CADASHBOARD – SEE A DASHBOARD FOR YOUR BUSINESS
Issue #121
COMMUNICATION
COMPLIANCE
COLLABRATION
ICAI signs MoU with TCS.
The institue of chartered accountant has signed an MOU with TCS iOn to deploy the later’s digital content market place platform (Digital Hub) as a part of it’s digitisation drive. These initiatives shall provide students & members easy access to the knowledge base of the institute. This move would also involve in multiple collabrations like introducing vocational & skill course, launch courses on ERP basics specifiacally designed for ICAI students. This would also involve GST training to traders, manufacturing organizations & state Govt. Organizations.
Government exceeds FY17 tax collection target at Rs 17.10 lakh crore
The government has exceeded the tax collection estimates for 2016-17 fiscal at Rs 17.10 lakh crore. The revised estimates (RE) provided in Budget on February 1 had projected tax collections of Rs 16.97 lakh crore. The Finance Ministry in a statement said that tax collection of Rs 17.10 lakh crore is a growth of around 18 per cent compared to last year. Total net tax revenue grows at 18 per cent to Rs 17.10 lakh crore. While direct tax mop up during the April-March period grew 14.2 per cent at Rs 8.47 lakh crore, indirect tax kitty swelled by 22 per cent over last year to Rs 8.63 lakh crore. Net direct tax collections at Rs 8.47 lakh crore shows 100 per cent achievement for RE of 2016-17.
- Five associated Banks & Bhartiy Mahila Bank merged with SBI.
- New ITR forms would seek details of cash deposits during demonitization.
- Govt. removes 1% tax on cash purchase above Rs. 2 lakhs.
- Aadhar to be made mandatory for filing return, applying for PAN card.
- ICICI, SBI saw the most fraud cases in first three quarters..
- ICAI to train 15 lakh traders for GST basics.
- Cananda (Toranto) chapter of ICAI launched a helpline for members interested in getting CPA canada membership.
- Yongest woman CA clears the exam at the age of 19.
- Agriculturists & small traders exempt to register under the GST act.
International Section
Chinese Banks race to stay liquid, funded ahead of PBOC risk inspection
As China's banks prepare for a rigorous quarterly inspection of their books by the central bank, the ructions in money markets and an explosion in inter-bank borrowing show how addicted they are to risky methods of funding and investments. For the first time since it was launched last year, the Macro Prudential Assessment, or MPA, will include off-balance sheet wealth management products to give authorities a better sense of potential risks to the financial system. Wealth management products often linked to shadow banking, have seen explosive growth in the last few years even as authorities try to contain risks from a rapid build-up in debt. Banks which fail the assessment are believed to face stiff penalties. The People's Bank of China (PBOC) will conduct the MPA at the end of this month.
Borrowers will feel the benefits of SBI merger with its associates
The benefits of merger of State Bank of India with its five associates will not be felt by the bank but its borrowers as well. The bank is gearing up to offer lower interest rates on home, car and personal loans to thousands of customers migrating from the associate banks to the parent SBI.
“As a result of the merger the borrowers can expect to get lower rates of interest at the time of renewal or at the time of origination as SBIs rates are obviously the best in the market,” SBI which is the largest mortgage lender is offering an interest rate of 8.6% for women borrowers and 8.65% to other borrowers, on loans up to Rs 75 lakh. While the interest rate charged by its associates range anywhere between 8.85% - 9.2% which is roughly 20-50 bps higher.
The cost of funds for associates was more than ours that is the reason why their borrower rates were more than ours,” added Bhattacharya.
The bank on Monday also cut its base rate steeply by 15 basis points to 9.1 per cent. The new rates are effective from April 1st. SBI made no changes to its marginal cost of lending rate which it had cut steeply in January this year. SBI’s one-year marginal cost of lending rate — the benchmark to which home loans is linked — stands unchanged 8%.. The bank which had offered a voluntary retirement scheme for its associate bank employees said that at least 2800 had so far opted for the arrangement out of the 12000 eligible employees.
The bank also said that the entire merger process will be completed by May and it will start the cost rationalization process in the second quarter of the current financial year.
“The reorganization process will get completed by April 24 then we start the data merger which will happen on the weekend one bank at a time,” Rajnish Kumar, MD, SBI said. “So, within May 27, the entire granular level data merger will be completed. In case of BMB and treasury the granular data merger has already been completed.”
Bhattacharya also said that the bank had initiated its own internal asset quality review in associate banks and had to set aside Rs 8600 crore of additional provisions to bring all account classification in line with the parent.
Read more at:
http://economictimes.indiatimes.com/articleshow/57990692.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Judgements/Tribunals
Content right to :eJurix
D P Jain and Company Infrastructure Pvt Ltd vs. Uoi (HC-BOM) (18 July, 2016)
Held: Whether the activities pertaining to “runway” will not be entitled for exemption in terms of section 97 and 98 of the Finance Act - Concise Oxford Dictionary, 1990 Edition says that “runway” is a specially prepared surface along which a aircraft takes off and land. Thus, it is a path for aircraft to take off from. Whereas, “road” may be a path or way with a specially prepared surface, but it is used by vehicles/pedestrians etc. Counsel may have relied upon the meaning of these two words in the Chambers Dictionary, 1993 Edition page 1487, but even those definitions would make it clear that ordinarily road is understood as a passageway, track suitable for wheeled vehicles. That is not how runway is construed and understood.Some of the services provided included extension, strengthening of runways, taxi ways, apron taxi ways. Section 98 refers to building services relating to management etc. of non commercial Government buildings. Court not construing the ambit and scope of such services. Court concerned with the excision from the definition of this service the maintenance of road, repair to runway etc. That exclusion is clear. Writ petition fail.
Pine bridge Investments Capital India Private Limited vs. ITO (ITAT-Mumbai) (27 July, 2016)
Held: It may be noted from the perusal of the proviso to ‘section 3’ that in the case of newly set up business, the previous year shall be the period beginning with the date of setting up of the business or, as the case may be, the date on which the source of income newly comes into existence and ending with the said financial year. In other words, for setting up of business, what is required is readiness for commencement of business and actual commencement of business would not be necessary. one of the objects for which the company was incorporated was to make investment in other companies, and the assessee company had received funds in the form of share capital or other sources before 11-10-2006 and it had started making due diligence for potential investee companies immediately after getting NBFC registration certificate. Then it can be said that assessee company was ready to commence its business and thus its business was set-up. The expenses incurred after 11-10-2006 having been incurred after setting up of business are deductible as revenue expenditure. Appeal partly allowed.
M/s. Future Distributors vs. Principal Commissioner of Income Tax (ITAT-Kolkata) (29 July, 2016)
Held: The business of conducting of lotteries was virtually outsourced by Bhutan to the Private Group to which the assessee-firm belonged on royalty basis. He held that the entire chain of income, from that accruing to the Directorate of Lotteries, Bhutan, the sole purchaser, the wholesaler and the main seller was so arranged on the basis of Bernoullis Theorem that the lottery business conducted by the Group would always give a net profit of 8 to 10% of the total size of lottery tickets. CIT justifying revision under section 263. The Commissioner, on perusal of the records, may be of the opinion that the estimate made by the Assessing Officer was on the lower side and left to the Commissioner, he would have estimated the income at a higher figure than the one determined by the Income Tax Officer. However, that would not vest the Commissioner with power to re-examine the accounts and determine the income at a higher figure because the Income Tax officer has exercised the quasi-judicial power vested in him in accordance with law and arrived at a conclusion, which cannot be termed to be erroneous simply because the Commissioner does not feel satisfied with the conclusion. Appeal allowed.
Blog
GOOD GOVENANCE- New India Calling!!
Some interesting instances of his government doing away with unnecessary earlier traditions that were impeding good governance. He said, “For ages now, the budget has been presented at 5 PM in the evening. This system was made by the British because when it is 5 PM in India it is 11:30 AM in Britain
» This year, everyone witnessed that the budget presentation was advanced by a month. This is big change from the implementation viewpoint. Earlier the budgets were presented at the end of February and it used to take months after that for money to reach recipient departments. Then due to the monsoon the work would get delayed even more. Now various departments will get their allocated money on time for their programmes.
» There was an artificial partition in the budget between plan and non-plan. Emphasis was laid on new matters with an eye on staying in the headlines and older matters were neglected. On the ground this bred a lot of imbalance. We have ended this artificial division and made a big transformation.
» Railway Budget was also fused into the Common Budget this year. The system of having a different Railway Budget was also that of British times. Now the dimensions of transport have changed. There is rail, road, aviation, waterway and sea-route. These have to be thought about in an integrated manner. This step of fusing the budgets will foster a technological revolution in the transportation sector.”
On the matter of hastening the delivery of projects and their implementation, Prime Minister Narendra Modi said.
“The policies, decisions and intentions of the government have been seen by all in the last two and a half years. It is my conviction that this is the correct approach to take New India to great heights in the 21st century and strengthen the foundations of a New India.
Governments have often approached work only in terms of lighting lamps and cutting ribbons. This was considered work and nobody got offended by it either. You may be surprised to know that there have been over 1500 new projects that were announced but are still just residing in files. There have been many big projects stuck in this manner. Now here is a system to properly monitor these projects – PRAGATI, meaning Pro-Active Governance and Timely Implementation.
We are reaching out !!!
Collabration Meet with Knowledge Guru- Honourable CA Dilip Sathbhai
9011050260