News Update

CBDT invites inputs from taxpayers on drafting of New Direct Tax LawI-T - When assessee has failed to deduct tax at source and even deductee has not paid tax on payment received as it filed loss return, assessee certainly cannot escape from consequences of Ss 201(1) & 40(a)(ia): HCGovt withdraws export duty on sugar exportsAdmission in PG Medical Courses - Govt hikes quota to 5% for differently abledGovt has sanctioned prosecution only against 12 IAS & IPS in DA cases in 3 yrsGovt withdraws export duty of 20% on sugar to stabilise prices in domestic marketACC appoints 1988 batch IRS Simanchala Dash as Pr Special Director in Enforcement Directorate for two yearsAfter UK India also warns Facebook & others of action if they try to influence electoral process through unfair meansDraft agri export policy seeks reform in 'APMC Act'GST should be considered as the start of a process, not the end (See 'JEST GST on GST Home Page')Anti-dumping duty imposed on Dimethylacetamide imported from PR China & TurkeyAnti-dumping duty on Meta Phenylene Diamine (MPDA) imported from PR China - levy extended till 21 March 2019Tariff Item 0713 20 Chickpeas sub-divided further into Kabuli Chana, Bengal gram (desi chana) & OthersSl. no. 21A to Notification 50/2017-Cus, Entry Kabuli Chana amended to reflect change in first scheduleExport duty on raw sugar, white or refined, reduced from 20% to NilST - There is no scope to exclude 'Academic Courses' conducted by respondent IIPM from purview of Service tax levy: CESTATIs notification 1/2018-CT(R) relating to Real Estate Services retrospective?I-T - CBDT Circular prohibiting 'freebies' to doctors for promotion of sales is not retrospective in nature: ITATRow over Royalty on Mineral RightsCus - S.19of CA, 1962 is an empowerment for classification, and not valuation - Matter remanded: CESTATWrit petition challenging constitutional validity of Section 140(3)(iv) of CGST Act dismissed by Bombay High Court; refuses to strike down 1 year time limit for transitional credit availment; holds transitional credit under GST law is a clear case of concession; no discrimination of dealers vis-a-vis manufacturers/service providersSC admits misuse of SC/ST Act; says no immediate arrest of public servantsSushma Swaraj admits that 39 Indians kidnapped by ISIS are officially deadICLS should promote ethics in business, says PresidentPostal Department inks MoUs to design new stamps & promote PhilatelyGovt partners with private entities to protect cyber-spaceCX - A Writ Petition would lie against an OiO, against which an appeal was filed and dismissed as time-barred - HC to exercise discretion, no straightjacket formula: HC Full BenchST VCES, 2013 is not an open ended scheme - benefits thereunder cannot be derived dehors scheme or after its life or duration has come to an end: High Court
Pre-Budget Meet - Industry seeks MAT exemption on write-back of notional income from IBC Plan

By TIOL News Service

NEW DELHI, DEC 06, 2017: THE Union Minister of Finance, Mr Arun Jaitley, asked business leaders for making investments in infrastructure sector to build a stronger India. The Finance Minister said that private investment along with public and foreign investment are the key to boost growth and create job opportunities.

Mr Jaitley was making his Opening Remarks during his third Pre-Budget Consultation Meeting with the Business Leaders and representatives of the various Chambers of Indian trade and industry here today. Highlighting the importance of investment in infrastructure sector, the Finance Minister said the Government has taken various steps and has also set-up National Investment and Infrastructure Fund (NIIF) among others in order to boost investment in this sector.
Various suggestions were made by the business leaders and the representatives of different Chambers of Indian Trade and Industry among others. The major suggestions included permitting the purchase of Banks’ Recapitalization Bonds by the Institutes and the public at large, reducing Government stakes in Public Sector Banks(PSBs), allowing banks to securitize their loans and sell the same, setting-up of Land Bank Corporation for monetization of Government lands including the land belonging to Army, Railways and Public Authorities among others.
Other suggestions include setting-up of National Power Generation Corporation and creation of National Innovation Fund with initial corpus of Rs. 10,000 crore to promote innovation and Out of Box Ideas; setting-up of Empowered Group of State Agricultural Ministers to implement Agricultural Reforms.
Other suggestions include reduction in Dividends Distribution Tax and to bring down the maximum rate of Income Tax to 20% to encourage investment, at par with other development countries. It was also suggested to create Regulations Free Export Zone for setting-up 100% Export Oriented Units both by domestic and foreign investors which in turn would help not only in creating employment opportunities but also in earning foreign exchange for the country. 
Another suggestion was made to bring a ‘Scrapes Scheme’ to take more than 15 year old heavy commercial vehicles off the road since demand in this sector is at its peak today. This will help in generating lot of employment opportunities as it will bring about large scale private investment in this sector.
Another suggestion was made for introduction of system of e-wallet with effect from 1st April, 2018 under GST, extension of Duty Drawback System for GST for a year, GST on freight for carrying fruits and vegetables among others.
Another suggestion was made for incentivizing the industry for larger women participation in industrial jobs including subsidy to industry for providing transportation facilities for women and incentives for running women dormitories among others.
Various other suggestions relating to various tax benefits for industry and trade were also made. The highlights of some of the suggestions are:
++ There is a need to consider across the board, tax rate cuts for businesses and individuals in India to spur domestic investment and demand, and to retain India’s overall competitive environment globally.

++ GST has been a landmark reform. Going forward, there is a need for convergence to 3 - 4 rates and to include all excluded items till date. Efforts should also continue to simplify compliance related to GST. Benefit of filing Quarterly return under GST be extended to all rather than limiting to those with a turnover of Rs.1.5 crore.

++ Remove the applicability of GST on Intra-entity transfer of services within the same legal entity.

++ There is a need for clarity on Anti-profiteering provisions under GST, specifically related to its applicability at product or entity level, examination at State or Central level, applicability on products/ stocks prior to GST, etc.

++ There is a need to exempt levy of Minimum Alternate Tax (MAT) on write back of notional income pursuant to approved plan of Insolvency and Bankruptcy Code (IBC).

++ To boost Research and Innovation, there is a need to improvise the Patent Box regime that was introduced in the previous Budget. Government should also restore weighted deduction on Scientific Research Expenditure. Alternatively, provision of Research Tax Credit may be introduced.

++ Consider establishing 2-3 Regulation Free Zones, wherein all regulatory requirements can be relaxed, especially for new-age, high-technology and innovative industries.

++ Government should consider further consolidation and even privatisation of some of the Public Sector Banks (PSBs), having at the most 5-6 Large Public Sector Banks.

++ Continue focus on Productive Expenditure (Infrastructure Capex) and if this requires relaxation of fiscal deficit target, it should be considered.