How the GST launch impacts you: All your questions about the tax reform answered

Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?

 As the nation prepares for the rollout of the Goods and Services Tax (GST) from 1st July 2017 midnight, the government has prepared a FAQ sheet based on several questions it received on Twitter.

Here is a summary of some the most frequently asked questions and their answers:

What is Goods and Services Tax?
It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

The GST would replace the following taxes:

(i) taxes currently levied and collected by the Centre:
a. Central Excise duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)
e. Additional Duties of Customs (commonly known as CVD)
f. Special Additional Duty of Customs (SAD)
g. Service Tax
h. Central Surcharges and Cesses so far as they relate to supply of goods and services

(ii) State taxes that would be subsumed under the GST are:
a. State VAT
b. Central Sales Tax
c. Luxury Tax
d. Entry Tax (all forms)
e. Entertainment and Amusement Tax (except when levied by the local bodies)
f. Taxes on advertisements
g. Purchase Tax
h. Taxes on lotteries, betting and gambling
i. State Surcharges and Cesses so far as they relate to supply of goods and services

---

Full GST rate list: Here are the tax rates for all goods and services

Foodgrains are slated to cost less from July 1

 

Foodgrains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council today decided to exempt the daily-use commodities from the levy.

Here's a complete list of the rates of all 1,211 items but six were finalised at the first day of the two-day meeting in Srinagar of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives.

Also, here's a complete list of all the items that the GST Council has broadly approved as the rates of GST Compensation Cess to be levied on certain goods.

Full GST rate list

Aadhaar-PAN linking: Here is how to do it in easy steps

It's mandatory to link Aadhaar with PAN. Here's why

 

Come July 1, the Modi-government's measures to track tax evasion through multiple PAN cards will come into effect. It is now mandatory for you to link your existing Aadhaar numbers with PAN to be able to file your income-tax (I-T) returns.

Finance Minister Arun Jaitley, through an amendment to tax proposals in the Finance Bill for 2017-18, had made linking Aadhaar mandatory for filing I-T returns.

 

How to link your Aadhaar to PAN online

The tax department has said "every person who has been allotted PAN as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the principal director-general of income tax (systems), or DGIT (systems)".

 

Here is how you can use the SMS facility to link Aadhaar with PAN

While Aadhaar is issued by the UIDAI to a resident of India, PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the I-T department to any person, firm or entity.

 

As many as 2.07 crore taxpayers have already linked their Aadhaar with PAN. There are over 25 crore PAN card holders in the country while Aadhaar has been issued to 115 crore people.

7th Pay Commission allowances finally get government nod: Key highlights

Here are the details of the 7th Pay Commission recommendations as approved by the Union Cabinet

 

 

Following are highlights of the approval given by the Cabinet to the recommendations of the 7th Pay Commission (CPC) on allowances with some modifications.

* House Rent Allowance will be paid at 24, 16 and eight per cent for X, Y and Z categories of cities, respectively.

* HRA will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y, and Z categories of cities, respectively, calculated at 30, 20 and 10 per cent of minimum pay of Rs 18,000.

* The CPC recommended revision of HRA when DA reaches 50 per cent and 100 per cent. The government decided to revise rates when DA crosses 25 per cent and 50 per cent, respectively.

* Siachen Hardship Allowance increased to Rs 42,500 per month.

Get all the Latest Updates on Business News

* For JCOs and Other Ranks, the hardship allowance for Siachen will be Rs 30,000 compared to the 7th Pay Commission's recommendation of Rs 21,000. The JCOs and ORs were getting Rs 14,000 per month as hardship allowance for Siachen at present.

* For the defence personnel in peace areas, Ration Money Allowance will now be given in "cash" and it will be directly transferred to their bank accounts.

* Allowances like washing, uniform, kit maintenance, outfit have been rationalised and subsumed in the newly-proposed dress allowance to be paid annually in four slabs Rs 5000, Rs 10,000, Rs 15,000 and Rs 20,000 per annum for various categories of employees.

* Rate of Children Education Allowance has been increased from Rs 1,500 per month per child (maximum 2) to Rs 2,250. Hostel Subsidy will also go up from Rs 4,500 to Rs 6,750 per month.

*READ MORE...

From July 1, Aadhaar 'must' for filing tax returns, obtaining new PAN

This means every person must quote either Aadhaar number or enrolment ID number for ITR, PAN card

 

 

The Central Board of Direct Taxes (CBDT) on Saturday made it clear that Aadhaar will be a "must" for the filing of Income Tax Returns or for obtaining a new PAN from July 1.

The policy-making body of the Income Tax Filing Department issued a statement stating that the Supreme Court, on Friday, had only given a "partial relief" to those who do not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, will not "cancel" their Permanent Account Number (PAN).

The CBDT issued a three-point "effect of the judgement" of the apex court statement saying.
From July 1, 2017, onwards every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar enrolment ID number for the filing of Income Tax Returns as well as for applications for PAN.

"Everyone who has been allotted permanent account number as on the 1st day of July 2017, and who has Aadhaar number or is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to income tax authorities for the purpose of linking PAN with Aadhaar," it said.

It explained what will happen in a case of "non-compliance" or where a person does not possess Aadhaar....read more....

NATGRID to get I-T's PAN records, taxpayer data access

While there are over 25 cr PAN holders in the country, actual number of taxpayers is about 5 cr

 

 

The NATGRID, a network aimed at sharing information about terrorists among security agencies, will now be getting access to the Income Tax Department's PAN records and individual taxpayers' data.

The ambitious project conceived by the then Home Minister P Chidambaram during UPA II rule will soon be getting new powers to access tax payers' information after it signs a Memorandum of Understanding (MoU) with the Income Tax department.

According to an order issued by the Central Board of Direct Taxes, the department will share 'bulk information', starting from the Permanent Account Number (PAN) to the taxpayer's name and all the individual data that it captures like father's name, gender, date of birth, photograph and signature or thumb impression.

The department will also share with the National Intelligence Grid (NATGRID) all information available in the department's database regarding residential and office addresses, addresses for communication, email addresses and phone and mobile numbers of all the taxpayers.
The MoU with the NATGRID that functions under the Union home ministry will also include confidentially clause so that transfer of personal data is safe.

According to data, while there are over 25 crore PAN holders in the country, the actual number of taxpayers is about 5 crore....

(read more...)

I-T Dept slaps Rs 24,500-cr tax notice on PACL

Demand adds to the Rs 57,000-crore dues payable from company's assets on sale

 

 

The income tax (I-T) department has raised a massive tax demand of about Rs 24,500 crore on troubled realty-based investment firm PACL (formerly Pearls Agrotech Corp). The revenue demand pertains to a six-year period, from assessment year 2008-09 to 2014-15.

The I-T department has written to a committee headed by former chief justice R M Lodha to consider this claim “so that the due tax  liability of the assessee company can be recovered after the sale/auction of the various properties of M/s PACL Ltd”. The committee has informed the Supreme Court of this tax demand as part of its submissions recently.

These claims have added substantially to the dues of the company, which already owes more than Rs 57,000 crore to some 51.5 million investors. The firm had run into trouble with markets regulator Securities and Exchange Board of India (Sebi) for raising this money without necessary approvals.
This is the second such large demand by the I-T department on a company under Sebi orders. In April, reports said the department had raised a Rs 24,646-crore demand on the Sahara group’s Aamby Valley, after conducting a special audit.

PACL was allegedly carrying on an investment scheme, though it couched this in the real estate activity of purchase and sale of land parcels across the country. In the process, it had accumulated vast tracts of land, a large part of this being barren agricultural land. After a protracted legal battle that dragged on for over 15 years, Sebi had directed the company to refund Rs 49,100 crore along with interest in (read more...)

Online platforms make tax filing easy, help fill details automatically

If you have capital gains on a house or shares, they can automatically tell you the tax liability

 

The Income Tax department on May 4 activated an e-filing facility in which you can start filing returns. The department has also simplified the ITR forms to make it easier for individuals to file returns. If you still find filing this a tedious, you can approach online tax filing websites. These platforms are using technology to shorten the process and avoid errors.

 

If you are a salaried person, in most websites you can upload Form 16 on the website. Their software automatically picks the details and fills all the fields, avoid hassle of an individual typing each and every detail manually. These platforms can also parse multiple Form 16s, if the individual has changed jobs, and compute the tax liability. “If all the required details are handy, a salaried person can file tax returns within 10 minutes,” says Chetan Chandak, head of tax research, H&R Block India. If you have capital gains on a house or shares, these websites can automatically tell you the tax liability, once you enter the date of buying and selling and price at which you bought and sold the asset.

It’s not only for the salaried. These platforms have also simplified tax filing returns for business owners and professionals. Explains Archit Gupta, founder of Cleartax.com: “The ITR Form for business is a lengthy form with multiple pages. To simplify, we just ask around five questions to the taxpayer. Using the answers, we fill all the relevant details automatically.”

In most of the platforms, a business owner can generate tax deduction at source, or TDS. Individuals can check refund status. If you have received an income tax notice, you can use their consultation services and know how you should proceed further. If there’s a mistake, you can also file revised returns. When you enter details, these websites use tax optimisers to tell you areas where money can be saved. “We also offer a vault where you can store all tax-related documents for future reference,” says Sudhir Kaushik, co-founder, Taxspanner.com....(read more...)

Soon, get notification of tax scrutiny notice over SMS, reply online

I-T department is looking to make the process easier for taxpayers

 

 

Replying to income tax (I-T) scrutiny notices with supporting documents will soon be just a click away.

Instead of having to make the rounds of the tax department with a sheaf of papers in response to notices received, taxpayers can soon upload them on the department's e-filing portal sitting in the comfort of one's own premises.

The I-T Department will very soon launch on its e- filing website a facility for uploading of information sought through scrutiny notices, a senior government official told PTI.

"This is part of our focus to reduce human interface and make the department more taxpayer friendly," he said, adding, "The facility to e-file the documents to scrutiny notices is being done to reduce interface between the assessing officer and the taxpayer."

Also, the tax department plans to soon start an SMS facility to communicate with taxpayers about any scrutiny notice sent to them.

"We will send SMS on the registered mobile number informing them to go to their account in the e-filing portal to see the new notice," the official said.

Once the facility is started, taxpayers will get an SMS alert of a new notice or information being raised by the income tax department. The assessee can then log on to the e-filing portal and upload the documents that have been sought.

Currently, the department sends SMSes for informing taxpayers, especially the salaried class, about the tax deducted at source (TDS). Also, such alerts are sent on filing of tax returns and their acceptance...read more...

Paying over Rs 50k as rent? Now you must cut TDS and deposit with I-T dept

Govt has tightened several rules governing real estate to step flow of black money in the sector

 

 

For the past four-five years, the income tax (I-T) department has been consistently tightening its noose around realty transactions. From making registration of rental agreements with PAN details of both the tenant and owner mandatory to the latest — deduction of TDS (tax deducted at source) on monthly rental of Rs 50,000 and above — rules have been tightened significantly to ensure black money isn’t generated from this sector.

The Central Board of Direct Taxes’ (CBDT’s) latest salvo targets people who claim significant amounts as house rent allowance (HRA), sometimes with the help of false documents. From June onwards, those who pay monthly rental of Rs 50,000 need to deduct 5 per cent TDS and deposit it with the IT return department.

This TDS trail will serve as proof for people claiming high HRA. The provision was introduced in the Finance Bill, 2017. “The idea behind the provision is to make sure taxpayers don’t claim fake HRA exemption and also to trace those who don’t disclose their rental income. When a trail is created, it will be possible to detect such individuals in the system,'' said Kuldip Kumar, partner and leader, personal tax, PwC India.

Interestingly, the government has also made the provision that if multiple tenants stay at the same place and pay total rent of Rs 50,000 and above per month, they need not deduct TDS. But, all tenants’ names should be in the registered agreement with the owner. On the other hand, if the entire rent is paid by a single tenant and the others are merely paying that person, then TDS is applicable. Clearly, CBDT has given relief to people staying together, especially in big cities and paying high rent to stay near their office or for any other reasons...read more...

Dread filing tax returns? Ready reckoner on the forms you need to fill

There are total 7 ITR forms available for e-filing

 

 

Though filing of income tax returns is a process to be done every year one should be aware of changes made by the government in the income tax return forms in order to minimize the chances of error and rework. This year a lot of changes have been made in the ITR forms.

 

For instance, taxpayers who have filed ITR 4 last year are now required to file ITR 3 this year. So one must be aware of these changes in order to file the correct ITR form applicable to you. The income tax department will not consider your ITR as valid if you file the wrong ITR Form.

There are total 7 ITR forms available for e-filing
Out of theses 7 forms, only ITR 1, 2, 3 and 4 are applicable for salaried class and individuals. ITR 5,6 and 7 are applicable to partnership firms, Limited liability partnership(LLP), Association of persons and companies.

For Salaried Individuals

• ITR 1 Sahaj and ITR 2 are available for the salaried individuals and your sources of income will decide which form to use. ITR 1 sahaj is a simplified one-page form introduced by the government to ease the process of tax filing by salaried individuals. It is applicable for the salaried individuals having income up to Rs 50 lakh. Income can be from salary, pension, house property, interest income or agricultural income up to......

 

For Business individual

• There have been changes in the ITR form applicable for business individuals this year. ITR 3 and ITR 4 Sugam are available for business individuals and HUF for filing the tax return for FY 2016-17.One must be aware of these changes as last year ITR 4 and ITR 4S were applicable for business individuals and ....(read more...)

Top 5 common mistakes to avoid while filing your income tax returns

Here is a list of things to help you sail through

 

 

With the due date of July 31 fast approaching, it is that time of the year again when the taxpayers need to file their I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit. The basic exemption limit for individuals is Rs 2.5 lakhs and for senior citizens, it is Rs 3 lakhs.

 

So, if your income exceeds this limit, you need to file the tax return by the due date. eFiling of tax return requires caution to avoid mistakes. Keeping in mind few things can make your tax filing a breeze.

 

Here is a list of things to help you sail through:

• Choose the right ITR Form applicable
• Claim all the Deductions
• List all sources of income including Interest Income
• Reporting all bank accounts
  Report Exempt Income

E – Verify your return or send the ITR V acknowledgement on time - 

The process of filing return does not get completed till the returns are verified. The govt gives you the option of either sending the ITR V acknowledgement within 120 days of filing the return to their office or you can e -verify your returns online also. If you e – verify the returns online, then there is no need to send the .....(read more...)

SuperNight pack: Vodafone counters Jio with unlimited internet at Rs 6/hour

SuperNight packs will enable users to download unlimited data for five hours at a fixed price

 

Vodafone India on Monday announced a new product -- Vodafone SuperNight -- with immediate effect for prepaid customers.

According to the company, the new product at Rs 29 will enable unlimited 3G/4G data usage and download for five hours.

"The pack can be activated any time of the day but will be applicable only during the subsequent five hours between 1 a.m. to 6 a.m.," it said in a statement.

Get all the Latest updates on Business News

Vodafone is offering Internet access between 1am and 6am at Rs 29 a day. This comes out to less than Rs. 6 per hour.In contrast, Reliance Jio’s services cost about Rs. 10 per day for 1GB of 4G data.

The recharge pack can be purchased anytime during the day, but will kick in at 1 am only. The new SuperNight pack is available to purchase from digital channels, offline outlets, and via the *444*4# USSD code.....More Plans

Make in India fighter jets? Tata, Lockheed join hands to build F-16s

Will compete for contract with Gripen E, built by Saab-Adani combine

 US defence giant Lockheed Martin and India’s Tata group signed an agreement on Monday to jointly build the F-16 Block 70 fighter in Make in India, should New Delhi opt for the American aircraft in the procurement of single-engine fighters for its air force.

Highlighting the importance of this contract for the Tata group’s aerospace and defence aspirations, Chairman Emeritus Ratan Tata attended the signing ceremony at the ongoing Paris Air Show in France.

The Tata group has earmarked Tata Advanced Systems Ltd (TASL) to build the F-16 in India with technology and manufacturing facilities transferred from Lockheed Martin.

Get all the Latest updates on Business News

Coming ahead of Prime Minister Narendra Modi’s visit to the United States this month, Lockheed Martin’s inking of this joint venture (JV) – which would have required formal clearance from Washington – indicates that, despite President Donald Trump’s promises to keep skilled jobs in the US, his administration is willing to transfer the ageing F-16 production line from Texas to India.

TASL and Lockheed Martin already have a joint venture (JV) that manufactures airframe components in Hyderabad, including for the C-130J Super Hercules airlifter and the Sikorsky S-92 helicopter.

However, the manufacture of F-16 Block 70 would be a far more ambitious project. This would first require the Ministry of Defence (MoD) to select the Tata group as an Indian “strategic partner” for aircraft production. Next, the IAF and the MoD would have to choose the F-16 Block 70 as the air force’s single-engine fighter aircraft. That multi-billion dollar procurement has already kicked off with the issue of a global request for information (RFI) by the IAF.

MoD and IAF sources confirm aviation market intelligence that the IAF’s chosen fighter is likely to be either the F-16 Block 70, or the Gripen E fighter that Swedish company, Saab, has offered to India...(read more...)

Wall Street hits record highs on strong technology, health stocks

Nasdaq's biotechnology index rose 2.5% in its biggest one-day gain since February

 

 

US stocks(wall street) rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favour again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.

Nasdaq's biotechnology index rose 2.5 per cent in its biggest one-day gain since February while the S&P's healthcare index had a record-high close.

Amazon.com's Friday announcement that it would buy Whole Foods and an upbeat tone from Federal Reserve speakers seemed to help reassure investors after the US central bank's rate hike last week, according to J Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.

Get all the Latest updates on Business News

"It looks like a bet that interest rates, such as the 10-year yield, are bottoming out," said Evans. "It's a resumption of this idea that the economy is in decent shape."

He added that a "push in M&A tends to propel the market" and that the Amazon/Whole foods $13.7 billion deal was a "tangible sign the mergers and acquisition environment is pretty good right now."

The Dow Jones Industrial Average rose 144.71 points, or 0.68 per cent, to end at 21,528.99, the S&P 500 gained 20.31 points, or 0.83 per cent, to 2,453.46 and the Nasdaq Composite rose 87.26 points, or 1.42 per cent, to 6,239.01.

The S&P's financial sector was also one of the benchmark's strongest gainers with a 0.98 per cent rise after New York Federal Reserve President William Dudley said US inflation was a bit low but should rise alongside wages as the labour market continues to improve, allowing the Fed to continue gradually tightening monetary policy.

The Fed commentary last week had surprised investors who expected more caution after some weak US economic data...(read more...)

TV, smartphone, fridge, gold coins: What gets expensive after GST

However, luxury cars like Mercedes and Audi will get cheaper after GST rollout

 

With the Parliament clearing the way for four crucial GST bills in its April session, India’s landmark tax reform is all set for its rollout on July 1. While it is expected that most goods may become cheaper after the implementation of the Goods and Services Tax, quite a few services and some goods will become more expensive after the tax comes into effect. It is also expected that the Indian economy will see an inflationary effect immediately after the implementation of the GST.

The current taxes are levied on account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.

Get all the Latest Updates On Business News

Here are some goods that will be expensive after GST:

• Luxury cars to become cheaper
• Audio Systems/Home theatres
• Televisions
• Refrigerators
• Watches
• Mobile phones
• ANTIQUE GOLD COINS

GST Prices of the goods  → Click on the Link ←  

BMW to invest Rs 130 cr in India, will launch new version of the 5 series this month

The company is looking to expand its dealer network in the country

 

 

German luxury carmaker BMW is investing another Rs 130 crore in India to enhance operations, taking its total investment in the country to Rs 1,250 crore.

The company will launch new version of its locally manufactured 5 Series later this month and 6 Series Gran Turismo (GT) model next year to strengthen its product portfolio in India.

"Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis," BMW India President Vikram Pawah told PTI.

BMW has invested Rs 1,120 crore in the Indian operations so far.

The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.

Get all the Latest Updates on Business News

With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore.

The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.

"Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018," Pawah said.

In other emerging towns, in addition to 30 major cities, the company utilises its 'Mobile Studios' to expand the market further.

On new product launches, he said: "As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series."

The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales...(read more...)

Blackberry, VoxSmart partner to enable banks to monitor WhatsApp chats

Firms partnered to help financial corps comply with EU's Markets in Financial Instruments Directive

To enable financial institutions to monitor data on WhatsApp Chat and other encrypted messaging platforms in line with the upcoming European Union (EU) directive, BlackBerry has partnered with the leading mobile surveillance and compliance firm VoxSmart.

Together with BlackBerry UEM (Unified Endpoint Management), which connects and manages endpoints, VoxSmart's 'VSmart' will provide financial services firms with the ability to capture, record, store and analyse mobile voice, text and third-party instant messaging applications such as WhatsApp and WeChat.

"Together with VoxSmart, we can enable businesses around the world to effortlessly capture conversations on endpoints including smartphones, wearables, tablets and laptops," said Florian Bienvenu, Senior Vice President of EMEA Sales, BlackBerry.

Get all the Latest Updates on Business News

"This joint solution is an excellent example of how BlackBerry is leveraging its software portfolio and developing strong partnerships to secure the Enterprise of Things," Bienvenu added in a statement.
The companies have partnered to help financial services firms comply on time with the European Union's "Markets in Financial Instruments Directive" ('MiFID II').

MiFID II, which comes into effect on January 3, 2018, demands that all financial services firms in Europe must keep records of all services, activities and transactions for at least five years.

Records include all electronic and instant messaging communications, telephone conversations and text messages related to or intended to conclude in a transaction, even if one does not occur.

"VoxSmart is the only global mobile compliance solution that can capture, record, store and analyse both voice and third party instant message applications such as WhatsApp and WeChat," said Oliver Blower (read more...)

70% of train tickets booked on Paytm are from Tier-II and III cities

Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad come out as 5 top Tier-II, Tier-III markets

 

 

Recent data by Paytm show that more than 70 per cent of all train tickets booked on Paytm over the past year is from Tier-II and Tier-III cities, in a sign of the increasing reach of digital transactions in non-metro regions after demonetisation.

The study was conducted based data from more than two million rail tickets booked on Paytm over the past year. It was found that while the average ticket size in Tier-I cities is Rs 530, in Tier-II cities it is only Rs 350, pointing at semi-urban and rural India’s price sensitivity. Interestingly, 70 per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men.

"In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in financial year 2017. Our five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad. This year, the company is aiming to be the country’s largest destination for all travel booking needs," the report said. Paytm is the first horizontal e-commerce major to enter into the travel business, a domain that was dominated by vertical players.

Get all the Latest Updates on Business News

 

On the right track

• The five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad

• The average ticket size in Tier-I cities is Rs 530, while in Tier-II its only Rs 350, pointing at semi-urban and rural India’s price sensitivity

• Seventy per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men

• In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in FY17

• The top preferred routes by passengers this summer include New Delhi–Lucknow, Visakhapatnam–Secunderabad, New Delhi–Kanpur, Chennai–Bengaluru, Ahmedabad–Surat and Pune–Solapur.

(read more...)

 

India on track to become top global steel producer

India's steel output to clock an average annual growth of 8.9% during 2017-21

 

 

Business News : India as a steel bright spot is highly encouraging and is on track to become a top global producer, says an industry body.

According to the latest report from BMI Research, demand from construction, automotive and infrastructure industries continues to accelerate.

The report has put down the sector's success to the government's push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India (SUFI) in a statement today.

SUFI President Nikunj Turakhia said, "In recent years, the Indian steel industry has showcased a progressive output trend y-o-y."

Being recognised as a "bright spot" is highly encouraging as well as a large responsibility at the same time, he said, adding that with the introduction new steel and anti-dumping policies, India is on the path to become one of the top steel producers.



The report highlighted that Indian steel giant such as Steel Authority of India Ltd (SAIL) and Tata Steel as the major drivers of such growth.

BMI Research has forecast India's steel output to clock an average annual growth of 8.9% during 2017-21, higher than 2.9% in 2012-16.

India's steel output would grow to 128.6 mt by 2021 from 88.4 million tonnes (mt) in 2017 and the country's share of global steel production will accelerate to 7.7% in 2021 from 5.4% in 2017, it added.

Ahead of the GST Council meeting tomorrow, Turakhia expressed concern over the headwinds faced by the sector. He has also urged the government to relax imposition of GST penalties and prosecution.

SUFI was part of the delegation that recently presented its case on GST to Maharashtra Finance Minister Sudhir Mungantiwar in Mumbai.

The Rs 35,000-cr business of making India GST-ready

Some of the players in the GST race are Payworld, Dell, Tally Solutions

 

 

The past few days have been ‘taxing’ for Pawan Kumar Gupta, in a race against time to become compliant with the requirement for the coming national goods and services tax (GST).

A hardware and bathroom fittings supplier, he’s been zeroing on GST-ready commercial computers and hiring three new accountants, adept with the new intricacies, among other things. A checklist in hand, Gupta is making notes on the things that have to be done before July 1, when GST becomes a reality. Till now, he has spent around Rs 2 lakh in equipping himself for the transition.

National Sample Survey Office (NSSO) data from 2013 say there are around 57.7 million registered small and medium traders. Beside, at least 15 million retailers and hundreds of thousands of offline and online ventures would all come under the new tax net. The money they’d spend for this over the next two years would be over Rs 35,000 crore, say experts.

 

Get all the Latest Updates on Business Standard

In the past eight months, the huge spending potential has created a new sector, of GST enablers. These include providers of computer hardware and software. And, legal, technical and personnel support and services. Every small entity is investing its money to comply with the new regime.

Unlike the value added tax (VAT), say experts, GST is fully computerised, with many layers only professional accountants can understand. So, the demand for computers and skilled personnel will rise.

 

Competition is already on between hardware companies. “We are eyeing the lion’s share of the market and are prepared with our solutions. We have an outreach programme for traders. We believe we would see immediate returns for the next six months to one year,” said Pankaj Harjai, director of the small and medium business at (read more...)

 

 

 

 

GST Council reduces tax rates of 66 items

Council had received representations for 133 items; GST on movie tickets below Rs 100 cut to 18%

 

 

Tax rates on certain kitchen items like pickles and mustard sauce, as well as movie tickets costing up to Rs 100 have been lowered as the Centre and states today reduced levies on 66 items.

Movie tickets costing Rs 100 and below will now attract 18% tax, as against 28% proposed earlier, while those above Rs 100 will continue to attract 28% GST.

Kitchen use items like pickles, mustard sauce and morabba will attract 12% GST, as against 18% proposed earlier. Also, tax rates on cashew nuts have been cut to 5% from 12%.

 

Get all the Latest Updates on  BUSINESS NEWS

The GST Council also decided that traders, manufacturers and restaurant owners with turnover of up to Rs 75 lakh can opt for a composition scheme and pay taxes at the rate of 1, 2, and 5% respectively.

The Council also lowered GST rates on children's drawing books to nil from 12%. Computer printers will attract 18% tax as against 28% earlier.

GST on insulin and agarbatti has also been lowered to 5%, while school bags will attract tax of 18%.

Tax rate on kajal has been lowered to 18% from 28%.

 

 

"GST Council has reduced tax rates of 66 items as against representations received for 133 items," Finance Minister Arun Jaitley told reporters here after the 16th meeting of the GST Council.

Next meeting of the Council will be on June 18, when it will take up lottery taxes and e-way bill.

On the issue of review of GST rate on hybrid cars, it was decided that the council will take it up after considering states' comments on a detailed paper issued on the matter earlier.

 

15,080 profitable Indian companies paid no tax in 2015-16

Due to various tax incentives, these firms had an effective tax rate of zero

 

Tax incentives allowed 15,080 profit-making Indian companies to have effective tax rates of zero, and in some cases less than zero, in 2015-16, according to an IndiaSpend analysis of the latest available national tax data or more specifically a government analysis called the Revenue Impact of Tax Incentives under the Central Tax System.

The central government introduced a minimum alternate tax (MAT) in the late 1980s to tackle this anomaly, but even MAT has exemptions that appear to have negated its original intent partially: 52,911 companies made profits in 2014-15 and paid no tax, IndiaSpend reported in March 2016.

Get all the Updates on Business News

Effective tax rates vary across sectors in 2015-16

The effective tax rates of the lowest paying industries (cement, sugar, financial leasing companies), which were in single digits in 2014-15, have increased substantially and all are touching nearly 20%.
These sectors, however, continue to be taxed at lower rates than other industries.

There are interesting contrasts on tax rates of different industries in the same sector:

1.Banking companies paid tax at 40.3% while share brokers/sub-brokers paid tax at 25.1% (both financial services).

2.Courier agencies paid tax at 41.7% compared to transporters who paid tax at 26.4% (both services).

3.Forest contractors paid tax at 37.6% while mining contractors paid tax at 28.2% (both contractors).

4.Drugs and pharmaceuticals paid tax at 24.2%, electronics paid tax at 35.5% (both manufacturing).

(read more...)

Gulf-Qatar rift: What it means for India and the global oil market

Indian market is one where all oil producers would want to be involved, and especially Saudi Arabia

 

 

Business News - To get a sense of some of the developments about Qatar look at this piece of statistic plus a bit of news. According to the US Energy Information Administration, production of shale oil in USA is expected to reach 5.4 million barrels a day in June, its highest level in more than a year. The recovery outpaces estimates for every most month since August last year. The piece of news is the fast expanding relationship of Qatar with India.

Shale has put American capital and labour to work, a huge domestic political dividend, after price of crude oil from Opec nations soared past $49 a barrel since the 14-member countries agreed since November 2016 on a production cut. In this environment, the US juice can begin to sell at about $47 a barrel, given its lower quality but enough to bring more and more of its onshore fields into production. 

It is vital for the the Trump administration to ensure that Opec keeps its production capped. Opec can keep it capped if Iran does not open the tap of its vast reservoir too much and that means both USA and Saudi Arabia should be on the same side of the field. The Saudis can ensure their diktat runs with two of the large oil producers—UAE and Kuwait, both of whose royal families are blood relations of Riyadh. But Qatar isn’t, even though its royal family too hails from the same desert. 

And Qatar’s rise is linked to its suddenly deepening relationship with India. There are reasons for it. The first of those is natural gas which Qatar like Iran has plenty of but Saudi Arabia doesn't have much of. And countries like India wanting to use their growing economic clout want the gas to flow. There are no Opec-like restrictions on gas prices and it is cheaper. So, if Qatar plays around with its gas reserves and along with Iran dominating its market, there are enough reasons to make the Saudis worried about their politico-economic hegemony getting cut and the USA worried about its domestic recovery.

 

Qatar in the past three years has become almost a strategic ally for India. The Qatar government has offered to fill up India’s strategic reserves for free in exchange for buying its natural gas and easier access for Doha’s capital into the Indian economy. One of those is the one its kind permission given to Qatar Airways to fly as a domestic airline in India.

(read more...)

CBI raids NDTV's Prannoy Roy for 2008 deals with ICICI Bank

Complaint by Quantum alleges Rs 48-cr loss caused to bank to benefit NDTV promoters

 

 

Business News - Officers of the Central Bureau of Investigation (CBI) on Monday raided the residence of senior journalist and co-founder of listed broadcaster New Delhi Television (NDTV) Prannoy Roy and other premises linked to the organisation.

 

 

The investigation agency has registered a case against Prannoy Roy, his wife and NDTV co-promoter Radhika Roy, their private firm RRPR Holdings and NDTV India. The First Information Report (FIR) also mentions “unnamed ICICI Bank officials” among the suspects.

 

Shares of NDTV tanked nearly 7 per cent intra-day. The stock plunged 6.74 per cent to Rs 58.10, a 52-week low, on the BSE during the day. Later, it trimmed some of the losses and ended at Rs 60.45, down 2.97 per cent.

NDTV said it would fight the “witch-hunt”. It called the CBI action an attempt to undermine democracy.

 

The FIR, which has alleged criminal conspiracy and invoked Prevention of Corruption Act, was based on a complaint by Quantum Securities, a firm run by Delhi-based stockbroker and NDTV shareholder Sanjay Dutt. Dutt, who once shared a close relationship with the Roys, had lodged several complaints against NDTV and its promoters with various agencies, including the Securities and Exchange Board of India and the income tax department.

A statement from the company said: “It is shocking that the CBI conducted searches on NDTV offices and the residence of its promoters without even conducting a Preliminary Enquiry. This is a blatant political attack on the freedom of the press, as sources confirm that under pressure, the CBI has been compelled to file an FIR based on a shoddy complaint by a disgruntled former consultant at NDTV called Sanjay Dutt, who has been making false allegations and filing cases in courts of law with these false allegations. So far, he has not obtained a single order from any of these courts. Legal analysts are astounded that where courts have rejected giving any order in all these years, the CBI conducts raids based on what is a private complaint".