Tax-statements of a corporate group may be given under the RTI Act as its privacy clause is limited to individuals and does not extend to organisation...
Goods and Services Tax reform: dual CGST/SGST on a consumption base, invoice credit method, Modified Bank Model for inter state zero rating. The Task Force recommends a dual GST (CGST and SGST) on a common consumption base under the destination principle, computed by the invoice credit method with full immediate input tax credit (including capital goods) and no cross utilisation of CGST and SGST credits. Inter state transactions should be effectively zero rated via a Modified Bank Model using a nodal bank and Form GST I for combined electronic payment and returns. Exemptions are narrowly defined; SIN goods remain subject to excise plus GST without excisable input credit. Registration is PAN based with a uniform Rs.10 lakh turnover threshold and optional composition scheme for small suppliers.
Perquisite rules amended to revise scope and treatment of employee perquisites under income tax rules and compliance. Notification 94/2009 introduces revised perquisite rules under the Income-tax Rules, 1962, amending provisions to clarify scope, valuation principles and reporting obligations for employee perquisites and to align assessment and withholding compliance with the Income-tax regulatory regime.
Disclosure of corporate tax information under right to information allows release when held by government department on merit. Tax statements of a corporate group can be disclosed under the Right to Information because the statutory privacy protection addresses individuals rather than organisations; disclosure must be decided on merit. Such information must be sought from the government department that holds the records and not directly from private business groups, with custodial status and public-interest considerations governing release.
Total foreign investment calculation clarified to standardise approval requirements and facilitate greater foreign capital inflows. Press Note 2 (2009 Series) and Press Note 4 (2009 Series) set uniform guidelines for calculation of total foreign investment and downstream investment by Investing Indian Companies, clarifying that Investing companies and companies neither investing nor operating require prior Government/FIPB approval for foreign infusion, while Operating and Operating-cum-Investing companies need only meet sectoral entry routes, conditionalities and caps, with the stated aim of simplifying compliance and facilitating greater foreign capital inflows.
Trade contraction: exports and imports declined, narrowing the trade deficit and showing provisional lower oil and non oil imports. Significant year on year contraction in external trade values is reported for October 2009 and the cumulative April-October 2009 period: merchandise exports and imports both declined in dollar and rupee terms, with imports falling more sharply and producing a narrower trade deficit. The release distinguishes declines in both oil imports and non oil imports, presents percentage growth rates in dollar and rupee terms, and notes that 2009-10 figures are provisional while 2008-09 figures are revised.
Automation of Central Excise and Service Tax (ACES) enables online registration, filing, tracking and electronic payments for tax processes. Automation of Central Excise and Service Tax (ACES) is a centralized web application with separate Central Excise and Service Tax modules that automates registration, electronic filing of returns, refunds and claims, intimations, provisional assessments, exports, dispute resolution and audit; it provides online viewing of statutory documents, e-Payment integration, identity-management via user registration and TPIN migration, account security measures including password regeneration and blocking, Service Desk and Range Officer support, session timeout rules, and specified minimum system requirements.
Trade contraction: exports and imports declined year on year, narrowing the cumulative trade deficit for April-September. September 2009 foreign trade data reveal year on year declines in exports and imports in both US dollar and rupee terms, with oil and non oil imports falling substantially; cumulative April-September 2009 exports and imports decreased markedly versus April-September 2008, and the trade deficit for April-September 2009 narrowed as import contraction exceeded export contraction. Data are presented as provisional figures with revised prior year comparisons.
Foreign Direct Investment approvals permit inbound projects following FIPB recommendations, formalizing regulatory clearance for capital inflows. Government approval has been granted to a package of Foreign Direct Investment proposals following recommendations from the investment promotion body, providing administrative clearance for multiple inbound investments and permitting foreign capital entry under the prevailing procedural framework as recorded in the official press release.
Product classification of quilts dictates excise exemption eligibility; handicraft status may preserve relief or invite retrospective liability. Classification of quilts and quilted bedspreads was revised by the revenue authority to a non-textile heading, removing their eligibility for a general exemption; this reclassification exposes manufacturers to excise liability for the period previously covered. A separate exemption for handicraft items may apply if these products, often produced with significant manual stitching by specialist labour, qualify as handicraft, otherwise manufacturers face current and potential retrospective excise demands.
Job work valuation: transaction value governs excise liability, replacing routine cost-plus practices where rule conditions apply. Payment liability for central excise on goods manufactured on a job work basis is to be determined by reference to the transaction value where conditions of the valuation rule are met, following insertion of Rule 10A. A departmental clarification reiterates that Rule 10A applies to job work manufacture and directs verification of field practices to ensure duty is paid according to the rule rather than by a cost-plus method.
Continuation of stimulus urged until robust growth is secured to support fragile global recovery and economy. Continuation of fiscal stimulus is advised until the economy reaches a sustained seven per cent growth rate; concessions to industry enacted to address the global financial downturn should remain in place and stimulus moderation should be considered only after stronger growth is secured.
Trade contraction: exports and imports declined significantly year on year, narrowing the trade deficit and reflecting reduced oil and non oil demand. India's merchandise trade contracted in August 2009 and for April-August 2009, with exports and imports falling year on year in dollar and rupee terms. Imports declined more steeply than exports, driven by large reductions in oil imports and substantial falls in non oil imports, which together narrowed the April-August trade deficit. The release provides provisional monthly and cumulative figures in dollars and rupees and notes that prior year figures are revised while current year figures are provisional.
Sharing of Central tax proceeds: Commission invites public submissions on discussion papers on Centre State fiscal relations. The Commission has posted thematic discussion papers on its website to inform formulation of recommendations on the sharing of net proceeds of Central taxes and other aspects of Centre State fiscal relations for the forthcoming award period, and, as part of a structured consultative process, invites written views and suggestions from individuals, institutions and experts to assist in framing its recommendations.
Foreign Direct Investment inflows increase, reflecting sectoral shifts and major source-country contributions despite economic slowdown. FDI equity inflows rose notably in July 2009, exhibiting sequential monthly growth and a year on year increase; cumulative April-July 2009 inflows are compared with prior periods showing a substantial rise despite economic headwinds. The press release identifies principal recipient sectors-services, housing and real estate, construction, telecommunications and automobiles-and major source jurisdictions for April-June 2009. It further summarizes multi year trends of consistently increasing FDI equity inflows since 2004-05 and distinguishes equity inflows from aggregate inflows that include reinvested earnings and other capital.
Cost Inflation Index updated for the financial year to adjust basis for capital gains indexation and tax computation. Notification No. 67/2009 dated 9-9-2009 notifies the Cost Inflation Index for the Financial Year 2009-2010 to be used for computing indexed cost of acquisition for capital gains and publishes the schedule of Cost Inflation Index values from 1981-1982 through 2009-2010 as the official reference.
Seizure of contraband pharmaceutical shipment uncovered concealment and intended cross-border smuggling, prompting customs enforcement action. Intelligence-led interception uncovered a commercial vehicle concealing a large consignment of Phensedyl cough linctus beneath agricultural cargo; the shipment was identified as contraband intended for cross-border smuggling and seized for enforcement under revenue and customs control.
Trade contraction: exports and imports fell, narrowing the trade deficit and reflecting steep declines in oil imports. India's merchandise trade contracted in July 2009 and cumulatively April-July 2009, with exports and imports falling sharply year on year in both US dollar and rupee terms; imports fell more steeply than exports, reducing the April-July 2009 trade deficit. Both oil and non oil imports declined materially in July and for April-July 2009. The release provides provisional US dollar and rupee values, percent growth comparisons, and notes 2008-09 figures are revised while 2009-10 figures are provisional.
Surcharge on TDS applies only to foreign companies above a monetary threshold; education cess applies to salary and nonresident payments. Applicability of Surcharge and Education Cess on TDS distinguishes by recipient type and payment nature: no surcharge on TDS for residents, domestic companies or non residents except foreign companies above a monetary threshold; education cess not on TDS for residents/domestic companies (other than salary); education cess applies to salary TDS and to TDS on payments to non residents.
Enactment of Finance Act confirms presidential assent and brings the Finance Bill into effect nationwide. Presidential assent has converted the Finance Bill, 2009 into The Finance (No. 2) Act, 2009, announcing its enactment and indicating the availability of section-wise and chapter-wise compilations in a government press release to inform stakeholders and direct reference to the Act's organized provisions.
Direct Taxes Code Bill released for public consultation, inviting commentary and ratings on the discussion paper and proposed provisions. Direct Taxes Code Bill released as a discussion paper presenting proposed consolidations and structural changes to direct taxation and inviting written comments, critiques, and ratings to inform further drafting and policy calibration; the notice operates as a public consultation mechanism rather than a legislative enactment.
During the month of July, 2009, FDI equity inflows of US $ 3.516 billion (Rs. 170.45 billion) were received. This was as against US $ 2.247 billion (Rs. 96.27 billion), received during the corresponding month of last year (i.e. July, 2008) and US $ 705 billion (Rs. 28.49 billion) received in July, 2007. While speaking to the media persons at a press conference, here today, Shri Anand Sharma, Union Minister of Commerce and Industry, has said that this FDI equity inflows indicates an increase of 56% in US $ terms (and 77% in Rupee terms) over July, 2008 (corresponding month of previous year).
Inflows of US $ 3.516 billion received during the month of July, 2009 are as against US $ 2.582 billion received during the month of June, 2009 and as against US $ 2.096 billion received during the month of May, 2009. It represents an increase of 36% over June, 2009, which, in turn, had represented an increase of 23% over the equity inflows received in May, 2009.
During the interaction, the Minister added that despite the current economic situation, FDI equity inflows amounting to US $ 10.532 billion (Rs. 512.56 billion) have been received during April-July, 2009, which is as against US $ 12.320 (Rs. 514.40 billion) received in April-July, 2008 (corresponding period for last financial year). "The corresponding amount in April, 2007 to July, 2007 was US $ 5.706 billion, compared to which FDI equity inflows during the current financial year have increased by nearly 85%", he added.
The major sectors receiving FDI equity inflows are: Services sector (US$ 1.86 billion); Housing & Real estate (US$ 1.18 billion); Construction activities (US$ 0.68 billion); Telecommunication (US$ 0.67 billion); and Automobile Industry (US$ 0.27 billion). Mauritius, USA, Cyprus, Japan and Singapore are the major investing countries during the period 2009-10 (April-June 2009). Inflows from Mauritius, USA and Cyprus have been US $ 3.37 billion, 0.81 billion and 0.48 billion respectively, while investments from Japan and Singapore are around US$ 0.47 billion and 0.37 billion respectively.
FDI INFLOWS DURING PREVIOUS FINANCIAL YEARS • FDI equity inflows have shown a consistently increasing trend since 2004-05. • FDI equity inflows for 2008-09 surpassed even the previous year's inflows and reached an unprecedented level of US$ 27.31 billion, which is excluding reinvested earnings. With reinvested earnings and other capital, the FDI inflows for 2008-09 amounted to US$ 35.17 billion. • FDI equity inflows during 2007-08 at US$ 24.58 billion represented a growth of 56% over the previous year. With reinvested earnings and other capital, the FDI inflows for 2007-08 amounted to US$ 34.36 billion • The FDI equity inflows during 2006-07 at US$ 15.7 billion were an increase of 184 % over the inflows in the earlier year i.e. 2005-06. • The FDI equity inflows during 2005-06 at US$ 5.5 billion represented a growth of 72% over inflows for 2004-05. • The FDI inflows for 2004-05 at US$ 3.2 billion had shown an increase of 45% over that for 2003-04.
Foreign Direct Investment inflows increase, reflecting sectoral shifts and major source-country contributions despite economic slowdown.
FDI equity inflows rose notably in July 2009, exhibiting sequential monthly growth and a year on year increase; cumulative April-July 2009 inflows are compared with prior periods showing a substantial rise despite economic headwinds. The press release identifies principal recipient sectors-services, housing and real estate, construction, telecommunications and automobiles-and major source jurisdictions for April-June 2009. It further summarizes multi year trends of consistently increasing FDI equity inflows since 2004-05 and distinguishes equity inflows from aggregate inflows that include reinvested earnings and other capital.
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