No. (5) of the table given below.

TABLE

Serial No.

Name of the Institution/ Organization Project or scheme and estimated cost thereof Maximum amount of cost to be allowed as deduction under section 35AC and period of approval Maximum amount of cost to be allowed as deduction under  section 35AC and period of Approval
(1) (2) (3) (4) (5)

1

Nirmal Takhat Baba Budha ShaibCharitable Trust Village and Post Office Dakhoa District

Jalandhar-144023

Basera (Old Age Home)

₹ 1182.49 lakh

₹ 394.16 lakh for financial year 2016-17. ₹ 1182.49 lakh for financial year 2016-17.

2

Shrimad Rajchandra Educational Trust Karanjveri, Kangvi Road, Dharampur, District Valsad Gujarat-396051 1. To construct and maintain places for educational institutions’, hostels, auditorium, libraries, skill development center, science laboratories and to equip them necessary instruments.

2. To educate the physically challenged, aged and socially under privileged to become selfsufficient and to impart knowledge and education to people without any indiscrimination based on race, caste, religion, sect, color or region.

₹ 79.31 crore.

₹ 26.43 crore for financial year 2016-17. ₹ 79.31 crore for financial year 2016-17.

3

Cumulative Action for Rural Development Trust No.3/1, K.K. Road, KalviUlgam, Villupuram-605602 Tamilnadu Integrated Social Cultural Educational Economical Development of the Tribal people ₹ 4.00 Crore ₹ 1.33 crore for financial year 2016-17. ₹ 4.00 Crore for financial year 2016-17.

4

Shri Sai Baba Annachhatra Mandal Pratishirdi Shri Saibaba Mandir, Somatane Phanta, Shirgaon, Tq. Maval, District Pune Maharashtra- Vocational Training to poor and backward class peoples (earlier it was Construction of Bhakt Niwas, Food Distribution and Vocational Training to poor and backward class peoples)

₹ 5.36 crore

₹ 1.79 crore for financial year 2016-17. ₹ 5.36 crore for financial year 2016-17.

5

Yeshaswini Co-operative Farmers’ Health Care Trust Department of Co-operation MS Building, VI Floor, Bengaluru-560001. Yeshasvini Co-operative Farmers’’ Healthcare Scheme ₹ 250.00 Crore ₹ 83.33 crore for financial year 2016- 17. ₹ 250.00 Crore for financial year 2016-17.

6

Norwergain Free Envangelical Mission, Dhanora C/o Rev. Sharshikant Shmuvel Hiwale TQ Chopda, Distt. Jalgaon Maharashtra-425001. Swayam Siddha Abhiyaan (Education-Hostel-Orphange- Medical-Social Work- Spiritual) ₹ 7.54 Crore ₹ 2.51 crore for financial year 2016-17. ₹ 7.54 Crore for financial year 2016-17.

7

Abdul Hamid Ansari Charitable Trust 12, Summervile, 790 Bhulabhai Desai Road, Mumbai-400026 Vocational Training of Orphan Girls

₹ 24.00 lakh

₹ 8.00 lakh for financial year 2016-17. ₹ 24.00 lakh for financial year  2016-17.

8

Teach to Lead Voltas House, C Block T.B. Kadam Marg, Chinchpokli, 5 Mumbai-400033 Teach For India ₹ 163.67 crore ₹ 54.56 crore for financial year 2016-17. ₹ 163.67 crore for financial year 2016-17.

9

The Braj Foundation C-6/28, SDA, Hauz Khas, New Delhi-110016 Restoration of 137scared forests of Braj Region ₹ 165.00 crore ₹ 55.00 crore for financial year 2016- 17. ₹ 165.00 crore for financial year 2016-17.

10

Life Line Care Organization A/234, Bharat Vihar, Near Badi Mahazid, Kakrola, New Delhi-110078. Life Line Care Organization Project ₹ 92.50 Lakh ₹ 30.83 lakh for financial year 2016- 17. ₹ 92.50 Lakh for financial year 2016-17.

11

Shivchatrapati Sevabhavi Sanstha Ahmadpur AT Post Sindgi(BK) TQ. Ahmadpur, District Latur Maharashtra-413515 B.ED & D.Ed College & Boys and Girls Hostel & building construction ₹ 5.48 crore ₹ 1.83 crore for financial year 2016-17. ₹ 5.48 crore for financial year 2016-17.

12

Nival Samuday Kalyan Sangh At-D-1/43, Ambedkar Nagar, Sector – 4, New Delhi-110062 Running of vocational training centers and educational help center exclusively for 5000 rural women and school drop-out children to make them socially and economically viable and independent ₹ 6.86 Crore ₹ 2.29 crore for financial year 2016-17. ₹ 6.86 Crore for financial year 2016-17.

13

Mission for Ananth Development & Welfare Society SCA-Gussain Bhawan, near ITI Joshiyara Uttarakhand-249193 Education support to underprivileged  children and women of Uttarakashi ₹ 5.89 crore ₹ 1.96 crore for financial year 2016-17. ₹ 5.89 crore for financial year 2016-17.

14

Triveni Educational Trust Langmeidong P.O.& P.S. Kakching Thoubal District Manipur-795103 Multipurpose Hall ₹ 6.01 Crore ₹ 2.00 Crore for financial year 2016-17. ₹ 6.01 Crore for financial year 2016-17.

15

Balaji Heart Hospital and Diagnostic Centre 72, Laxmi Villas, 87, Napeansea Road, Mumbai-400006 To do heart surgeries of 6500 poor children suffering from serious heart problems at 100% free of cost to the beneficiary. ₹ 13791.61 lakh ₹ 45.97 crore for financial year 2016-17. ₹ 13791.61 lakh for financial year 2016-17.

16

Development of Education Environment parity and awareness movement society (DEEPAM) Santhi Nilayam Girls Hr. Secondary School Stop Periyar Nagar Harur-636903 Dharmapuri Dist.Tamil Nadu. Comprehensive Programme for Leprosy Patients ₹ 4.00 Crore ₹ 1.33 crore for financial year 2016-17. ₹ 4.00 Crore

17

Bal Vikas Mahila Sewa Sansthan

3/299, II nd Floor, Vishal Khand,

Gomti Nagar, Lucknow-226010

Subash Chandra Bose National

Sports Academy

₹ 3950.71 lakh

₹ 1316.90 lakh for

financial year 2016-17.

₹ 3950.71 lakh for

financial year 2016-17.

18

Yogesh Rural Cancer Research &

Relief Society, Ahmednagar

Garud Hospital & Cancer Centre

Saveli Road,

Ahmednagar-414003

To Establish the First

Radiotherapy Centre for poor

Cancer Patients ₹ 8.45 crore

₹ 2.81 crore for

financial year 2016-

17.

₹ 8.45 crore for

financial year 2016-17.

19

Shyama Memorial Welfare

Society

364/17, Jain Temple

Saadat Ganj

Lucknow-226003 Uttar Pradesh

Ankuram ₹ 1.50 crore ₹ 50.00 lakh for

financial year 2016-17.

₹ 1.50 crore for

financial year 2016-17.

20

BTL Educational Trust For Rural

Development,

No.259/B, Bommasandra

Industrial area,

Hosur Road, Bangalore-560099.

BTL Charitable Hospital

₹ 1600.00 lakh

₹ 533.33 lakh for

financial year 2016-17.

₹ 1600.00 lakh for

financial year 2016-17.

21

Muskan Sansthan

Choubisa Samaj Ka Nohra

Mohalla Ghanti

Dungarpur-314001

Rajasthan

Programme for Development of

Poor and Destitute Women

₹ 4.35 crore

₹ 1.45 crore for

financial year 2016-

17.

₹ 4.35 crore for

financial year 2016-17.

22

Fazlani Aishabai & Haji Abdul

Latif Charitable Trust

21st Floor, Nirmal, Nariman

Point,

Mumbai-4000021.

Undertaking for renovation,

reconstruction and major repairs

of dilapidated school, hostel,

hospital buildings and diagnostic

centers providing services to

persons from economically

weaker section of the society.

Also providing dwelling units for

rehabilitation of poor and needy

persons and providing study

materials to poor students.

₹ 19.06 crore

₹ 6.35 crore for

financial year 2016-17.

₹ 19.06 crore for

financial year 2016-17.

23

Our Sahara Foundation

F4/76, Defense Park,

Moynagarh

Kolkatta-700141

West Bengal

Running Creche Centers for

Children of poor working

mothers, constructing improved

cook stoves to conduct vocational

training for self employment of

local youth ₹ 10.71 crore

₹ 3.57 crore for

financial year 2016-

17.

₹ 10.71 crore for

financial year 2016-17.

24

The Konkan Muslim Education

Society of

Thane District, Bhiwandi

H.No.158, Rais High School

Campus,

Thana Road, Bhiwandi,

District Thane

Maharashtra – 421302

Konkan Muslim Education

Society’s Hospital & Research

Foundation

₹ 28.64 Crore (including corpus

fund of

₹ 3.00 crore)

₹ 9.55 Crore

(including corpus fund

of ₹ 1.00 crore) for

financial year 2016-

17.

₹ 28.64 Crore

(including corpus fund

of

₹ 3.00 crore) for

financial year 2016-17.

25

Manav Kalyan Trust,

Maqbool Road,

61, Anand Avenue,

Maqbool Road

Amritsar-143001(Punjab)

(1) Free Residential School from

Class 1st to 12th

(2) Free Technical School for girls

for training in Computer and

Accountancy

(3) Free Adult Education

(4) Free Health Care Project for

the mental and physical

development of children from

poor families.

₹ 12.00 Crore

₹ 4.00 crore for

financial year 2016-17.

₹ 12.00 Crore for

financial year 2016-17.

26

Param Shakti Peeth

LUV 103 Agrasen Awas,

66, I.P. Extn,

New Delhi-11092

Vatsalya Gram Shiksha Nidhi

project

₹ 31.88 crore

₹ 10.62 crore for

financial year 2016-17.

₹ 31.88 crore for

financial year 2016-17.

27

Snehalaya, Ahmednagar

Survey No. 239, F-Block, MIDC,

Nimbak, Tal. & District,

Ahmednagar

Maharashtra-414111

Devdasi Putra Utthhan

₹ 7.54 crore

₹ 2.51 crore for

financial year 2016-17.

₹ 7.54 crore for

financial year 2016-17.

28

Chil Chil Asain Mission Society

(CHAMS)

CHAMS Camps

Kanglatongbi-795151

Manipur

Upliftment of Tribal Communities

through Quality Education and

Vocational Training

₹ 50.00 Crore

₹ 16.67 crore for

financial year 2016-17.

₹ 50.00 Crore for

financial year 2016-17.

29

Shrimad Rajchandra Sarvamangal

Trust

Shrimad Rajchandra Hospital

Opposite S.T. Bus Depot

Dharmapur-396050

District Valsad Gujarat

To provide the best

comprehensive medical services

of high quality to the destitute and

needy people with special

emphasis on women and children

₹ 56.11 crore

₹ 18.70 crore for

financial year 2016-

17.

₹ 56.11 crore for

financial year 2016-17.

30

The Muslim Ambulance Society

154, Kambekar Street

Mumbai-400003

Continuation of present activities

(M.H. Saboo Siddique Maternity

and General Hospital, Imamwada)

₹ 7.64 crore

₹ 2.55 crore for

financial year 2016-

17.

₹ 7.64 crore for

financial year 2016-17.

31

Narishakti Mahila Samiti

At HIG-1, Vivek Vihar,

P.O. Engineering School Square,

Berhampur-10, District Ganjam

Odisha-760010

Seekho Aur Kamao for Rural

Youth Farmer and Women

₹ 1523.24 lakh

₹ 507.75 lakh for

financial year 2016-17.

₹ 1523.24 lakh for

financial year 2016-17.

32

Sri Hara Kasturi Memorial Trust

5, Alexandra Court

60/1, Chowringhee Road,

Kolkatta-700020

(i) Swachh Bharat Abhiyan

(ii) Education Relief Program

(i) ₹ 42.88 lakh

(ii) ₹ 2.56 crore

(i) 14.29 lakh for

Swahh Bharat Abhiyan

(ii) ₹ 85.33 lakh for

Education Relief

Program for financial

year 2016-17.

(i) 42.88 lakh for

Swahh Bharat Abhiyan

(ii) ₹ 2.56 crore for

Education Relief

Program for financial

year 2016-17.

II. This notification shall remain in force for the period of and in relation to financial year in respect of the projects or schemes mentioned above against the respective institutions/projects.

III. The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of theCompanies Act and Companies (CSR) Rules, 2014.

[F. No. V. 27015/2/2016-SO (NAT.COM)]

S.R. SHARMA, Director (National Committee)

‘Implementation of GST to attract more FDI’ : 14-09-2016


Implementation of Goods & Service Tax (GST) will lead to increased tax compliance and attract more foreign direct investments across sectors due to tax transparency and ease of doing business, says a survey.

According to a survey of corporate India by Feedback Business Consulting Services, which covered 67 companies from various sectors, GST rollout will be positive for the economy.

Around 72 per cent respondents felt investments will rise across sectors and a significant portion of this will come in the form of FDI especially in heavy engineering and automotive sectors.

Some of the other major benefits of GST implementation include, reduced logistics cost, supply chain efficiency, reduction in costs for tax & regulatory compliance, better penetration of markets and export effectiveness.

However, companies are concerned about the timing of implementation of GST and fixing of rate at which tax will be charged, the survey said.

“There might be some heartburns like inflation in the early days of implementation but GST will improve GDP of the country in the long run,” it added.

The report mentioned that states where the goods and services are consumed will benefit more as GST is consumption-based tax and not production-based. “This may be a cause for concern for unorganised states,” it said.

The survey was initiated immediately after the passage of GST Bill in parliament and the response were collated by 31st August.

The response were later analysed through Statistical Package for the Social Sciences, a software package used in statistical analysis of data, to draw inferences.
Source : PTI

Finance Ministry likely to issue CPSE Exchange Traded Fund by December : 14-09-2016


Having zeroed in on fund manager, the Finance Ministry is considering to launch second tranche of Exchange Traded Fund (ETF) comprising stocks of 10 PSUs by the end of December.

The second tranche of the ETF may hit the market by the end of the next quarter, sources said.

Besides, a new ETF will be launched after the second tranche of the current ETF is issued, sources said, adding the new ETF will be different in composition from the previous one.

As part of disinvestment excercise, the proposed new ETF will serve as an additional mechanism for the government to monetise its shareholdings in those CPSEs that eventually form part of the ETF basket.

CPSE ETF, comprising scrips of 10 PSUs, was launched in March 2014, under which retail investors have to invest a minimum of Rs 5,000 to buy units. It had then garnered Rs 3,000 crore to the exchequer.

The 10 PSUs, which are part of the CPSE ETF basket are, ONGC, GAIL India, Coal India, Indian Oil, Oil India, Power Finance Corp, Rural Electrification Corp, Container Corp, Engineers India and Bharat Electronics.

An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

The government aims to collect Rs 56,500 crore through disinvestment in PSUs in the next fiscal, as per the Budget for 2016-17.

Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 20,500 crore is projected to come from strategic sale in both profit and loss-making companies.

In 2015-16, the Government was able to meet less than half of the disinvestment estimates at Rs 25,312 crore against the target of Rs 69,500 crore.

It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13.

Source : Economic Times

Notification No. SO 2922(E) [F.No.1/5/2013 CL-V Dated 12-9-2016


SECTION 467 OF THE COMPANIES ACT, 2013 – SCHEDULES – AMENDMENT IN SCHEDULE V

NOTIFICATION NO. SO 2922(E) [F.NO.1/5/2013 CL-V], DATED 12-9-2016

In exercise of the powers conferred by sub-sections (1) and (2) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following amendments to amend Schedule V of the said Act, namely:—

2. In Schedule V of the Companies Act, 2013,—

(a) in Part I, in Appointments,-
(i) in para (a), for sub-paragraph (vi), the following sub-paragraph shall be substituted, namely;—
“(vi) the Companies Act, 2013 (18 of 2013) or any previous company law”
(b) in part II, for section II, the following section shall be substituted, namely:—

“Section II

Remuneration payable by companies having no profit or inadequate profit without Central Government approval

Where in any financial year during the currency of tenure of a managerial person, a company has no profits or its profits are inadequate, it may, without Central Government approval, pay remuneration to the managerial person not exceeding the limits under (A) and (B) given below:—

(A) :

(1) (2)
Where the effective capital is Limit of yearly remuneration payable shall not exceed (Rupees)
(i) Negative or less than 5 crores 60 lakhs
(ii) 5 crores and above but less than 100 crores 84 lakhs
(iii) 100 crores and above but less than 250 crores 120 lakhs
(iv) 250 crores and above 120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores :

Provided that the above limits shall be doubled if the resolution passed by the shareholders is a special resolution.

Explanation.— It is hereby clarified that for a period less than one year, the limits shall be pro-rated.

(B) In case of a managerial person who is functioning in a professional capacity, no approval of Central Government is required, if such managerial person is not having any interest in the capital of the company or its holding company or any of its subsidiaries directly or indirectly or through any other statutory structures and not having any direct or indirect interest or related to the directors or promoters of the company or its holding company or any of its subsidiaries at any time during the last two years before or on or after the date of appointment and possesses graduate level qualification with expertise and specialised knowledge in the field in which the company operates:

Provided that any employee of a company holding shares of the company not exceeding 0.5% of its paid up share capital under any scheme formulated for allotment of shares to such employees including Employees Stock Option Plan or by way of qualification shall be deemed to be a person not having any interest in the capital of the company:

Provided further that the limits specified under items (A) and (B) of this section shall apply, if—

(i) payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (1) of section 178 also by the Nomination and Remuneration Committee;
(ii) the company has not committed any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year before the date of appointment of such managerial person and in case of a default, the company obtains prior approval from secured creditors for the proposed remuneration and the fact of such prior approval having been obtained is mentioned in the explanatory statement to the notice convening the general meeting;
(iii) an ordinary resolution or a special resolution, as the case may be, has been passed for payment of remuneration as per the limits laid down in item (A) or a special resolution has been passed for payment of remuneration as per item (B), at the general meeting of the company for a period not exceeding three years.
(iv) a statement along with a notice calling the general meeting referred to in clause (iii) is given to the shareholders containing the following information, namely:—

I. General information:

(1) Nature of industry
(2) Date or expected date of commencement of commercial production
(3) In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus
(4) Financial performance based on given indicators
(5) Foreign investments or collaborations, if any.

II. Information about the appointee:

(1) Background details
(2) Past remuneration
(3) Recognition or awards
(4) Job profile and his suitability
(5) Remuneration proposed
(6) Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin)
(7) Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if any.

III. Other information:

(1) Reasons of loss or inadequate profits
(2) Steps taken or proposed to be taken for improvement
(3) Expected increase in productivity and profits in measurable terms

IV. Disclosures

The following disclosures shall be mentioned in the Board of Director’s report under the heading “Corporate Governance”, if any, attached to the financial statement:

(i) all elements of remuneration package such as salary, benefits, bonuses, stock options, pension, etc., of all the directors;
(ii) details of fixed component and performance linked incentives along with the performance criteria;
(iii) service contracts, notice period, severance fees; and
(iv) stock option details, if any, and whether the same has been issued at a discount as well as the period over which accrued and over which exercisable.

Explanation : For the purposes of Section II of this part, “Statutory Structure” means any entity which is entitled to hold shares in any company formed under any statute. “.

3. This notification shall come into force from the date of its publication in the official gazette.

No. 33/2016 Dated: 12-9-2016


Clarifications on the Direct Tax Dispute Resolution Scheme, 2016 – Circular – Dated 12-9-2016 – Income Tax

Circular No. 33 of 2016

F.No.142/11/2016-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

(TPL Division)

Dated: 12th September, 2016

Clarifications on the Direct Tax Dispute Resolution Scheme, 2016

The Direct Tax Dispute Resolution Scheme, 2016 (hereinafter referred to as ‘the Scheme’) incorporated as Chapter X of the Finance Act, 2016 (hereinafter referred to as ‘the Act’) provides an opportunity to tax payers who are under litigation to come forward and settle the dispute in accordance with the provisions of the Scheme. The Direct Tax Dispute Resolution Scheme Rules, 2016 (hereinafter referred to as ‘the Rules’) have been notified. In regard to the scheme queries have been received from the stakeholders seeking further clarity on certain provisions of the Scheme. The Central Government has considered the queries and decided to clarify the same in the form of questions and answers as follows.-

Question No.1: In a case an appeal was pending before CIT(Appeals) as on 29.02.2016. However, before making declaration under the Scheme the appeal is disposed of by CIT(Appeals). Is the assessee eligible to avail the Scheme?

Answer: In such a case where the appeal was pending before CIT(Appeals) as on 29.02.2016 and the CIT(Appeals) has already disposed of the same before making the declaration, the declaration under the Scheme cannot be filed.

Question No.2: In a case where the appellant has filed a declaration under the Scheme or has intimated the CIT(Appeals) his intention to file declaration under the Scheme, whether the CIT(Appeals) will dispose-off the appeal?

Answer: The CIT(Appeals) have been instructed vide letter F.No.279/Misc./M-30/2016 dated 30.3.2016 that appeals where the appellants have expressed their intention to avail the Scheme should be kept pending. Further, vide letter F.No.279/Misc./M-74/2016-ITJ dated 19.07.2016, the designated authority have been instructed to obtain an endorsement from CIT(Appeals) concerned that the appeal for which declaration has been filed was pending on 29.2.2016 and has not yet been disposed. Therefore, in a case where the declaration has been made under the Scheme or an intention to avail the Scheme has been made by the appellant, the CIT(Appeals) shall not dispose the pending appeal.

Question No.3: Appeal against quantum as well as penalty under section 271(1)(c) is pending before CIT(Appeals). If the assessee files a declaration in respect of the quantum appeal under the Scheme, what would be the fate of penalty appeal?

Answer: As per the Scheme, in a case where disputed tax in quantum appeal is more than ₹ 10 lakh, the declarant has to pay the disputed tax, interest and 25% of minimum penalty leviable. Further, in a case where the disputed tax in quantum appeal does not exceed ₹ 10 lakh, the declarant is required to pay only the disputed tax & interest and there is no requirement for payment of any amount in respect of penalty leviable.

Section 205(b) of the Act provides immunity from imposition or waiver of penalty under the Income-tax Act or the Wealth-tax Act in respect of tax arrear covered in the declaration to the extent the penalty exceeds the amount of penalty referred to in section 202(I) of the Act. Hence, in both the situations (i.e. whether disputed tax in quantum appeal exceeds ₹ 10 lakh or not), where a valid declaration under the Scheme is made in respect of quantum appeal, the appeal against penalty levied under section 271(1)(c) of the Income-tax Act, relating to the quantum appeal pending before the Commissioner (Appeals) shall be deemed to be withdrawn and the penalty or the balance amount of penalty, as the case may be, shall be deemed to be waived.

Question No.4: Section 203(2) reads that consequent to the declaration in respect of tax arrear, the appeal pending before Commissioner (Appeals) shall be deemed to be withdrawn. From what point of time does the provision become operative?

Answer: The appeal pending with Commissioner (Appeals) shall be deemed to be withdrawn from the date on which the certificate under section 204(1) is issued by the designated authority.

Question No.5: The addition made in assessment has the effect of reducing the loss but penalty has been initiated under section 271(1)(c) of the Income-tax Act. Is the assessee eligible to avail the Scheme?

Answer: The Scheme is applicable to cases where there is disputed tax. Since in the case of reduction of loss, there is no disputed tax the assessee shall not be eligible to avail the Scheme. However, if an appeal is pending before Commissioner (Appeals) in respect of penalty order framed as a result of variation in quantum loss, the declarant may file a declaration in respect of such penalty order.

Question No.6: In a case the time period specified under section 249 of the Income-tax Act for filing of appeal expired on 29.2.2016. The assessee filed an appeal in this case on 5.4.2016 with a request to condone the delay in filing of appeal. The Commissioner (Appeals) condoned the delay in filing of the appeal. Is the Scheme available to the assessee in such a case?

Answer: In condonation cases, a declarant shall be eligible for the Scheme, if:

(i) the time limit for filing of appeal under section 249 of the Income-tax Act, 1961 has got barred by limitation on or before 29.02.2016;

(ii) the appeal and condonation application has been filed before Commissioner (Appeals) before 01.06.2016; and

(iii) the delay in filing of such appeal is condoned by the Commissioner (Appeals)

Hence, in the present case the Scheme is available to the assessee.

Question No.7: In a case the Commissioner (Appeals) has given a notice of enhancement. Is such a case eligible for availing the Scheme?

Answer: A case where notice of enhancement has been received by the declarant before the date of commencement of the Scheme i.e. 01.06.2016 shall not be eligible for the Scheme.

Question No.8: A survey was conducted during F.Y. 2013-14. Incriminating documents relating to assessment year 2011-12 were found and assessment under section 147 of the Income-tax Act for the said year was made based on these documents and other enquiries conducted. Is the assessee’s case for A.Y. 2011-12 which is pending with Commissioner (Appeals) eligible for the Scheme?

Answer: As per section 208 of the Act, the Scheme shall not be available for assessment or reassessment on which survey conducted under section 133A of the Income-tax Act has a bearing. Hence, in the present case, A.Y. 2011-12 is not eligible for the Scheme.

Question No.9: In a case, appeal against penalty order under section 271(1)(c) is pending before Commissioner (Appeals) and appeal against quantum addition is pending with higher appellate authority. As per the Scheme, the amount payable is 25% of the minimum penalty leviable and the tax and interest payable on the total income finally determined. What should be construed as ‘total income finally determined’ for computing the quantum of tax, interest and penalty payable under the Scheme? Further, what would be the effect of any variation in quantum addition as a result of appellate order(s) passed subsequent to filing of declaration?

Answer: In case of an appeal relating to penalty under section 271(1)(c), the amount payable under the Scheme is 25% of the penalty amount and also the tax and interest payable on the total income finally determined. For this purpose the total income finally determined shall be the total income as determined after giving effect to the last appellate order passed on or before the date of filing declaration under the Scheme.

Any variation to the total income as a result of any appellate order passed subsequent to the date of declaration shall be ignored for the purposes of computing the amount of penalty payable under the Scheme.

Question No.10: Where certain income has been charged to tax in the hands of two different persons or where it has been charged to tax in the case of same person in two different assessment years, one on substantive basis and the other on the protective basis, will the declarant or the other person get advantage in respect of additions made both substantively and protectively?

Answer: The assessees are advised to make declarations in cases or for assessment years where the additions are made on substantive basis. The protective demand is not subjected to recovery unless it is finally upheld. Once the declaration in a substantive case or year is accepted, the tax arrear in protective case/year would no longer be valid and will be rectified by suitable orders in the normal course.

Question No.11: By filing declaration under the Scheme for one assessment year, does the taxpayer forego his right of appeal on the same issue in another assessment year?

Answer: No. The order under the Scheme does not decide any judicial issue. It only determines the sum payable under the Scheme with reference to tax arrear or specified tax, as the case may be. It only provides for a dispute resolution mechanism in respect of cases for which declaration has been made.

Question No.12: The declarant has not paid the tax payable under the Scheme within 30 days of the order under section 204(1) for any reason including the non-realisation of the cheque presented to the bank. Will the declarant be eligible for the relief under the Scheme?

Answer: No. The tax payable under the Scheme should be paid to the credit of the Government on or before the due date as specified in the Scheme. The assessees are advised to pay the tax well on time so as to avail the relief under the Scheme.

Question No.13: There is no time limit specified for intimating the payments made by the declarant in accordance with the certificate issued in Form-3. Further, there is also no time limit specified for issuance of order under section 204(2) of the Act by the designated authority. Please clarify?

Answer: The declarant shall intimate the fact of payment along with the proof of the same to the designated authority within one month from the date on which time limit for making payment under the Scheme expires. The designated authority shall issue the order under section 204(2) of the Act within one month from the end of the month in which intimation regarding payment is received in Form-4 from the declarant.

Question No.14: Whether refund will be granted in cases where the assessee has already paid the penalty amount in full or in part while the appeal is still pending at CIT(A) stage and the assessee opts for this Scheme?

Answer: As per section 202(I)(b) of the Scheme, in case of pending appeal related to penalty, 25% of the minimum penalty leviable alongwith tax and interest on the total income finally determined is required to be paid. Therefore, if an assessee who has already paid an amount over and above the amounts referred to in section 202(I)(b) opts for the Scheme, he shall be eligible for refund of the excess payment already made. However, the declarant shall not be eligible for claim of interest on such refund under section 244A of the Income-tax Act, 1961.

(Dr. T.S. Mapwal)

Under Secretary to the Government of India

Copy to:-

1. PS to FM/ OSD to FM/ OSD to MoS(R).

2. PS to Secretary (Revenue).

3. The Chairperson, Members and all other officers in CBDT of the rank of Under Secretary and above.

4. All Pr. Chief Commissioners/ Pr. Director General of Income-tax – with a request to circulate amongst all officers in their regions/ charges.

5. Pr. DGIT (Systems)/ Pr. DGIT (Vigilance)/ Pr. DGIT (Admn.)/ Pr. DG (NADT)/ Pr. DGIT (L&R).

6. CIT (M&TP), CBDT.

7. Web manager for posting on the departmental website.

States get more freedom to spend funds under CSS : 12-09-2016


Government has issued fresh flexi-fund guidelines that will give more freedom to states in spending money under the Centrally Sponsored Schemes (CSS) to meet local developmental requirements.

Under the new norms, flexi-funds in each CSS has been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories.

The flexi-fund component, the Finance Ministry said, will provide “flexibility” to states to meet local needs and requirements and pilot innovation to improve efficiency.

States can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.

“States may, if they so desire, set aside 25 per cent of any CSS as flexi-fund to be spent on any sub-scheme or component or innovation that is in line with the overall aim and objective of the approved Scheme,” the guidelines said.

However, state governments will have to constitute a state-level sanctioning committee (SLSC) to avail of the flexi-fund facility.

“It may be noted that the name, acronym and the logo are the core feature of any CSS, which must be retained for the flexi-fund component as well. If the states change any of these core features, the central contribution will cease and the flexi-fund component will become a purely state scheme,” the Ministry said.

The flexi-fund facility is not for CSS which emanate from a legislation, like MNREGA.

Based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of CSS.

Source : PTI

Government notifies GST Council; in effect from Monday : 12-09-2016


Following presidential assent last week to the GST Bill, the Union Finance Ministry on Monday notified the provisions of the Constitution Amendment Act that allows for setting up the Goods and Services Tax (GST) Council.

“The Central Government hereby appoints the 12th day of September, 2016 as the date on which the provisions of section 12 of the said Act shall come into force,” a ministry notification said.

According to the provisions of the Constitution Amendment Act  the GST Council will have to be set up within 60 days of its notification.

It is to be chaired by the Union Finance Minister and will include State Ministers as members.

The GST Council will decide on the tax rate, will recommend the taxes to be subsumed and exempted from GST, the rates of taxation and the model Central, State and Integrated GST laws.

It will also decide the threshold for levy of the tax, as well as the dispute resolution mechanism, among other important issues.

Noting that 20 states had already ratified the GST, President Pranab Mukherjee said in Chennai on Saturday that it was the GST Council’s responsibility to have one uniform rate of GST tax to be introduced all over India.

The government targets to implement the new pan-India indirect tax regime from April 1, 2017.

The Centre will have to pass the Central GST and Integrated GST Bills, while the states will need to approve their respective GST legislations.

The GST is a single indirect tax that proposes to subsume most central and state taxes like Value Added Tax, service tax, central sales tax, excise duty, additional customs duty and special additional customs duty.

The states will, however, be able to adopt a GST structure that is different from that recommended by the GST Council. The council recommendations will not be binding on the states.

The Bill says the GST Council will make recommendations to the Centre and the states on issues such as taxes, cess and surcharges that might be subsumed in the GST tax rate. Parliament and state assemblies have the right to accept those recommendations in their GST Bills.

While the pan-India overhaul of India’s indirect tax regime has got the mandatory support of more than half the states, Tamil Nadu’s ruling AIADMK had walked out before the voting on the Bill began, both in the Rajya Sabha and the Lok Sabha.

The party had wanted some changes in the Bill, such as imposition of four per cent additional tax on inter-state trade and transfer of money thus collected to the state of origin of the goods.

The Centre is to compensate the states for revenue losses for the first five years after the implementation of the GST if the states’ revenues come down under the new tax regime.

Meanwhile, at a meeting here with the Empowered Committee of State Finance Ministers on GST last month, India Inc pitched for an 18 per cent standard rate on the ground that this rate will generate adequate tax buoyancy without fuelling inflation.

The opposition Congress had earlier demanded an 18 per cent cap on the GST rate.

The Federation of Indian Chambers of Commerce and Industry (Ficci) suggested that to check inflation and the tendency to evade taxes “the merit rate should be lower and the standard rate reasonable”.

“As per the current indications and reports, goods will be categorised as being subject to merit rates (12 per cent), standard rates (18 per cent) and de-merit rates (40 per cent),” Ficci said in a release following a meeting here with the Empowered Committee.

“Certain goods will be exempted from the GST while bullion and jewellery will be charged at one-two per cent,” it said regarding classification of goods for applying GST rates.

On the implementing of GST, Ficci said that in order to provide adequate time to trade and industry to prepare “for a hassle-free rollout of the GST regime”, a minimum of six months should be permitted from the date of the adoption of the GST law by the GST Council.

“Additional time would be required in case the GST law as passed by Parliament or state legislatures is significantly different from the one adopted by the GST Council,” the statement added.

In a meeting here with Revenue Secretary Hasmukh Adhia last month, industry chambers had expressed concerns about the draft GST law, flagging issues like dual administrative control and wide discretionary powers for tax authorities.

Source : Economic Times

GST Council comes into effect today : 12-09-2016


Moving swiftly ahead, the Finance Ministry has notified the provisions of the Constitution (One Hundred and First Amendment) Act, 2016 that will allow setting up of the crucial Goods and Services Tax (GST) Council.

The GST Council, to be chaired by the Union Finance Minister and includes State Ministers as members, will decide on all key issues relating to the indirect tax levy, including the rates, and will come into effect from September 12.

“The Central Government hereby appoints the 12th day of September, 2016 as the date on which the provisions of section 12 of the said Act shall come into force,” said the Finance Ministry notification.

President Pranab Mukherjee gave his assent to the Constitution Amendment Act on September 8 and the government is hoping to roll out the indirect tax levy from April 1, 2017.

According to the provisions of the Constitution Amendment Act, the GST Council will have to be set up within 60 days of its notification. The setting up of the Council is crucial to finalise the modalities of the new tax system.

Revenue Secretary Hasmukh Adhia has said the Finance Ministry will seek approval for setting up the GST Council in the next meeting of the Union Cabinet.

According to the Constitution Amendment Act, the Council will recommend the taxes to be subsumed and exempted from GST, the rates of taxation and the model Central, State and integrated GST laws.

It will also decide the threshold for levy of the tax, the date from which GST will be applicable to petroleum products as well as the dispute resolution mechanism.

States have indicated that they would like the GST Council to be separate from the Empowered Committee of State Finance Ministers but the final call is likely to be taken by the Finance Minister Arun Jaitley.

According to State Finance Ministers, the Empowered Committee can be a platform for States to discuss their regional issues while the GST Council can oversee the implementation of the indirect tax reform.

Source : Business Line

Prez calls on armed forces to ensure stability and peace : 10-09-2016


 President Pranab Mukherjee today said the 21st century is witnessing strife of a very “virulent nature” and called for capable and responsive armed forces to ensure stability and peace.

Stating that security challenges go much beyond conventional borders and threats in the international arena including a sizeable diaspora, he said, “India requires young men and women to take up the challenge of navigation through troubled waters and work tirelessly and selflessly even at the peril of their lives in the service of country.”

“Our security challenges in fact go much beyond conventional borders and conventional threats in the international arena including a sizeable diaspora to protect in unstable regions in the world, energy security issues and protection of maritime sea lanes,” he said.

Addressing the officers on the occasion of review of the passing out parade of the summer term at officers Training Academy, Mukherjee said the country has reposed faith in armed forces in internal crisis situations, both man made and natural.

“All these challenges demand a capable and responsive armed Forces to ensure stability and peace, so vital for our country on its path of peace and prosperity for all its citizens,” he said.

The 21st century has ushered in its own set of challenges, he said.

“Though turbulence and uncertainty have manifested all along in the history of mankind, this century is witnessing chaos and strife of a very virulent nature comprising asymmetric warfare involving both state and non-state actors,” Mukherjee added.

The Indian Army represents the Instrument of Last Resort, he said, adding that “the acme of a great and powerful army does not lie in the power it can unleash but the manner and dexterity with which it does so”.

Source : Business Standard

Detailed recommendations for merger of budgets submitted to FM : 10-09-2016


The 92-year-old tradition of a separate Rail Budget is likely to become a thing of the past with a committee to finalise the modalities for its merger with the General Budget submitting its report to the Finance Ministry.

The report on merger of Rail Budget and General Budget which was to be submitted by August 31, was delayed due to some “unavoidable reasons” and it was submitted to the Finance Ministry on September 8, sources in the railways said.

The government had constituted a 5-member committee comprising senior officials of the ministries of Finance and Railways to work out the modalities for the merger.

Though the sources declined to divulge the committee’s recommendations on the ground that the “report is now in the Finance Ministry’s domain”, it is believed that a detailed framework for a way forward has been worked out for merger of two budgets.

The panel is understood to have advocated that the General Budget should have a separate annexure for the rail budget detailing the grant, expenditure and new projects for the next fiscal.

Since the railways has already given its consent for the merger, it is now for the Finance Ministry to take a call on the issue, they said.

Earlier this year, a committee headed by NITI Aayog member Bibek Debroy, in a report titled “Dispensing with the Railway Budget”, recommended that the two budgets should be merged.

Last month, Railway Minister Suresh Prabhu had said, “I had written to Finance Minister Arun Jaitley for merger of the Rail Budget with the General Budget. This will be in the railways’ interest and also in the nation’s interest. We are working out the modalities.”

The report is believed to have suggested ways for dealing with the railways’ huge financial burden, once the Rail Budget is merged with Union Budget.

At present, the railways has to bear an additional burden of about Rs 40,000 crore on account of implementation of the 7th Pay Commission awards, besides an annual outgo of Rs 33,000 crore on subsidies for passenger service.

The delay in completion of projects resulted in cost overruns of Rs 1.07 lakh crore and  huge throw-forward of Rs 1.86 lakh crore in respect of 442 ongoing rail projects.

The report is also understood to have addressed the contentious issue of annual dividend payment by the railways on account of receiving gross budgetary support (GBS).

The railways pays about Rs 10,000 crore a year to the Finance Ministry as dividend for getting the GBS.

Jaitley will take a final call on whether to break the tradition of presenting a separate Rail Budget, by merging it with the General Budget.

However, the merger will have political implications as almost every railway minister, particularly in coalition governments, has addressed his or her constituency by way of announcing new trains and projects.

The much sought after ministry is likely to lose much of its sheen if the merger happens

Source : PTI

Rules may be eased for banks and NBFCs under GST : 10-09-2016


The government may look at relaxing some rules in the goods and services tax (GST) framework that could make life a little easier for banks, NBFCs and insurance companies, people in the know said.

In the revised model law set to be released in the first weeks of October, two main changes — single registration and centralised audit — may be announced for banks, NBFCs and the insurance companies, a person close to the development said.

“While it has not been finalised how exactly would the government go about it, broadly there seems to be a consensus that banks, especially large ones, would find it very tough under GST,” he said.

Under the current GST framework, banking and financial companies will have to register all their branches in a state separately, and treat them as separate entity. This is set to make registering and then calculating GST in each transaction in every branch complicated.

A centralised registration would mean the bank would be registered with a central agency, and a separate agency would audit it.

This agency would audit the transactions where revenues would be pooled, analysed and a GST be levied thereafter and then distributed to the states as per the calculation and where the transaction occurred.

The centralised auditor, and not the banks, NBFCs and insurance companies, would be responsible to disseminate the tax to the states, saving a lot of headache, say experts.

Industry trackers say that currently under the GST framework the burden of compliance for banks, NBFCs and insurance companies, especially with a pan India footprint would be significant as they would be required to comply separately in every state.

“Most banks and other financial companies would be required to map and measure internal transactions between their branches and pay taxes on such self-supplies under GST. This may create a risk of tax litigation given the complex products and services offered by the industry and manner in which taxing provisions have currently been framed,” said Sameer Gupta, EY Financial Services tax leader.

For many banks some of the services, including home loans and managing demat account, are centralised, which would change. Under GST, this would not be possible, as the services used in every state and revenue earned from that would attract tax in that jurisdiction only.

Banks will have to look at each and every transaction and will have to have different registration for branches in different districts and states. Additionally, some of the services given by one branch in a state to another in a separate state may be taxed under GST.

This has created a nightmare for the banks and other financial companies as the compliance cost is set to go up.

Source : Economic Times

Notification No. 375/2016-RB 09-9-2016


FEM (TRANSFER OR ISSUE OF SECURITY BY A PERSON RESIDENT OUTSIDE INDIA) (THIRTEENTH AMENDMENT) REGULATIONS, 2016 – AMENDMENT IN SCHEDULE 1, ANNEX B

NOTIFICATION NO.FEMA.375/2016-RB/GSR 879(E), DATED 9-9-2016

In exercise of the powers conferred by clause (b) of sub-section (3) of section 6 and section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA. 20/2000-RB dated 3rd May 2000) namely:—

Short Title & Commencement

1. (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Thirteenth Amendment) Regulations, 2016.

(ii) They shall come into force from the date of their publication in the Official Gazette.

Amendment to Schedule 1

2. In Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, (Notification No. FEMA 20/2000-RB dated 3rd May 2000), in Schedule 1, in Annex B, Paragraph F.8 shall be substituted by the following, namely:—

F.8 Other Financial Services
Financial Services activities regulated by financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India. 100% Automatic
F.8.1 Other Conditions
i. Foreign investment in ‘Other Financial Services’ activities shall be subject to conditionalities, including minimum capitalization norms, as specified by the concerned Regulator/Government Agency.
ii. ‘Other Financial Services’ activities need to be regulated by one of the Financial Sector Regulators. In all such financial services activity which are not regulated by any Financial Sector Regulator or where only part of the financial services activity is regulated or where there is doubt regarding the regulatory oversight, foreign investment up to 100% will be allowed under Government approval route subject to conditions including minimum capitalization requirement, as may be decided by the Government.
iii. Any activity which is specifically regulated by an Act, the foreign investment limits will be restricted to those levels/limit that may be specified in that Act, if so mentioned.
iv. Downstream investments by any of these entities engaged in “Other Financial Services” will be subject to the extant sectoral regulations and provisions of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, as amended from time to time.”

Notification No. SO 2912(E) [F.No.A-45011/14/2016-A Dated 09-9-2016


SECTION 1 OF THE COMPANIES ACT, 2013 – ACT – ENFORCEMENT OF – NOTIFIED DATE ON WHICH SPECIFIED PROVISIONS OF SAID ACT SHALL COME INTO FORCE

NOTIFICATION NO. SO 2912(E)[F.NO.A-45011/14/2016-AD-IV], DATED 9-9-2016

In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints 9th September, 2016 as the date on which the provisions of section 227, clause (b) of sub-section (1) of section 242, clauses (c) and (g) of sub-section (2) of section 242, section 246 and sections 337 to 341 (to the extent of their applicability for section 246), of the said Act shall come into force.

 

Notification No.81/2016 09-9-2016


Central Government notifies that no deduction of tax shall be made from payments of the nature specified in section 193 or section 194A or section 194-I of the Income Tax Act 1961 – 81/2016 – Dated 9-9-2016 – Income Tax

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION No. 81 /2016

New Delhi, the 9th September, 2016

INCOME-TAX

S.O. 2911(E).-In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the said Act), the Central Government hereby notifies that no deduction of tax shall be made from payments of the nature specified in section 193 or section 194A or section 194-I of the said Act to the Tirumala Tirupati Devasthanams, Tirupati, Andhra Pradesh.

2. This notification shall come into force from the date of its publication in the Official Gazette.

[F. No. 275/49/2012-IT(B)]

SANDEEP SINGH, Under Secy.

 

Notification [F.No.1/36/20/13 CL-V (PT-I)] Dated: 09-09-2016


COMPANIES (MEDIATION AND CONCILIATION) RULES, 2016

NOTIFICATION [F.NO.1/36/20/13-CL.V], DATED 9-9-2016

In exercise of the powers conferred under section 442, read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, namely :

Short title and Commencement

1. (1) These rules may be called the Companies (Mediation and Conciliation) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

Definitions

2. (1) In these rules, unless the context Otherwise requires,—

(a) “Act” means the Companies Act 2013 (18 of 20l3);
(b) ”Regional Director” means the person appointed by the Central Government in the Ministry of Corporate Affairs as a Regional Director ;
(c) “Annexure” means the annexure attached to these rules;
(d) “Form” or E-Form” means a form set forth in the Annexure which shall be used for the matter to which it relates;
(e) “Panel” means the Mediation and Conciliation Panel.

(2) The words and expressions used in these rules but not defined and defined in me Act or in the Companies (Specification of Definitions Details) Rules, 2014 shall have the meanings respectively assigned to them in the Act or the rules.,

Panel of mediators or conciliators

3. (1) Regional Director shall prepare a panel of experts willing and eligible to be appointed as mediators or conciliators in the respective regions and such panel shall be placed on the website of the Ministry of Corporate Affairs or on any other website as may be notified by the Central Government.

(2) The Regional Director may invite applications from persons interested in getting empanelled as mediator or conciliator and possessing the requisite qualifications specified in Rule 4

(3) A person who intends to get empanelled as mediator or conciliator and possesses the requisite qualifications shall apply to the Regional Director in form MDC-1.

(4) Application received under sub-rule (3), if rejected by the Regional Director, the Regional Director shall record the reasons in writing for the same.

(5) The Regional Director shall invite applications from persons interested in getting empanelled as mediator or conciliator every year during the month of February and update the Panel which shall be effective from 1st of April of every year:

Provided that for financial Year 2016-17, the Regional Director may call for applications from the persons interested in getting empanelled as mediator or conciliator, within 60 days from the date of publication of these rules and prepare the panel for the current financial year within a period of 30 days.

Qualifications for empanelment

4. A person shall not be qualified for being empanelled as mediator or conciliator unless he —

(a) has been a Judge of the Supreme Court of India; or
(b) has been a Judge of a High Court; or
(c) has been a District and Sessions Judge; or
(d) has been a Member or Registrar of a Tribunal constituted at the National level under any law for the time being in force; or
(e) has been an officer in the Indian Corporate Law Service or Indian Legal Service with fifteen years experience; or
(f) is a qualified legal practitioner for not less than ten years ; or
(g) is or has been a professional for at least fifteen years of continuous practice as Chartered Accountant or Cost Accountant or Company Secretary ;or
(h) has been a Member or President of any State Consumer Forum; or
(i) is an expert in mediation or conciliation who has successfully undergone training in mediation or conciliation.

Disqualifications for empanelment

5. A person shall be disqualified for being empanelled as mediator or conciliator, if he—

(a) is an undischarged insolvent or has applied to be adjudicated as an insolvent and his application in pending;
(b) has been convicted for an offence which, in the opinion of the Central Government, involves moral turpitude;
(c) has been removed or dismissed from the service of the Government or the Corporation owned or controlled by the Government;
(d) has been punished in any disciplinary proceeding, by the appropriate disciplinary authority; or
(e) has in the opinion of the Central Government, such financial or other interest in the subject matter of dispute or is related to any of the parties, as is likely to affect prejudicially the discharge by him of his functions as a mediator or conciliator.

Application for appointment of Mediator or Conciliator and his appointment -

6. (1) (a) Parties concern may agree on the name of the sole mediator or conciliator for mediation or conciliation between them;

(b) Where, there are two or more sets of parties and are unable to agree on a sole mediator or conciliator, the Central Government or the Tribunal or die Appellate Tribunal may ask each party to nominate the mediator or conciliator or the Central Government or the Tribunal or the Appellate Tribunal may appoint the mediator or conciliator, as may be deemed necessary for mediation or conciliation between the parties.

(2) The application to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, for referring the matter pertaining to any proceeding pending before it for mediation or conciliation shall be in form MDC-2 and shall be accompanied with a fee of one thousand rupees.

(3) On receipt of an application under sub-rule (2), the Central Government or the Tribunal or the Appellate Tribunal shall appoint one or more experts from the panel.

(4) The Central Government or the Tribunal or the Appellate Tribunal as the case may be, before which any proceeding is pending may, suo motu, refer any matter pertaining to such proceeding to such number of experts from the Mediation end Conciliation Panel, if it deems fit in the interest of parties.

Deletion from the Panel

7. The Regional Director may by recording reasons in writing and after giving him an opportunity of being heard, remove any person from the Panel.

Withdrawing name from Panel

8. Any person who intends to withdraw his name from the Mediation and Conciliation Panel may make an application to the Regional Director indicating the reasons for such withdrawal and the Regional Director shall take a decision on such application within fifteen days of receipt of such application and update the Panel accordingly.

Duty of mediator or conciliator to disclose certain facts

9. (1) It shall be the duty of a mediator or conciliator to disclose to the Central Government or the Tribunal or the Appellate tribunal, as the case may be, about any circumstances which may give rise to a reasonable doubt as to his independence or impartiality in carrying out his functions.

(2) Every mediator or conciliator shall from the time of his appointment and throughout continuance of the mediation or conciliation proceedings, without any delay, disclose to the parties about existence of any circumstance referred to in sub-rule (1).

Withdrawal of appointment

10. The Central Government or the Tribunal or the Appellate Tribunal as the case may be, upon receiving any disclosure furnished by the mediator or conciliator under rule 9, or after receiving any other information from a party or other person in any proceeding which is pending and on being satisfied that such disclosures or information has raised a reasonable doubt as to the independence or impartiality of such mediator or conciliator, may withdraw his appointment and in his place, appoint any other mediator or conciliator in that proceeding:

Provided that the mediator or conciliator may, offer to withdraw himself from such proceeding and request the Central Government or the Tribunal or the Appellate Tribunal as the case may be to appoint any other mediator or conciliator.

Procedure for disposal of matters

11. (1) For the purposes of mediation and conciliation, the mediator or conciliator shall follow the following procedure, namely :—

(i) he shall fix, in consultation with the parties, the dates and the time of each mediation or conciliation session, where all parties have to be present;
(ii) he shall hold the mediation or conciliation at the place decided by the Central Government or the Tribunal or the Appellate Tribunal, as the case may be or such other place where the parties and the mediator or conciliator jointly agree;
(iii) he may conduct joint or separate meetings with the parties;
(iv) each party shall, ten days before a session, provide to the mediator or conciliator a brief memorandum setting forth the issues, which need to be resolved, and his position in respect of those issues and all information reasonably required for the mediator or conciliator to understand the issue and a copy of such memorandum shall also be given to the opposite party or parties:
Provided that in suitable or appropriate cases, the abovementioned period may be reduced at the discretion of the mediator or conciliator;
(v) each party shall furnish to the mediator or conciliator such other information as may be required by him in connection with the issues to be resolved.

(2) Where there is more than one mediator or conciliator, the mediator or conciliators may first concur with the party that a agreed to nominate him and thereafter interact with the other mediator or conciliator, with a view to resolve the dispute.

Mediator or Conciliator not bound by the Indian Evidence Act, 1872 or the Code of Civil Procedure, 1908

12. The mediator or conciliator shall not be bound by the Indian Evidence Act, 1872 or the Code of Civil Procedure, 1908 while disposing the matter, but shall be guided by the principles of fairness and natural justice, having regard to the rights and obligations of the parties, usages of trade, if any, and the circumstances of the dispute.

Representation of parties

13. The parties shall ordinarily be present personally or through an authorised attorney at the sessions or meetings notified by the mediator or conciliator:

Provided that the parties may be represented by an authorised person or counsel with the permission of the mediator or conciliator in such sessions or meetings and the mediator or conciliator or the Central Government, or the Tribunal or the Appellate Tribunal as the case may be shall be entitled to direct or ensure the presence of any party to appear in person:

Provided further that the party not residing in India may, with the permission of the mediator or conciliator, be represented by his or her authorised representative at the sessions or meetings.

Consequences of non-attendance of parties at sessions or meetings on due dates

14. If party fails to attend a session or a meeting fixed by the mediator or conciliator deliberately or wilfully for two consecutive times, the mediation or conciliation shall be deemed to have failed and mediator or conciliator shall report the matter to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be.

Administrative assistance

15. In order to facilitate the conduct of mediation or conciliation proceedings, the mediator or conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.

Offer of settlement by parties

16. (1) Any party to the proceeding may, “without prejudice” offer a settlement to the other party at any stage of the proceedings, with a notice to the mediator or conciliator.

(2) Any party to the proceeding may make a “with prejudice” offer to the other party at any stage of the proceedings with a notice to the mediator or conciliator.

Role of Mediator or Conciliator

17. The mediator or conciliator shall attempt to facilitate voluntary resolution of the dispute by the parties, and communicate the view of each party to the other, assist them in identifying issues reducing misunderstandings, clarifying priorities, exploring areas of compromise and generating options in an attempt to resolve the dispute, emphasising that it is the responsibility of the parties to take decision which affect them and he shall not impose any terms of settlement on the parties :

Provided that on consent of both the parties, the mediator or conciliator may impose such terms and conditions on the parties for early settlement of the dispute as he may deem fit.

Parties alone responsible for taking decision

18. The parties shall be made to understand that the mediator or conciliator facilitates in arriving a decision to resolve the dispute and that he shall not and cannot impose any settlement nor the mediator or conciliator give any assurance that the mediation or conciliation shall result in a settlement and the mediator or conciliator shall not impose any decision on the parties.

Time limit for completion of mediation or conciliation

19 (1) The process for any mediation or conciliation under these rules shall be completed within a period of three months from the date of appointment of expert or experts from the Panel.

(2) On the expiry of three months from the date of appointment of export from the Panel, the mediation or conciliation process shall stand terminated.

(3) In ease of mediation or conciliation in relation to any proceeding before Tribunal or Appellate Tribunal which could not be completed within three mouths, the Tribunal or as the case may be the Appellate Tribunal, may on the application of mediator or conciliator or any of the party to the proceedings, extend the period for mediation or conciliation by such period not exceeding three months.

Parties to act in good faith

20. All the parties shall commit to participate in the proceedings in good faith with the intention to settle the dispute.

Confidentiality, disclosure and inadmissibility of information

21. (1) When a mediator or conciliator receives factual information concerning the dispute from any party, he shall disclose the, substance of that information to the other party, so that the other party may have an opportunity to present such explanation as it may consider appropriate :

Provided that when a party gives information to the mediator or conciliator subject to a specific condition that the information may be kept confidential the mediator or conciliator shall not disclose that information to the other party.

(2) The receipt or perusal, or preparation of records, reports or other documents by the mediator or conciliator, while serving in that capacity shall be confidential and the mediator or conciliator shall not be compelled to divulge information regarding those documents nor as to what transpired during the mediation or conciliation before the Central Government or the Tribunal or the Appellate Tribunal or as the case may be, or any other authority or any person or group of persons.

(3) The parties shall maintain confidentiality in respect of events that transpired during the mediation and conciliation and shall not rely on or introduce The said information in other proceedings as to —

(i) views expressed by a party in the course of the mediation or conciliation proceeding;
(ii) documents obtained during the mediation or conciliation which were expressly required to be treated as confidential or other notes, drafts or information given by the parties or the mediator or conciliator;
(iii) proposals made or views expressed by the mediator or conciliator;
(iv) admission made by a party in the course of mediation or conciliation proceedings.

(4) There shall be no audio or video recording of the mediation or conciliation proceedings.

(5) No statement of parties or the witnesses shall be recorded by the mediator or conciliator.

Privacy

22. The mediation or conciliation sessions or meetings shall be conducted in privacy where the persons as mentioned in rule 13 shall be entitled to represent parties but other persons may attend only with the permission of the parties and with the consent of the mediator or conciliator.

Protection of action taken in good faith

23. No mediator or conciliator shall be held liable for anything, which is done or omitted to be done by him, in good faith during the mediation or conciliation proceedings for civil or criminal action nor shall be summoned by any party to the suit or proceeding to appear before the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, to testify regarding information received by him or action taken by him or in respect of drafts or records prepared by him or shown to him during the mediation or conciliation proceedings.

Communication between mediator or conciliator and the Central Government or the Tribunal or the Appellate Tribunal

24. In order to preserve the confidence of parties in the Central Government or the Tribunal or the Appellate Tribunal as the case may be and the neutrality of the mediator or conciliator, there shall be no communication between the mediator or conciliator and the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, in the subject matter:

Provided that, if any communication between the mediator or conciliator and the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, is necessary, it shall be in writing and copies or the same shall be given to the parties or the authorised representative :

Provided further that communication between the mediator or conciliator and the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, shall be limited to communication by the mediator or conciliator:

(i) about the failure of the party to attend;
(ii) about the consent of the parties;
(iii) about his assessment that the case is not suited for settlement through the mediation or conciliation;
(iv) about settlement of dispute between the parties.

Settlement agreement

25. (1) Where an agreement is reached between the parties in regard to all the issues or some of the issues in the proceeding, the same shall be reduced to writing and signed by the parties and if any counsel has represented the parties, the conciliator or mediator may also obtain the signature of such counsel on the settlement agreement.

(2) the agreement of the parties so signed shall be submitted to the mediator or conciliator who shall, with a covering letter signed by him, forward the same to the Central Government or Tribunal or the Appellate Tribunal. as the case may be.

(3) Where no agreement is reached at between the parties, before the time limit specified in rule 19, or where the mediator or conciliator is of the view that no settlement is possible, he shall report the same to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be in writing.

Fixing date for recording settlement and passing order

26. (1) The Central Government or the Tribunal or the Appellate Tribunal as the case may be, shall fix a date of hearing normally within fourteen days from the date of receipt of the report of the mediator or conciliator under rule 25 and on such date of hearing, if the Central Government or the Tribunal or the Appellate Tribunal, as the case may be satisfied that the parties have settled their dispute, it shall pass an order in accordance with terms thereof.

(2) If the settlement disposes of only certain issues arising in the proceeding, on the basis of which any order is passed as stated in sub-rule (1) the Central Government or the Tribunal or the Appellate Tribunal, as the case may be shall proceed further to decide the remaining issues.

Expenses of the mediation and conciliation

27. (1) At the time of referring the matter to the mediation or conciliation, the Central Government or the Tribunal or the Appellate Tribunal as the case may be, may fix the fee of the mediator or conciliator and as far as possible, a consolidated sum may be fixed rather than for each session or meeting.

(2) The expense of the mediation or conciliation including the fee of the mediator or conciliator, costs of administrative assistance and other ancillary expenses concerned, shall be borne equally by the various contesting parties or as may be otherwise directed by the Central Government or the Tribunal or the Appellate Tribunal as the case may be.

(3) Each party shall bear the costs for production of witnesses on his side including experts or for production of documents.

(4) The mediator or conciliator may, before the commencement of the mediation or conciliation, direct the parties to deposit equal share of the probable costs of the mediation or conciliation including the fees to be paid to the mediator or conciliator.

(5) If any party or parties do not pay the amount referred to sub-rule (4), the Central Government or the Tribunal or the Appellate Tribunal, as the case may be shall on the application of the mediator or conciliator, or any party, issue appropriate directions to the concerned parties.

(6) The mediation or conciliation shall commence only on the deposit of amount referred to in sub-rule (4) and in case amount is not paid before such commencement, the mediation or conciliation shall be deemed to have terminated.

Ethics to be followed by Mediator or Conciliator

28. The mediator or conciliator shall—

(a) follow and observe the rules strictly and with due diligence;
(b) not carry on any activity or conduct which shall reasonably be considered as conduct unbecoming of a mediator or conciliator;
(c) uphold the integrity and fairness of the mediation or conciliation process;
(d) ensure that the parties involved in the mediation or conciliation are fairly informed and have an adequate understanding of the procedural aspects of the process ;
(e) satisfy himself or herself that he or she is qualified to undertake and complete the assignment in a professional manner;
(f) disclose any interest or relationship likely to affect impartiality or which might seek an appearance of partiality or bias ;
(g) avoid, while communicating with the parties any impropriety or appearance of impropriety ;
(h) be faithful to the relationship of trust and confidentiality imposed in the office of mediator or conciliator;
(i) conduct all proceedings related to the resolutions of a dispute, in accordance with the relevant applicable law ;
(j) recognise that the mediation or conciliation is based on principles of self-determination by the parties and that the mediation or conciliation process relies upon the ability of parties to reach a voluntary, undisclosed agreement; and
(k) maintain the reasonable expectations of the parties as to confidentiality and refrain from promises or guarantees of results.

Provided that if any party finds conduct of mediator or conciliator violative of ethics laid down in this rule, the party may immediately bring it to the notice of the Regional Director.

Resort to arbitral or judicial proceedings

29. The parties shall not initiate, during the mediation or conciliation under these rules, any arbitral or judicial proceedings in respect of a matter that is the subject-matter of the mediation or conciliation, except that a party may initiate arbitral or judicial proceedings, where, in his, opinion, such proceedings are necessary for protecting his rights.

Matters not to be referred to the mediation or conciliation

30. The following matters shall not be referred to mediation or conciliation, namely :—

(a) the matters relating to proceedings in respect of inspection or investigation under Chapter XIV of the Act; or the mailers which relate to defaults or offences for which applications for compounding have been made by one or more parties;
(b) cases involving serious and specific allegations of fraud, fabrication of documents forgery, impersonation, coercion etc.
(c) cases involving prosecution for criminal and non-compoundable offences.
(d) cases which involve public interest or interest of numerous persons who are not parties before the Central Government or the Tribunal or the Appellate Tribunal as the case may be.

FORM MDC-1

[See rule 3(3) of the Companies (Mediation and Conciliation) Rules, 2016]

Application for Empanelment of Mediator or Conciliator on the Panel

To

The Regional Director___________

I ……………………………………. S/o or D/o or W/o* …………………….. resident of

………….. (address) am hereby pleased to offer my services as Mediator or Conciliator so as to take up any assignment or matters referred by the Central Government at the places furnished hereunder:

1_________ 2_________3_________4_________

I possess requisite qualifications and experience in the following fields for the past _____years. In this regard, my resume or an illustrative memoranda as to my qualifications, experience, notable achievements with relevant proofs and declaration are enclosed hereto in two sets duly attested.

Area of Experience in brief

___________________________________________________

___________________________________________________

___________________________________________________

I shall abide by the Companies (Mediation and Conciliation) Rules, 2016 and such other relevant rules or Code of Conduct or Guidelines as may be specified from time to time.

I state that upon the receipt of the intimation of offer of empanelment, the necessary documentation shall also be executed—

I request you to consider my application for empanelment in the Panel.

Place :
Dated: Signature
Encl:
(Seal)

*Strike off whichever is not applicable.

FORM MDC-2

[See rule 6(2) of the Companies (Mediation and Conciliation) Rules, 2016]

Application for referring the matter to the Panel

To

The (Designated Officer)

The Central Government/Tribunal/ Appellate Tribunal.

I ………… S/o or D/o or W/o* ………………………………..resident of ……………..(address) being a party in the proceeding before Central Government Tribunal Appellate Tribunal under section ___________of the Act bearing reference number _____________(if any) hereby apply for referring the matter to the Mediation and Conciliation Panel.

The requisite fee has been paid vide …………………………(details of fees paid).

Place:

Dated:

SIGNATURE

* Strike off whichever is not applicable

No. F.No.225/195/2016-1TA-II Dated: 9-9-2016


Order under Section 119 of the Income-tax Act. 1961 – Order-Instruction – Dated 9-9-2016 – Income Tax

 

F.No.225/195/2016-1TA-II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, ITA.II Division

New Delhi, the 9th September, 2016

Order under Section 119 of the Income-tax Act. 1961

The last date for making declarations under the Income Declaration Scheme 2016 is 30th September, 2016 which coincides with the last date of filing Income-tax returns by the tax payers whose accounts are audited and who are required to furnish the returns of income for Assessment Year 2016-17 by 30th September, 2016 as per provisions of section 139 (1) of Income tax Act, 1961.

In order to remove inconvenience and to facilitate ease of compliance, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income-tax Act, 1961, hereby extends the ‘due-date’ for furnishing such returns of Income from 30th September, 2016 to 17th October, 2016, in case of tax payers throughout India, who are liable to furnish their Income-tax return by the said ‘due-date’.

(Deepshikha Sharma)

Director to the Government of India

Notification No. : F. No. 1/31/EM-2015 Dated: 8-9-2016


FEM (DEPOSIT) REGULATIONS, 2016 – SUPERSESSION OF NOTIFICATION NO.5/2000-RB, DATED 3-5-2000 – CORRIGENDUM TO NOTIFICATION NO. FEMA 5(R)/2016-RB/GSR 389(E), DATED 1-4-2016

NOTIFICATION NO.GSR 869(E) [F.NO.1/31/EM-2015], DATED 8-9-2016

In the Notification of Reserve Bank of India, Foreign Exchange Department, No.FEMA 5(R)/2016-RB, dated April 01, 2016 bearing G.S.R. 389(E) and published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) (hereinafter referred as Gazette Notification):

2. In SCHEDULE 1, under paragraph 6, the sub-paragraph (3) shall be substituted by the following—

“Loans outside India – Authorised dealers may allow their branches/correspondents outside India to grant loans to or in favour of non-resident depositor or to third parties at the request of depositor for bona fide purpose, against the security of funds held in the NRE accounts in India and also agree for remittance of the funds from India, if necessary, for liquidation of the outstanding.”

3. The other contents of the Gazette Notification shall remain unchanged.

Notification No.80/2016 08-9-2016


Agreement between the Government of the Republic of India and the Government of Republic of Seychelles for the Exchange of Information with respect to taxes – 80/2016 – Dated 8-9-2016 – Income Tax

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION No. 80/2016

(INCOME-TAX)

New Delhi, the 8th September, 2016

S.O. 2894(E).-Whereas, an Agreement between the Government of the Republic of India and the Government of the Republic of Seychelles for the Exchange of Information with respect to Taxes (hereinafter referred to as the said Agreement) as set out in the Annexure to this notification, was signed at New Delhi on the 26th day of August, 2015;

And whereas, the said Agreement entered into force on the 28th day of June, 2016 being the date of the later of the notifications of the completion of the procedures required by the respective laws for entry into force of the said Agreement, in accordance with paragraph 2 of Article 12 of the said Agreement;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement, as annexed hereto as Annexure, shall be given effect to in the Union of India, in accordance with Article 12 of the said Agreement.

ANNEXURE

AGREEMENT

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDIA

AND

THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES

FOR

THE EXCHANGE OF INFORMATION

WITH RESPECT TO TAXES

The Government of the Republic of India and the Government of the Republic of Seychelles, desiring to facilitate the exchange of information with respect to taxes have agreed as follows:

Article 1

Object and Scope of the Agreement

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provision of this Agreement and shall be treated as confidential in the matter provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

Article 2

Jurisdiction

Information shall be exchange in accordance with this Agreement without regard to whether the person to whom the information relates is, or whether the information is held by, a resident of a Contracting Party. However, a requested Party is not obliged to provide information which is neither held by its authorities nor is in the possession or control of persons who are within its territorial jurisdiction.

Article 3

Taxes Covered

1. The taxes which are the subject of this Agreement are:

a) in India, taxes of every kind and description imposed by the Central Government or the Governments of political subdivisions or local authorities, irrespective of the manner in which they are levied;

b) in Seychelles, taxes of every kind and description imposed by the Government, irrespective of the manner in which they are levied.

2. This Agreement shall also apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures which may affect the obligations of that Party pursuant to this Agreement.

Article 4

Definitions

1. For the purposes of this Agreement, unless otherwise defined:

a) the term “India” means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;

b) the term “Seychelles” means the territory of the Republic of Seychelles including its exclusive economic zone and continental shelf where Seychelles exercises sovereign rights and jurisdiction in conformity with the provisions of the U.N. Convention on the Law of the Sea;

c) the term “Contracting Party” means India or Seychelles as the context requires;

d) the term “competent authority” means

i) in the case of India, the Finance Minister, Government of India, or its authorized representative;

ii) in the case of Seychelles, the Minister responsible for Finance, or its authorized representative;

e) the term “person” includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting Parties;

f) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;

g) the term “publicly traded company” means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold “by the public” if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

h) the term “principal class of shares” means the class or classes of shares representing a majority of the voting power and value of the company;

i) the term “ recognised stock exchange” means

(i) in India, the National Stock Exchange, the Bombay Stock Exchange, and any other stock exchange recognised by the Securities and Exchange Board of India;

(ii) in Seychelles, a securities exchange licensed under the Securities Act, 2007 or any other law governing securities exchanges; and

(iii) any other stock exchange which the competent authorities agree to recognise for the purposes of this Agreement;

j) the term “collective investment fund or scheme” means any pooled investment vehicle, irrespective of legal form;

k) the term “public collective investment fund or scheme” means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed “by the public” if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

l) the term “ tax” means any tax to which this Agreement applies;

m) the term “requesting Party” means the Contracting Party-

(iii) submitting a request for information to, or

(iv) having received information from,

the requested Party;

n) the term “requested Party” means the Contracting Party-

(iii) which is requested to provide information, or

(iv) which has provided information;

o) the term “ information gathering measures” means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

p) the term “information” means any fact, statement, document or record in any form whatever.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires or the competent authorities agree to a common meaning pursuant to the provisions of Article 11 of this Agreement, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Article 5

Exchange of information Upon Request

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the requested Party needs such information for its own tax purposes or whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the requesting Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of the requesting Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authority, for the purposes specified in Article 1 of this Agreement, has the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any persons acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the legal and beneficial ownership of companies, partnerships, collective investment funds or schemes, trusts, foundations, “Anstalten” and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of collective investment funds or schemes, information on shares, units and other interests; in the case of trusts, information on settlors, trustees and beneficiaries; in the case of foundations, information on founders, members of the foundation council and beneficiaries; and equivalent information in case of entities that are neither trusts nor foundations. This Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the requesting Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) the period for which information is requested;

(c) a statement of the information sought including its nature and the form in which the requesting Party wishes to receive the information from the requested Party;

(d) the tax purpose for which the information is sought;

(e) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(f) to the extent known, the name and address of any person believed to be in possession or control of the requested information;

(g) a statement that the request is in conformity with the laws and administrative practices of the requesting Party, that if the requested information was within the jurisdiction of the requesting Party then the competent authority of the requesting Party would be able to obtain the information under the laws of the requesting Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(h) a statement that the requesting Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the requesting Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) Confirm receipt of a request in writing to the competent authority of the requesting Party and shall notify the competent authority of the requesting Party of deficiencies in the request, if any, within 60 days of the receipt of the request.

(b) If the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the requesting Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

Article 6

Tax Examinations Abroad

1. At the request of the competent authority of the requesting Party, the requested Party may allow representatives of the competent authority of the requesting Party to enter the territory of the requested Party, to the extent permitted under its domestic laws, to interview individuals and examine records with the prior written consent of the individuals or other persons concerned. The competent authority of the requesting Party shall notify the competent authority of the requested Party of the time and place of the intended meeting with the individuals concerned.

2. At the request of the competent authority of the requesting Party, the requested Party may allow representatives of the competent authority of the requesting Party to be present at the appropriate part of a tax examination in the territory of the requested Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the requesting party conducting the examination shall, as soon as possible, notify the competent authority of the requesting Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

Article 7

Possibility of Declining a Request for information

1. The competent authority of the requested Party may decline to assist:

(a) where the request is not made in conformity with this Agreement; or

(b) where the requesting Party has not pursued all means available in its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or

(c) where disclosure of the information would be contrary to public policy (ordre public) of the requested Party.

2. This Agreement shall not impose on a Contracting Party the obligation:

(i) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, provided that information described in paragraph 4 of Article 5 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph; or

(ii) to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice or

(b) produced for the purposes of use in existing or contemplated legal proceedings; or

(iii) to carry out administrative measures at variance with its laws and administrative practices, provided nothing in this subparagraph shall affect the obligations of a Contracting Party under paragraph 4 of Article 5.

3. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

4. The requested Party shall not be required to obtain and provide information which the requesting Party would be unable to obtain in similar circumstances under its own laws for the purpose of the administration or enforcement of its own tax laws or in response to a valid request from the requested Party under this Agreement.

5. The requested Party shall not decline to provide information solely because the request does not include all the information required under Article 5 if the information can otherwise be provided according to the law of the requested Party.

6. The requested Party may decline a request for information if the information is requested by the requesting Party to administer or enforce a provision of the tax law of the requesting Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the requesting Party in the same circumstances.

Article 8

Confidentiality

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without express written consent of the competent authority of the requested Party.

Article 9

Costs

1. Unless the competent authorities of the Contracting Parties otherwise agree, ordinary costs incurred in providing assistance shall be borne by the requested Party, and subject to the provisions of this Article, extraordinary costs incurred in providing assistance shall, if they exceed 500 US dollars, be borne by the requesting Party.

2. The competent authorities will consult each other, in advance, in any particular case where extraordinary costs are likely to exceed 500 US dollars to determine whether the requesting Party will continue to pursue the request and bear the cost.

3. The competent authorities shall consult from time to time with regard to this Article.

4. Ordinary costs include internal administration costs, any minor external costs and overhead expenses incurred by the requested Party in reviewing and responding to information requests submitted by the requested Party. Examples of extraordinary costs incurred in providing assistance include, but are not limited to the following:

(a) reasonable fees charged by third parties for copying documents on behalf of the requested Party;

(b) reasonable costs of engaging interpreters, translators or other agreed experts;

(c) reasonable costs of conveying documents to the requesting Party;

(d) reasonable litigation costs of the requested Party in relation to a specific request for information; and

(e) reasonable costs for obtaining depositions or testimony.

Article 10

Implementation Legislation

The Contracting Parties shall (where they have not already done so) enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

Article 11

Mutual Agreement Procedure

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of the Agreement, the competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Article 5 and 6 of this Agreement.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

Article 12

Entry into Force

1. The Contracting Parties shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement.

2. This Agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 of this Article and shall thereupon have effect forthwith.

Article 13

Termination

1. This Agreement shall remain in force until terminated by either Contracting Party.

2. Either Contracting Party may, after the expiry of five years from the date of its entry into force, terminate the Agreement by serving a written notice of termination to the other Contracting Party through diplomatic channels.

3. Such termination shall become effective on the first day of the month following the expiration of a period of six months after the date of receipt of notice of termination by the other Contracting Party. All requests received up to the effective date of termination shall be dealt with in accordance with the provisions of the Agreement.

4. If the Agreement is terminated, the Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof, the undersigned, being duly authorised thereto, have signed this Agreement.

DONE in duplicate at New Delhi this 26th day of August, 2015, each in the Hindi and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.

For the Government of the

For the Government of the

Republic of India:

Republic of Seychelles:

(ARUN JAITLEY)

(JOEL MORGAN)

Finance Minister

Minister for Foreign Affairs

And Transport

F. No. 503/07/1993-FT&TR-IV]

RAJAT BANSAL, Jt. Secy.

Notification No. : 34/2016 Dated: 8-9-2016


Seeks to further amend notification No.12/2012-Central Excise dated 17.03.2012 – 34/2016 – Dated 8-9-2016 – Central Excise – Tariff

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

Notification No. 34/2016 – Central Excise

New Delhi, the 8th September, 2016

G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 163 (E), dated the 17th March, 2012, namely:-

In the said notification, in the Table, for serial number 192 and the entries relating thereto, the following serial number and the entries relating thereto, shall be substituted, namely:-

(1) (2) (3) (4) (5)
“192 71 (I) Articles of goldsmiths’ or silversmiths’ wares of precious metal or of metal clad with precious metal, not bearing a brand name;

(II) Strips, wires, sheets, plates and foils of gold, used in the manufacture of articles of jewellery and parts thereof;

(III) Precious and semi-precious stones, synthetic stones and pearls.

Explanation. – For the purposes of entries (I), (II)

and (III) as the case may be,-

(i) “metal” shall include,-

(a) any alloy in which any of the metals specified in this entry at item No. (I) predominates by weight over each of the other metals specified in such item or any other metal in such alloy;

(b) any alloy in which the gold content is not less than 37.5 per cent by weight;

(ii) “articles” in relation to gold shall mean anything (other than ornaments), in a finished form, made of, or manufactured from or containing, gold and includes any gold coin and broken pieces of an article of gold but does not include primary gold, that is to say, gold in any unfinished or semi-finished form including ingots, bars, blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires.

Nil

 

Nil

Nil

52A

 

52A

-

[F. No. 354/122/2016 –TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:- The principal notification No. 12/2012-Central Excise, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E), dated the 17th March, 2012 and last amended vide notification No. 33/2016 -Central Excise, dated the 2nd September, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 852(E), dated the 2nd September, 2016.

ASEAN Summit: PM Modi, Barack Obama to have their eighth meeting in 2 years today : 08-09-2016


ASEAN Summit (Vientiane): Prime Minister Narendra Modi will meet the US President Barack Obama on the sidelines of the ongoing ASEAN summit in Vientiane, Laos today. According to the White House, PM Modi will meet Obama in the afternoon and both the leaders will also make brief remarks about the meeting.

PM Modi will be meeting President Obama for the record eighth time in the last two years. Their first meeting happened in September 2014 when Obama invited Modi to the White House.

Both the world leaders had met recently at the G20 Summit in Hangzhou China where Obama had praised Modi for his “bold policy” move on GST reform at a time when the world is facing a “difficult” scenario.

Modi-Obama bonhomie is slowly becoming the stuff of a legend as they continue to further strengthen the India-US ties. On the sidelines of the G20 Summit, the two leaders were clicked in an unusual picture and the internet went going gaga over it. As soon as the picture surfaced on social media, it started making rounds on Twitter with some hilarious captions.

Source : Financial Express

May face roadblocks to GST rollout from Aprll 2017, concedes Finance Ministry official : 08-09-2016


A senior finance ministry official on Wednesday admitted that the April 1, 2017 target for introducing the Goods and Services Tax (GST) could only be met if the GST rates are decided, the issue of dual control over assessment and scrutiny of assessees is resolved, and settlement is reached for exemption to goods of local importance.
The official also indicated that the Central GST and integrated GST Bills would be money Bills instead of Finance Bills, as the Opposition has been asking for. Passage of a money bill cannot be held up in the Rajya Sabha, where the ruling NDA government is in a minority.

 

While the Congress wants the GST rate below 20%, the states are calling for more than 20%. A call on this will be taken by the proposed GST Council, which is yet to be set up.

 

The government is yet to notify the date for the Council, the official said. However, the Amendment Bill says that the President will order setting up of the Council within 60 days of the commencement of the Constitutional Amendment Act.  More than half of the states have already ratified the Bill and the President is likely to soon give his assent.

 

A proposal is also under consideration to tax those industries which are availing benefits under area- based exemptions and then reimburse them, the official said.

Source : Business Standard

Don’t limit efforts to address climate change: PM Modi at G-20 : 08-09-2016


At the G-20 meet in Hangzhou in China, Prime Minister Narendra Modi urged the leaders of world’s top economies to not to limit efforts to address climate change to early ratification of the Paris Agreement but instead called on focusing on its “full success”.

The Prime Minister said climate change topped the list of global issues that may not seem economic but carry significant economic costs. Describing climate change as a “foremost challenge”, he stressed on the need to safeguard  climate justice, which requires affordable financing and environmentally sound technology for developing countries.

By explicitly focusing on the enablers—finance and technology—that would make it possible to limit global temperature increase to well below 2 degrees Celsius, the Prime Minister attempted to restore a degree of balance to the post-Paris discourse which has concentrated on the issue of entry into force of the Agreement.

Prime Minister Modi’s remarks comes on the heels of the United States President Barack Obama and China’s President Xi Jinping handing over documents marking their respective countries formal acceptance of the Paris Agreement to United Nations Secretary General Ban Ki-moon. The effort to get the major economies to look beyond the early entry into force came barely 48 hours after his sherpa to the summit declared that India would not be able to commit to formally joining the Agreement by the end of the year.

There are concerted efforts to push for an early entry into force, as early as the end of 2016, for the Paris Agreement. This would require at least 55 countries, accounting for at least 55 per cent of global emission to formally join the Paris Agreement by ratifying, accepting, or approving it. Till now, 26 countries, including US and China, accounting for 39.06 per cent of emissions, have joined the Agreement. India, ranked at number three in the world in terms of emissions, accounts for 4.10  per cent of the global carbon dioxide pollution. India, the third biggest emitter accounting for a little over 4 per cent of global carbon dioxide pollution, could India participation is critical for the climate accord to enter into force by the end of the year.

By most accounts, India’s joining the accord by the end of the year is seen as crucial to meeting the pre-requisite for entry into force set out in the Agreement. Climate change is an important plank of President Obama’s legacy. Therefore, ensuring that the Paris Agreement enters into force has been a priority for the US. The attention is sharply focused on India on account of its share of global emissions, and the optics of getting a major and growing economy to formally bind itself to the climate legacy—a sharp contrast to the Kyoto Protocol, which did not include either of the growing Asian economies.

India has said that it is committed to the Paris Agreement, and it will formally join it. New Delhi has repeatedly said that it is working towards putting in place domestic measures and policies that are necessary to fulfil the commitments made in the French capital last December.

Prime Minister Modi’s comments are an implicit questioning of the single minded focus on ensuring an early entry into force of the global climate accord. His effort was to relieve some of the pressure on India by reminding world leaders of the real purpose and ethos of the Paris Agreement—collective effort to address a global challenge in which every country contributes in accordance to its abilities and circumstances. For India, access to finance and technology are central to meeting its target  specially its efforts to augment the share of renewables in the energy mix.

Source : Economic Times

No. 10/2016 Dated: 07-9-2016


SECTION 125 OF THE COMPANIES ACT, 2013 – INVESTOR EDUCATION AND PROTECTION FUND (IEPF) – RELAXATION OF ADDITIONAL FEES FOR FILING FORM IEPF-1

GENERAL CIRCULAR NO.10/2016, DATED 7-9-2016

The Ministry had deployed the V2R2 version of MCA21 on 28th March, 2016. Consequently, the Form 1- INV as prescribed under the Companies Act, 1956 was not available for filing on the MCA21 portal since 25th March, 2016. In view of this and deployment of the new Form IEPF-1 (which replaces earlier Form 1-INV) after the notification of Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 [IEPF (AATR) Rules] with effect from 7th September, 2016, it is clarified that companies that have not filed the requisite information in Form 1-INV can now file the information in Form IEPF-1. Further, as a onetime measure, for companies with due date for filing of the form 1-INV falling between the period 25th March, 2016 to 6th September, 2016, the companies may file the form IEPF-1 without additional fees on or before 6-10-2016.

2. This issues with the approval of the Competent Authority.

Government sets up panel on working of EXIM Bank, ECGC : 07-09-2016


Government has set up a ten-member committee to examine issues related to effective functioning of Export Import Bank and Export Credit Guarantee Corporation (ECGC).

The committee, headed by the Finance Secretary, would recommend ways to strengthen functioning of these two organisations.

It will examine need for capital infusion, addressing regulatory constraints with respect to the EXIM Bank and ECGC.

The committee would submit its recommendations within six weeks from the date of holding its first meeting, the Commerce and Industry Ministry said in a series of tweets.

“The idea is to look at ways in which EXIM Bank and ECGC can be further strengthened to support and handhold our exporters,” it said.

The terms of reference of the committee also include examining issues related to enhancing the role of ECGC by addressing regulatory constraints and suggest separate norms and policy guidelines for Export Import (EXIM) Bank and ECGC.

ECGC is an export promotion organisation, seeking to improve the competitiveness of Indian exporters by providing them with credit insurance covers.

Source : PTI

PM Modi leaves for Laos to attend ASEAN-India summit : 07-09-2016


Prime Minister Narendra Modi departed for Laos’s capital Vientiane on Wednesday to attend the 14th Association of Southeast Asian Nations, ASEAN-India Summit.

In his pre-departure message, the Prime Minister has said that ASEAN is a key partner for India’s Act East Policy, which is vital for the economic development of country’s North-eastern region.

In a Facebook post, he said, strategic partnership withASEAN is also important for safeguarding and promoting India’s security interests and countering traditional and non-traditional security challenges in the region.

On East Asia Summit, the Prime Minister said, it is the premier forum for discussions on the challenges and opportunities before the Asia Pacific region.

He also said, India’s ties with the countries of South EastAsia are truly historic and country’s engagement and approach can be best encapsulated in just one word – connectivity.

“India wants to enhance physical and digital connectivity in the region, enhance people to people links and also strengthen institutional linkages and leverage the modern interconnected world for the mutual benefit of the people in the region,” he said.

The Prime Minister will attend the 11th East Asia Summit on Thursday on whose sidelines, he will hold bilateral meetings with several leaders.

India’s engagement with ASEAN and the wider Asia Pacific Region has acquired further momentum following the enunciation of the Act East Policy by the Prime Minister.

Indian Ambassador to ASEAN Suresh Kumar Reddy told the media that the ASEAN summit is expected to set the agenda for further strengthening the ties which will help India to achieve its objectives for Socio-Economic Growth.

Reddy further said that the summit will provide valuable partners to India who can bring technology, resources and who can support Indian industries, adding that the areas in which further cooperation between India & ASEAN countries are required are Agriculture, Climate Change, Non-traditional security areas, and cyber crimes and strengthening connectivity.

During the summit, the world leaders will review the progress of implementation of the ASEANCommunity Blueprints 2025.

The ASEAN leaders are scheduled to meet the heads of state, government of ASEAN dialogue partners which include China, India, Japan, Korea, Australia and the United States

Source : Business Standard

Foreign portfolio investors approach government to iron out Singapore Treaty, GAAR issues : 07-08-2016


Foreign portfolio investors (FPIs) are lobbying the government to resolve problems related to the India-Singapore tax treaty and general anti-avoidance rules (GAAR), worried about their investment in equities.

FPIs fear after April 1, 2017, when both the renegotiated India-Singapore treaty and GAAR come into force, they will face challenges.

One relates to double taxation in India and their home country. The Asia Securities Industry & Financial Markets Association (ASIFMA), a Hong Kong-based grouping of FPIs and global banks, has written to the government and sought a meeting with the revenue secretary.

They say there is ambiguity on the tax treaty and lack of clarity on how FPIs would be taxed under GAAR. One of the suggestions they’ve made is radical — abolish capital gains tax and increase securities transaction tax (STT) to make up for that.

Apart from this, FPIs are of the view that capital gains exemption must be retained even under the renegotiated India-Singapore tax treaty as otherwise investing in India through Singapore “will not be cost effective.”

The Indian government seems think otherwise, said people with knowledge of the matter. On the other hand, if exemption is retained, FPIs will still have the uncertainty concern of not knowing if it satisfies GAAR from April 1.

“Imposition of CGT (capital gains tax) will result in double taxation for many foreign investors,” Patrick Pang, head of fixed income and compliance, ASIFMA, told ET.

“This is because when funds distribute the income to their investors, the investors are subject to tax in their home country. There is a misbelief that any CGT paid in India can be used as foreign tax credit in the investor’s home country to offset their home country tax.” AUS teachers’ pension fund that invests in FPIs that in turn invest in India had faced a similar problem, said people with knowledge of this.

FPIs distribute gains from Indian stocks after paying capital gains tax in India to the teachers’ fund, which itself does not pay US taxes. However, when the retired teachers receive payments from the pension fund, these are subject to US taxes and can’t be offset against capital gains tax paid in India, said the persons cited above. Apart from the treaty issue, FPIs want answers on GAAR.

“Some issues that should be clarified include defining ‘commercial substance’ more objectively and providing clarity on extent of location of assets, people and functions to ensure treaty benefits are not denied,” said Rajesh H Gandhi, partner, Deloitte Haskins & Sells.

“The government could also consider clarifying if expense threshold — as required under certain tax treaties such as India’s treaties with Singapore and Mauritius — is met (commonly referred to as limitation of benefits clause), GAAR would not apply.”

There is no clarity on how the government would define “substance” when FPI investments are routed via apooling vehicle in Singapore or any other destination. Many FPIs may be required to invest in infrastructure in Singapore and hire more people to manage funds that invest in India. FPIs say capital could shift to destinations that are more attractive.

That will mean greater returns need to be provided to investors to entice them to invest, resulting in higher cost of capital, said  an expert. Indian companies could then opt for listing or raising funds outside India. Also, the secondary market trading may shift to the Singapore Nifty and flight of capital out of the country could weaken the rupee, he said.

Source : Economic Times

No. 200/10/2016 Dated: 6-9-2016


Clarification regarding scope of Notification No. 25/2012-Service Tax dated 20.06.2012, Sl. No. 5(a) – Dated 6-9-2016 – Service Tax

Circular No. 200/10/2016-Service Tax

F. No. 354/45/2016-TRU

Government of India Ministry of Finance Department of Revenue

(Tax Research Unit)

Dated: 6th September, 2016

To

Principal Chief Commissioners of Customs and Central Excise (All) Principal Chief Commissioners of Central Excise & Service Tax (All) Principal Director Generals of Goods and Service Tax/System/CEI Director General of Audit/Tax Payer Services

Principal Commissioners/ Commissioners of Customs and Central Excise (All)

Principal Commissioners/Commissioners of Central Excise and Service Tax (All)

Principal Commissioners/Commissioners of Service Tax (All)

Principal Commissioners/Commissioners LTU/Central Excise/Service Tax (Audit)

Madam/ Sir,

Sub: Clarification regarding scope of Notification No. 25/2012-Service Tax dated 20.06.2012, Sl. No. 5(a).

I am directed to refer to the above mentioned subject and to say that it has come to notice of the Ministry that difficulties are being faced in interpreting the scope of Notification No. 25/2012-Service Tax dated 20.06.2012, Sl. No. 5(a).

2. The matter has been examined. The said notification exempts services by way of renting of precincts of a religious place meant for general public. ‘Religious Place‘ has been defined in the notification to mean a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation or spirituality. ‘General Public‘ according to the notification, means the body of people at large, sufficiently defined by some common quality of public or impersonal nature. ‘Renting’ has been defined in the Finance Act, 1994 as allowing, permitting or granting access, entry, occupation, use or any such facility, in any immovable property, with or without the transfer of possession or control of the said immovable property. However, the word ‘precincts‘ appearing in the notification has not been defined and this gives rise to difficulty/ disputes in interpreting scope of the said exemption notification.

3. The meaning of the word ‘precincts’ as given in various dictionaries is as under:-

Cambridge English Dictionary

“The area that surrounds a building or place, especially one with a wall around it.”

Random House Unabridged Dictionary

Precincts:

“Precincts, the parts or regions immediately surrounding a place; environs: the precincts of a town.”

“The ground immediately surrounding a church, temple, or the like. “

“A walled or otherwise bounded or limited space within which a building or place is situated.

Black’s Law Dictionary

 ’The immediate neighborhood ofa palace or court. “

4.  In the case of CCE, Mangalore Vs. Dakshina Kannada Mogaveera Mahajana Sangha [2010 (17) S.T.R. 258 (Tri.- Bang.)]., involving identical issue, CESTAT, Bangalore held after perusing the photographs of the temple complex that since the entire temple complex and marriage hall were enclosed by a boundary wall, the marriage hall was within the precincts of the temple and thus eligible for benefit of Notification No. 14/2003-Service Tax.

5.  The Supreme Court has also held in the context of Notification No. 63/1995 Central Excise dated 16.03.1995, in the case of South Eastern Coalfield Ltd. Vs. Commissioner of Customs and Central Excise, Madhya Pradesh[2006 (200) E.L.T. 357 (S.C.)] that the word ‘precincts’ has to be given the broader meaning and not the narrower meaning. The word ‘precinct’ in the exemption notification No. 63/1995-Central Excise dated 16.03.1995 was interpreted by the Hon’ble Apex Court to mean the surrounding region or area, as defined in Collins English Dictionary or the surroundings or environs of a place as defined in the New Shorter Oxford English Dictionary.

6.  In view of the above, field formations may not take a restricted view of the word ‘precincts’ and consider all immovable property of the religious place located within the outer boundary walls of the complex (of buildings and facilities) in which the religious place is located, as being located in the precincts of the religious place. The immovable property located in the immediate vicinity and surrounding of the religious place and owned by the religious place or under the same management as the religious place, may be considered as being located in the precincts of the religious place and extended the benefit of exemption under Notification No. 25/2012-Service Tax, Sl. No. 5(a) dated 20.6.2012.

7.  Wide publicity may be given so that the assessees and public are aware of the above. All the major Industry and Trade Associations may be informed accordingly. Difficulty if any, in the implementation of the Circular should be brought to the notice of the Tax Research Unit.

8.  All concerned are requested to acknowledge the receipt of this Circular.

Hindi version would follow.

Yours faithfully,

(Dr. Ravindra Kumar)

Technical Officer (TRU-II)

Tele No. 011-23095547

Notification No : 40/2016 Dated: 06-09-2016


Seeks to amend Notification No. 25/2012- Service Tax, dated 20.06.2012, so as to make necessary amendment by substituting the clause (a) of entry 5 in opening paragraph – 40/2016 – Dated 6-9-2016 – Service Tax

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

NOTIFICATION No. 40/2016-Service Tax

New Delhi, the 6th September, 2016

GSR__(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, in the opening paragraph, in entry 5, for clause (a), the following clause shall be substituted, namely:-

“(a) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961(hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the Income-tax Act; or”

[F. No.3354/45/2016 -TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary by notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and last amended by notification No.39/2016 – Service Tax, dated the 2nd September, 2016 vide number G.S.R. 850(E), dated the 2nd September, 2016.

Notification No.79/2016 06-9-2016


Rescinds the Notification Number 35/2008 dated 14th March, 2008 – 79/2016 – Dated 6-9-2016 – Income Tax

MINISTRY OF FINANCE (Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION No. 79/2016

New Delhi, the 6th September, 2016

S.O. 2882(E).-In exercise of the powers conferred under clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby rescinds the notification of the Government of India, Ministry of Finance, Department of Revenue number 35/2008 dated 14th March, 2008 published in the Gazette of India, Part II, Section 3, Subsection (ii) vide S.O. 798 dated 14th March, 2008 with effect from 1st April, 2007 and shall be deemed that the said notification has not been issued for any tax benefits under the Income-tax Act, 1961 or any other law of the time being in force.

[F. No. 203/135/2007/ITA. II]

DEEPSHIKHA SHARMA, Director

Notification No.78/2016 06-9-2016


Rescinds the Notification Number 229/2007 dated 21st August, 2007 – 78/2016 – Dated 6-9-2016 – Income Tax

MINISTRY OF FINANCE (Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION No. 78/2016

New Delhi, the 6th September, 2016

S.O. 2883(E).-In exercise of the powers conferred under clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby rescinds the notification of the Government of India, Ministry of Finance, Department of Revenue number 229/2007 dated 21st August, 2007 published in the Gazette of India, Part II, Section 3, Subsection (ii) vide S.O. 2428 dated 21st August, 2007 with effect from 1st April, 2004 and shall be deemed that the said notification has not been issued for any tax benefits under the Income-tax Act, 1961 or any other law of the time being in force.

[F. No. 203/29/2005/ITA. II]

DEEPSHIKHA SHARMA, Director

SC to hear plea for “public body” to appoint judges on Sep 12 : 06-09-2016


The Supreme Courttoday agreed to hear on September 12 a plea seeking setting up of a “public body”, independent of the executive and judiciary, to ensure fair appointment of judges in High Courts and the apexCourtand check nepotism.

A bench of Chief Justice T S Thakur and Justice D Y Chandrachudtook up the matter after it was mentioned by advocate Mathews J Nedumpara seeking urgent listing.

The PIL, filed by National Lawyers’ Campaign for Judicial Transparency and Reforms and its office bearers, alleged that that the “common deserving lawyers” are usually not considered for appointment of judges in the higher judiciary and that those close to the judges of the SupremeCourtand High Courts or politicians or big industrial houses only got chosen.

“In the eyes of the Petitioners, what is paramount is a system of appointment of Judges independent of both the executive and the judiciary,” it said.

Alleging nepotism in the selection of judges, the plea said the existing system has appointed the “kith and kin of sitting and former Judges of the Supreme Courtand High Courts, their juniors, celebrated lawyers, Chief Ministers, Governors and a few first generation lawyers who are all politically connected or are close to big industrial houses.”

The plea said the mechanism of appointment of judges, independent of the executive and the judiciary, was “killed” even before it was allowed to take birth by the judgment in the NJAC case.

“No mechanism in substitution thereof, which will provide for a just, fair, open and non-discriminatory selection and appointment of Judges from a diverse and wider pool of candidates than the traditional ones, namely, the kith and kin of Judges, their near and dear ones, has been brought into existence…”, the PIL claimed.

It alleged the fundamental right of being considered for such appointment of ordinary lawyers has been infringed in the wake of quashing of National Judicial Appointment Commission (NJAC) Act and enabling 99th constitutional amendment by the Supreme Court.

The plea also said that there was no effective mechanism to address complaints of misconduct against judges.

The Judicial Standards and Accountability Bill, 2012 introduced in Parliament, remained in “cold storage” as the judges were not “forthcoming to welcome” it.

Source : PTI

PM leads fight against safe havens at G20 : 06-09-2016


The G20 leaders on Monday committed to roll back protectionist measures by end-2018 to boost free trade but the Summit, held in the shadow of Britain’s vote to exit the European Union, fell short of taking concrete measures in defence of globalization and against isolationism.

On the concluding day of the two-day summit, Prime Minister Narendra Modi asked fellow G20 leaders to act decisively to eliminate safe havens for economic offenders, unconditionally extradite money launderers and end excessive banking secrecy. In a reference to Pakistan, Modi said “one single nation in South Asia” was spreading terror in the region.

In another of the thematic sessions at the Summit, the PM spoke about India’s support to a trade facilitation agreement (TFA) for services, a move that will help in movement of professionals. In his meeting with UK PM Theresa May, their first after the Brexit vote, Modi said her country’s new visa policy could have a “negative impact on Indian working professionals wishing to visit UK for short term”. May, however, told reporters on the sidelines that she considered the points-based immigration system as “flawed” and will not use it to crackdown on post-Brexit migration from within the European Union (EU). The system was one of the key assurances given by those who campaigned for Britain to leave the EU in the June 23 referendum.

The Summit, marked by diplomatic tiffs between US and China and distracted on the last day by firing of missiles by North Korea, ended without consensus on key issues. The joint communique released after the summit said the leaders agreed that G20 countries will coordinate macro-economic policies, rollback protectionist policies in trade and investment by end-2018 and also set up a global forum to check overcapacity in steel production. This comes in the backdrop of the US imposing heavy duties on cheap steel imports from China. India, the third-largest steel producer, is also facing cheap Chinese steel exports.

The leaders also decided to set up a research centre in China on fugitive repatriation and asset recovery. The leaders formulated a G20 2017-2018 anti-corruption action plan. It identifiedterrorism and immigration as challenges that complicated the global economic outlook.

In his intervention in one of the thematic sessions at the Summit, the PM said: “G20′s efforts should be for zero-tolerance for corruption and black money; zero administration, policy and treaty loopholes; zero barriers and full commitment to action.” Modi said fighting corruption, black money and tax evasion were keys to effective financial governance. The PM said to achieve that “we need to act to eliminate safe havens for economic offenders, track down and unconditionally extradite money launderers and break down the web of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds”. India is pursuing extradition of industrialist Vijay Mallya and former Indian Premier League Commissioner Lalit Modi from the UK.

The PM also pressed for reform of the Bretton Woods Institutions – IMF and World Bank. “IMF should remain a quota-based institution and not depend on borrowed resources,” Modi said emphasising that the “long-delayed 15th General Review of Quotas must be completed by 2017 Annual Meetings.” India has been advocating governance reforms in the IMF to ensure its credibility, legitimacy and effectiveness.

At the thematic session on Robust International Trade and Investment, the PM said: “Knowledge- and innovation-driven economy requires free mobility. India’s priority is to work towards Trade Facilitation Agreement for Services.” India is likely to move a proposal on this at the World Trade Organisation (WTO) to start the discussion. The PM urged countries to fully implement the Bali and Nairobi ministerial decisions, which provide special safeguard mechanism for developing countries against import surge in agricultural commodities, particularly sugar.

On Climate Change, the leaders called for all countries to ratify the Paris climate deal as soon as their “national procedures allow”, a move which would provide more time to India to work out its own strategy keeping up with its developmental goals. The PM stressed the need for safeguarding climate justice, which requires affordable financing and environmental sound technology for developing countries. The US and China have ratified the Paris Climate Change Agreement, while India has held out. Later in the day, NITI Aayog chief Arvind Panagariya told reporters, “We were not quite ready yet in terms of domestic actions that require for us to ratify or at least commit to ratify Paris Deal-2016. We plan to do it as soon as possible but can’t commit.”

In his meeting with French President Francois Hollande, the PM raised the leak of confidential data on the capabilities of six Indian Scorpene Class submarines being built in Mumbai in collaboration with a French defence company. The leak reportedly took place outside India.

With Turkish President Recep Tayyip Erdogan, Modi discussed India’s membership to the Nuclear Suppliers Group. Turkey, along with China and some others, had stalled India’s efforts to join the 48-member nuclear non-proliferation club during its meeting in June in Seoul.

The PM returned to India in the evening. He will now be travelling to Laos to attend the East Asia Summit and India-ASEAN Summit on September 7 and 8.

Source : Business Standard

Government to interact with people on GST Bill : 06-09-2016


Will the much-awaited Goods and Services Tax lead to price rise for the common man? How will the Centre and states strike a balance in tax collection so that companies do not end up losing revenues after GST comes into effect? Will all kinds of cesses end in the GST era and life become simpler or will it get more complicated after GST ?

The government is planning to answer these questions through YouTube Channel, call centres, local news channels in every language and direct interface with the people whereever necessary. This is being done to remove the common man’s fears that GST is not pro-poor, according to an official.

He said, it will begin with a townhall meeting with Revenue Secretary Hasmukh Adhia and tax officials who will address traders and industry on September 17 to clear doubts and create awareness on the new indirect tax regime set to kick in from April 1 next year.

This townhall meeting will be held in Prime Minister Narendra Modi’s home state Gujarat with the help of the state government. However, the interaction will be broadcasted to the entire country.

The Finance Ministry has planned several outreach programmes for creating awareness on GST and also airing a couple of them, according to the official. The ministry will make use of social media to create awareness about the GST.

“There will also be direct interaction with people on local TV and radio channels. The officials of tax department will answer queries,” the official said. The minister has kept aside a huge sum for creating GST awareness as the transition is going to be a bit tough.

The greatest overhaul on the indirect tax regime since independence, GST is expected to boost economic growth by as much as 2% points. Greater tax compliance has the potential to boost revenues for the government and help narrow India’s budget deficit. It will also allow more funds to be allocated to schools and highways.

Companies will have to overhaul their accounting systems, which may involve one-time investment costs. With regard to the common man, the government has already said that more than 50% items used by them will be outside the purview of GST.

Source : Economic Times

Notification No: G.S.R 854(E) [F.NO.05/27/2-13-IEPF]Dated: 05-9-2016


INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY (ACCOUNTING, AUDIT, TRANSFER AND REFUND) RULES, 2016

NOTIFICATION NO. GSR 854(E) [F.NO.05/27/2013-IEPF], DATED 5-9-2016

In exercise of the powers conferred by sub-sections (1), (2), (3), (4), (8), (9), (10) and (11) of section 125 and sub-section (6) of section 124 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, namely:—

Short title, extent and commencement

1. (1) These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

(2) They shall come into force with effect from the 7th September 2016.

Definitions

2. (1) In these rules, unless the context otherwise requires,—

(a) “Act” means the Companies Act 2013;
(b) “Authority” means the Investor Education and Protection Fund Authority constituted under sub section (5) of section 125 of the Act;
(c) “Chairperson” means the chairperson of the authority appointed under sub-section (6) of section 125 of the Act;
(d) “Company” means company as defined in sub-section (20) of section 2 of the Act and includes ‘corresponding new bank’ as defined in sub-section (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);
(e) “Existing IEPF” means the Investor Education and Protection Fund (IEPF) constituted under section 205C of the Companies Act, 1956 (1 of 1956);
(f) “Fund” means the Investor Education and Protection Fund (IEPF) constituted under section 125 of the Act;
(g) “Investor” means any person, who has committed money in shares, or debentures, bond or deposits under a scheme or plan of a company registered under the Act;
(h) “Member” means member of the Authority appointed under sub-section (6) of section 125 of the Act; and
(i) “Section” means the section of the Act.

(2) Words and expressions used in these rules and not defined herein but defined in the Act or in the Companies (Specification of Definitions Details) Rules, 2014, shall have the same meanings respectively assigned to them in the Act or in the said rules.

Fund

3. (1) The Authority shall administer the Fund.

(2) There shall be credited to the Fund, the following amounts, namely:—

(a) all amounts payable as mentioned in clause (a) to (n) of sub-section (2) of section 125 of the Act;
(b) all shares in accordance with sub-section (6) of section 124 of the Act;
(c) all the resultant benefits arising out of shares held by the Authority under clause (b);
(d) all grants, fees and charges received by the Authority under these rules;
(e) all sums received by the Authority from such other sources as may be decided upon by the Central Government;
(f) all income earned by the Authority in any year;
(g) all amounts payable as mentioned in sub-section (3) of section 10B of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and section 10B of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; and
(h) all other sums of money collected by the Authority as envisaged in the Act.

(3) In case of term deposits and debentures of companies, due unpaid or unclaimed interest shall be transferred to the Fund along with the transfer of the matured amount of such term deposits and debentures.

(4) (a) All the money, which accrue under sub section (2) [except clause (g)] of section 125 of the Act shall be deposited in the Consolidated Fund of India under the Major Head ’0075-Miscellaneous General Services – 104 – Unclaimed and Unpaid dividends, deposits and debentures etc.’. Such sums along with amount deposited under section 205C of the Companies Act, 1956 shall be transferred to the Fund in the non-interest bearing Public Account after taking due approval of Parliament through Appropriation Act. This non-interest bearing Public Account shall be termed as IEPF Fund and shall be utilised for the purposes provided under sub-section (3) of section 125 of the Act.

(b) (i) All amounts remitted by the companies shall initially be accounted for under the following heads of Accounts:—

Major Head 0075 – Miscellaneous General Services

Minor Head 104 - Unpaid dividend of Companies.

(ii) Grants and donations given to the Fund by the State Governments, Companies or any other institutions for the purpose of the Fund as also the interest or other income received out of the Investments made from the Fund shall be credited to a separate sub-head under “800 – Other Receipts” below the MH 0075 – Misc. General Services.

(iii) Amount booked under the above receipt head shall be transferred to the Fund account under Major Head ’8235 – General and other Reserve Fund – 116 – IE & PF’ by the PAO, Ministry of Corporate Affairs after making suitable budget provision under Major Head ’3451 – Secretariat Economic Services 797 – Transfer to Reserve Fund Deposit Account – Transfer to Investor’s Education and Protection Fund’. In case the amounts of receipts in a year is more than the budget provision made under Major Head 3451 transfer to the Fund, the difference shall be transferred to the Fund in subsequent year, after obtaining approval of the Budget Division of Department of Economic Affairs and after making adequate budget provision in the relevant year.

(iv) Budget provision in connection with the activities to be financed from the Fund shall be made under Major Head 3451 – Secretariat Economic Services 090 Secretariat – Investor’s Education and Protection Fund. Actual expenditure under the head shall be recouped from the Fund and the amount so recouped shall be accounted for under the Major Head ’3451′ as Deduct entry below Minor Head ’902 – Deduct – amount met from Investor’s Education and Protection Fund’ with contra debit to Major Head – ’8235 – General and Other Reserve Funds -116 – Investor’s Education and Protection Fund’.

Accounts and audit

4. (1) The Authority shall maintain proper accounts and other relevant records as given in Schedule to these rules and prepare an annual statement of accounts in such form as may be specified by the Central Government in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall be audited annually by the Internal Audit Party of the office of Chief Controller of Accounts and Comptroller and Auditor-General of India at such intervals and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

Statement to be furnished to the Fund

5. (1) Any amount required to be credited by the companies to the Fund as provided under clause (a) to (n) of sub-section (2) of section 125 of the Act shall be remitted into the specified branches of Punjab National Bank, which is the accredited Bank of the Pay and Accounts Office, Ministry of Corporate Affairs and other authorised banks engaged by the MCA-21 system, within a period of thirty days of such amounts becoming due to be credited to the Fund.

(2) The amount shall be tendered by the companies along with challan (in triplicate) to the specified Bank Branches of Punjab National Bank and other authorised banks under MCA-21 system who will return two copies of the challan, duly stamped in token of having received the amount, to the Company. The third copy of the challan will be forwarded along with the daily credit scroll by the receiving branch to its Focal Point Branch of the Bank for onward transmission to the Pay and Accounts Office, Ministry of Corporate Affairs.

(3) Every company shall file with the concerned Authority one copy of the challan referred to in sub-rule (2) indicating the deposit of the amount to the Fund and shall fill in the full particulars of the amount tendered, including the head of account to which it has been credited.

(4) The company shall, along with the copy of the challan as required under sub-rule (3), furnish a Statement in Form No. IEPF 1 containing details of such transfer to the Authority within thirty days of submission of challan.

(5) The amount may also be remitted by Electronic Fund Transfer in such manner, as may be specified by the Central Government.

(6) (a) On receipt of the statement, the Authority shall enter the details of such receipt in a Register maintained physically or electronically by it in respect of each company every year, and reconcile the amount so remitted and collected, with the concerned designated bank on monthly basis.

(b) Each designated bank shall furnish an abstract of such receipts during the month to the Authority within seven days after the close of every month.

(c) The company shall maintain record consisting of name, last known address, amount, folio number or client ID, certificate number, beneficiary details etc. of the persons in respect of whom unpaid or unclaimed amount has remained unpaid or unclaimed for a period of seven years and has been transferred to the Fund and the Authority shall have the powers to inspect such records.

(7) The provisions of this rule shall be applicable mutatis mutandis in respect of the amounts to be credited to the Fund in pursuance of clauses (h) to (m) of sub-section (2) of section 125.

(8) Every company shall within a period of ninety days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act and every year thereafter till completion of the seven years period, identify the unclaimed amounts, as referred in sub-section 2 of section 125 of the Act, as on the date of holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act, separately furnish and upload on its own website and also on website of Authority or any other website as may be specified by the Government, a statement or information through Form No. IEPF 2, separately for each year, containing following information, namely:—

(a) the names and last known addresses of the persons entitled to receive the sum;
(b) the nature of amount;
(c) the amount to which each person is entitled;
(d) the due date for transfer into the Investor Education and Protection Fund; and
(e) such other information as may be considered relevant for the purposes.

Manner of transfer of shares under sub-section (6) of section 124 to the Fund

6. (1) The shares shall be credited to an IEPF suspense account (on the name of the company) with one of the depository participants as may be identified by the Authority within a period of thirty days of such shares becoming due to be transferred to the Fund:

Provided that, in case the beneficial owner has encashed any dividend warrant during the last seven years, such shares shall not be required to be transferred to the Fund even though some dividend warrants may not have been encashed.

(2) For the purposes of effecting transfer of such shares, the Board shall authorise the Company Secretary or any other person to sign the necessary documents.

(3) The company shall follow the following procedure, namely:—

(a) The company shall inform at the latest available address, the shareholder concerned regarding transfer of shares three months before the due date of transfer of shares and also simultaneously publish a notice in the leading newspaper in English and regional language having wide circulation, and on their website giving details of such shareholders and shares due for transfer:
Provided that in cases, where the seven years as provided under sub-section (5) of section 124 have been completed or are being completed within three months from the date of coming into force of these rules, the company shall initiate the aforesaid procedure immediately and transfer the shares on completion of three months;
(b) In case, where there is a specific order of Court or Tribunal or statutory Authority restraining any transfer of such shares and payment of dividend, the company shall not transfer such shares to the Fund:
Provided that the company shall furnish details of such shares and unpaid dividend to the Authority in Form No. IEPF 3 within thirty days from the end of financial year;
(c) For the purposes of effecting the transfer where the shares are dealt with in a depository,—
(i) the Company Secretary or the person authorised by the Board shall sign on behalf of such shareholders, the delivery instruction slips of the depository participants where the shareholders had their accounts for transfer in favour of IEPF suspense account (name of the company);
(ii) on receipt of the delivery instruction slips, the depository shall effect the transfer of shares in favour of the Fund in its records.
(d) For the purposes of effecting the transfer where the shares are held in physical form,—
(i) the Company Secretary or the person authorised by the Board shall make an application, on behalf of the concerned shareholders, to the company, for issue of duplicate share certificates;
(ii) on receipt of the application under clause (a), a duplicate certificate for each such shareholder shall be issued and it shall be stated on the face of it and be recorded in the register maintained for the purpose, that the duplicate certificate is “Issued in lieu of share certificate No …….for purpose of transfer to IEPF” and the word “duplicate” shall be stamped or punched in bold letters across the face of the share certificate;
(iii) particulars of every share certificate issued as above shall be entered forthwith in a register of renewed and duplicate share certificates maintained in Form No. SH 2 as specified in the Companies (Share Capital and Debentures) Rules, 2014;
(iv) after issue of duplicate share certificates, the Company Secretary or the person authorised by the Board, shall sign the necessary Form No. SH 4 i.e., securities transfer Form as specified in the Companies (Share Capital and Debentures) Rules, 2014, for transferring the shares in favour of the Fund;
(v) on receipt of the duly filled transfer forms along with the duplicate share certificates, the Board or its Committee shall approve the transfer and thereafter the transfer of shares shall be effected in favour of the Fund in the records of the company.

(4) The company or depository, as the case may be, shall preserve copies of the depository instruction slips, transfer deeds and duplicate certificates for its records.

(5) While effecting such transfer, the company shall send a statement to the Fund in Form No. IEPF 4 containing details of such transfer.

(6) The voting rights on shares transferred to the Fund shall remain frozen until the rightful owner claims the shares:

Provided that for the purpose of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the shares which have been transferred to the Authority shall not be excluded while calculating the total voting rights.

(7) Once the physical shares are transferred in the name of the Authority, the Authority shall dematerialise these shares and it shall keep only those shares in physical form, where dematerialisation of shares is not possible.

(8) The Authority shall maintain IEPF suspense account (name of the company) with depository participant on behalf of the shareholders who are entitled for the shares and all benefits accruing on such shares e.g. bonus shares, split, consolidation, fraction shares etc. except right issue shall also be credited to such IEPF suspense account (name of the company).

(9) The shares held in such IEPF suspense account shall not be transferred or dealt with in any manner whatsoever except for the purposes of transferring the shares back to the claimant as and when he approaches the Authority or in accordance with sub-rules (10) and (11).

(10) If the company is getting delisted, the Authority shall surrender shares on behalf of the shareholders in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 and the proceeds realised shall be credited to the Fund and a separate ledger account shall be maintained for such proceeds.

(11) In case the company whose shares or securities are held by the Authority is being wound up, the Authority may surrender the securities to receive the amount entitled on behalf of the security holder and credit the amount to the Fund and a separate ledger account shall be maintained for such proceeds.

(12) Any further dividend received on such shares shall be credited to the Fund and a separate ledger account shall be maintained for such proceeds.

Refunds to claimants from Fund

7. (1) Any person, whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, etc. has been transferred to the Fund, may claim the shares under provision to sub-section (6) of section 124 or apply for refund, under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by making an application in Form IEPF 5 online available on website www.iepf.gov.in along with fee, as decided by the Authority from time to time in consultation with the Central Government, under his own signature.

(2) The claimant shall after making an application online in Form IEPF-5 under rule (1), send the same duly signed by him along with, requisite documents as enumerated in Form IEPF-5 to the concerned company at its registered office for verification of his claim.

(3) The company shall, within fifteen days of receipt of claim form, send a verification report to the Authority in the format specified by the Authority along with all documents submitted by the claimant.

(4) After verification of the entitlement of the claimant—

(a) to the amount claimed, the Authority and then Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e- payment as per the guidelines.
(b) to the shares claimed, the Authority shall issue a refund sanction order with the approval of the Competent Authority and shall either credit the shares which are lying with depository participant in IEPF suspense account (name of the company) to the demat account of the claimant to the extent of the claimant’s entitlement or in case of the physical certificates, if any, cancel the duplicate certificate and transfer the shares in favour of the claimant.

(5) The Authority shall, in its records, cause a note to be made of all the payments made under sub-rule (4).

(6) An application received for refund of any claim under this rule duly verified by the concerned company shall be disposed of by the Authority within sixty days from the date of receipt of the verification report from the company, complete in all respects and any delay beyond sixty days shall be recorded in writing specifying the reasons for the delay and the same shall be communicated to the claimant in writing or by electronic means.

(7) In cases, where the application is incomplete, a communication shall be sent to the claimant by the Authority detailing deficiencies of the application.

(8) In case, claimant is a legal heir or successor or administrator or nominee of the registered security holder, he has to ensure that the transmission process is completed by the company before filing any claim with the Authority.

(9) The claimant shall file only one consolidated claim in respect of a company in a financial year.

(10) The company shall be solely liable under all circumstances whatsoever to indemnity the IEPF Authority in case of any dispute or lawsuit that may be initiated due to any incongruity or inconsistency or disparity in the verification report or otherwise. The IEPF Authority shall not be liable to indemnity the security holder or Company for any liability arising out of any discrepancy in verification report submitted etc leading to any litigation or complaint arising thereof.

Power to direct payment of amount due to the Fund

8. (1) The company shall furnish a statement to the Authority in Form No. IEPF 6 within thirty days of end of financial year stating therein the amounts due to be transferred to the Fund in next financial year.

(2) The company shall also furnish a statement to the authority within thirty days of the closure of its accounts for the financial year stating therein the reasons of deviation, if any, of amounts detailed in sub-rule (1) above and actual amounts transferred to the Fund.

(3) Authority shall furnish a report to the Central Government within sixty days of end of financial year giving details of companies who have failed to transfer the due amount to the Fund.

(4) Authority shall also furnish a report to the Central Government by end of next financial year giving details of companies who have failed to file information referred to in sub-rule (8) of rule 5.

Transfer of assets, liabilities, etc., of the existing IEPF to the Authority

9. On and from the date of establishment of the Authority,—

(a) any reference to the existing IEPF in any law other than these rules or in any contract or other instrument shall be deemed as a reference to the Authority;
(b) all properties and assets, movable and immovable, of, or belonging to, the existing IEPF, shall vest in the Authority;
(c) all rights and liabilities of the existing IEPF shall be transferred to, and be the rights and liabilities of the Authority;
(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the existing IEPF immediately before that date, for or in connection with the purpose of the said existing IEPF shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Authority;
(e) all sums of money due to the existing IEPF immediately before that date shall be deemed to be due to the Authority; and
(f) all suits and other legal proceedings instituted or which could have been instituted by or against the existing IEPF, immediately before that date may be continued or may be instituted by or against the Authority.

Returns and reports

10. (1) The Authority shall furnish to the Central Government at such time and in such form and manner as may be specified or as the Central Government may direct, such returns and statements and such particulars with regard to its activity.

(2) Without prejudice to the provisions of sub-rule (1), the Authority shall, within one hundred and eighty days after the end of each financial year, submit to the Central Government a report in such form, as may be specified, giving a true and full account of its activities during the previous financial year.

Protection of action taken in good faith

11. No suit, prosecution or other legal proceedings shall lie against the Central Government or Authority or any officer of the Central Government or any member, officer or other employee of the Authority for anything which is in good faith done or intended to be done under these rules.

Repeal and savings

12. (1) The Investor Education and Protection Fund (Awareness and Protection of Investors) Rules, 2001 and Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012 are hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken under the rules repealed by sub-rule (1) shall, in so far as it is not inconsistent with the provisions of these rules, be deemed to have been done or taken under the corresponding provisions of these rules.

SCHEDULE

REGISTERS AND BOOKS OF ACCOUNT TO BE MAINTAINED BY THE AUTHORITY

(i) Register of Shares transferred under sub-section (6) of section 124
(ii) Central Cash Book
(iii) Company wise Ledger
(iv) General Ledger
(v) Cashier’s Cash Book
(vi) Bank Ledger
(vii) Register of Assets
(viii) Investment Register
(ix) Claim Register
(x) Refund Register
(xi) Suspense Register
(xii) Documents Register
(xiii) Any other register or Book as decided by Authority
[Pursuant to rule 5(4) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Statement of amounts credited to Investor Education and Protection Fund

 

[Pursuant to rule 5(8) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Statement of unclaimed and unpaid amounts

 

[Pursuant to sub-section (6) of section 124 of the Companies Act, 2013 and rule 6(3) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Statement of shares and unclaimed or unpaid dividend not transferred to the Investor Education and Protection Fund

 

[Pursuant to rule 6(5) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Statement of shares transferred to the Investor Education and Protection Fund

 

[Pursuant to sub-section (3) of section 125 of the Companies Act, 2013 and rule 7(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Application to the Authority for claiming unpaid amounts and shares out of Investor Education and Protection Fund (IEPF)

 

[Pursuant to rule 8 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016] Statement of unclaimed or unpaid amounts to be transferred to the Investor Education and Protection Fund

 

Notification No: G.S.R 853(E) [F.NO.05/27/2-13-IEPF]Dated: 05-9-2016


INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY (APPOINTMENT OF CHAIRPERSON AND MEMBERS, HOLDING OF MEETINGS AND PROVISION FOR OFFICES AND OFFICERS) AMENDMENT RULES, 2016 – INSERTION OF RULE 3A

NOTIFICATION NO.GSR 853(E) [F.NO.05/27/2-13-IEPF], DATED 5-9-2016

In exercise of the powers conferred by section 469 read with sub-sections (5), (6) and (7) of section 125 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016, namely:—

1. (1) These rules may be called Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Amendment Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016, after rule 3, the following rule shall be inserted, namely:—

“3A. “The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.”.

Notification No. SO 2866(E) [F.NO.5/27/2013-IEPF (PART()], DATED 5-9-2016


SECTION 1 OF THE COMPANIES ACT, 2013 – ACT – ENFORCEMENT OF – NOTIFIED DATE ON WHICH SPECIFIED PROVISIONS OF SAID ACT SHALL COME INTO FORCE

NOTIFICATION NO. SO 2866(E) [F.NO.5/27/2013-IEPF (PART()]DATED 5-9-2016

In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints 7th September, 2016 as the date on which the provisions of section 124, sub-sections (1) to (4), (6) [with respect to the manner of administration of the Investor Education and Protection Fund] and (8) to (11) of section 125 of the said Act shall come into force.

17 states ratifying GST best example of cooperative federalism: Ananth Kumar : 03-09-2016


Ratification of the Constitution Amendment Bill on GST by 17 states in nearly three weeks is the best example of cooperative federalism, Parliamentary Affairs Minister Ananth Kumar said today.

“As many as 17 states in almost three weeks have ratified the GST Bill and this is the best example of Prime Minister Narendra Modi’s doctrine of cooperative federalism,” he said.

“GST is the biggest taxation reform so far which will forever change the way we compute and pay taxes. At the same time, it will check tax on tax,” he said, adding that it will also usher in a new era of economic growth and prosperity for all sections of the society.

After Parliament passed the Constitution Amendment Bill on August 8, as many as 16 states, starting with Assam, have ratified the Bill.

The states which have passed the legislation include Bihar (August 16), Jharkhand (August 17), Chhattisgarh (August 22), Himachal Pradesh (August 22), Gujarat (August 23), Madhya Pradesh and Delhi (August 24), Nagaland (August 24), Maharashtra, Haryana, Sikkim (August 29), Mizoram, Telangana (August 30), Goa (August 31), Odisha (September 1) and Rajasthan (September 2).

GST being a constitutional amendment requires 50 per cent of state assemblies to ratify it.

GST will create uniform market for seamless movement of goods and services with one tax rate.

After the Presidential assent, the government will notify the GST Council. Union Finance Minister will head the Council, which will comprise state Finance Ministers.

The GST Council will decide on the tax rate, cess and surcharges which are to be subsumed and also decide on the goods and services which would be exempted from the purview of the new indirect tax regime.

The states and the Centre are working overtime and talking to stakeholders to draft the Central GST, State GST and Integrated GST laws.

The CGST and IGST will be drafted on the basis of the model GST law. The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemption. The IGST law would deal with inter-state movement of goods and services.

The government plans to roll out the new indirect tax regime from April 1, 2017.

Source : Financial Express

GST to bring biggest business reform: Tax expert : 03-09-2016


The proposed Goods and Services (GST) tax regime is set to bring in biggest business reform, a tax expert said here today.

“GST is just not tax reform. I say it is going to bring biggest business reform,” A2Z Taxcorp Executive Director Bimal Jain said at Bharat Chamber of Commerce-organized interaction on GST draft law.

According to him the implications will not be the same for all and depend on how each one does business.

Jain also called upon the industry to prepare sector wise concerns seriously.

Referring to various concerns of a few sectors on the issue, Jain urged that unless these are corrected they might have to suffer, beside highlighting benefits of GST.

Service Tax Chief Commissioner (Kolkata) S K Panda said concerns should be pointed out quickly to the government so that those can be taken into consideration when the final legislation is drafted.

Panda said that he has raised at several locations of the draft, word service is missing instead of goods and services tax.

“I don’t know whether it is deliberate or mistake. I have already raised it,” Panda said.

Meanwhile, BCC President Rakesh Shah said government should offer a flat rate of credit for closing stock for those not registered with excise.

According to draft GST those not registered with excise cannot claim stock credit, he said

Source : PTI

Government approaches private firms for financing Swachh Bharat Mission : 03-09-2016


The government is reaching out to private players for financing Prime Minister Narendra Modi’s pet project of Swachh Bharat Mission, a top government official today said.

State-run firms or PSUs are looking to contribute to the Swachh Bharat Kosh (SBK) from their CSR funds, Drinking Water and Sanitation Secretary Parameswaran Iyer said.

“We have been in touch with private firms, many have shown interest to donate to the Swachh Bharat Kosh,” he said.

Established in November 2014 under the Finance Ministry, SBK seeks to attract CSR funds and contributions from individuals and philanthropists in response to Modi’s I-Day speech that year in which he had given a call for achieving the goal of Clean India by 2019.

Total fund mobilised under the SBK as on January 31 stood at Rs 369.74 crore.

Iyer also enumerated contributions made by ministries of mines, corporate affairs and public enterprises towards the Swachh Bharat Pakhwada held earlier.

Source : Economic Times

Notification No : 39/2016 Dated: 02-09-2016


[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE 

CENTRAL BOARD OF EXCISE AND CUSTOMS NEW DELHI

NOTIFICATION NO

39/2016-Service Tax, Dated: September 02, 2016

G.S.R. 850(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

2. In the said notification, in the first paragraph, in entry 62, for the words and figures “during the financial year 2015-16″, the words, figures and letters “during the period prior to 1st April, 2016″ shall be substituted.

[F. No. B-1/20/2016 -TRU]

(Anurag Sehgal)
Under Secretary to the Government of India

Note: – The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and was last amended vide notification number 32/2016 – Service Tax, dated the 6th June, 2016 vide number G.S.R. 575(E), dated the 6th June,

Notification No. : 33/2016 Dated: 2-9-2016


Seeks to further amend notification No.12/2012-Central Excise dated 17.03.2012 – 33/2016 – Dated 2-9-2016 – Central Excise – Tariff

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 33/2016 – Central Excise

New Delhi, the 2nd September, 2016

G.S.R. 852 (E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.163(E), dated the 17th March, 2012, namely: -

In the said notification, in the Table, against S.No.215A, for the entry in column (5), the entry “2” shall be substituted;

[F. No. 354/126/2016-TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note.- The principal notification No. 12/2012-Central Excise, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E), dated the 17th March, 2012 and last amended vide notification No.32/2016- Central Excise, dated the 26th August, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.823(E), dated the 26th August, 2016.

Notification No.39/2016 02-09-2016


Seeks to Amend Notification No. 25/2012 – Service Tax, dated the 20th June, 2012 – 39/2016 – Dated 2-9-2016 – Service Tax

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION No. 39/2016-Service Tax

New Delhi, the 2nd September, 2016

G.S.R. 850 (E).-In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

2. In the said notification, in the first paragraph, in entry 62, for the words and figures “during the financial year 2015-16”, the words, figures and letters “during the period prior to 1st April, 2016” shall be substituted.

[F. No. B-1/20/2016 -TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and was last amended vide notification number 32/2016 – Service Tax, dated the 6th June, 2016 vide number G.S.R. 575(E), dated the 6th June, 2016.

Notification No.77/2016 02-9-2016


Agreement for Avoidance of Double Taxation of Income Derived From International Air Transport – Republic of Maldives – 77/2016 – Dated 2-9-2016 – Income Tax

MINISTRY OF FINANCE (Department of Revenue)

NOTIFICATION No. 77/2016

New Delhi, the 2nd September, 2016

(INCOME TAX)

S.O. 2853(E).-Whereas, an Agreement entered into between the Government of the Republic of India and the Government of the Republic of Maldives for Avoidance of Double Taxation of Income Derived From International Air Transport was signed at New Delhi on the 11th day of April, 2016 as set out in the Annexure to this notification (hereinafter referred to as the said Agreement);

And whereas, in accordance with paragraph 2 of Article 6 of the said Agreement, the said Agreement entered into force on the 1st day of August, 2016, being the first day of the second month following the month in which later of the notifications of the completion of the procedures as required by the respective laws for entry into force of the said Agreement is given;

And whereas, clause (i) of paragraph 3 of Article 6 of the said Agreement provides that the provisions of the said Agreement shall have effect in India in respect of income derived in any fiscal year beginning on or after the first day of April following the calendar year in which the Agreement enters into force;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement, as annexed hereto, shall be given effect to in the Union of India.

ANNEXURE

AGREEMENT

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDIA

AND

THE GOVERNMENT OF THE REPUBLIC OF MALDIVES

FOR AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM

INTERNATIONAL AIR TRANSPORT

The Government of the Republic of India and the Government of the Republic of Maldives desiring to conclude an agreement for the avoidance of double taxation of income derived from international air transport have agreed as follows:

Article 1

TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of each Contracting State irrespective of the manner in which they are levied.

2. The existing taxes to which this Agreement shall apply are:

a) in the case of India, the income-tax including any surcharge thereon (hereinafter referred to as “Indian tax”);

b) in the case of Maldives, Business Profit Tax imposed under the Business Profit Tax Act (Law Number 5/2011) (hereinafter referred to as “Maldives tax”);

3. This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which are made in their respective taxation laws.

Article 2

DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

a) the term “India” means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;

b) the term “Maldives” means the territory of the Maldives and includes its territorial sea, continental shelf, sea-bed, sub-soil (and their natural resources) and airspace, as well as any maritime zone in which the Maldives has sovereign rights, other rights and jurisdiction, according to the law of the Maldives and in accordance with international law, including the United Nations Convention on the Law of the Sea;

c) the terms “a Contracting State” and “the other Contracting State” mean the Republic of India or the Republic of Maldives as the context requires;

d) the term “tax” means “Indian tax” or “Maldives tax” as the context requires ;

e) the term “enterprise of a Contracting State” means an airline designated by the Government of that Contracting State in pursuance of the Agreement dated 24thDecember 2008, as maybe amended or revised from time to time, between the Government of Republic of India and the Government of Republic of Maldives relating to air services;

f) the term “international air traffic” means any transport by an aircraft operated by an enterprise of a Contracting State, except when the aircraft is operated solely between places in the other Contracting State ;

g) the term “operation of aircraft” means the business of transportation by air of passengers, livestock, goods or mail conducted by an enterprise of a Contracting State, including the sale of tickets and similar documents used for the purpose of transport;

h) the term “competent authority” means:

(i) in the case of India, the Minister of Finance, Government of India or his authorized representative;

(ii) in the case of Maldives, the Maldives Inland Revenue Authority or its authorized representative.

2. In the application of the provisions of this Agreement by one of the Contracting States, any term used but not defined herein shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to taxes which are the subject of this Agreement.

Article 3

AVOIDANCE OF DOUBLE TAXATION

1. Income derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be exempted from tax in the other Contracting State.

2. The provisions of paragraph (1) shall also apply to income from the participation in a pool, a joint airline business or an international operating agency.

3. For the purpose of paragraphs 1 and 2, interest on funds directly connected with the operation of aircraft in international air traffic shall be regarded as income derived from the operation of such aircraft.

Article 4

RESIDUAL PROVISIONS

The laws in force in either of the Contracting States shall continue to govern the assessment and taxation of income in the Contracting States except where express provision to the contrary is made in this Agreement.

Article 5

MUTUAL AGREEMENT PROCEDURE

1. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement.

2. Consultation may be requested at any time by the competent authority of a Contracting State for the purpose of paragraph 1 of this Article. Such consultation shall begin within ninety days from the date of receipt of any such request by the competent authority of the other Contracting State.

3. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching agreement under this Article.

Article 6

ENTRY INTO FORCE

1. The Contracting States shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement.

2. This Agreement shall enter into force on the first day of the second month following the month in which the later of the notifications referred to in paragraph 1 of this Article is given.

3. The provisions of this Agreement shall have effect:

(i) in India, in respect of income derived in any fiscal year beginning on or after the first day of April following the calendar year in which the Agreement enters into force; and

(ii) in Maldives, in respect of income derived in any fiscal year beginning on or after the first day of January following the calendar year in which the Agreement enters into force.

Article 7

TERMINATION

This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the Agreement, by giving notice of termination through diplomatic channels, at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect:

a) in India, in respect of income derived in any fiscal year on or after the first day of April following the calendar year in which the notice is given;

b) in Maldives, in respect of income derived in any fiscal year on or after the first day of January following the year in which the notice was given.

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Agreement.

DONE in duplicate at New Delhi on this 11thday of April 2016 each in the English and Hindi languages, both texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.

For the Government of the

Republic of India:

(Atulesh Jindal)

Chairman, Central Board of Direct Taxes

For the Government of the

Republic of Maldives:

(Ahmed Mohamed)

High Commissioner of the Republic of Maldives to India

[F.No.503/4/2013-SO/FT&TR-II(1)]

RAJAT BANSAL, Jt. Secy

Notification No. SO 2843(E) Dated: 01-09-2016


SECTION 435 OF THE COMPANIES ACT, 2013 – SPECIAL COURTS – ESTABLISHMENT OF – NOTIFIED SPECIAL COURTS

NOTIFICATION NO. SO 2843(E) [F.NO.01/12/2009-CL-I (VOL-IV)]DATED 1-9-2016

In exercise of the powers conferred by sub-section (1) of section 435 of the Companies Act, 2013 (18 of 2013), the Central Government hereby, with the concurrence of the Chief Justice of the High Courts of Chhattisgarh, Rajasthan, Punjab and Haryana, Madras and Manipur, designates the following Courts as Special Courts for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more under the Companies Act, 2013, namely:—

TABLE

Sl. No. Existing Court Jurisdiction as Special Court
(1) (2) (3)
1. Sessions Judge, Bilaspur State of Chhattisgarh
2. Court of Special Judge, (Sati Niwaran), Jaipur State of Rajasthan
3. Court of Sessions Judge and 2nd Additional Sessions Judge, S.A.S. Nagar State of Punjab
4. Court of Sessions Judge and 2nd Additional Sessions Judge, Gurgaon State of Haryana
5. Court of Sessions Judge and 2nd Additional Sessions Judge, Chandigarh Union Territory of Chandigarh
6. I Additional District and Sessions Court, Coimbatore Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur.
7. II Additional District and Sessions Court, Puducherry Union Territory of Puducherry
8. Sessions Judge, Imphal East State of Manipur

2. The aforesaid Courts mentioned in column number (2) shall exercise the jurisdiction as Special Courts in respect of jurisdiction mentioned in column number (3).

No. 32/2016 Dated: 01-9-2016


Enquiry or investigation in respect of document/evidence relating to Income Declaration Scheme (IDS), 2016 found during the course of Search u/s 132 or Survey action u/s 133A of the Income-tax Act,1961 – Circular – Dated 1-9-2016 – Income Tax

Circular No. 32 of 2016

F.No.299/124/2016/IT-Inv.III

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes

(Investigation Division)

Ground Floor, E-2, ARA Centre,

Jhandewalan Extn. New Delhi-110 055.

Date: 01/09/2016.

Sub: Enquiry or investigation in respect of document/evidence relating to Income Declaration Scheme (IDS), 2016 found during the course of Search u/s 132 or Survey action u/s 133A of the Income-tax Act,1961- regarding;

The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) came into effect on 1st June, 2016. To address doubts and concerns raised by the stakeholders, the Board has issued five sets of FAQs vide Circular Nos. 17, 24, 25, 27 & 29 of 2016. To allay apprehensions relating to the income/asset declared under the Scheme vis-à-vis search and survey action by the Income-tax Department, the following clarification is issued.

2. It is clarified that wherever in the course of search under section 132 or survey operation under section 133A ofIncome-tax Act, 1961, any document is found as a proof for having already filed a  declaration under the Scheme, including acknowledgement issued by the Income-tax Department for having filed a declaration, no enquiry would be made by the Income-tax Department in respect of sources of undisclosed income or investment in movable or immovable property declared in a valid declaration made in accordance with the provisions of the Scheme.

Sd/-

(Amit Mohan Mittal)

Under Secretary to the Government of India

Tel: 011-23519409

amit.mittal83@nic.in

Narendra Modi govt to revive real estate, construction; here’s how : 01-09-2016


The government on Wednesday announced a clutch of measures that would dramatically increase the liquidity of construction firms over the next few weeks, let banks recover their outstanding dues and give a fillip to the real estate and infrastructure sectors by reactivating several stalled projects. Having recently simplified the arbitration law to make dispute resolution easier and speedier, it has now opened a new facility under which even while an arbitral award is being challenged by a public body, 75% of the amount in question will be released by it to the contractor against a bank guarantee. Also, existing disputes between public bodies and contractors, it said, could be shifted to the new simplified Arbitration Act. Although direct beneficiaries of the move are construction giants like HCC, Gammon India, Gammon Infra and IVRCL (see graphic), the gains from improved liquidity in construction would be felt across infrastructure industries.

Given contingent liabilities — that correspond to the amounts locked in arbitration/courts — of major public bodies and PSUs are seen to be over R70,000 crore, with National Highways Authority of India (Rs 22,500 crore), DMRC (R11,600 crore) and NHPC (Rs 9,000 crore) topping the list, the provision for release of funds to contractors would mean that some Rs 53,000 crore will be at their disposal.

These monies will be used by the contractors to discharge the liabilities towards banks and financial institutions (which, in turn will improve credit flows) and also to kick-start stalled projects.

However, analysts pointed out that in many sectors like roads, railways, ports and inland waterways, where government agencies themselves have turned major investors given the stagnation in private investment, the release of disputed funds to the contractors could impact their liquidity. But they added that given major government investors like the railways, NHAI and port trusts (apart from budget outlays, they can raise extra-budgetary resources) do not face a funds crunch, in the aggregate, Wednesday’s decisions would spur investments.

Finance minister Arun Jaitley said after a Cabinet meeting that in new contracts, there will be a provision for a conciliation board consisting of independent domain expert who will enter into contractual negotiations if there are changes in commercial circumstances around the project. Besides, item rate contracts would be replaced by turnkey contracts and a model draft turnkey contract would be circulated. The minister added that department of financial services and the Reserve Bank of India will soon prepare a policy to “deal with those companies which have lot of stressed assets in the construction sector”.

Gross value added (GVA) in the construction sector — which accounts for 8% of the country’s gross domestic product (GDP) and employs 4 crore people — has been growing at rates far lower than the overall GVA growth for the last few quarters. Apart from liquidity problems, which partly resulted from lenders’ wariness, tepid demand and overcapacity created in the real estate sector stunted the sector’s expansion. (GVA — construction grew 3.9% in 2016-16 against overall GVA growth of 7.2% and GDP expansion of 7.6% in the year; the sector’s growth was a measly 1.5% in April-June this year, compared with overall GVA growth of expansion of 7.3%.)

“Over 85% of the claims raised against government bodies are still pending, of which 11% is pending with the government agencies, 64% with arbitrators and 8.5% with courts. The average settlement time for claims is estimated at more than seven years. A majority of arbitration awards have gone against the government agencies,” said a government statement.

In the case of NHAI, of a total of 347 arbitral awards, 38 went in favour of the authority and 309 in favour of the contractor/concessionaire. Of the arbitral awards in NHAI cases, more than 90% were unanimous awards in which all arbitrators including the one appointed by NHAI had concurred in the decision. In many cases, arbitration awards are contested in the courts, even though a large majority of arbitration decisions are upheld by the courts.

A turnkey contract, which allows transfer of an entire project to the client after completion at pre-decided rates, is more handy for large contractors unlike the rate contract that requires contractors to quote a rate for each item of work.

Source : PTI

GDP slowdown in Q1 due to ‘higher subsidy expenditure’: Finance Ministry : 01-09-2016


The Finance Ministry has attributed the slowdown in first quarter Gross domestic product (GDP) to ‘higher subsidy expenditure’.

It, however, expressed confidence that good monsoon and impact of pay commission award will push the economic growth close to eight percent in the current fiscal.

“Given the good monsoon which we had this year, the Seventh Pay Commission payout effect and various structural reform measures which the government has taken we expect the growth to be higher than what we achieved last year (7.6 percent), perhaps close to 8 percent,” Economic Affairs Secretary Shaktikanta Das told reporters yesterday.

Responding to the CSO data which revealed that India’s GDP growth slowed to six-quarter low of 7.1 percent in April-June period of the 2016-17 fiscal, he said, “The Indian economy April-June quarter GDP growth is at 7.1 percent, which is lower than before. The main reason is on account of higher subsidy expenditure, the net indirect taxes have gone down.”

“The slowdown is mainly because from Q1 itself, we have started releasing subsidy allocations to the food, petroleum and fertiliser side, so that is the main factor,” he added.

The GDP growth data is calculated under the new methodology at market price, while GVA is calculated primarily at factor cost. GDP is GVA plus taxes on products minus subsidies on them.

Source : Financial Express

Small businessmen wary of retro tax demand under GST mechanism : 01-09-2016


The Goods and Services Tax (GST) has been heralded as India’s biggest reform since the 1991 liberalisation but one aspect of it has made certain small businesses nervous.

Given that it will be virtually impossible to escape the tax net once the new levy is implemented, will this make them fair game for authorities investigating evasion in previous years? That fear is pushing many to make use of the government’s black money window that closes at the end of the month. Prime Minister  Narendra Modi, in fact, pointed to abuse of the current system in his Lok Sabha speech on GST.

“We all know how the system of kacha bill and pakka (fake and real) bills operate. But GST will bring an end to the fake bills as traders will provide the real bills and accounts so that they benefit (in getting input tax credit),” Modi had said on August 8. All businesses — manufacturers, distributors, retailers — will have to register on the GST network.

The levy is expected to be in place next year. Once captured in the GST system, tax officials can make an educated guess about income and evasion over the past years. “GST will not only impact the indirect tax collection but also the income tax collections as this is one tool where the tax officials will have a data to calculate incomes of people, against the income taxes paid by them,” said the tax head at consultancy.

At a meeting of retailers in Mumbai in August, many were asking experts whether the government would target them for taxes not paid in the past. Some have been prompted to disclose assets under the income declaration scheme (IDS) and more may do so before the window closes on September 30. Apart from avoiding bills altogether, under invoicing and over invoicing are also typically used to escape taxes.

“There were basically two types of fraud committed by businessmen — first is unilateral, where under invoicing or over invoicing is done only by one of the two people transacting. And then there is bilateral,” said Bharat Goenka, managing director of Tally Solutions Pvt. Ltd, which is developing GST software for Indian companies.

Some experts said while unilateral frauds would drop drastically, bilateral ones may be difficult to detect. Tax firms are advising at-risk businessmen  to disclose black money under IDS. “Businessmen who may not have paid taxes won’t be able to continue business if they aren’t registered on GSTN, but doing so may expose them,” said one consultant.

“It’s a vicious circle, and many want to come clean,” said another. Some say there is concern among retailers but more about systems rather than retroactive crackdowns. “Firstly, everyone wants to comply with the tax rules, but many are worried about the cobweb of complicated processes,” said Praveen Khandelwal, secretary general, Confederation of All India Traders.

“Once GST comes in, I do not think anyone can be targeted retrospectively for not paying VAT, excise or other taxes, and these would be repealed.” The tax head of a New Delhi-based consultancy said it will be possible to check on the past record.

Source : Economic Times

Notification No. SO 2892(E) 31-08-2016


SECTION 4 OF THE SPECIAL ECONOMIC ZONES ACT, 2005 – BAGMANE DEVELOPERS PVT. LTD.

NOTIFICATION NO.SO 2892(E) [F.NO.F-2/220/2006-SEZ], DATED 31-8-2016

Whereas, M/s. Bagmane Developers Private Limited (formerly M/s. Bagmane Construction Private Limited), a private organization in the State of Karnataka, had proposed under section 3 of the Special Economic Zones Act, 2005 (28 of 2005), (hereinafter referred to as the said Act), to set up a sector specific Special Economic Zone for Information Technology and Information Technology Enabled Services at Mahadevapura, K.R. Puram, Bangalore North, in the State of Karnataka;

And, whereas, the Central Government, in exercise of the powers conferred by sub-section (1) of section 4 of the said Act read with rule 8 of the Special Economic Zones Rules 2006, had notified an area of 11.31 hectares at above Special Economic Zone vide Ministry of Commerce and Industry Notification Number S.O. 1665 (E) dated 1st July, 2008;

And whereas, M/s. Bagmane Developers Private Limited, has now proposed to include an area of 1.05 hectares as a part of above Special Economic Zone;

Now, therefore, in exercise of the powers conferred by second proviso to sub-section (1) of section 4 of the Special Economic Zones Act, 2005 and in pursuance of rule 8 of the Special Economic Zones Rules, 2006, the Central Government hereby notifies an additional area of 1.05 hectares, as a part of above Special Economic Zone, thereby making total area of the Special Economic Zone as 12.36 hectares, comprising the survey numbers and the area given below in the table namely:—

TABLE

S.No. Village Survey No. Area in hectares
1. Mahadevapura 103 0.20
2. 102/1 0.26
3. 102/2 0.11
4. 102/3 0.11
5. 102/4 0.11
6. 102/5 0.25
Total 1.05
Grant total area of SEZ after above addition 12.36

Notification No.10/2016 31-8-2016


Extension of due date for quarterly furnishing of 15G/15H declarations – 10/2016 – Dated 31-8-2016 – Income Tax

F.No. DGIT(S)/CPC(TDS)DCIT/15GH/2016-17

Government of India Ministry of Finance Central Board of Direct Taxes

Directorate of Income-tax(Systems) New Delhi.

Notification No. 10/2016

New Delhi, 31st August, 2016

Subject: Extension of due date for quarterly furnishing of 15G/15H declarations -reg.

1. The due date for quarterly furnishing of 15G/15H declarations received by the payer from 1.4.2016 onwards and the manner for dealing with Form 15G/15H received by payer during the period from 1.10.2015 to 31.3.2016 has been specified in Notification No.9/2016 dated 9th June 2016 vide F.No. DGIT(S)/CPC(TDS)DCIT/15GH/2016-17/4539.

2. In this regard, representations have been received with the request for extension of due date for uploading of Form 15G/15H received during the period 31.12.2015 to 31.3.2016 and also to extend the due date for uploading of Form 15G/15H received during the period from 1.4.2016 onwards.

3. Taking into account the needs of the stakeholders the due dates for uploading of Form 15G/15H are hereby extended as under:

Sl. No

Scenarios

Original Due Date

Extended Due Date

1

Form 15G /H received during the period from 1.10.2015 to 31.3.2016

30.06.2016

31.10.2016

2

Form 15G/15H declarations received during the period from 1.4.2016 to 30.6.2016

15.07.2016

31.10.2016

3

Form 15G/15H declarations received during the period from 1.7.2016 to 30.9.2016

15.10.2016

31.12.2016

4. The due date for furnishing of 15G/15H declarations for the 3 rd & 4th Quarter of Financial Year 2016-17 will remain the same as specified in the notification referred to at para 1 above.

(Ps. Thuingaleng)

Dy. Commissioner of Income Tax (CPC-TDS)

O/o The Pr. Director General of Income-tax (Systems)

States want cos to share GST benefits with buyers : 31-08-2016


States want India Inc to pass on the benefits of a likely lower Goods and Services Tax to consumers, turning the tables on the industry, which had sought a moderate tax rate and fewer compliance requirements.

Industry has favoured a standard GST rate of 18%, which it said would lead to tax buoyancy. “Some states wanted to know from the industry that is demanding moderate rate as to how they will ensure that the benefit is passed on to consumers,” said Amit Mitra, finance minister  of West Bengal and chairman of the empowered committee of state finance ministers.

Although no provision has been proposed in the law so far or discussed, some finance ministers wanted the industry to clearly spell out how the benefits of the new tax regime would be passed on to the people. “When value added tax was launched, industry did not pass on any benefit to people-…So we should know how it will be done this time,” Kerala finance minister Thomas Issac said after the empowered committee’s interaction with industry bodies.

GST, which will replace central taxes such as excise duty and service tax and a plethora of states taxes including VAT, is proposed to be rolled out from April 1, 2017.

Industry groups said it would need time to put in place their IT infrastructure and meet the deadline. “We believe a maximum rate of 18% as standard rate will be revenue-neutral and ensure adequate tax buoyancy. Also,  the Centre has agreed for full five-year compensation for revenue loss to states, so 18% rate will be more than adequate,” Confederation of Indian Industry President Naushad Forbes said.

Fourteen states have approved the Constitution amendment bill. The government should be able to form the GST Council when two more states approve the bill and it receives the President’s assent.

Source : Financial Express

Excise, VAT exempted goods by states should be GST exempt: India Inc : 31-08-2016


India Inc on Tuesday proposed that goods fully exempted from excise duty and VAT by states should be categorised as exempted goods in the GST regime, which is likely to be implemented after a minimum of six months from the date of adoption of the GST law by the GST Council.

“Goods fully exempted from the levy of excise duty and VAT by all the states be categorised as exempted goods in the GST regime as well,” Federation of Indian Chambers of Commerce and Industry (FICCI) said  in a release following a meeting here with the Empowered Committee of State Finance Ministers on the Goods and Services Tax.

“Goods chargeable to nil rate of excise duty but charged to VAT in most states could be identified for levying a merit rate of GST. All other goods (except jewellery and demerit goods) could be subjected to the standard rate,” the statement said.

“As per current indications and reports, goods will be categorised as being subject to merit rates (12 per cent), standard rates (18 per cent) and de-merit rates (40 per cent). Certain goods will be exempt from GST while bullion and jewellery would be charged to 1 per cent/2 per cent,” FICCI added regarding classification of goods for applying GST rates.

Industry chamber CII (Confederation of Indian Industry) addressing the Empowered Committee hoped that the GST rate would be kept at a reasonable level of 18 per cent which would greatly contribute to growth, employment and incomes, and boost Indian industry’s global competitiveness,” Chandrajit Banerjee, Director General, CII said.

Ficci suggested that with a view to check inflation and check the tendency to evade taxes “the merit rate should be lower and the standard rate should be reasonable”.

On implementing GST, FICCI said that in order to provide adequate time to trade and industry to prepare “for a hassle-free roll out of the GST regime”, a minimum of six months time should be permitted from the date of the adoption of the GST Law by the GST Council.

“Additional time would be required in case the GST Law as passed by parliament or state legislatures is significantly different from the one adopted by the GST Council,” FICCI said.

FICCI also requested the empowered committee that certain existing exemptions such as the area based exemptions under excise legislation and incentives under states’ industrial policies should be converted into an effective, non-discretionary tax refund mechanism.

The industry body further recommended that valuation provisions under GST, which is a transaction based tax, should give primacy to actual transaction value.

“Valuation provisions under the draft GST laws are reflection of valuation laws of a single point tax like excise duty. Wide powers have been given under the draft GST laws to authorities to reject declared transaction value,” the statement said.

CII President Naushad Forbes said that GST Law should provide  for seamless movement of goods without any rigid administrative requirements that will delay transit and add to costs.

“There should be a foolproof mechanism of movement of goods between states and a single registration process, and industry should not be subjected to dual administration of assessment, audit, etc both by the Centre and states,” Forbes said.

In a meeting here with Revenue Secretary Hasmukh Adhia earlier in August, Indian industry chambers had raised  concerns on the draft GST law, flagging issues like dual administrative control and wide discretionary powers for tax authorities.

“Provisions may lead to unwarranted disputes in future so it requested to give a re-look at the law before finalising,” a FICCI representative told reporters here after the meeting.

Source : PTI

GST deadline April 1, 2017: Industry doubts its own preparedness : 31-08-2016


Though the Centre is “fully geared” to usher in the goods and services tax (GST) from April 1, 2017, a section of industry seemed to have doubts about its own preparedness for the same and suggested it might need at least six months after the GST Council had frozen its decisions, the revenue secretary said on Tuesday. Hasmukh Adhia’s comments at an event organised by a TV channel followed similar apprehensions expressed by the chairman of the empowered committee (EC) of state finance ministers, Amit Mitra, earlier in the day, after the committee’s meeting with top industry bodies.

While doubts have been cast on the practicality of meeting the April 1 deadline, Telangana on Tuesday ratified the GST Constitutional Amendment Bill passed by Parliament earlier in the month, joining 12 other states including Madhya Pradesh, Assam, Bihar, Jharkhand, Himachal Pradesh, Chhattisgarh and Gujarat that have already approved the Bill.

Adhia, however, added he was expecting businesses to “make up their mind” and tell him what they thought was a “realistic time-frame”, although as far as the government is concerned the process was “on track”. The revenue secretary also said that area-based indirect tax exemptions given by the Centre would be grandfathered, although in the GST regime they would be in the form of direct benefit transfer as the exemptions, being inconsistent with the GST, would need to go. “We cannot break the GST chain (with the exemptions),” he said. Speaking at the same event, economic affairs secretary Shaktikanta Das urged states also follow a similar refund mechanism in order to grandfather the VAT relief being given to industry.

During their deliberations with the EC, the Confederation of Indian Industry pitched for the main GST rate to be 18%, while Ficci said the rate should be reasonable and such that it checks inflation and ensures compliance.

Chief economic adviser Arvind Subramanian also reiterated his preference for a lower GST rate as he believed “the higher the tax rate, the greater the distortion” in the system. Arguing against keeping the standard GST rate high to find resources for the compensation, he said the money for compensating states would have to found from elsewhere in the Budget. The rate, he said, would depend on the taxable base and other policy options which will have to be finalised by the GST Council.

“We believe that (18% as standard rate) will be revenue-neutral and ensure adequate tax buoyancy. Also, the Centre has agreed for full five-year compensation for revenue loss to states, so 18% rate will be more than adequate,” said Naushad Forbes, CII president. “Goods fully exempted from the levy of excise duty and VAT by all the states should be categorised as exempted goods in the GST regime as well,” Ficci said.

Some of the trade bodies, particularly the ones representing small and medium-sized enterprises, expressed concerns over their readiness for meeting the April 1, 2017, deadline. However, CII president Forbes said that if they work towards that deadline and if have clarity on some of the provisions as early as possible, it could be ensured that IT systems (by industry) could be put in place quickly.

Source : PTI

GST will make consumer goods cheaper, boost jobs: CBEC : 30-08-2016


Spelling out benefits of the Goods and Services Tax (GST), the revenue department today said it will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity.

“GST will create a unified common national market for India, giving a boost to foreign investment and Make in India campaign,” the Central Board of Excise and Customs (CBEC) said in an advertisement in major newspapers.
Seeking to apprise the general public of the benefits of GST for the economy, CBEC said exemption for a majority of small retailers will make “products cheaper for consumers”.
Besides, the new tax regime will result in increased economic activity and generate more job opportunities.
The long-pending Constitution Amendment Bill that will pave the way for rollout of GST, a new uniform indirect tax regime, was passed by Parliament earlier this month.
GST will replace more than a dozen levies of central and state levies, including central excise, service tax and sales tax as well as VAT, to make movement of goods seamless. Instead of the goods being taxed multiple times, under the new GST set-up, goods will be taxed at the point of consumption.
GST, CBEC said, will integrate taxes, unleash growth, create a national market and ease compliance.
On advantage for the trade and industry, CBEC said it will reduce compliance cost as the assessee will not have to maintain multiple records for a variety of taxes.
“Greater use of IT will reduce human interface between the tax payer and the tax administration,” it said, adding that GST will eliminate double taxation on certain sectors like works contracts, software and hospitality, among others.
 The new regime will be “simpler” with a few exemptions, CBEC said.
“Average tax burden on supplies of goods and services (is) likely to come down leading to more consumption,” it said further.
According to the tax department, there will be simplified and automated procedures for various processes such as registration, returns, refunds and tax payment.
Source : Financial Express

No. 31/2016 Dated: 30-8-2016


Circular No.31 of 2016

F.No.142/8/2016-TPL

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes

New Delhi, dated 30th August, 2016

In continuation to Circular No. 19 of 2016 dated 25th May, 2016, the Commissioner of Income-tax, Centralized Processing Centre, Bengaluru, headquartered at Bengaluru, Karnataka shall exercise the concurrent powers and functions in respect of the declaration referred to in section 183 of the Finance Act, 2016 which has been furnished electronically under digital signature and shall also be deemed to be the Principal Commissioner or the Commissioner for the purposes of section 186 of the Finance Act, 2016 in respect of such declaration.

(R. Lakshmi Narayanan)

Under Secretary to the Government of India

1. OSD to Secretary (Revenue).

2. The Chairperson, Members and all other officers in CBDT of the rank of Under Secretary and above.

3. All Pr. Chief Commissioners/ Pr. Director General of Income-tax – with a request to circulate amongst all officers in their regions/ charges.

4. Pr. DGIT (Systems)/ Pr. DGIT (Vigilance)/ Pr. DGIT (Admn.)/ Pr. DG (NADT)/ Pr. DGIT (L&R).

5. CIT (M&TP), CBDT.

6. Web manager for posting on the departmental website.

7. Guard file.

Notification No : 38/2016 Dated: 30-8-2016


[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i) GOVERNMENT OF INDIA

MINISTRY OF FINANCE  DEPARTMENT OF REVENUE CENTRAL BOARD OF EXCISE AND CUSTOMS NEW DELHI

NOTIFICATION NO

38/2016-Service Tax, Dated: August 30, 2016

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 26/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

1. In the said notification,-

(a) in the TABLE, after Sl. No. 5 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

"5A
Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport.
10
CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004."

(b) after paragraph 2, the following paragraph shall be inserted, namely :-

"2A. Nothing contained at Sl. No. 5A of the TABLE shall apply on or after the expiry of a period of one year from the date of commencement of operations of the Regional Connectivity Scheme Airport as notified by the Ministry of Civil Aviation.".

[F. No. 354/226/2013 – TRU (Pt.)]

(Anurag Sehgal)
Under Secretary to the Government of India

Note: – The principal notification No. 26/2012 – Service Tax, dated 20th June, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012 and was last amended by notification No.8/2016- Service Tax, dated the 1st March, 2016, vide G.S.R. 256(E), dated the 1st March, 2016.

Jaitley seeks funding for NIIF from US, UK : 30-08-2016


Finance Minister Arun Jaitley on Monday met USSecretary of Commerce Penny Pritzker and British Secretary of State for International Trade, Liam Fox, and sought further investment from the US and UK in the Rs 40,000-crore National Investment and Infrastructure Fund(NIIF).

Prtizker and Fox had called on Jaitley in separate meetings in the finance ministry.

During the meeting, Pritzker said the US wants to institutionalise the trade relations between the two countries. According to her, there is “a great potential to increase the bilateral trade among the two nations”.

Jaitley, on his part, pointed out that many Indian states were growing at 10-11 per cent and offered opportunity for US investment.

“Both the leaders discussed issues relating to bilateral trade and measures to increase the trade,” said a finance ministry statement.

Appreciating the passage of the goods and services tax (GST) Bill by Parliament, Pritzker said it would boost economic activities in India. “The trade dialogue by state chief ministers with different US authorities can be given a structured shape to give an impetus to the bilateral trade,” she added.

Jaitley expressed India’s interest in increasing the bilateral trade and said most concerns between the two countries were either already resolved or narrowed down to a large extent.  Jaitley also spoke of NIIF in which various US-based insurance, pension and endowment funds can invest, especially in the infrastructure sector which has great potential in India.

The government had set up the Rs 40,000-crore NIIF in December 2015 as an investment vehicle for funding commercially viable projects. It was envisioned as a mother fund with several sectoral feeder funds. The government is to contribute Rs 20,000 crore to the fund and Rs 20,000 crore is expected to be raised through sovereign wealth funds.

Pritzker is on a three-day visit to India to preside over the Indo-US Strategic and Commercial Dialogue.

In his meeting with Fox, Jaitley said the central government accords high priority to investment in infrastructure, manufacturing and service sectors. He said the officials from both India and the UK were exploring the option to create an Indo-UK sub-fund under the NIIF umbrella.  “We look forward to the implementation of this task expeditiously and positively in the near future,” he added. The finance minister also raised the implications of Brexit - Britain’s vote to exit from the European Union (EU) – on Indian businesses and working professionals in the UK. The UK is among India’s major trading partners and despite the global economic slowdown and the euro zone crisis, India-UK bilateral trade has been resilient, Jaitley noted.

He also mentioned a new free trade agreement with the UK, which would be linked to the terms and conditions of the latter’s withdrawal arrangement from the EU.

Fox, who is on a three-day visit to India, announced his participation and the UK’s commitment to the Joint Economic and Trade Committee to be held on November 7 alongside the India-UK Tech Summit.

Source : PTI

AAP focusing only on attacking PM Narendra Modi: Harsh Vardhan : 30-08-2016


Union Science and Technology Minister Harsh Vardhanhas criticised the AAP government, saying its “complete” focus is on attacking Prime Minister Narendra Modi and not cleaning the city.

“Not only Delhi, every city is grappling with the same problem. They are clean in the morning and dirty by afternoon. There is a need to change the mindset. People generally think it is the responsibility of sanitation workers to clean the city. United efforts are needed.

“But there is one more problem in Delhi and it is that we are not in power there. The complete focus of the AAP government is on taking potshots at the Prime Minister. Some people have started thinking that they can have the media’s attention by badmouthing someone,” he told reporters here last night when asked why the AAP government has failed to achieve the requisite cleanlinesslevels in the national capital.

“We are studying the technologies used worldwide and have already started about two dozen projects this year to find thoroughly complete and inclusive ways of dealing with the issue. We have already spent Rs 20 crore for this purpose,” he said.

Source : Business Standard

Theresa May to put stamp on Brexit before G20 summit : 29-08-2016


As Britian Prime Minister Theresa May prepares to head toChina for the upcoming G20, she will first hold a critical cabinet meeting with her top ministers at Chequers — the country retreat home for British Prime Ministers, a media report said.

May intends to reinforce her clear Brexit stance following Britain’s June 23 referendum decision that the country will leave the European Union (EU), Xinhua news agency reported.

Her determination to see through what the British public decided, was likely to dismay supporters of the Remain camp who were still seeking ways of overturning Britain’s retreat from Europe.

The Mail on Sunday described May’s Chequers’ meeting on Wednesday as a “back to school” cabinet meeting during which she was expected to order feuding Brexit Ministers to end any turf wars.

It will be May’s first meeting at her country retreat since she became Prime Minister, with the Mail saying it will mark a sharp escalation in May’s efforts to assure restless Eurosceptics in her Conservative party that she was on track to deliver an early exit from the EU “and will not fob them off with Brexit-lite”.

She would also encourage the three-quarters of cabinet members who campaigned to stay in the EU to identify Brexit opportunities in their own government departments.

May’s trip to China will see her meeting the US President Obama, with commentators saying she was likely to use the opportunity to gauge the appetite for mutually beneficial Britain-US trade relationships in the future.

Former Labour premier Tony Blair and a number of serving politicians say Members of Parliament could use a parliamentary vote to stop Brexit.

A Downing Street source said: “The Prime Minister has been absolutely clear that the British public have voted and now she will get on with delivering Brexit.”

Around 480 of the 650 MPs in the House of Commons campaigned for Britain to stay in the EU at the last election. The upper chamber, the House of Lords, was also to be said overwhelmingly in favour of Britain staying in the EU.

In a speech on the leadership campaign trail a few days ago Labour’s Smith said: “Under my leadership we will vote in Parliament to block any attempt to invoke Article 50 until Theresa May commits to a second referendum or a general election on whatever the EU exit deal emerges at the end of the process.”

Source : Financial Express

Govt may advance Parliament session to get GST laws approved : 29-08-2016


Eager to meet the April 1 target to roll out the landmark Goods and Services Tax (GST), the government may advance Winter Session of Parliament by a fortnight to get supporting legislations passed, leaving sufficient time for implementation of the new indirect tax regime.

Winter Session of Parliament is normally convened in the third or fourth week of November but this year the government is looking at starting the month-long session immediately after the end of festive season.

An early Winter Session would help get the Central GST (CGST) and Integrated GST (IGST) legislations, that will pave way for the Goods and Services Tax (GST), to be approved within November or latest by early December, government officials said.

The two are supporting legislations to the Constitutional Amendment Bill approved in the Monsoon Session of Parliament. Requiring ratification by half of the 31 states for it to become a law, the Constitution Amendment Bill has already been ratified by 8 state assemblies including Assam, Bihar, Chhattisgarh, Jharkhand, Himachal Pradesh, Gujarat, Delhi and Madhya Pradesh.

Maharashtra and Haryana are likely to follow suit soon and the requisite numbers may be in place by September, an official said.

“With required number of states ratifying the Bill, there is a thinking that the Winter Session should be advanced to around November 9 or 10, after the festivities, including Chhath Puja,” he said. “In doing that, a consensus with all the political parties will be needed.”

The government is of the view that once half of the state legislatures approve the new national sales tax regime, the GST Council – comprising Union finance minister and state finance ministers, can be nudged to quickly approve the tax rate, slabs and exemptions for it to be incorporated in the supporting legislations.

Parliament nod to the legislations in the Winter Session would give enough time to prepare for the rollout of GST from April 1, 2017. The new regime will subsume excise, service tax and other local levies including VAT, octroi.

Government is of the view that an early Winter Session will also be beneficial as the Budget Session is planned to be convened in the last week of January.

“Presentation of Budget around end-January is under consideration and hence an early Winter Session also paves way for an early Budget Session,” the official said.

The revenue department and the state finance ministers are already in discussion with the trade and industry chambers and other stake holders over the model GST law.

The Empowered Committee of state finance ministers will meet industry chambers on August 30 to understand their concerns about the new indirect tax regime.

The CGST and IGST will be drafted on the basis of the model GST law. The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemption. The IGST law would deal with inter-state movement of goods and services.

Source : PTI

Govt to meet trade unions on exposure of EPFO to markets : 29-08-2016


Labour ministry officials, led by Minister Bandaru Dattatreya, will meet trade unions in the second week of September to iron out differences over increasing proportion of the Employees’ Provident Fund (EPF) to be invested in the stock market.

The government is firm on increasing the proportion ofinvestment from provident fund corpus in equity markets via the exchange traded fund (ETF) route to 10 per cent,  from the current 5 per cent.

A senior labour ministry official said, “It is almost certain that the quantum of investment will go higher. The finance ministry has already allowed Employees’ Provident Fund Organisation (EPFO) to invest up to 15 per cent. Even without the approval of trade unions, it can be taken forward.” According to the official,  the impending strike on September 2 was stopping the government from making any announcement and hence it wants to consult the unions before taking the decision.

According to a report prepared by the Financial Investment and Audit Committee (FIAC) of EPFO, the current allocation of 5 per cent of incremental flows to equity may not be adequate for meaningful contribution to the overall portfolio return of EPFO. “Equity currently constitutes less than 1 per cent of EPFO’s total corpus, compared with the global average of 30 per cent. At current allocation of 5 per cent, it may take around 15 years for equity investment to become 5 per cent of EPFO’s total corpus,” the report said.

The expert group recommended the allocation to equity can be made 10 per cent in the current financial year. The committee even said going forward, an allocation of over 10 per cent to equity may be considered based on experience andmarket conditions.

In the last financial year, the EPFO entered the stock market for the first time following a suggestion by the finance ministry.

EPFO had started investing up to 5 per cent of its investible deposits in ETFs in August last year. So far, the body has invested Rs 7,468 crore in two ETFs till July-end and has attained a return of 7.45 per cent. Of the total amount, 75 per cent is being investment in the Nifty and the remaining 25 per cent in the BSE

Earlier, in an interview to Business Standard, Dattatreya had hinted the government might invest a higher proportion of EPF money in ETF. “Naturally, it will go higher. We have called portfolio managers and stock analysts and seen their presentations,” he had said.

Source : Business Standard

Supreme Court to clarify on new Arbitration Act on September 6 : 27-08-2016


The Supreme Court on Friday said it will look into the question of law regarding the applicability of the Arbitration (Amendment) Act to post-award proceedings pending before the courts.

A bench headed by Justice Dipak Mishra said that it would clarify within two weeks whether the new or the old arbitration law will apply to cases pending in the courts before commencement of the amended arbitration Act, which came into force on October 23, 2015. And posted the matter for hearing on September 6.

The question with regard to applicability of the amended law has been raised before the apex court in appeals filed by BCCI and others challenging the Bombay High Court’s June 22 decision that held that Section 36 of the Arbitration and Conciliation Act, 1996, as amended by the Arbitration and Conciliation (Amendment) Act, 2016, is applicable even in cases where an application under Section 34 of the Act had already been filed prior to the Amending Act having come into force.

However, the high courts of Delhi and Calcutta have taken contrary views on the issue.

There is “a sharp cleavage of judicial opinion on the issue of retrospective application of the Amending Act” and this requires the authoritative pronouncement by the apex court, BCCI stated in its appeal.

Under the unamended Act, if an application for setting aside an arbitral award was filed, such arbitral award could not be enforced until the application is refused. This prevented the award-holder from enjoying the fruits of his success merely because the unsuccessful party had filed an application against the award.

However, after the amendment to Section 36, an arbitral award now becomes enforceable on expiry of three months from the date on which it is made irrespective of whether an application for setting aside the arbitral award has been filed unless the court grants stay of operation of the arbitral award.

Source : PTI

Modi calls for change in laws, procedures for transforming India : 27-08-2016


Prime Minister Narendra Modi said on Friday that India needed rapid transformation if it were to meet the challenge of the future. He said the country should change its existing administrative systems and laws, jettison unnecessary procedures, speed up processes, and adopt technology.

“We cannot march through the 21st century with the administrative systems of the 19th century,” said the PM in his opening comments at the inaugural lecture of the NITI Aayog’s Transforming India lecture series at Vigyan Bhavan on Friday.

The PM said countries could no longer develop in isolation but needed ideas from outside, which was the purpose of the lecture series under the auspices of NITI Aayog. The first lecture was delivered by the Deputy PM of SingaporeTharman Shanmugaratnam on ‘India in the Global Economy’.

In his comments, Modi said: “If India is to meet the challenge of change, mere incremental progress is not enough. A metamorphosis is needed.” He said his vision for India was “rapid transformation, not gradual evolution” but that transformation could not happen without a transformation of governance.  “A transformation of governance cannot happen without a transformation in mindset. A transformation in mindset cannot happen without transformative ideas,” Modi said.

The PM stressed on the need to brainstorm collectively to convert ideas into action. He said NITI Aayog, or the National Institution for Transforming India, was created last year as an evidence-based think tank to guide India’s transformation, including to learn from global standards. He highlighted the need to build institutions.

The PM said ever since taking over the reins of the Union government, he has personally participated in structured brainstorming sessions with bankers, police officers and with secretaries to the government. “The ideas coming from those sessions are being incorporated into policy. These efforts have been to tap ideas from inside. The next step is to bring in ideas from outside,” Modi said.

Modi asked all secretaries to the government to conduct a follow-up discussion in a week’s time, with the participants from their ministries. “The purpose is to convert ideas that emerge in today’s session into specific action points relevant to each group. Wherever possible, I request the ministers also to participate in these sessions,” he said.

He said change was needed not just because India should keep up with the world but was also necessary for internal reasons. “The younger generation in our own country is thinking and aspiring so differently; that government can no longer afford to remain rooted in the past,” he said.

Shanmugaratnam, whom Modi introduced as one of the world’s leading intellectuals, spoke in his lecture about the transformative changes carried out in urban planning and administrative systems in Singapore.

Shanmugaratnam identified India’s primary school education system as the biggest crisis facing the country. “Schools are the biggest gap between India and East Asia. And it is a crisis that cannot be justified,” he said. The Singapore Deputy PM said the problem could be fixed, but not by ever increasing budgets but instilling better organisation and culture.

Shanmugaratnam saw a big challenge in the higher education system, which he said was not unique to India, but all over the world. “We are over-producing graduates who go through a general academic education. We have over-academised learning… We are producing students who do not have the skills required in the real world. We have to re-orient our system to focus on the skills required in the real world,” he stressed.

Shanmugaratnam also underscored the “very special role” cities play in ‘reform, perform and transform’. “Because, it is cities which are crucibles of both innovation and inclusivity,” he reasoned, advocating greater financial autonomy for cities. “It’s not just about budgets, it’s not just about programmes; it is about a social and political culture…” he said, arguing for greater social cohesion in the society.

Shanmugaratnam said India has an ‘unfulfilled potential’ and is uniquely positioned to ‘recast the global narrative’, requiring 8-10 per cent growth rate over 20 years so as to reduce the per capita income gap with the likes of China.

He called for bold economic reforms. “India needs to grow at 8-10 per cent over the next 20 years if it is to create jobs for youthful population, reduce under-employment and achieve inclusive growth,” Shanmugaratnam said. He said such growth cannot be achieved without significant changes to current day policies.

He said India “has over-reached itself in regulating its economy but under-invested in social and human capital. To achieve its full potential, it will have to do less in some area and have to do a lot more in other areas”.

According to him, India has to withdraw from its own role of the state, economic regulation and ownership that restrains private investment and job creation and also preserves incumbent, existing players at the cost to new ones.

He said it was necessary to encourage a social and political culture among the electorate so that they don’t believe politicians who promise short-term results. He said in his country, it’s no longer easy to make short-term promises without people looking at you with skepticism. “Trust politicians who invest in long-term and distrust politicians who promise short-term results,” he said.

Source : Business Standard

Finance Ministry sets up panel to suggest steps to promote card payments : 27-08-2016


With an aim to discourage cash transactions, the Finance Ministry has set up a high-level committee to suggest steps to promote card payments through incentives like tax rebates and cash back schemes.

The 11-member committee, headed by former Finance Secretary Ratan P Watal, will recommend various measures to “incentivise transactions through cards and digital means, e.g., through tax rebates/incentives, introduction of cash back/lottery,” the ministry said.

The panel, which will review the payments system in the country and recommend measures for encouraging digital payments, has been set up following a decision taken by the Cabinet in February.

It will also study feasibility of creating a payments history of all card/digital payments and ensure that merchants/consumers can leverage the data to access “instant, low cost micro-credit” through digital means and create necessary linkage between the payment history and credit information.

The panel will also study and recommend need for changes, if any, in the regulatory mechanism under various laws, relevant for the purpose of promotion of payments by digital modes.

“To study and recommend ways for leveraging Unique Identification Number or any other proof of identity for authentication of card/digital transactions and setting up of a centralised KYC Registry” is another key task given to it.

The committee will study introduction of single window system of payment gateway to accept all types of cards/digital payments of government receipts and enable settlements via NPCI or other agencies within specified timelines.

Another task assigned to the panel is to identify regulatory bottlenecks and suggest changes.

It will also look into the scope of integration of all government systems like Public Finance Management System, PayGov, Bharatkosh and eKuber.

The Union Cabinet in February had approved withdrawal of surcharge, service charge and convenience fee on card and digital payments.

It also approved mandating payments beyond a prescribed threshold only through a card or digital mode.

The panel has been asked to submit its report in one year.

The Watal panel will also study global best practices in payments and identify possible market failures, along with suitable interventions.

The committee members include former RBI Deputy Governor H R Khan, Chairman of Indian Banks Association, President of Nasscom and CBDT Chairperson.

Source : Economic times

No. 30/2016 Dated: 26-8-2016


Streamlining the process of No Objection Certificate (NOC), Port Clearance Certificate (PCC), voyage return and voyage assessment in the case of Foreign Shipping Companies (FSCs) – Circular – Dated 26-8-2016 – Income Tax

CIRCULAR NO 30/2016

[F.No. 500/05/2014-FTD-I]

GOVERNMENT OF INDIA MINISTRY OF FINANCE

DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES

FOREIGN TAX AND TAX RESEARCH DIVISION-II FT AND TR-V SECTION

Dated 26th day of August, 2016

Subject: Streamlining the process of No Objection Certificate (NOC), Port Clearance Certificate (PCC), voyage return and voyage assessment in the case of Foreign Shipping Companies (FSCs).

Representations have been received in the Board regarding the procedural difficulties faced by foreign shipping companies in issuance of Port Clearance Certificate (PCC) required as per provisions of Section 172 of the Income-tax Act, 1961 (the Act). Board had earlier issued Circular No 732 dated 20.12.1995 to do away with procedure of obtaining NOC for each voyage in cases covered by full DTAA (Double Taxation Avoidance Agreement) relief. However, it has been represented that

(a) FSCs (Foreign Shipping Companies) having treaty benefits are still required to approach Port Assessing Officer (at all ports of call) for issuance of No Objection Certificate (NOC) for every vessel at the port for onward submission to Customs department at the port

(b) no uniform practice is being followed by the Port Assessing officers in giving NOC to each voyage and also in making the assessment of voyage return.

2. Section 172 of the Act provides for a self contained code for assessment of shipping business of non residents. As per the scheme of taxation contained in the said section, income of a foreign shipping company carrying passengers, livestock, mall or goods and leaving from an Indian port shall be deemed to be seven and a half percent of the amount paid or payable on account of such carriage to the owner or the charterer or to any person on his behalf. The said section further lays down that before the departure os such a ship from the port, the Master of such a foreign ship shall prepare and furnish a return of the voyage, to the Assessing Officer (AO) or shall make sufficient and necessary arrangement that the return is filed within 30 days of the ship leaving the port. The AO, upon receipt of the return, shall assess the income on account of the voyage and determine the tax payable on the same. It is the duty of the Customs authorities to ensure that port clearance is not given to the ship unless (a) either the tax due on the income has been paid or (b) satisfactory arrangements have been made for the payment of such taxes. Section 172 of the Act also lays down that the owner or the charterer of the ship may claim before the expiry of the assessment year relevant to the financial year in which the ship has sailed, that an annual assessment of its total income be made under the provision of other sections of the Act and in such a case the tax paid before each voyage shall be treated as payment of advance tax for that assessment year.

3. There are instances where the foreign shipping company is covered by a DTAA of India with other country wherein the taxing right on the shipping income of the foreign shipping company is wholly with the other country. In such cases, the foreign shipping company is not required to make any payment of taxes in respect of, either the voyage returns filed under section 172(3) of the annual return filed under section 139 read with section 172(7) of the Act. On representation to the Board to do away with procedure of obtaining NOC for each voyage in cases covered by DTAA, Circular No 732 dated 20.12.1995 had been issued. As per the said Circular, the AO is competent to issue annual NOC valid for a year after carefully verifying applicability of DTAA. It was expected that the filing of voyage return and the issue of Port Clearance Certificate (PCC) to such foreign shipping companies shall happen in a routine and expeditious manner.

4. It has been represented now that no uniform practice is being followed by the port Assessing Officers in giving NOC for each voyage and also in making the voyage assessment in this regard. Further it is represented that at some of the ports, annual NOC issued by the jurisdictional AO is being honoured and port clearance and voyage return assessment are being done in a routine manner; whereas at some other ports, the port Assessing officers are not honouring the annual NOC and are still insisting for documentation such as submission of tax residency certificate, proof of effective management etc before the NOC leading to the port clearance is issued. It has been represented that in these cases, the insistence on filing details is leading to duplication of work as these documents have already been filed before and verified by the jurisdictional AO at the time of issue of annual NOC. It has also been stated that the procedure of obtaining NOC from the officer having jurisdiction over the port creates logistical difficulties for FSCs as the Port assessing officer is normally situated at a considerable distance from the jurisdictional AO.

5. The matter has been examined by the Board and following guidelines are issued for streamlining the process.

6. Circular No 732 dated 20.12.1995 provides for issue of annual NOC by AO after carefully verifying the applicability of DTAA. Annual NOC is to be issued in cases where no tax is leviable on foreign shipping company due to the DTAA. The AO before whom the request for annual NOC is filed by the foreign shipping company should accordingly examine the applicability of DTAA to the foreign shipping company before issue of annual NOC. The annual NOC should clearly mention the names of the ships owned by the foreign shipping company, names of the ships chartered or names of shipping companies from which ships are chartered by the foreign shipping company and names of the members of the pool and their ships which are part of this pool. The AO should continue to take the declaration from the applicant that the treaty benefits would be available only in respect of freight in international traffic.

7. Issue of Voyage NOC

The issue of voyage NOC, and its requirement, which is dependent upon the resultant taxability of the freight relating to the voyage shall be dealt with as below in three different ways:

(i) In cases wherein entire cargo belongs to a single foreign shipping company which belongs to a country with full DTAA relief, the annual NOC issued by the jurisdictional AO will also serve the purpose of voyage NOC. In such cases, the requirement of voyage wise NOC has already been done away through Circular No 732 of 1995. It is further clarified that there is no need for a voyage NOC from the Income Tax Officer having jurisdiction over the port and the Customs Authorities shall accept annual NOC issued by jurisdictional AO before issuing PCC to such ships.

(ii) In cases wherein the cargo belongs to a number of foreign shipping companies, each belonging to a country with full DTAA relief and to each of which annual NOC has been issued by their respective jurisdictional AO, voyage NOC is not required. To facilitate verification by Customs Authorities before issue of PCC in such cases, a certificate from a Chartered Accountant (CA) as per enclosed proforma would be required to be filed by the Master of the ship before concerned Customs authority. The CA certificate will be accompanied with annual NOC for all the foreign shipping companies to which the cargo in the ship belongs.

(iii) In any other case, the Master of the ship would be required to obtain a voyage NOC from the Officer having jurisdiction over the port. The Customs Authorities shall issue the PCC only upon production of such NOC or an authenticated copy.

8. Filling of voyage return

For a voyage where cargo belongs to a number of foreign shipping companies, even it all of them belong to treaty countries with full DTAA relief, there shall be different AOs for each such foreign shipping company. Since the voyage return is in respect of the ship and its cargo etc, it will not be possible to file it with jurisdictional AOs of the various foreign shipping companies. Thus, in all such cases, the voyage return shall continue to be filed with the AO having jurisdiction over the port. Since the voyage return has be filed within one month of the departure of the ship, it does not anyway affect the timely departure of the ship from the port.

9. Voyage Assessment

In cases where a foreign shipping company eligible for full treaty relief prefers to be assessed on a voyage-wise basis i.e., on a ship basis, the Port Assessing Officer before whom such a voyage return has been filed shall give due credit to the annual NOC issued by the AO. Assessment in such cases must be expeditiously done and without conducting any further verification with respect to the eligibility of the foreign shipping company as regard to treaty benefits and the annual NOC issued by the jurisdictional AO must be honoured. In other cases, i.e., in a situation where the foreign shipping company filed an intimation under section 172(7) expressing its willingness to be assessed on an annual basis instead of on a voyage basis, the voyage assessment before the port Assessing Officer should cease and the port Assessing officer shall intimate the details of voyage and freight in respect of that foreign shipping company to the Assessing Officer issuing the annual NOC.

10. The authorities concerned are requested to take not of the above guidelines.

 (Vinay Sinha)

Director (FT & TR-V)

Government of India

Certificate to be furnished by a Chartered Accountant

To
The Customs Officer
__________ Port
India

Sub: Verification certificate issued in terms of Circular No 30 dated 26/08/2016 of CBDT.

This is to certify that the __________ [Name of the Vessel] sailing from __________ [Name of the Port] on _____________ [Tentative date of sailing] is carrying cargo belonging to several foreign shipping companies, each of which is eligible for full relief from taxation in India on shipping income under a Double Taxation Avoidance Agreement (DTAA) of India. This certificate has been issued at the request of the Master of the ship ___________ [Name of the vessel] and has been given on the basis of the annual NOC issued to each such foreign shipping company as detailed below:

Name of the foreign shipping company Date of issue of NOC

(Signature)

Date :

Place :

Enclo: Copies of annual NOC

(The certificate should be on the letter head of the CA firm and should be signed by the CA, and his membership number with ICAI should be indicated.)

Small Factories Bill revived after two years of first draft : 26-08-2016


The labour ministry has revived the Small Factories Bill two years after the first draft was unveiled, as the government enters into a mission mode to improve the ease of doing business in the country.

The Bill, which benefits companies with less than 40 employees, is likely to get the Cabinet’s approval shortly, a senior labour ministry official told ET. The ministry has “tried enough to take all stakeholders on board”, the official added.

The idea of a standalone Small Factories Bill is to make life simple for small and medium enterprises, the official said, speaking on the condition of anonymity. “This will help SMEs to flourish, which in turn will create more jobs.”

The draft Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014 was floated by the labour ministry in October 2014, based on the recommendation of the Second National Commission on Labour in 2000. The proposed Bill seeks to bring all small factories under a common regulation and exempt these units from 14 central labour laws. It envisages rules for wages, overtime hours, social security and appointment of factory inspectors in units employing fewer than 40.

SMEs account for 30 per cent of the country’s total industrial production, and a dedicated legislation could spell a boost for the government and the ruling BJP ahead of assembly elections in sates which account for a large number of small and medium enterprises. The Bill also proposes to move out workers in small factories from under the Employee Provident Fund Organisation Act to provident fund schemes approved by the Insurance Regulatory and Development Authority, a move that trade unions  aren’t happy about ”Every employer shall ensure that all workers in the small factory are covered by a provident fund scheme, approved by the Insurance Regulatory and Development Authority,” the draft Bill says

Source : Financial Express

Notification No. : 32/2016 Dated: 26-8-2016


Seeks to further amend notification No.12/2012-Central Excise dated 17.03.2012 so as to levy Basic Excise Duty at a concessional rate of 2 on Aviation Turbine Fuel drawn by operators or cargo operators from the Regional Connectivity Scheme (RCS) airports for a period of 3 years – 32/2016 – Dated 26-8-2016 – Central Excise – Tariff

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No.32/2016-Central Excise

New Delhi, the 26th August, 2016

G.S.R. 823 (E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2012-Central Excise dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R.163(E) dated the 17th March, 2012, namely: -

In the said notification, in the Table, -

(A) in the opening paragraph, after the sixth proviso, the following proviso shall be inserted, namely:-

“Provided also that nothing contained in this notification shall apply to the goods specified against serial number 77 of the said Table after the 25th day of August, 2019;”;

(B) for serial number 77 and entries relating thereto, the following serial number and entries shall be substituted, namely :-

(1)

(2)

(3)

(4)

(5)

“77

2710 19 20

Aviation Turbine Fuel drawn by operators or cargo operators from the Regional Connectivity Scheme (RCS) airports

2%

-”.

 [F.No.354/102/2015–TRU (Pt.-1)]

(Mohit Tewari)

Under Secretary to the Government of India

Note.- The principal notification No.12/2012-Central Excise, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.163(E) dated the 17th March, 2012 and was last amended vide notification No.30/2016- Central Excise, dated the 10th August, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.783(E) dated the 10th August, 2016.

PM Narendra Modi to review action plan of all departments : 26-08-2016


Prime Minister Narendra Modi will review progress on implementation of action plans set up for all departments on Friday even as the BJPled National Democratic Alliance government approaches the halfway point of its five-year term.

NITI Aayog CEO Amitabh Kant will make a detailed presentation to the prime minister in the presence of all council of ministers of the cabinet at a comprehensive review meeting on Friday, a senior Aayog official said.

“Group of secretaries had suggested transformative ideas to PM to push economic growth in the country. Following this, NITI had set action plans for all departments and have been monitoring progress on each of them,” the official told ET. Friday’s presentation to Modi is on the progress by each department on these action plans and inter-ministerial hurdles, if any, in implementing these, the person said.

The PM had in January this year set up eight groups of secretaries for focused attention on areas like good governance, inclusive growth, employment generation, education and health, Swachh Bharat and energy efficiency. The groups were set up as a follow-up to Modi’s interaction with all the secretaries to the government of India on December 31 when he asked bureaucrats to “get cracking” to deliver results and ensure “transformative change” with focus on improving the lives of people.

The subjects on which the groups have been set up are: ‘good governance – challenges and opportunities’, ‘employment generation strategies’, ‘farmer-centric initiatives in agriculture and allied sectors’, ‘education and health — universal access and quality’, ‘innovative budgeting and effective implementation’, ‘accelerated growth with inclusion and equity’, ‘Swachh Bharat and Ganga rejuvenation’, and ‘energy efficiency and conservation’.

Source : PTI

Income Tax department expect income declaration scheme picking up next month : 26-08-2016


Even though the Mumbai office of the Income Tax department received a tepid response to the Income Declaration Scheme (IDS) so far, it is confident the scheme will pick up next month.

The optimism of the department stems from the huge number of enquiries it has received about the scheme so far.

The scheme, launched by the Government on June 1 to uncover black money, closes on September 30.

As per the IDS facility, one can pay tax under the scheme by cash in a bank and no enquiry will be made by any bank official.

“Actual number of declarations is not very much under the scheme in Mumbai, as of now. Still, enquiries are pouring in and we hope it picks up next month,” Principal Chief Commissioner of Income Tax, Mumbai, D S Saksena told PTI.

“The sixth and final set of FAQs came from the Government on IDS around a week back and hence, we are confident the scheme will pick up now,” he added.

The department has information on a large number of taxpayers in the financial capital.

“Out of 42 lakh pieces of information about taxpayers that are available with us, we have filtered and picked up 2.1 lakh pieces.

“These  filtered information is related to many transactions, including cash deposits beyond Rs 10 lakh without mention of PAN numbers. We have sent letters to 60,000 of them so far, asking them to explain those transactions within 10 days of receipt  of the letter,” Saksena said.

The scheme, however, is getting a good response in places like Thane and Pune as professionals like doctors, builders, advocates and even those working in SMEs are coming forward in these places to go for IDS, Saksena said.

“We are receiving good response in Thane and Pune, thanks to active approach of the department officials who are holding awareness campaigns regularly,” a senior I-T official said.

Source : Economic Times

Renegotiation of DTAA: Cabinet approves revised tax agreement with Cyprus : 25-08-2016


The Cabinet approved the revised India-Cyprus Double Taxation Avoidance Agreement (DTAA) on August 24. The agreement provides for source-based taxation of capital gains on transfer of shares. Agency sources said that Prime Minister Narendra Modi chaired a Cabinet meeting to take up the agreement between India and Cyprus regarding double taxation avoidance and preventing fiscal evasion in income tax.

An official level meeting between India and Cyprus was held in June and it was announced that it had reached an in-principle agreement with the government of Cyprus to resolve all pending issues in order to negotiate a new Double Taxation Avoidance Agreement (DTAA) between the two countries. Under the new scheme, India and Cyprus agreed to a source-based taxation of capital gains.

The Finance Ministry in a statement said, “It was agreed to provide for source-based taxation of capital gains on transfer of shares. However, a grandfathering clause would be provided for investments made prior to April 1, 2017, in respect of which capital gains would be taxed in the country of which taxpayer is a resident.”

Cyprus which has a DTAA with India since 1994, is an important source of foreign fund flows into the country. Foreign Direct Investment worth more than Rs 42,680.76 crore has flowed into India in the last 16 years. From November 2013, Cyprus has been removed from the list of ‘Notified Jurisdictional Areas because of the completion of the negotiation on avoidance of double taxation and the prevention of fiscal evasion.

Source : Financial Express

PM Narendra Modi, Barack Obama among world leaders who will attend G20 meet: China : 25-08-2016


Prime Minister Narendra Modi, US President Barack Obama and Russian President Vladimir Putin will be among the Heads of State and Government who will attend the G20 summit from September 4, the host country China announced today.

The Hangzhou summit, to be presided over by Chinese President Xi Jinping, has invited the maximum number of developing countries in G20 history, Chinese Foreign Ministry spokesman Lu Kang said, adding that leaders of all G20 countries will attend the meeting.

“It represents the inclusiveness of the meeting with both developed and developing countries sitting together as equal partners,” he said.

The voices of developing countries will be fully heeded during the summit to be held from September 4-5, Lu told a media briefing here.

This shows the major changes of the international economic regime that developed and developing countries can have equal consultations and make decisions on international economic affairs, he said.

“This is in line with the trends of history and is a historic progress,” Lu said.

China has said the summit will mainly focus on improving the global economy with structural reforms and innovation. It is also actively campaigning against bringing up political disputes like the South China Sea during the summit.

Besides the heads of the state and governments of G20 countries, leaders of some guest countries including Egyptian President Abdel-Fattah al-Sisi, Singaporean Prime Minister Lee Hsien Loong and Thai Prime Minister Prayuth Chan-ocha, would also attend the meeting.

Also leaders of top international organisations, including UN Secretary-General Ban Ki-moon, World Bank President Jim Yong Kim, International Monetary Fund Managing Director Christine Lagarde and World Trade Organization Director General Roberto Azevedo would attend the meeting, Lu said.

The summit would focus broadly on improving the world economy mired in a prolonged downturn, Chinese state-run Xinhua news agency said in its commentary yesterday.

Eight years after the global financial crisis, the recovery remains slow and fragile. The current global economic growth environment is mediocre, featuring rising unemployment, soaring debt, sluggish trade and investment and turbulent financial and commodity markets, the commentary said.

Innovation will be a key G20 agenda for the first time. Innovation, characterised by technology and new products and business models, will create new consumption opportunities and trends, it said

Source : PTI

Make vehicle scrapping mandatory, start with heavy vehicles: FM Jaitley : 25-08-2016


In order to check pollution, a new policy will be framed to make scrapping of 15-year old vehicles mandatory, bringing heavy vehicles in its ambit to begin with, Union Minister Nitin Gadkari said on Wednesday.
The Finance Ministry has suggested putting the proposed policy before a Committee of Secretaries, the Road Transport and Highways Minister said after holding a meeting with Finance Minister Arun Jaitley on modernising the country’s vehicle fleet.
“Finance Minister said that 65 per cent of the pollution is caused by heavy vehicles which have completed 15 years. We will scrap this in the first phase,” Gadkari told PTI.
“He has asked to make the policy for scrapping mandatory and not voluntary. The Finance Minister also said that instead of tax exemptions, provision of funds will be made in the budget,” he said.
Gadkari said Jaitley is of the view that policy will benefit both the central as well as state governments and lead to higher revenues.
The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy had earlier proposed to bring under its purview vehicles bought on or before March 31, 2005, numbering about 28 million, to which the Finance Ministry has raised objections saying it would be difficult to provide exemption for such a large number of vehicles.
“The Finance Minister said if GST (Goods and Services Tax) Council is formed then tax structure will change. So we will have to take permission from the GST Council. He asked to finalise the policy and Committee of Secretaries will discuss the same. Instead of asking for tax exemption he said he will provide incentive in the budget,” Gadkari added.
Asked as to how the ministry proposes to incentivise the people opting for scrapping of vehicles, Gadkari said: “Suppose we give tax exemption for Rs 75,000, they (Finance Ministry) are saying we will give that amount to the person who scraps his vehicle. Don’t ask for exemption in tax.”
Gadkari said he briefed the Finance Minister of the possible allied benefits of the V-VMP policy that included “additional net revenue of over Rs 21,000 crore” on account of additional automobile sales, beside crude oil savings of Rs 7,700 crore due to improved fuel efficiency”.
Also, he said, once the policy is finalised, it will result in domestic steel scrap generation worth Rs 5,500 crore to substitute imported scrap.
There would also be huge employment generation as there would be huge demand for workforce for scrapping/recycling operations and automobile manufacturing, he said.
Gadkari said: “There are some concessions we are expecting from manufacturers and some from central government and we will fix the cost. We will make different automobile industrial clusters in different parts of the country and they may be near ports. That policy we will plan which will create more employment.”
The automobile industry’s turnover in the country is Rs 4.5 lakh crore, he said, adding that making these kind of industrial clusters will provide for a huge employment creation.
“Creating these kind of clusters it will reduce the cost of vehicles because spare part prices are reduced and we don’t need to import scrap from the world. Scrap will be available in the country including spares parts used in automobile industry,” he said.
He added, “We are preparing a detailed note for phase one with the opinion from other departments also. After their suggestions and approval of Cabinet Secretary it will go to PMO and…Now with GST already passed probably we may have to approach to GST council because in proposal we need approval of GST council and this is a case where state governments are benefited because they will get more revenue.”
He said there will be some incentives.
“There could be incentives from both state and central government and then the cost of vehicle would be finalised. If the cost is around Rs 15 lakh so roughly there could be a discount of Rs 1-2 lakh for the vehicle buyer,” he added.
Gadkari said that based on the success of first phase, the government will rollout the next phase.
He said this could be a historic decision which will go a long way in controlling pollution.
The ministry has sought reduction in excise duty on new cars to half the regular rate for those scrapping their old vehicles.
Under the proposed V-VMP, vehicles bought before April 2005 or those below BS IV emission standards will be eligible for incentives if replaced by new ones.
The draft of the policy has proposed three incentives for the vehicles scrapped — half the regular excise duty at the time of purchase of the new car, fair value for the scrap and discounts from automobile manufacturers.
Earlier, the proposed policy has sought complete excise exemption for state transport buses to encourage public transport to shift to newer and higher capacity buses which will also help decongest roads.
According to the ministry, the policy has the potential to reduce vehicular emission by 25-30 per cent and save oil consumption by 3.2 billion litres a year.

 

Source : Business Standard

Notification No. : 31/2016 Dated: 24-8-2016


Amends Notification No.22/2003-Central Excise dated 31.3.2003 – 31/2016 – Dated 24-8-2016 – Central Excise – Tariff

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

(CENTRAL BOARD OF EXCISE AND CUSTOMS)

Notification No. 31/2016-Central Excise

New Delhi, the 24th August, 2016

S.O. (E) - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and subsection (3) of section 3 of Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central Government being satisfied, that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 22/2003- Central Excise dated the 31st March, 2003, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R.265(E) dated the 31st March, 2003, hereinafter referred to as the said notification, namely: -

2. In the said notification, -

(i) in the opening paragraph, in condition (7), in clause (iv) for the words “bonded premises” the words “premises of the unit” shall be substituted;

(ii) in paragraph (2a), the words “and following the rewarehousing procedure” shall be omitted;

(iii) in paragraph (2b), the words “and following the rewarehousing procedure” and “and by following the rewarehousing procedure” shall be omitted;

(iv) in paragraph 4, for the words “bonded premises” the words “premises of the unit” shall be substituted;

(v) in paragraph 5, for condition (vii), the following condition shall be substituted, namely: -

“(vii) the unit shall be required to have a premises for secure storage of goods procured duty free under this notification and the final products manufactured or produced therefrom and the details of the premises shall be declared to the said officer.”;

(vi) in paragraph 8, the words “or to debond”, “or debonding”, “debonding or” and “, as the case may be” wherever they occur shall be omitted.

[F. No. 484/03/2015(Pt. II) – LC]

(Temsunaro Jamir)

Under Secretary to the Government of India

Note. - The principal notification No. 22/2003 – Central Excise, dated the 31st March, 2003 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide number G.S.R 265 (E) dated the 31st March, 2003 and was last amended by Notification No.45/2015– Central Excise dated 24th November, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide number G.S.R. 900 (E), dated 24thNovember, 2015.

FM Arun Jaitley takes stock of progress on bankruptcy law implementation : 24-08-2016


Finance Minister Arun Jaitley today took stock of steps being taken for implementation of the Insolvency and Bankruptcy Code that seeks to make debt recovery process stronger and quicker.

The Insolvency and Bankruptcy Code, 2016 — notified by the government in May — seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.

The Finance Minister chaired the meeting which was attended by officials of Department of Economic Affairs, Department of Financial Services and Department of Corporate Affairs.

“We have a very tight timeline for implementation of the law. We discussed the roadmap with the Finance Minister,” Shaktikanta Das, Secretary of Department of Economic Affairs Secretary told reporters here.

Under the new law, employees, creditors and shareholders would have powers to initiate winding up process at the first sign of financial stress such as serious default in repayment of bank loan.

Source : Financial Express

PM Narendra Modi calls a meeting to review progress on Budget proposals : 24-08-2016


Prime Minister Narendra Modi has called a meeting of his Council of Ministers, including all ministers of state, on August 26 (Friday) to review progress on Budget proposals since his government came to power.

This is the first major review exercise since the reshuffle in July. According to sources, a progress report has been prepared to discuss each Budget proposal and identify hurdles in implementation.

Any inter-ministerial issues would also be flagged as Modi is expected to go point-by-point. Modi had started the exercise of holding regular meetings of Council of Ministers in January. The Prime Minister has been taking up sectorwise review in these meetings.

Modi is expected to give opening remarks and also congratulate his Cabinet colleagues for pushing the Goods and Services Tax Bill in Parliament. Though the crucial legislation has been passed, the Prime Minister wants to take stock of other Budget proposals of the last two years.

A senior minister, who did not wish to be identified, told ET, “The government is looking at the half-way mark of its five-year term. The exercise is being undertaken to gauge what needs to be done to deliver on the promises made by us to the people.”

The Council of Ministers meeting may also discuss the government’s key priority schemes over the next three years. Niti Aayog CEO Amitabh Kant has been holding meetings with social sector and infrastructure ministries to firm up major schemes that government departments would be implementing over the next three years.

This follows after an elaborate exercise by group of secretaries formed by the Prime Minister’s Office to formulate schemes to drive up economic growth. According to sources, ministries have given their final proposals to Niti Aayog on their targets and time frame of achievement.

These schemes are likely to be showcased before the Council of Ministers as actionable targets. A senior official said, “There are specific social sector schemes like scholarships for minorities, construction of residential schools in 83 tribal dominated districts and training modules for differently-abled, which would be listed out.”

Source : PTI

 

MyGov: Modi government offers jobs on contract : 24-08-2016


Do you want to work for the Narendra Modi government? Here is your chance, with the Centre now asking for resumes from citizens who could be brought on board on contract to work as ‘experts’ in various positions across central ministries.

The government is looking for editorial writers, senior management professionals, software developers, researchers, data scientists, graphic designers, digital content script writers, advertising professionals, academic experts, social media expert and application developers at various seniority levels in what is a first-of-its-kind endeavour to engage citizens with governance.

The exercise has been initiated by the Prime Minister’s MyGov portal to carry forward the government-citizen interface.

“MyGov proposes to create a data bank of resumes of various seniority levels and specializations. This data bank may be sourced by the government periodically to engage citizen experts in various domains for contractual services in various positions across ministries, departments, organizations, institutions, and specialized entities,” the MyGov portal said in a post on Tuesday, listing out the various positions, domains and specializations that are currently being considered for hiring by the government.

“The resumes will be scrutinised by MyGov, and shortlisted resumes will be contacted for further discussion/interview. The compensation package will be discussed in the direct interactions. The submission of resumes in this forum does not guarantee employment or engagement,” MyGov has specified in its post.

For editorial writers, the government is seeking a qualification of Masters in Mass Communication or Masters in Journalism or a Masters in Economics/social sciences apart from experience in form of writing pieces in prominent media platforms. Senior level professionals or retired professionals from universities, hospitals, armed forces, civil services and police service, who have experience in leading large teams of professionals, are being sought for ‘Senior Management’ posts. A Ph.Dis required or a person to apply for the ‘Academic Experts’ post along with experience of academic experience in universities, colleges or think tanks or retired professors from universities of international repute.

For the job of social media experts, the government is looking for those with expertise in devising and running successful social media profiles in Twitter, Facebook, YouTube, Instagram, LinkedIn and Whatsapp and those running a blog site or crowd sourced opinion or blog websites.

Source : Economic Times

Notification No. F.No. Q-22013/1/2014-Ad.1C (AAR) 23-8-2016


MINISTRY OF FINANCE

(Department of Revenue)

Notification

 

New Delhi, the 23rd August, 2016

Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Amendment Rules, 2016

G.S.R. 828(E).- In exercise of the powers conferred by the proviso to article 309 of the constitution, the President hereby makes the following rules to amend the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of

Chairman, Vice-Chairman and Members) Rules, 2015 namely :-

1. (1) These rules may be called the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Amendment Rules, 2016.

(2) They shall be deemed to have come into force from the 27th day of March, 2015.

2. In the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Rules, 2015, for rule 6, the following rule shall be substituted, namely :-

“6. Contributions to Contributory Provident Fund. – The Chairman, Vice-Chairman and Members shall be entitled to make contribution to the Contributory Provident Fund subject to such conditions as are applicable to a non-pensionable servant of the Central Government.”.

 

[F.No. Q-22013/1/2014-Ad.1C (AAR)]

S. BHOWMICK, Under Secy.

Foot Note: The Principal Rules were published vide notification number G.S.R. 235(E), dated

27.03.2015.

 

 

Explanatory Memorandum

It is certified that no person shall be prejudicially affected by giving retrospective effect to this amendment.

MINISTRY OF FINANCE (Department of Revenue) Notification New Delhi, the 23rd August, 2016 Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Amendment Rules, 2016 G.S.R. 828(E).- In exercise of the powers conferred by the proviso to article 309 of the constitution, the President hereby makes the following rules to amend the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Rules, 2015 namely :- 1. (1) These rules may be called the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Amendment Rules, 2016. (2) They shall be deemed to have come into force from the 27th day of March, 2015. 2. In the Settlement Commission (Income Tax and Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Rules, 2015, for rule 6, the following rule shall be substituted, namely :- “6. Contributions to Contributory Provident Fund. – The Chairman, Vice-Chairman and Members shall be entitled to make contribution to the Contributory Provident Fund subject to such conditions as are applicable to a non-pensionable servant of the Central Government.”. [F.No. Q-22013/1/2014-Ad.1C (AAR)] S. BHOWMICK, Under Secy. Foot Note: The Principal Rules were published vide notification number G.S.R. 235(E), dated 27.03.2015. Explanatory Memorandum It is certified that no person shall be prejudicially affected by giving retrospective effect to this amendment.

Arun Jaitley may not read out new trains, lines after budget merger : 23-08-2016


Finance Minister Arun Jaitley may do away with the age-old practice of reading out lengthy proposals on new railway lines and trains once the 92-year-old colonial practice of a separate Railway budget is scrapped and merged with the general Budget.

Instead, these will be put in the form of an annexure in the Budget.

As part of a larger exercise of Budget overhaul, the government is looking at advancing the dates of presentation by a month to January-end to ensure the whole process is completed before the beginning of the next financial year.

“Advancing the date of Budget presentation to January-end is a suggestion. There are some data-related issues. We are seeing (it),” a top Finance Ministry official said.

The official added that advancing the general Budget presentation by a month to January-end will streamline expenditure.

“Currently, as the full Budget gets passed by May, most of the expenditures currently happen in the third or fourth quarter (of the financial year). If the Budget happens in January, expenditure can be streamlined,” he said.

While the Constitution does not mandate any specific date for presentation of the Budget, it is usually presented on the last working day of February and the two-stage process of parliamentary approval takes it to mid-May.

On merger of the railway budget with the general one, he said a decision is yet to be taken.

“Even if it happens, the finance minister will not read the proposal of laying new lines or new trains (in his Budget speech in the Lok Sabha),” the official said, adding that it would be put in the Budget as annexure.

Railway Minister Suresh Prabhu has favoured scrapping the tradition of having a separate railway budget. He wants it to be merged with the general Budget like it happens in all other ministries, including the all-crucial Defence.

The Finance Ministry has also constituted a 5-member committee to work out the modalities for the merger. The committee has been asked to submit its report by August 31.

Another official said the Finance Ministry is considering advancing Budget presentation by a month to January-end. “But that doesn’t signal changing financial year soon,” he added.

Source : Asian News International

GST Ensure IT set-up for GST by September 30: Hasmukh Adhia to banks : 23-08-2016


Government today reviewed IT preparedness of various stakeholders for smooth rollout of the goods and services tax (GST) and directed all banks to ensure their IT systems are in place by September 30.

A meeting in this regard was chaired by Revenue Secretary Hasmukh Adhia, the Finance Ministry said in a statement.

“All authorised banks were directed to ensure their IT systems are in place for networking with RBI, GSTN and the accounting authorities of central and state government authorities, latest by September 30, 2016,” it said.

Representatives of RBI, the Goods and Services Tax Network (GSTN), Principal Chief Controller of Accounts, Central Board of Excise and Customs (CBEC), heads of government business and IT of 29 banks took part.

Realising the criticality of the issue, the Department of Revenue has been regularly monitoring the progress of IT preparedness of various stakeholders.

The status of preparation of software by the banks, RBI, Principal CCA office, CBEC and GSTN was also discussed, along with details of protocol of information exchange between the various stakeholders.

Earlier this month, the Constitution (122nd Amendment) Bill, 2014 that lays the ground for rollout of GST regime was passed by Parliament.

Once implemented, GST will subsume various taxes, including excise, services tax, octroi and other levies, and the proceeds will be shared between the Centre and the states.

Under the new GST regime, goods will be taxed at the point of consumption instead of them being taxed multiple times at different rates.

Source : PTI

 

Delhi could be the fourth state to ratify GST Bill : 23-03-2016


The Delhi government may become the fourth state to ratify the Constitution amendment bill to roll out the goods and services tax (GST), with the state assembly set to meet for a four-day session beginning on Monday.

Implementation of GST will increase the Delhi government’s share in central taxes, said leaders of the ruling Aam Aadmi Party (AAP), which has been supporting the bill.

Senior leaders in the party said that the Delhi assembly will ratify the bill once the house receives a notification from the Centre.

The AAP is in a majority in the 70-member legislative assembly, with 67 members.

The development comes despite the constant tussle between the Bharatiya Janata Party (BJP) government at the Centre and the Delhi government ever since the AAP came to power in 2015. Delhi is a special state, where matters of law, order and land come under the Union home ministry.

The 122nd Constitution amendment bill received Parliament’s nod earlier this month. The bill needs to be ratified by 50% of Indian states before it can be sent for Presidential assent. So far the bill has been ratified by the state assemblies of Assam, Bihar and Jharkhand.

While the states of Assam and Jharkhand are led by the BJP, Bihar led by the Janata Dal (United) government became the first non-BJP state to ratify the bill.

Mint reported last week (http://www.livemint.com/Politics/k7dQkHagy4EKfs666xBE9L/GST-Bill-likely-to-be-ratified-by-seven-more-states.html) that 11 states are in the process of calling a special sitting of legislative assemblies to ratify the GST bill. This includes the Trinamool Congress-led West Bengal assembly and the BJP-led governments in Goa, Haryana and Maharashtra.

GST is a far-reaching tax reform that aims to unite the country into a common market and remove all barriers across states. It will subsume most indirect taxes levied by the Centre and the states, including excise duty, service tax, value-added tax, luxury tax, entertainment tax and entry tax.

Apart from the GST bill, the AAP government will table two other bills during the session, including one that proposes to remove luxury tax on hotel room renting.

Source : Business Standard

No. 199/09/2016 Dated: 22-8-2016


Services provided to the Government, a local authority or a governmental authority with regard to water supply – Dated 22-8-2016 – Service Tax

 

Circular No.199/09/2016-Service Tax

F. No. 137/51/2016-service Tax

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Service Tax Wing

New Delhi, the 22nd August, 2016

To

All Principal Chief Commissioners / Chief Commissioners of Central Excise/Service Tax

Principal Directors General/ Directors General of Goods and Service Tax/ Central Excise

Intelligence/Systems/ Audit/ Tax Payer Services/Performance Management Chief Commissioner AR CESTAT

All Principal Commissioners/Commissioners of Central Excise/Service Tax

All Principal Additional Directors General/ Additional Directors General Audit

Madam/Sir,

Subject: Services provided to the Government, a local authority or a governmental authority with regard to water supply

I am directed to inform that it has been reported to the Board that in some cases contractors providing the service of construction of tube wells for the Government have been considered to be liable to pay service tax.

2.0 The matter has been examined. The following exemptions are available in this regard:-

2.1 Vide Serial No. 12 (e) of notification 25/2012-Service Tax dated 20-6-2012-

“Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal”.

2.2 Vide Serial No. 25(a) of notification 25/2012-Service Tax dated 20-6-2012

2.2.1 In the period 1-7-2012 to 10-7-2014

“Services provided to Government, a local authority or a governmental authority by way of carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation”.

2.2.2 In the period 11-7-2014 onwards

“Services provided to Government, a local authority or a governmental authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation”.

3. Thus, it follows that, among others, exemption is available to the following services provided to the Government, a local authority or a governmental authority, by way of-

(a) construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for (i) water supply (ii) water treatment, and

(b) water supply

4. The phrase “water supply” is a general phrase. Basically it will involve providing users, access to a source of water. The source may be natural or artificial like tanks, wells, tube wells etc. Providing users access to such a source will involve construction of the source (if artificial) and the transmission of water to the user. It will involve activities like drilling , laying of pipes, valves , gauges etc, fitting of motors, testing etc, so as to eventually result in the supply of water. Similarly the word plant has to be understood and interpreted with reference to the context. A plant for water supply need not necessarily involve a huge assembly of machinery and apparatus, for the reasons explained earlier.

5. Thus the exemption under the entries at Serial No. 12(e) and 25(a) of notification 25/2012-Service Tax dated 20-6-2012, will cover a wide range of activities/services provided to a government, a local authority or a governmental authority and will include the activity of construction of tube wells.

Yours faithfully

(Sreeparvathy S.L)

Officer on Special duty

Service Tax Wing

Phone- 011-23092275

sreeparvathy.sl@gov.in

‘India on cusp of revolution with GST, inflation framework’ : 22-08-2016


Hailing India’s tax reforms and inflation-targeting, eminent French economist Guy Sorman today said India will enter a “revolutionary stage” of development with execution of such measures.

“If tax reforms and inflation-targeting are implemented, India is entering a revolutionary stage of development,” Sorman told PTI.

“This is a breakthrough even more impressive than the Chinese reforms in 1979,” added Sorman, who has authored many books, including ‘Economics doesn’t lie, A Defence of the Free Market in a time of Crisis’.

The GST Constitutional Amendment Bill was approved by the Rajya Sabha recently and the government is working hard to meet the April 1, 2017 deadline for rolling out the new indirect tax regime.

The GST will subsume excise, service tax and other local levies and ensure one common market for seamless transfer of goods and services.

The Reserve Bank of India has recently implemented an inflation-targeting framework that requires it to maintain publicly-announced targets for retail inflation based on the consumer price index (CPI).

Under the new dispensation, RBI will be required to meet retail inflation target of 4 per cent, plus or minus 2 per cent, over the next 5 years.

The benchmark interest rate from next policy onwards, due on October 4, is expected to be decided by a 6-member monetary policy committee (MPC) instead of the Governor alone.

Source : PTI

Credit bureaus want RBI to make payments banks its members : 22-08-2016


Ahead of the commercial launch of payments banks, credit information companies (CICs) have urged RBI to ensure these newbies in the banking space become their members and share data on the transactions.

“Payments banks will not be into lending, but the transactions which they undertake will help understand borrowers. Therefore, we have requested the RBI to make them our members,” Experian Credit Information Company Managing Director Mohan Jayaraman told PTI.

He said RBI has been receptive to the idea and has shown its willingness for the demand, but the changes cannot happen overnight as it will require amendments to the Credit Information Companies (Regulation) Act.

Jayaraman further said even though payments banks will not be lending themselves, the data they share will help analyse borrower behaviour in a better way and will help the broader banking system. “These are banks finally and it is for the benefit of the system,” he added.

Harshala Chandorkar, Chief Operating Officer at Cibil, the country’s largest CIC, also confirmed the companies have spoken to RBI about the need to include payments banks as members.

Stating that the talks are in the initial stages, she said such an eventuality would be a “win-win” for both CICs as well as payments banks, which can use some of their solutions on the customer acquisition front.

Jayaraman elaborated that the issue was discussed with the regulator during a recent meeting.

CICs keep data on borrowing and debt servicing, and have been credited for lessening the asset quality pain especially in the retail segment which is becoming the mainstay for fresh credit now.

RBI gave in-principle nod to 11 aspirants to set up payments banks last August. While some like Tech Mahindra and Cholamandalam have since opted out, some like Airtel have received the final approvals.

Others in the fray include corporate giants like Reliance Industries, Aditya Birla Group, PayTM etc. Many of them are already existing non-banking lenders or have tied up with banks, which are members of CICs. Apart from that, the other common theme is that many of them are telecom  companies.

Jayaraman said the talks of getting the telecom players to be members of CICs are still on and the decision has to be taken by the telecom department and the sectoral regulator Trai. Similarly, with insurance as well, the ball lies in regulator Irdai’s court, he said.

It can be noted that getting telecom and insurance transactions, apart from utility payments, is among the prime issues raised by the industry in the past.

Source : PTI

Government may offer foreign auditors direct access : 22-08-2016


In a move that signals the government’s intent to allow foreign audit firms to register and operate directly in the Indian market, the Ministry of Corporate Affairs has written to the Institute of Chartered Accountants of India (ICAI) to seek its views and recommendations on the government proposal.

Currently, Indian laws don’t allow any multinational accounting firm to be registered in India as auditors. The thinking within the government is that as part of an ongoing reforms process the services sector should also be liberalised and global auditing firms could be allowed to operate directly here to make the profession more competitive and robust.

The ministry has written to the institute on August 10, said ICAI president M Devaraja Reddy . The institute is set to discuss this proposal in a meeting to be held on August 24 and then respond to the the request, he added.

The government will have to amend the Chartered Accountants Act, 1949 that regulates the accounting profession in India to allow foreign firms to operate in India.

Currently, MNC professional services firms that offer auditing services in India, including the Big Four – EY, PwC, Deloitte and KPMG – audit Indian companies through a bunch of their network or affiliate firms.

Though for all internal purposes, the accounting practice in any of the Big Four is treated just as any other practice area like tax, transactions, or advisory , but on paper, the affiliate firms are run as separate partnerships.

If the Indian government does allow direct entry, more global firms are likely to invest big in their India network and also the market could see the entry of new players.

“Given the significant exposure of global investors in Indian firms, it’s natural to ask for an auditor who they are more comfortable with. More global players will mean more choice and better quality of services. It will also enhance the credibility of Indian markets,” says the CEO of a global firm.

For Indian audit firms, the move could spell further trouble, as they have been steadily losing the most lucrative audit assignments to the Big Four over the past two decades. L&T books have been audited by Sharp & Tannan and Hindalco had stayed on with Singhi & Co for long time.

In China, the Big Four lost domination to local firms after the government brought in regulations that were unfavourable for the global players. Indian accounting firms are also betting on government regulations that will keep their interests protected

“The government will have to find a middle ground. It will have to create a regulatory framework that allows the global firms to invest and practice, also keeping in mind the concerns of the Indian accounting firms which service a large section of Indian companies, both big and small,” said the CEO of a leading Indian accounting firm.

Source : Business Standard

Centre may have to tweak SEZ, FTA rules to make them GST-compliant : 20-08-2016


The government may have to take up necessary actions to bring suitable legislative changes relating to special economic zones (SEZs) and foreign trade agreements (FTAs) to make them consistent and compliant with the goods and services tax (GST) regime, commerce secretary Rita Teaotia said on Friday.

“We need to look at our own legislations. SEZ and FTA will require suitable legislative changes to be consistent and compliant with the GST Bill,” Teaotia said at an event, ‘Emerging Contours of Global Trade’, organised by industry body CII.

According to her, the Centre would also have to modify schemes of the Directorate General of Foreign Trade (DGFT) to make them consistent with the GST regime. “Many of the schemes of DGFT are required to be moderated and modified in order to be compliant with the GST regime,” she averred.

The new indirect tax regime was expected to raise the country’s GDP growth by 1-1.5% per annum, she said.

On the kind of legislative changes her ministry is looking at, the commerce secretary said, “There are references in the legislation to excise tax and other duties. We are going to look at wherever any of the taxation structure is referred to and procedural parts in the SEZ Act are referred to. We need to see that they are consistent with the GST regime. So, that is the exercise.”

Teaotia informed that the government’s legal experts were already evaluating the various aspects in the draft legislation.

“We would not freeze it (current exercise) till the GST Act is final, because it is got to be based on that. Nevertheless, the spadework is going on right now,” she told reporters.

Source : Financial Express

Jaitley meets PM over new RBI Guv’s appointment : 20-08-2016


Finance Minister Arun Jaitley on Thursday held an hour-long discussion with Prime Minister Narendra Modi over the appointment of the new Reserve Bank of India (RBI) governor, a post that will fall vacant on September 4.

The meeting, which took place at the PM’s residence here, is believed to have deliberated on names of persons who could succeed Raghuram Rajan, who demits office on completion of his 3-year tenure.

Asked about the announcement, Jaitley said: “We will let you know when we decide. You will come to know about the conclusion, not the process.”

Traditionally, the Prime Minister picks the RBI Governorafter consultation with the finance minister.

In June, Rajan surprised the markets when he, in a letter to the RBI staff, announced that he would return to academia and not seek a second term.

Top contenders for the post are current Deputy Governor Urjit Patel and former deputy governor Subir Gokarn.

Gokarn is currently an executive director at the International Monetary Fund while Patel was given a three-year extension in January.

Others who are said to be in the fray include World Bank Chief Economist Kaushik Basu, Economic Affairs Secretary Shaktikanta Das, State Bank of India Chairman Arundhati Bhattacharya and Chief Economic Advisor Arvind Subramanian.

Rajan, who will have the shortest tenure as RBI governor since liberalisation began, decided not to seek a second term after unbridled political attacks on him were led by Bharatiya Janata Party MP Subramanian Swamy.

Source : PTI

Cabinet Secretary-headed panel holds third meet to shortlist names to head RBI : 20-08-2016


Below the radar of the speculations of the next RBI governor, Prime Minister Narendra Modi’s insistence to follow a rigorous process has got the Cabinet Secretary-headed selection panel to work overtime to complete process to recommend a panel of names to the Prime Minister and Finance Minister for the selection as the next RBI governor.

Government sources said that the Cabinet Secretary-headed panel held its latest meeting on Friday to prune down the list of potential candidates for the recommendation to the government. This is the third meeting of the committee, added the source.

Sources said that the committee will be making its recommendation of panel of names to the government soon for its final decision. In the first meeting, the committee is learnt to have considered as many as 50 potential candidates. The committee in its second meeting is learnt to have managed to whittle down the number of names to 30.

“Prime Minister is very clear that the process should not be bypassed. Selection will be a culmination of this process. The announcement will not be a last minute decision,” confided a source briefed about the series of meeting of the Cabinet Secretary-chaired panel tasked with recommending the names to the government.

Sources, in this context, clarified that the final decision of the names will be taken up by the Prime Minister and Finance Minister.

“The names or panel of names by the Cabinet Secretary-chaired panel will be a recommendation to the government. They can always reconsider the recommendations,” added the source. With incumbent Raghuram Rajan’s term coming to its end early next month, the government has to announce his replacement very soon.

However, contrary to the speculation of various names, the Prime Minister has insisted for a rigorous process of filtering out the names for the consideration. Sources in this context asserted that any name announced by the government will be an outcome of the rigorous process of filtering.

Source : Economic times

.

Notification No.75/2016 19-8-2016


Income-tax (21st Amendment) Rules, 2016 – Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply – 75/2016 – Dated 19-8-2016 – Income Tax

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION NO. 75/2016

New Delhi, the 19th August, 2016

INCOME-TAX

S.O. 2747(E).- In exercise of the powers conferred by sub-section (1E) of section 206C read with section 295 of theIncome-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1.  (1) These rules may be called the Income-tax (21st Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), after rule 37CA and before 37D, the following rule shall be inserted, namely:-

“Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply.

37CB. (1) The provisions of sub- section (1D) of section 206C in relation to sale of any goods (other than bullion or jewellery) or providing any service shall not apply to the following class or classes of buyers , namely:-

(i) Government;

(ii) embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a foreign State;

(iii) institutions notified under United Nations (Privileges and Immunities) Act, 1947”.

[F. No. 370142/19/2016-TPL]

PITAMBAR DAS, Director (Tax Policy and Legislation)

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (20th Amendment) Rules, 2016, vide notification number S.O.2671 (E), dated the 09.08.2016.

I-T dept changes property valuation rule : 19-08-2016


Those who opt for the ongoing scheme to declare hithertoundisclosed wealth will be allowed to value their property by allowing a cost inflation index  to its registered value.

The four-month Income Declaration Scheme (IDS), to declare what was hidden till now and avoid prosecution by paying extra tax and a penalty, ends on September 30. The change in property rule has been done after representations to this effect, the government said.

Where acquisition of immovable property is backed by a registered deed, it is stated, the declarant may declare the fair market value by applying an (authorised) cost inflation index to the stamp duty value, the department said in a revision to its ‘Frequently Asked Questions’ on the Income Declaration Scheme.

Also, the report from a registered valuer will not be questioned by the department for disclosures under the scheme. “However, the valuer is expected to furnish a true and correct valuation report, in accordance with the accepted principles of valuation. In a misrepresentation, appropriate action shall be taken against the valuer,” said the department.

It has so far issued four sets of such clarifications on various issues.

The new clarifications also say the income declared under the scheme for an earlier assessment year can be taken into account to explain the related transactions of the subsequent assessment years in proceedings pending before an assessing officer, if there is a nexus between the two.

And, that no adverse action would  be taken against the declarant by the Financial Intelligence Unit or the I-T department solely on the basis of cash deposits made in banks consequent to the declaration made under the scheme.

It also said where loans, credits, advances received, share capital, payables, etc, are disclosed in the audited balance sheet but are fictitious in nature and cannot be directly linked to acquisition of a particular asset, then such fictitious liabilities can be disclosed under the scheme without linking the same with the investment in any specific asset.

In case a person has already filed a declaration under the IDS, the FAQ said a revised filing could be made.

The government, sometime back, had extended the deadline for payment of tax and penalty under IDS and allowed declarants to pay the amount in three instalments by September 30 next year.

The first instalment of 25 per cent will have to be paid by November 2016, to be followed by another one of 25 per cent by March 31, 2017. The remaining amount will have to be paid to the exchequer by September 30, 2017.

Earlier the tax, surcharge and penalty under the disclosure window were required to be paid by November 30 this year.

Declarations may either be made online on the official e-filing website of the department or before various regional principal commissioners of IT in the country.

Source : PTI

Yet to decide participation level for SAARC FMs meet: Govt : 19-08-2016


Government said on Thursday it is yet to decide on the level of India’s participation at the SAARC Finance Ministers meeting later this month in Islamabad, amid indications that Arun Jaitley may skip the conference due to strain in ties between the two countries.

“No decision has been taken so far on India’s level of participation at SAARC Finance Ministers meet in Islamabad,” Ministry of External Affairs SpokespersonVikas Swarup told reporters here at his weekly media briefing.

Earlier this week, official sources had said that Jaitley may not visit Pakistan due to “political reasons”.

“You all know what happened last time and what is happening,” a source had said, referring to Home Minister Rajnath Singh’s visit to Islamabad earlier this month, which was also for a SAARC Ministerial meeting.

Barbs were exchanged between Singh and Pakistan Interior Minister Chaudhry Nisar Ali Khan, who only had a tense and uneasy handshake during the SAARC meeting.

Pakistani authorities did not allow entry of Indian mediapersons, including those from PTI and Doordarshan, inside the venue of 7th SAARC Home Ministers Meeting in Islamabad.

Singh had informed Rajya Sabha that after the meeting was over, Pakistan’s Home Minister, who was the host, invited the participants for lunch but left in a car soon thereafter.

“Keeping in mind the country’s prestige, I did what I should have done. I have no complaints. I had not gone there for lunch,” he had said.

India had yesterday rejected Pakistan’s proposal to hold Foreign Secretary-level talks on Kashmir and made it clear that terrorism was “central” to its relations with Islamabad, whose different view and attitude has made it difficult for bilateral ties to grow.

That apart, in his Independence Day address to the nation earlier this week, Prime Minister Narendra Modi declared that India will not bow before terrorism, and also brought up Pakistani atrocities on people of Baluchistan and PoK, saying that they have thanked him for doing so.

Though Modi did not make any reference to Kashmir valley, which is witnessing violence after the killing of Hizbul Commander Burhan Wani, he accused Pakistan of glorifying terrorists and celebrating the killings in India.

Pakistan’s Finance Ministry in a recent statement had said the country would play the role of a “good host” and try to keep the overall ambiance positive.

South Asian Association for Regional Cooperation (SAARC) is a regional intergovernmental organisation. Its member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka.

Source : Business Line

Union Budget to get slimmer after GST rollout : 19-08-2016


NEW DELHI: The Union budget is set to get thinner once the Goods and Services Tax (GST), a vital indirect tax reforms that aims to develop a common domestic market and cut out multiple levies, rolls out in the months ahead.

Experts say Part B of the budget, which is the most awaited section, will in all probability sport a very trimmed look after GST becomes a reality.

And, after the announcement of Direct Tax Code (DTC), length of the budget will be further trimmed, prompting the government to focus on policy announcements and detail outcomes of various proposals. The changes on account of GST are expected to reflect from the 201819 budget.

“Part two of the budget where you have the tax rates will be reduced by more than 50% and you will only have direct tax rates,” said Dhirendra Swarup, a former expenditure secretary .

“I don’t know in what form DTC will come. And the GST rate will be recommended by the GST Council which will be then be fixed by Parliament because under the Constitution, only Parliament has the power to decide on taxation,” he said.

He said the GST rate maybe fixed for two or three years and it may just be mentioned in the budget. “There will be no need to specify individual rates for small items and therefore the part 2 of the budget will be reduced,” said Swarup.

Source : Economic Times

No. 29/2016 18-8-2016


Clarifications on the Income Declaration Scheme, 2016 – Circular – Dated 18-8-2016 – Income Tax

Circular No.29 of 2016

F.No.142/8/2016-TPL

Government of India Ministry of Finance

Department of Revenue Central Board of Direct Taxes

(TPL Division)

Dated 18th day of August, 2016

Clarifications on the Income Declaration Scheme, 2016

The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) came into effect on 1st June, 2016. To address doubts and concerns raised by the stakeholders, the Board has issued three sets of FAQs vide Circular Nos. 17, 24, 25 & 27 of 2016. In order to address further queries received from the public relating to the Scheme, following clarifications are issued.-

Question No.1: In certain cases, the undisclosed income might be reflected in creditors or other liability which may be fictitious. Whether in such cases, the assessee can disclose only such fictitious liability as it may not be possible to link it to any specific asset or investment?

Answer: In a situation where loans, creditors, advances received, share capital, payables etc. are disclosed in the audited balance sheet but are fictitious in nature, and such liabilities cannot be directly linked to acquisition of a particular asset in the balance sheet, then such fictitious liabilities can be disclosed under the Scheme as such without linking the same with the investment in any specific asset. However, in cases where there is a direct link between the fictitious liability and the asset acquired then the amount to be declared shall be the fair market value of the acquired asset as on 01.06.2016.

Question No.2: Whether the amount declared under the Scheme for an earlier assessment year can be taken into account to explain the transaction(s) in the assessment proceedings for subsequent assessment year(s)?

Answer: As per section 189 of the Finance Act, 2016, any declaration made under the Scheme shall not affect finality of completed assessments. However, in an assessment proceeding before the Assessing Officer for an assessment year subsequent to the year for which the income is declared under the Scheme, the income declared for an earlier assessment year can be taken into account to explain the transactions provided there is a nexus between the income declared and the transactions of the subsequent assessment year.

Question No.3: Whether the valuation report of assets declared under the Scheme shall be called for by the department for any enquiry at any time?

Answer: The valuation report from a registered valuer shall not be questioned by the department. However, the valuer is expected to furnish a true and correct valuation report in accordance with the accepted principles of valuation. In case of any misrepresentation, appropriate action as per law shall be taken against the registered valuer.

Question No.4: Though the fair market value as on 1st June, 2016 is taxed under IDS, and such amount will be treated as cost of acquisition at the time of future sale of concerned asset, whether such treatment shall affect the character of the asset as long term or short term?

Answer: The issue was earlier considered and it was clarified vide Circular No.17 dated 20.05.2016 that in such cases period of holding shall be deemed to begin from 01.06.2016 as the asset has been revalued on such date. However, considering the representation received from various stakeholders and the fact that this may lead to complications in calculation of capital gain at the time of sale of asset which was partly funded from undisclosed income now declared under the Scheme, the matter has been reconsidered. Accordingly, in supersession to the earlier clarification as referred above, it is clarified that the period of holding of asset declared under the Scheme shall be based on the actual date of acquisition of such asset. However, the indexation benefit in respect of the amount declared under the Scheme shall be available from 01.06.2016 only. The said situation is illustrated as below:-

Suppose Mr. ‘A’ purchased a house on 01.10.2011 for ₹ 10 lakh and declares fair market value of the same as on 01.06.2016 under the Scheme at ₹ 20 lakh. If the said house is sold on 01.10.2017 for ₹ 30 lakh, the holding period for the house for purposes of computation of capital gain shall be six years i.e. from 01.10.2011 to 01.10.2017. As the holding period exceeds three years, the gains arising from such transfer shall be treated as long term capital gain. Further, the indexation benefit in this case shall be available on ₹ 20 lakh from 01.06.2016 to 01.10.2017.

Question No.5: What will be the value of immovable property to be declared under the Scheme in a case where the cost of immovable property is only partly evidenced by a registered deed and partly otherwise?

Answer: In such a case, the option of calculating the fair market value of the immovable property based on applying the cost inflation index to stamp duty value shall be available only in respect of that part of the property the cost of which is evidenced by a registered deed. With regard to the remaining part the fair market value of the property shall be determined based on the provisions of rule 3(1)(d) of the Rules without taking into effect the proviso to the said rule. The said situation is illustrated as below:-

Suppose, Mr. ‘X’ purchased a piece of land in year 2004-05 for ₹ 10 lakh, however the stamp duty value was ₹ 15 lakh. Thereafter, in the period 2005-06 to 2007-08, Mr. ‘X’ constructed a two storeyed house on the said land. The amount to be declared in respect of the said property shall be (A + B) where

A= Value of land (if the assessee opts for valuation on the basis of indexation) shall be

Rs.15 lakh  X  cost inflation index of 2016-17 / cost inflation index of 2004-05

B= Fair market value of the house (excluding value of the land) as on 01.06.2016 as determined by the registered valuer or the cost of construction whichever is higher.

Question No.6: A declarant has already filed a declaration under the Scheme determining the value of immovable property on the basis of Income Declaration Scheme Rules, 2016 prior to their amendment vide the Income Declaration Scheme (Third Amendment) Rule notified vide CBDT Notification No. 74 dated 17.8.2016. In such a case whether the declarant can revise the declaration based on such amended rules?

Answer: Yes, the declarant can revise the fair market value of immovable property declared in the declaration already filed on account of the amended provisions of the Income Declaration Scheme Rules, 2016 even in a case where such revision may result in downward revision of the declared amount in respect of the immovable property.

Question No.7: Whether the payment of amount payable under the Scheme can be made in cash to the Banks? Further, whether the amount disclosed under the Scheme can be deposited in the bank account in cash?

Answer: Reserve Bank of India (RBI) has been requested to issue instructions to banks to allow payment of tax under the Scheme in cash. RBI has also been requested to instruct the banks to allow deposit of cash over the counter in accordance with its existing master circular No. DBOD No.Leg.BC.21/09.07.006/2014-15 dated 01.07.2014.

Question No.8: Whether the information of cash deposits made in bank as a consequent to declaration made under the Scheme shall be picked up by FIU or reported to the income-tax department?

Answer: It is clarified that no adverse action shall be taken against the declarant by FIU or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the Scheme.

Question No.9: In case a trust or institution registered under section 12A of the Income-tax Act files declaration under the Scheme, whether the registration under section 12A shall be cancelled on the basis of such declaration?

Answer: No, the registration under section 12A of the Income-tax Act shall not be cancelled solely on the basis of the information furnished in the declaration filed under the Scheme.

Question No.10: Where a person has claimed weighted deduction, say 175%, on account of making bogus donation then what should be the amount of declaration under the Scheme?

Answer: The declarant has to declare the amount of weighted deduction claimed in respect of bogus donation i.e. 175% of the bogus donation in this case.

Question No.11: In a case where the return of income has not been filed for an assessment year but the time limit for filing the same has not expired under section 139 of the Income-tax Act, whether the declaration under the Scheme can be filed for such assessment year?

Answer: The declaration for the assessment year for which the return of income has not been filed can be made under the Scheme even though the time limit for filing the return under section 139 of the Income-tax Act has not expired.

Question No.12: In answer (b) to question No.6 of Circular No.17 of 2016 dated 20.05.2016, it has been stated that “person is barred from making a declaration under the Scheme in respect of an undisclosed income in which the survey was conducted”. Please clarify?

Answer: The clause (b) of answer 6 may be read as “In case of survey operation, the person is barred for making a declaration under the Scheme in respect of the previous year in which the survey was conducted. The person is, however, eligible to make declaration in respect of an undisclosed income of any other previous year”.

(Abhishek Gautam)

Under Secretary to the Government of India

Notification No : 37/2016 Dated: 18-8-2016


Giving the powers of Chief Commissioner to Principal Commissioner who have been given the additional charge vide office orders No. 79/2016 dated 14.07.2016 and 86/2016 dated 26.07.2016 – 37/2016 – Dated 18-8-2016

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF EXCISE AND CUSTOMS)

NOTIFICATION No. 37/2016-Service Tax

New Delhi, the 18th August, 2016

G.S.R. 802(E).- In exercise of the powers conferred by clause (b) of section 2 of the Central Excise Act, 1944 (1 of 1944) read with clause (55) of section 65B of the Finance Act, 1994 (32 of 1994), rule 3 of the Central Excise Rules, 2002, and rule 3 of the Service Tax Rules, 1994, the Central Board of Excise and Customs hereby invests the officers specified in column (1) of the Table below, with the powers of the Central Excise Officer of the rank specified in column (2) of the said Table, in the jurisdiction specified in Notification No. 20/2014-Service Tax, dated the 16th September, 2014 published in the Gazette of India, Extraordinary Part-II, Section 3, Sub-section (i), vide G.S.R. 648 (E), dated the 16thSeptember, 2014, namely:-

TABLE

Central Excise Officer

Rank of the Central Excise Officer whose powers is to be exercised

(1)

(2)

All Principal Commissioners who have been given additional charge of a Chief Commissioner vide Office Orders of the Central Board of Excise and Customs No. 79/2016 dated the 14th July, 2016 and 86/2016 dated the 26th July, 2016 respectively.

The Chief Commissioner.

[F. No. 390/Review/36/2014-JC]

M. R. FAROOQUI, Under Secy.

Form panels to remove pay related anomaly: Government to departments : 18-08-2016


All central government departments have been asked to set up committees to look into various pay related anomalies arising out of the implementation of the Seventh Central Pay Commission’s recommendations.

There will be two levels of Anomaly Committees — National and Departmental — consisting of representatives of the official side and the staff side of the national council and the departmental council, respectively.

The Departmental Anomaly Committee may be chaired by the Additional Secretary or the Joint Secretary (Administration). If there is no such post, then Financial Adviser of the ministry or department shall be one of the member of the Departmental Anomaly Committee, an order issued by Personnel Ministry said.

“The National Anomaly Committee will deal with anomalies common to two or more departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies pertaining exclusively to the department concerned and having no repercussions on the employees of another ministry or department in the opinion of the Financial Adviser,” it said.

The Anomaly Committee shall receive anomalies through Secretary, staff side of respective council up to six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its constitution, the Ministry said.

Cases where there is a dispute about the definition of “anomaly” and those where there is a disagreement between the staff side and the official side on the anomaly will be referred to and “Arbitrator” to be appointed out of a panel of names proposed by the two sides, it said.

The Arbitrator will consider the disputed cases arising in the Anomaly Committees at the national as well as department level, the order issued to secretaries of all central government departments said.

“All ministries or departments are accordingly requested to take urgent action to set up the Anomaly Committees for settlement of anomalies arising out of implementation of the 7th Pay Commission’s recommendations,” it said.

The Centre has accepted most of the recommendations of the 7th Pay Commission, to be implemented from January 1, 2016.

Source : Business Standard

Jaitley writes to Andhra, Telangana CMs over GST Bill nod : 18-08-2016


With Parliament passing the GST Bill in the just-concluded session, Union Finance Minister Arun Jaitley has now asked Andhra Pradesh and Telangana to ensure its early ratification.

Jaitley has written separate but identical letters to Andhra Pradesh Chief Minister N Chandrababu Naidu and his Telangana counterpart K Chandrasekhar Rao in this regard.

“The Constitution (122nd Amendment) Bill, 2014 is required to be ratified by the legislatures of not less than half of the States before it is presented to the President of India for assent. “When assented to by the President, the Bill will be enacted as the Constitution (101st Amendment) Act, 2016,” Jaitley said in letters to Naidu and Rao.

He wanted the two states to ratify it, if necessary, by convening a special session of the legislatures. “The target date for introduction of GST has been set as April 1, 2017.

For introducing the Goods and Services Tax in the country, after amendment of the Constitution, a set of two enabling legislations will need to be enacted by Parliament and one enabling legislation will need to be enacted by all state legislatures for implementation of GST.

“In the interim period, necessary IT infrastructure and administrative arrangements have to be put in place at the Central and the state levels before April 2017,” Jaitley said.

These legal, administrative and infrastructural changes could only be put in place after the Constitution has been suitably amended, the Finance Minister said. “Hence, to ensure GST is implemented in the country at the appointed date, it is imperative that the Constitution (122nd Amendment) Bill, 2014 is ratified by your state legislature(s) at the earliest,” Jaitley added.

In the letters, he listed the salient features of the GST and the proposed GST Council. “It is also proposed the Union Government shall compensate the states for any revenue losses caused to them on account of implementation of GST for a period of five years.

“Introduction of GST will be one of the most important economic reforms in the country. GST seeks to subsume many indirect taxes at the Central and State level. GST will simplify and harmonise the indirect tax regime. Further, GST will broaden the tax base, and result in better tax compliance due to a robust IT infrastructure,” Jaitley said.

Source : Financial Express

After Assam and Bihar, Jharkhand ratifies GST Bill : 18-08-2016


Thanking all the MLAs of the House for rising above party lines to ratify the bill, Chief Minister Raghubar Das said that the unanimity demonstrated by the legislators on initiating one country, one tax was exemplary.

The GST Bill, described as India’s biggest tax reform, needs to be ratified by at least 15 state legislatures before the President can notify the GST Council which will decide the tax rate.

The Central has set a deadline of April 2017 for its rollout.

Assam was the first state to ratify the bill.

Telangana government has also decided to call an Assembly session this month to pass the GST bill, Telangana Finance Minister Etela Rajender said today.

Bihar yesterday became the first non-NDA state to ratify the Constitution Amendment Bill on GST after Chief Minister Nitish Kumar counted virtues of the tax reform.

With all the major parties in the state including JD(U), RJD, Congress and BJP in favour of the tax legislation, the House approved the GST Bill through a voice vote.

Source : PTI

No. 198/08/2016 Dated: 17-8-2016


Service tax liability in case of hiring of goods without the transfer of the right to use goods – Dated 17-8-2016 – Service Tax

Circular No 198/08/2016-Service Tax

F.No.137/54/2016-Service Tax-Part-II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Service Tax Wing

New Delhi, the 17th August, 2016

Subject: Service tax liability in case of hiring of goods without the transfer of the right to use goods.

In terms of sub-clause (d) of clause (29 A) of Article 366 of the Constitution of India, the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration is deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made. It follows that such transactions will be liable for Sales Tax/Value Added Tax. In terms of section 66E(f) of the Finance Act, 1994,transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods is a “declared service” and hence liable to service tax. In this regard some representations have been received.

2. The matter has been examined. I am directed to draw your attention to the fact that in any given case involving hiring, leasing or licensing of goods, it is essential to determine whether, in terms of the contract, there is a transfer of the right to use the goods. Further, the Supreme Court in the case of Bharat Sanchar Nigam Limited vs Union of India, reported in 2006 (2) STR 161 SC, had laid down the following criteria to determine whether a transaction involves transfer of the right to use goods, namely,-

a. There must be goods available for delivery;

b. There must be a consensus ad idem as to the identity of the goods;

c. The transferee should have a legal right to use the goods – consequently all legal consequences of such use, including any permissions or licenses required therefor should be available to the transferee;

d. For the period during which the transferee has such legal right, it has to be to the exclusion to the transferor this is the necessary concomitant of the plain language of the statute – viz. a “transfer of the right” to use and not merely a licence to use the goods;

e. Having transferred the right to use the goods during the period for which it is to be transferred, the owner cannot again transfer the same right to others.

3.1 This criteria must invariably be followed and applied to cases involving hiring, leasing or licensing of goods. The terms of the contract must be studied carefully vis-a-vis the criteria laid down by the Supreme Court in order to determine whether service tax liability will arise in a given case. It is not possible to either give an exhaustive list of illustrations or judgements on this issue. Cases decided under the Sales Tax/VAT legislations have to be considered against the background of those particular legislative provisions and terms of contract in that case.

3.2 The following case law may also be referred to. These should not be applied mechanically but their applicability to the facts of a given case, the terms of the contract in the given case and the criteria laid down by the Supreme Court should be examined carefully.

3.2.1 Commissioner VAT vs International Travel House Ltd – Delhi High Court judgement dated 8-9-2009 in ST Appeal 10/2009

3.2.2 Rashtriya Ispat Nigam Limited vs Commercial Tax Officer reported in 1990 (77) STC 182 and State of Andhra Pradesh vs Rashtriya Ispat Nigam Limited reported in 2002 (126) STC 114

3.2.3 State Bank of India vs State of Andhra Pradesh reported in 1988 (70) STC 215 A.P

3.2.4 Ahuja Goods Agency vs State of Uttar Pradesh reported in 1997 (106) STC 540

3.2.5 Lakshmi AV Inc vs Assistant Commercial Tax Officer reported in 2001 (124) STC 426 Karnataka

3.2.6 G. S Lamba and Sons vs State of Andhra Pradesh reported in = 2015 (324) ELT 316 A.P

4.1 There will also be cases involving either a financial lease or an operating lease. The former generally involves a transfer of the asset and also the risks and rewards incident to the ownership of that asset. This transfer of the risks and rewards is also recognised in accounting standards. It is generally for a long term period which covers the major portion of the life of the asset and at the end of the lease period, usually the lessee has an option to purchase the asset. The lessee bears the cost of repairs and maintenance and risk of obsolescence also rests with him. In contrast, an operating lease does not involve the transfer of the risks and rewards associated with that asset to the lessee. It is for a short term period and at the end of the lease period the lessee does not have an option to purchase the asset. The cost of repairs, maintenance and obsolescence rests with the lessor.

4.2 Similarly in the aircraft industry there are “dry leases” and “wet leases”. Generally speaking, “wet leases” may involve short term provision of an aircraft along with crew, maintenance and insurance while the lessee bears other operating expenses. In contrast, a “dry lease” is for a relatively longer term and involves the provision of an aircraft only without crew.

4.3 The above two situations have been elaborated only to explain and emphasize the diverse nature of such transactions. There can be variations and in some cases, a combination.

5. In all these cases, no a priori generalisations or assumptions about service tax liability should be made and the terms of the contract should be examined carefully, against the backdrop of the criteria laid down by the Supreme Court in the Bharat Sanchar Nigam Limited case as well as other judicial pronouncements.

Yours faithfully

(Sreeparvathy S L)

Officer on Special Duty

Service Tax Wing

Notification No.74/2016 17-8-2016


Income Declaration Scheme (Third Amendment) Rules, 2016 – 74/2016 – Dated 17-8-2016 – Income Tax

GOVERNMENT OF INDIA MINISTRY OF FINANCE

DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION NO. 74/2016

New Delhi, the 17th August, 2016

S.O.  2728 (E) - In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 199 of theFinance Act, 2016 (28 of 2016), the Central Board of Direct Taxes, makes the following rules further to amend theIncome Declaration Scheme Rules, 2016 (hereinafter referred to as the principal rules) namely:-

1. (1) These rules may be called the Income Declaration Scheme (Third Amendment) Rules, 2016.

(2) These rules shall come into force from the date of their publication in the Official Gazette.

2. In the principal rules, in rule 3, in sub-rule (1), in clause (d), after sub-clause (II) following shall be inserted, namely:-

‘Provided that where the acquisition of immovable property by the declarant is evidenced by a deed registered with any authority of a State Government, the fair market value of such property shall, at the option of the declarant, may be taken on the stamp duty value as increased by the same proportion as Cost Inflation Index for the year 2016-17 bears to the Cost Inflation Index for the year in which the property was registered:

Provided further that where the immovable property was acquired before the 1st day of April, 1981, the provisions of the first proviso shall have effect as if for the words “stamp duty value”, the words “the fair market value of the property as on 1st day of April, 1981 on the basis of the valuation report obtained by the declarant from a registered valuer”, and for the words “Cost Inflation Index for the year in which the property was registered”, the words “Cost Inflation Index for the year 1981-82” had been substituted.

Explanation- For the purposes of this clause,-

(i) “stamp duty value” means the value adopted or assessed by any authority of the State Government for the purposes of payment of stamp duty in respect of an immovable property;

(ii) “Cost Inflation Index” means such index as notified under clause (v) of Explanation to section 48 of the Income-tax Act, 1961.’.

3. In the principal rules, in Annexure to Form-1,-

(A) in serial number III, for item number 1, the following item shall be substituted, namely:-

“1. Immovable property (attach valuation report)

(i) Nature of property (land/building/flat etc.)  ________________

(ii) Address of the property                             ________________

(iii) Name(s) under which held                        ________________

(iv) Date of acquisition                                    ________________

(v) Cost of acquisition as per rule 3(1)(d)(I)    ________________

(vi) Value as estimated by the registered valuer ________________

on 1st June, 2016 as per rule 3(1)(d)(II)

(vii) Value as per proviso to Rule 3(1)(d)

Identification number and date of the registered deed Value adopted for stamp duty, if property is acquired on or after 01.04.1981 Fair market value as on 01.04.1981, if property acquired before 01.04.1981 Indexed value of the property as on 01.06.2016

(viii) Fair market value as per rule 3 ________________”;

(B) after serial number IV, the following shall be inserted, namely:-

“V. Whether any part of income referred in (I) is in the form of fictitious liability    Yes/No

VI. If reply to (V) is Yes, whether such liability is directly linked to any asset disclosed in the balance sheet      Yes/No

VII. If reply to (VI) is No, furnish the following:

1. Nature of liability                                                  _____________

2. Financial year in which the liability was created _____________

3. Amount of liability                                                    _____________.”

F.No.142/8/2016-TPL

(Dr. T.S. Mapwal)

Under Secretary to the Government of India

Note:- The principal rules were published vide notification number S.O.1831(E) dated the 19th May, 2016 and last amended vide notification number S.O. 2705 (E) dated the 12th August, 2016.

India ranked world’s top exporter of information, communication technology : 17-08-2016


India has been ranked the world’s top exporter of information and communication technology in a UN agency report that recommended that the country leverage this lead to innovate in emerging areas where biology and materials sciences intersect with computing.

Overall, India leapt 14 places from the 85th rank last year to the 61st in the latest Global Innovation Index (GII) released in Geneva by the World Intellectual Property Organisation (WIPO) in partnership with the Confederation of Indian Industry (CII) on Monday.

India ranked 8th in the world for producing graduates in science and engineering and showed the most significant improvements in human capital and research moving up 40 places to 63.

WIPO, a specialised agency of the UN, worked also with Cornell University and INSEAD, the international business school, to prepare the ninth edition of the index.

In a nod to India’s “jugaad” tradition of innovation, the report said that its culture of “frugality and sustainability” can help it capture global markets.

“For this to happen, however, India’s industries need to have the hunger to be at the top of the value chain, its customers have to be more demanding, its policies have to be more transparent, and its talent pool has to get more hands-on experience while simultaneously growing to leverage the global talent pool,” the report said.

WIPO quoted CII Director General Chandrajit Banerjee as saying: “The commitment of India to innovation and improved innovation metrics is strong and growing, helping to improve the innovation environment. This trend will help gradually lift India closer to other top-ranked innovation economies.”

Areas where India is lagging include the business environment, where it is ranked 117, and education at the 118th spot.

To leapfrog into the emerging areas that combine biology, computing and material sciences, the report recommended that the industry double its research and development (R&D) investment and the government provide R&D grants to industry.

“Investing in innovation is critical to raising long-term economic growth,” WIPO Director-General Francis Gurry said while presenting the report. “In this current economic climate, uncovering new sources of growth and leveraging the opportunities raised by global innovation are priorities for all stakeholders.”

Another recommendation was to developing the research capabilities of universities. “Industry and government should team up with universities to create meaningful graduate research programmes utilizing global collaboration models where appropriate,” the report said.

In these emerging fields, the report said: “Applications include developing sustainable fuels for transportation, predicting and preventing disease, determining ways to improve wellness, and delivering better nutrition” – areas that meet immediate needs of India.

The report cited the US-India Strategic and Commercial Dialogue as initiatives that had the potential for bilateral funding of R&D.

Among innovators in India measured by the number of patents obtained in the last five years, Infosys led with 281; it was followed by TCS with 244, Ranbaxy 196, Wockhardt 160, and SunPharma 84.

During this period, about 2,000 patents received by GE had Indian inventors, the report said. IBM came next with Indians involved in nearly 1,900 patents.

Overall, Switzerland ranked first globally as the most innovative economy on the index. It was followed by Sweden, Britain, the United States, Finland and Singapore. China for the first time muscled its way into the ranks of the top 25, just landing the spot.

Source : Financial Express

Renewable energy companies worried about GST impact on cost : 17-08-2016


While the passing of the Goods and Services Tax (GST) bill has been hailed as a giant step forward in tax reforms, renewable energy developers are deeply worried about its implications.

Although taxes on generation and sale of electricity have been kept outside the purview of the GST regime, capital goods and services used for setting up renewable energy projects have been included.

Currently, such goods and services enjoy numerous tax concessions and exemptions, both at the Central level and in specific states, which want to encourage renewable energy use. All these are likely to end once GST is implemented, since one of the avowed purposes of GST is to do away with exemptions and concessions.

Around 95% the of solar equipment used in the country, for instance, is imported. While imports generally attract basic customs duty (BCD) of 7-10%, renewable energy-related components pay a concessional 5%. There is also a special additional duty of customs (SAD) of 4%, which for renewable energy equipment is later refunded.

In contrast to solar, most wind turbine generators are manufactured locally. Domestically, manufactured goods pay a peak excise duty of 12.5% but, according to a December 2012 order, “goods used for the manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators” have to pay nothing at all.

These, and other concessions on value-added tax (Rajasthan exempts renewable energy equipment sale from VAT), central sales tax and state entry tax are all likely to disappear once the GST regime kicks in. With manufacturing costs rising, renewable energy tariffs are also likely to rise. The sharp fall in solar energy tariffs, for instance, during 2015 will not only be arrested, but reversed.

In a note prepared earlier this year, the ministry of new and renewable energy estimated that with the implementation of GST, the cost of setting up grid connected solar plants would rise by 12-16% and that of off grid solar plants by 16-20%. It said building wind farms would cost 11-15% more, while wind-solar hybrids (which the country has barely begun trying out) would need 11-17% more investment. Small hydro project costs could increase by 1-11%, while that of bio mass projects by 11-14%.

“The only way cost escalation can be avoided is if renewable energy equipment is listed among the exemptions that will continue under GST or if it is characterized as ‘deemed export’, under which taxes paid can be refunded to the developer,” said Tarun Kapoor, joint secretary, ministry of new and renewable energy. He expected another 10,000-15,000 MW of solar energy projects to be auctioned or tendered out by April 2017, when the GST regime is scheduled to start. “Those bidding should take everything into account and bid accordingly.”

Some alarmed solar developers have suggested that all auctions and tendering of future solar projects (by NTPCBSE 0.50 %, SECI and various state governments) should be stalled until there is complete clarity on just how much solar manufacturing costs will rise.

“It makes sense if auctions don’t happen for some time, say for the next six months,” said Sumant Sinha, chairman of leading wind and solar developer ReNew Power. “But I doubt they will stop. There will always be developers who will take a risk and bid. All we want is clarity on how GST will affect us and quick upward revision of tariffs by the state regulatory commissions. If the capex is going to be higher, we must be compensated for it. Discoms will have to agree.”

Source : PTI

GST platform to become analytics powerhouse : 17-08-2016


The Goods and Services Tax Network, the information technology backbone that will implement the new indirect tax regime, will become a data analytics powerhouse in the months after the roll-out.

“Once sufficient amount of data is generated, we will be able to generate analytics based on the requirements of various stakeholders,” Navin Kumar, chairman, GSTN, told Business Standard in a recent interview.