TAX RULING
India's four-week platinum imports surpass 2023 total as gold shown as platinum
India's platinum imports surged in June as dealers exploited a loophole by registering gold alloys as platinum to avoid higher duties. This led to revenue loss for the government and distorted market prices. The situation highlights the need for a review of import rules to prevent such practices.
Latest HRA tax exemption rules: Step-by-step guide on how to save income tax on house rent allowance under old income tax regime
HRA tax exemption rules: The HRA tax exemption reduces the total salary before calculating taxable income, helping employees save on taxes. It's important to note that if an employee lives in their own house or does not pay any rent, the HRA received from the employer is fully taxable.
Uber, others seek clarity on GST after conflicting rulings
App-based mobility providers, including Uber, seek clarity on GST liability following conflicting rulings. Companies approach finance ministry, GST council, and AAR for resolution. Ambiguity in tax law for electronic commerce operators highlighted by industry experts. Urgent need for clarity to prevent market impact and legal disputes.
Middle class bearing more weight of heavy taxation than corporates: Jairam Ramesh attacks Centre
Congress leader Jairam Ramesh has criticised the Bharatiya Janata Party-led Centre for slashing corporate tax rates, claiming that individuals are paying more tax than companies. Ramesh highlighted that income tax collections stood at Rs 3.61 lakh crores and gross corporate tax collections were Rs 2.65 lakh crores from April 1 to July 1, 2024. He also criticised the 2019 move to reduce corporate tax rates, which he claimed did not trigger private investment as anticipated.
Union Budget: What lies ahead in Budget 2024 for indirect taxes?
Budget Expectations: The upcoming Union Budget by NDA 3.0 is highly anticipated for its economic and social welfare policies to rejuvenate India. The budget is expected to focus on infrastructure, healthcare, education, job creation, and tax reliefs. Indirect taxation, including GST, will be a key area of scrutiny, with potential adjustments to customs duties and the introduction of production-linked incentive schemes. The industry eagerly awaits measures to streamline compliance processes, boost revenue, and support the Make in India initiative.
Ahead of budget, US-India forum urges FM Sitharaman for stable & predictable tax environment
The US-India Strategic Partnership Forum (USISPF) has urged Union Finance Minister Nirmala Sitharaman to prioritize a stable and predictable tax environment in the upcoming Union Budget 2024-25. Emphasizing the need for measures that stimulate growth across sectors, the US-India Tax Forum, a part of USISPF, recommended enhancing ease of doing business, rationalizing business costs, and simplifying tax rates.
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Budget 2024: 45-day payment rule for MSMEs must come to an end, industry says
With India’s 63 million MSMEs facing a problem, changes in the ruling can go a long way in keeping buyer-seller equations intact, while also ensuring a steady flow of the payment cycle.
Budget 2024: Govt may relax 45-day payment rule for MSMEs
The government is considering relaxing the 45-day payment requirement to MSMEs to prevent large corporations from seeking other sourcing options. This potential change to Section 43B(h) of the Income Tax Act might be announced in the upcoming Budget on July 23. Last year's Budget introduced this clause to ensure timely payments to MSMEs, penalizing larger companies for delays by disallowing tax deductions on unpaid expenses.
SEZ units set to get refund of cess on imports
The Centre will refund the compensation cess levied on imported goods under Goods and Services Tax (GST) to businesses operating in special economic zones and their developers, effective from 2017. The Central Board of Indirect Tax and Customs has also directed the issuance of refunds of 5% GST collected on food packages intended for the public distribution system (PDS).
US Treasury finalises new crypto tax reporting rules
The new tax reporting requirements for crypto brokers aim to improve accuracy, ensuring that crypto owners pay the tax owed on digital asset transactions. The rules will help simplify reporting and may lead to additional IRS regulations for non-custodial brokers in the future.
GST suppliers giving post-sale discount have to take undertaking from clients: CBIC
In a separate circular, Central Board of Indirect Taxes and Customs (CBIC) clarified that ITC is available to insurance companies in respect of motor vehicle repair expenses incurred by them in case of reimbursement mode of claim settlement.
What Indian industry wants from Modi's budget after poll setback
The upcoming budget aims to boost consumption, support farmers, create jobs, and reform tax systems. It focuses on tax cuts, lifting export restrictions, job creation incentives, and simplifying tax regimes like capital gains and GST for a stronger economic outlook.
GST clarification to make Indian MRO industry competitive
The GST Council's recent decision to implement a uniform 5% tax rate on imports of aircraft parts and components is set to benefit India's aircraft maintenance and repair industry. This move aims to resolve customs classification ambiguities that previously hindered the industry's growth.
MP ministers to now pay Income Tax as cabinet revokes 52-year-old rule
The Madhya Pradesh cabinet, led by Chief Minister Mohan Yadav, announced on Tuesday that state ministers will now be responsible for paying their own Income Tax, overturning a rule from 1972 where the state government covered this expense. Minister Kailash Vijayvargiya mentioned that Chief Minister Yadav proposed the idea during the cabinet meeting, which was subsequently agreed upon, leading to the decision for ministers to handle their own Income Tax payments.
Budget 2024: Modi 3.0 may have to redo the Budget math to provide more money to Naidu & Nitish-ruled states
Union Budget: Following recent Indian election results, Prime Minister Narendra Modi reasserts control over the federal government. Despite depending on various allies for support, none have significant ministerial roles. The focus shifts to relations between New Delhi and influential state governments, with demands for increased federal funds. The upcoming budget will reveal potential shifts in India's policy landscape.
Most of top-level executives have positive perception of GST: Deloitte survey
A Deloitte survey shows growing confidence in India's GST among C-suite executives, with 84% perceiving it positively in 2024, up from 72% in 2023. Key reforms suggested include rationalizing tax rates, improving dispute resolution, and enhancing automation and technology. The survey also highlights the need for further simplification and support for MSMEs.
Budget 2024: Fin Min considering income tax rate cuts to boost consumption
BUDGET expectations: The Indian government is exploring personal tax cuts for individuals earning over ₹1.5 million annually to boost consumption and savings. This move, considered for the July budget after the BJP’s electoral setback, aims to address inflation and unemployment concerns. These adjustments may modify the existing 2020 tax scheme, potentially lowering the 30% top tax rate.
Instant flour mixes for dosa, idli, dhokla cannot be classified as sattu; 18% GST should be levied: GAAAR
The company sells flour mixes of gota, khaman, dalwada, dahi-wada, dhokla, idli and dosa in powder form and pleaded that it is akin to Sattu and should attract Goods and Services Tax (GST) of 5 per cent. The GAAAR rejected the appellant's contention, saying that ingredients which go into the making of 'instant flour mixes" are not covered under the relevant GST rules as is the case with Sattu.
CBIC orders release of imports without delay
Industry was facing delays in release of consignments and denial of free trade agreement benefits with authorities questioning value addition in third-party invoicing, ET reported on June 8.
Gold storage at home: How much gold can you legally keep at home, government rules, taxation
Gold storage at home: Gold is a valuable metal in India. People buy it during festivals for luck and keep it at home. It's crucial to be aware of government rules on gold storage.
I-T dept asks taxpayers to link PAN with Aadhaar by May 31 to avoid higher TDS deduction
The income tax department urged taxpayers to link PAN with Aadhaar by May 31 to avoid higher tax deductions, as unlinked PANs incur double TDS rates. A circular allows no penalties for short TDS if linked by the deadline. Reporting entities must also file SFT by May 31 to avoid penalties.
Inoperative PAN holders can now invest in mutual funds due to latest KYC rule changes
Inoperative PAN invest in mutual fund schemes: The market regulator, Securities and Exchange Board of India (Sebi), has provided relief to mutual fund investors to get KYC Registered status from KYC on-hold status. The KYC Registration Agency (KRA) is required to comply with the latest relief by May 31, 2024.
NPS partial withdrawal rules 2024: 7 instances when you can apply for partial withdrawal from NPS corpus
NPS partial withdrawal rules: NPS is a market-linked defined contribution scheme that helps you save for retirement. The scheme is simple, voluntary, portable and flexible. An NPS member can withdraw partial withdrawals from their retirement funds to meet certain requirements without compromising their monthly stipend upon retirement.
No tax exemption on concessional or interest free loan from the employer, not even for bank employees, says SC
Tax on concessional interest rate loan: The Supreme Court of India has stated that bank employees have to have income tax if they have availed loan from their employers at concessional interest rate or interest free rate. However as per our calculations, even if bank employees pay income tax on this loan, they will still have some savings.
Central govt employees, private employees can't claim LTA if they don't follow these rules; LTA eligibility, other latest updates
LTA for central govt employees: Employers offer Leave Travel Allowance (LTA) to offset travel expenses during leave. It covers airfare, train tickets, or public transport, but reimbursement is capped by employer or tax limits. Confusions arise, especially with air travel. Here's a breakdown: Can you claim LTA with a confirmed flight ticket? Does the booking platform matter? Is family included? What documents are required for flight-based LTA claims?
Latest General Provident Fund rules: Will interest amount be paid if the GPF contribution exceeds Rs 5 lakh? Govt clarifies
General Provident Fund rules: All government employees can open a GPF account and pay a portion of their salaries to the GPF. When they retire, employees receive the entire money accrued in their GPF account over their service tenure.
SC holds bank employees' interest-free loans taxable as fringe benefits
The Supreme Court has ruled that interest-free or concessional loans given by banks to their employees will be considered "fringe benefits" or "amenities" and therefore taxable. The court argued that these benefits are unique to bank employees and are in the nature of a "perquisite," thus liable to taxation. The court upheld the income tax rule, but deemed the fixation of SBI's interest rate as the benchmark to be neither arbitrary nor unequal exercise of power.
Authorised car dealers can claim input tax credit on demo cars: AAR
GST Authority ruled dealers can claim input tax credit on demo cars. Landmark Cars East Pvt Ltd sought ruling on taxation aspects, specified time period for inward supply to potential Mercedes Benz car buyers.
Govt may review tax sops offered to IFSC
The government may need to reconsider the tax incentives offered to units in the International Financial Services Centre (IFSC) in Gujarat due to the impact of Pillar Two of the Base Erosion Profit Sharing framework, according to a Deloitte report. Pillar Two aims to ensure that large multinational companies pay a minimum effective rate of tax of 15% on profits in all countries. Units in IFSC may not have enough employees and assets to avail of the benefits, so they will need to evaluate the overall tax impact in India after the implementation of Pillar Two rules.
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