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    The President of India approves the Promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 today;
    India and Singapore Sign a Third Protocol for Amending the Double Taxation Avoidance Agreement (DTAA)
    Department of Economic Affairs, Ministry of Finance releases Quarterly Statistics on India’s External Debt for the Quarters at end-September 2016; I...
    Change in Tariff Value of Crude Palm Oil, RBD Palm Oil, Others – Palm Oil, Crude Palmolein, RBD Palmolein, Others – Palmolein, Crude Soyabean Oil,...
    Two More Advance Pricing Agreements signed by the Central Board of Direct Taxes
    Statement made by the Union Finance Minister Shri Arun Jaitley on Remonetisation and its impact
    Direct tax collections in Mumbai, Delhi in single digit
    Comments/suggestions invited from the members of public on the Report of the Committee on Digital Payments within 15 days of hosting the Report on the...
    Major Initiatives and Accomplishments of Department of Commerce(DOC)-2016
    Government of India kick-starts the awards of the Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana
    Income Declaration Scheme - Post Demonetization
    Reporting Cash Transactions under Rule 114E of Income –tax Rules, 1962
    Payments towards Tax, Penalty, Surcharge and Deposit under PMGKY 2016 in Old Demonetised Currency
    Income Tax Department Identifies 67.54 lakh Potential Non-Filers for F.Y. 2014-15
    I-T Dept cautions taxpayers against sharing user ID, password
    In order to further promote digital and card payments, Department of Financial Services, Ministry of Finance issues direction in public interest all P...
    I-T detects ₹ 3,185 cr black income; seizes ₹ 86cr new notes
    FM: India remains a bright point in global economy and BRICS in particular despite the slowdown in global economy in 2016
    Measures for Promoting Digital Payments & Creation of Less-Cash Economy: Benefit of lower rate of Income Tax on digital turnover for small businesses
    FM: Current Financial Year 2016-17 is not a conventional year as major reformative decisions have been taken; There is need for out of box thinking; D...
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    December 31, 2016
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    Cessation of liability for demonetised banknotes: government and central bank obligations end after exchange period, penalties then apply.
    The Ordinance terminates Reserve Bank and Central Government liabilities for demonetised Specified Bank Notes after the exchange period while permitting limited late deposits by persons who were abroad during the exchange window, subject to foreign exchange limits and customs declaration requirements; it also prescribes fines for false declarations and for holding, transferring or receiving such notes after the prescribed period.
    December 30, 2016
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    Source-based taxation of capital gains shifts share-transfer tax to the source country with transitional grandfathering and MAP access.
    The Protocol amends the DTAA to convert taxation of capital gains on transfer of shares to source-based taxation effective from 1 April 2017, with a grandfathering clause for pre-effective-date investments subject to Limitation of Benefits conditions and a two-year transition regime imposing a reduced tax rate in the source country. It also adds provisions to relieve economic double taxation in transfer pricing cases by expanding MAP access and confirms application of domestic anti-avoidance measures and prevention of tax evasion.
    December 30, 2016
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    External debt statistics show slight decline over prior period with long term debt dominance and lower short term ratios.
    Quarterly statistics on India's external debt at end-September 2016 report a marginal contraction in aggregate external liabilities compared with end-March 2016 and a sequential increase from end-June 2016. Total external debt stood at US$ 484.3 billion, driven by reductions in commercial borrowings and short term external debt, with long term borrowings constituting 83.2% of the total and short term debt 16.8%. Short term debt ratios to foreign exchange reserves declined modestly while the share of concessional debt remained around 9-9.4%.
    December 30, 2016
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    Tariff value revision updates customs valuation for specified edible oils, metals and agricultural imports under amended tables.
    Amendment to Customs tariff valuation under section 14(2) substitutes revised Tables 1-3 in the existing notification, setting new tariff values for specified imported commodities including agricultural oils, brass scrap, poppy seeds, areca nuts, and unit valuations for gold and silver where notification benefits are claimed.
    December 30, 2016
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    Advance Pricing Agreements provide transfer pricing certainty through new unilateral APAs covering IT and automobile international transactions.
    The Central Board of Direct Taxes has executed two additional unilateral Advance Pricing Agreements covering international transactions in Information Technology and Automobile sectors, including software development, IT enabled services, manufacturing and business support services. The APA scheme, introduced in 2012 with rollback provisions from 2014, pre specifies pricing methods to provide transfer pricing certainty and is promoted as strengthening a non adversarial tax regime while attracting substantial taxpayer interest.
    December 29, 2016
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    Remonetisation impact: increased bank liquidity and higher tax receipts indicating strengthened fiscal resources.
    Remonetisation has led to widespread replacement of pre-November 8 currency, with the RBI providing sufficient liquidity and banks and post offices distributing new notes to restore circulation. Resulting higher bank deposits have expanded banks' lending capacity. Fiscal receipts show growth: direct tax collections increased around 13.6-14.4 percent to December 19, and central indirect taxes rose about 26.2 percent to November 30 (excise ~43.5%, service tax ~25.7%, customs ~5.6%). Other indicators-rabi sowing, life insurance business, tourism, air traffic, petroleum consumption, and mutual fund inflows-have also risen.
    December 28, 2016
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    Direct tax collections: Mumbai and Delhi saw single-digit growth while most other zones recorded double-digit increases.
    Direct tax collections in the Mumbai and New Delhi zones registered single-digit growth during the reporting period, while national net revenue collections and multiple other zonal jurisdictions showed stronger average double-digit increases. Mumbai-responsible for a large share of total collections-underperformed relative to many other regions; Bengaluru, Chennai, Kolkata, Pune and Thane recorded notable double-digit growth, producing a higher overall national growth rate than seen in Mumbai and New Delhi.
    December 28, 2016
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    Public consultation on digital payments report invites stakeholder comments to inform decision-making; send feedback to the designated government email.
    Members of the public are invited to submit comments and suggestions on the Committee on Digital Payments Report after it was uploaded to the Ministry of Finance website; feedback should be sent to the Coin and Currency Division at the designated email address within the specified comment period, and the Department of Economic Affairs will consider comments received before taking a decision on the Report.
    December 26, 2016
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    Trade Facilitation Agreement compliance advances streamlined customs procedures and data sharing to support export facilitation and e market procurement.
    Department of Commerce pursues export growth and trade competitiveness through strategic priorities - export and market diversification, FTAs, infrastructure and credit enhancement - and operational measures including launch of the Government E Marketplace (GeM), ratification and Category A notification under the Trade Facilitation Agreement with a National Committee to coordinate implementation, and MOUs for data sharing between DGFT, GSTN, state tax departments and central agencies to streamline export processing.
    December 26, 2016
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    Digital payment incentives launch consumer and merchant reward schemes to accelerate nationwide adoption and reduce cash dependence.
    The government launched Lucky Grahak Yojana and Digi Dhan Vyapar Yojana to incentivise digital payments by awarding monetary rewards for transactions using RuPay, UPI, AEPS and USSD. NITI Aayog and NPCI implement the schemes with daily, weekly and mega draws delivered through DigiDhan Melas across 100 cities, combined with measures to reduce transaction costs, expand card and POS supply, and provide training and handholding to drive mass adoption and formalisation of the economy.
    December 25, 2016
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    Income Declaration Scheme: statutory tax and penalty framework for undisclosed income and voluntary deposit regularisation.
    The Income Declaration Scheme post demonetization is governed by provisions addressing cash credits, unexplained investments, unexplained money and expenditure, undisclosed amounts not in books, and a specific tax on such unexplained income, operating alongside general tax rates and penalty regimes for under reporting, misreporting, failure to maintain records, and search related penalties; the scheme also interfaces with Pradhan Mantri Garib Kalyan Yojana deposit and taxation rules and the benami transactions prohibition framework.
    December 23, 2016
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    Cash transaction reporting: per transaction reporting applies and aggregation of receipts is not required for SFT compliance.
    Persons subject to statutory audit must report cash receipts for sale of goods or services when cash received in a single transaction exceeds the prescribed threshold; aggregation of multiple receipts is not required and each qualifying receipt must be reported under the Statement of Financial Transactions.
    December 23, 2016
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    Payment in Old Currency allowed for tax, surcharge, penalty and deposit under PMGKY when made via designated challan.
    Payments of tax, surcharge, penalty and deposits under the Pradhan Mantri Garib Kalyan Yojana must be made through the designated challan and deposit instrument established for the Scheme; for a limited period after commencement these payments may be made in specified old bank notes issued by the Reserve Bank of India, subject to the Scheme's procedural channels.
    December 22, 2016
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    Non-filer identification: tax authority uses data matching to notify taxpayers with high value transactions for electronic compliance response.
    The Income Tax Department's Non-filers Monitoring System uses data matching of AIR, CIB and TDS/TCS records to identify persons with high value transactions who did not file returns; identified PAN holders are shown their information in a Compliance Module on the e filing portal, may respond electronically and retain a copy, and the Department intends to continue using analytics-driven identification and follow-up to secure compliance.
    December 22, 2016
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    Credential security: sharing TRACES login details creates liability and privacy risks, so protect passwords and digital signatures.
    Advisory requires taxpayers to keep TRACES user IDs and passwords confidential and warns that both account holders and any persons with whom credentials are shared will be liable for misuse. It highlights risks of tampering with TDS/TCS data and privacy breaches, instructs against using others' credentials, and prescribes password complexity, prohibition on password reuse, and avoidance of insecure storage. Digital Signature Certificates must be protected with equivalent security.
    December 21, 2016
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    Digital payments fee cap: PSBs barred from charging IMPS and UPI fees above NEFT rates, service tax actuals.
    The Department of Financial Services directs Public Sector Banks that PSBs shall not charge fees for transactions settled on Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) in excess of rates charged for National Electronic Funds Transfer (NEFT) for transactions above the specified threshold, with service tax charged at actuals; for Unstructured Supplementary Service Data (USSD) transactions above the threshold, a further discount of fifty paise on these rates shall apply, and the direction is temporally limited.
    December 21, 2016
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    Tax enforcement action detects undisclosed income and seizes new currency; cases referred for wider financial-crime probes.
    Income-tax authorities carried out nationwide searches, surveys and enquiries after demonetisation, issuing notices for tax evasion and hawala-like dealings, seizing new currency, cash and jewellery and detecting substantial undisclosed income; they referred cases to sister agencies for money-laundering and corruption probes and instructed field formations to deposit seized new notes into banks while coordinating with banks, the regulator and local police.
    December 21, 2016
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    Bank recapitalization urged; policy measures proposed to strengthen liquidity, incentivize digital payments and mandate wage payments via banking.
    Pre budget consultations urged recapitalization of banks and full tax exemption for NPA provisioning to shore up balance sheets, alongside targeted tax relief to protect senior citizens' deposit income and tax rebates to incentivize merchant and consumer digital transactions. Implementation proposals included a Central Registry for GST compliance by pan India banks, incentives for digital acceptance infrastructure, service tax exemption for banking correspondent transactions, digitization of cooperative and regional rural banks, capitalization of NABARD, and the creation of sectoral funds for dairy infrastructure and agri start ups.
    December 21, 2016
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    Lower presumptive tax rate on digital turnover reduces taxable income and encourages digital payments for small businesses.
    The government reduced the presumptive profit rate under Section 44AD for receipts made by cheque or other digital means from eight percent to six percent for eligible small businesses up to the turnover ceiling, lowering taxable income and tax payable compared with cash receipts. The change interacts with Section 80C deductions and is intended to promote digital payments, improve bookkeeping, and facilitate access to bank finance, with illustrative scenarios showing reduced tax liabilities and a stated effective zero-tax outcome at a lower turnover threshold after Section 80C.
    December 21, 2016
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    Bank recapitalization and tax exemption for NPA provisioning proposed to strengthen banks and support post demonetization recovery.
    The meeting produced operational proposals focusing on fiscal and regulatory measures: bank recapitalization and full tax exemption for NPA provisioning to strengthen bank balance sheets; capitalization support for development finance institutions including NABARD; creation of a Dairy Infrastructure Development Fund and a Krishi Udyam Nidhi for agri start ups; and targeted venture funds for Scheduled Castes and Scheduled Tribes. It also proposed a Central Registry for GST compliance for nationwide banks, incentives and tax rebates to promote digital payments and merchant adoption, mandatory wage payments through banking or digital channels, urgent digitization of rural cooperative banks, and targeted support for vulnerable rural sectors and low cost housing finance.

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      Major Initiatives and Accomplishments of Department of Commerce(DOC)-2016

      December 26, 2016

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      Exports record a positive growth

      Government E-Marketplace (GeM)  launched in August, 2016 and becomes fully functional by October, 2016.

      The WTO's Trade Facilitation Agreement in Goods ratified

      1st BRICS Trade Fair organised in India from October 12-14, 2016

      Vision and Mission

      The long-term vision of the Department is to make India a major player in the world trade by 2020 and assume a role of leadership in the international trade organizations commensurate with India’s growing importance. DOC’s goal is to increase India’s exports of merchandise and services from the present level of 465.9 billion USD (2013-14) to approximately 900 billion USD by 2019-20 and raise India’s share in world exports from present 2% to 3.5%.

      Strategic Initiatives and Priorities

      • Diversification of export product basket
      • Diversification into non-traditional markets and conclusion of ongoing FTA negotiations and initiating new FTAs
      • Strengthening export related infrastructure
      • Enhancing credit flows for exports at lower cost
      • Reducing Transaction Costs
      • Diversification of Services exports
      • Building up a Brand Image of India
      • Support to Plantation Sector
      • Protection to sensitive domestic industries

      Improved export performance

      • After negative growth for 18 successive months since December 2014, export recorded positive growth in June 2016.
      • September, October and November 2016 saw positive growth in exports. Export from April to November 2016 is valued at US $ 174.9 billion against US $ 174.7 billion recorded in the corresponding period of 2015.
      • With falling international crude prices and import of gold recording a significant decline, trade deficit had been in single digits for all successive months starting from January 2016.

      Government E-Marketplace (GeM) – was launched in August, 2016 and became   fully      functional by October, 2016.Presently more than 4000 products in 86 categories and hiring of transport service are available on GeM POC portal. More than 1600 product sellers and service providers and about 1500 Government officials are currently are registered on GeM. Transactions for more than ₹ 45 Crore have already been processed on GeM. Purchases done through GeM so far, have indicated a reduction in prices to the tune of 10-20%, and in some cases even upto 56%. GeM is a tool to promote Maximum Governance Minimum Government, Make in India, Ease of Doing Business and Digital India. By providing timely payment to vendors GeM not only ensures competitive rates but also encourages small business units/individuals to do business with government organizations.

       Trade Facilitation Agreement

      • The WTO's Trade Facilitation Agreement represents an important milestone by creating an international framework for reducing trade costs. The Trade Facilitation Agreement (TFA) contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective co-operation between customs and other appropriate authorities on trade facilitation and customs compliance issues. These objectives are in consonance with India’s “Ease of Doing Business” initiative. 
      • As part of Special & Differential Treatment, Developing Countries and least Developed Countries (LDCs) has to categorise all the provisions under Category “A”, “B” or “C”.  Category “A” commitments are those commitments which the notifying Country has to fulfil at the time TFA comes into force. Category “B” are those commitments for which notifying Country can ask for a transition time and for the implementation of category “C” commitments Developing and LDCs are entitled to get Technical assistance.
      • After the approval from Cabinet in February 2016, India Notified its category “A” commitments to WTO under the (TFA) in March, 2016 and later on ratified it in April, 2016. Approximately 70% of the total provisions given under TFA has been notified as category “A”. India has not categorised any provisions under category “C”.
      • The Cabinet has also approved the setting up of a National Committee on Trade Facilitation(NCTF) to facilitate both domestic coordination and implementation of the provisions under the Chairpersonship of Cabinet Secretary.

       Signing of MOU with GSTN on data sharing

      • DGFT on Oct 27, 2016 signed an MOU with the Goods and Services Network (GSTN) for sharing of foreign exchange realisation and Import Export code data. This will strengthen processing of export transactions of taxpayers under GST, increase transparency and reduce human interface.
      • DGFT has signed MOUs with 14 state governments 2 central government agencies and GSTN for sharing of the data. At the state level, Commercial Tax Departments of 14 states have signed MoU with DGFT for receiving e-BRC data for VAT refund purposes. These are: (i) Maharashtra, (ii) Delhi, (iii) Andhra Pradesh,(iv) Odisha, (v) Chhattisgarh,  (vi) Haryana, (vii)  Tamil Nadu,  (viii) Karnataka,  (ix) Gujarat, (x)  Uttar Pradesh, (xi) Madhya Pradesh,  (xii) Kerala,  (xiii) Goa, (xiv) Bihar.
      • In addition, Ministry of Finance, Enforcement Directorate, Agricultural & Processed Food Products Export Development Authority and GSTN have signed MoU.

       Increased Trade Interaction

      • India organized the 1st BRICS Trade Fair from October 12-14, 2016 at India Trade Promotion Organisation (ITPO), Pragati Maidan, New Delhi.
      • There were 397 exhibitors in the BRICS Trade Fair with participation from 14,612 business representatives.
      • A number of key sectors such as agriculture and agro processing, auto and auto components, chemicals, green energy, handicrafts, healthcare and pharmaceuticals, high technology, ICT, infrastructure, leather, machine tools, mining and textiles and apparel were represented in the Fair.
      • There were 1,601 Business to Business (B2B) meetings held during the BRICS Trade Fair.
      • The BRICS Business Forum was also held on the sidelines of the BRICS Trade Fair that discussed pertinent topics like green energy, infrastructure development and finance etc.

      • Signing of Memorandum of Understanding (MOU) between the Ministry of Commerce and Industry of the Republic of India and the Ministry of Economic Development of the Russian Federation on expansion of Bilateral Trade and Economic Cooperation (15.10.2016).
      • Proposed Agreement on Trade, Commerce and Transit between India and Bhutan signed on 12.11.2016.
      • 7th session of India-Greece JEC convened in New Delhi on 23.11.2016. Agreed Minutes of JEC signed by CS & Mr. George Katrougalos, Alternate Minister for Foreign Affairs, Hellenic Republic on 23.11.2016. Deliberations of JEC reflected and reaffirmed cordial relations between two countries.

      RCEP under active negotiation. The 15th round was held in October, 2016 at Tianjin, China and 16th RCEP round in December, 2016 at Tangerang, Indonesia. There was an intersessional ministerial held on 03.11.2016 at Cebu, Philippines, wherein, positions on goods, services and investment were clearly articulated by participating countries.

      INNOPROM - 2016

      INNOPROM is the largest Industrial Trade Fair in Russia held annually in Yekaterinburg.  India participated in INNOPROM 2016 held on 11-14 July, 2016 as a “Partner Country”, with 117 Indian Companies. The States of Maharashtra, Rajasthan, Andhra Pradesh, Gujarat, Himachal Pradesh and Jharkhand also participated in the event along with various Ministries / Departments / Public Sector Undertakings of Central Government such as Department of Heavy Industry, Department of Electronics & IT, Ministry of Tourism, National Institute of Design, NTPC, NHPC, NEEPCO and Power Grid Corporation.  The Trade Fair was attended by around 700 exhibitors from 95 countries. Participation in INNOPROM 2016 provided opportunities for direct interaction with the global and Russian producers, awareness of best-in-class new manufacturing technologies, international and inter-industrial networking, etc.

      Board of Trade – re-constituted on 23rd March, 2016

      • First meeting held on 6th April, 2016. Participation by various Members of the Board and some special invitees, comprising senior officials from Government and representatives of certain sectors of trade and industry.
      • Exporters were asked to provide inputs and suggestions on possible trade policy interventions, the institutional framework and possibilities for enhancing trade competitiveness.

      Global Exhibition on Services (GES)

      • Two editions held in April, 2015 and in April, 2016.
      • Department of Commerce organizes GES, in association with Services Export Promotion Council (SEPC) and Confederation of Indian Industry (CII).
      • Provides a platform to all the participants from the services industry and other related industry to interact with, and explore new business avenues. 

      Standard Conclaves – held in 2014, 2015 and 2016

      • Government is committed to transforming India into a manufacturing and exporting hub. This is possible only if India’s products are of world class standard.
      • Department of Commerce in collaboration with trade bodies and knowledge partners organizes National Standards Conclave every year.
      • Eight Standards Conclaves (three national and five regional) have been already held to generate awareness.
      • Objective of these Standard Conclaves is to find out gaps in India’s preparedness in this matter to address critical issues related to quality control and the vision of zero defect zero effect state of art manufacturing in India.

      Building the India Brand

      A long term branding strategy has been conceptualised to enable India to hold its own in a highly competitive global environment and to ensure that “Brand India‟ becomes synonymous with high quality. Further, a programme to promote the branding and commercialisation of products registered as Geographical Indications and to promote their exports will be initiated within one year of this policy coming into force.

      Institutional Mechanisms for Trade Promotion

      The schemes for trade promotion under the Department of Commerce, namely, the Market Access Initiative (MAI) Scheme and the Market Development Assistance Scheme will continue. Efforts will be made to support the development of infrastructure for holding conventions in all major tier 1 and tier 2 States. A major convention-cum-exhibition centre will be developed at Pragati Maidan in Delhi replacing the present infrastructure. Export Promotion Councils are being strengthened, both in terms of technical capabilities and management structures.

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