CORPORATE AND PROFESSIONAL UPDATES 9TH JUNE 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT holds that Executive Search Services fees (‘ESF’) received by assessee (a Dutch company) not taxable as FTS under Article 12 of India-Netherlands DTAA for AY 2011-12; Rejects Revenue’s stand that ESF, which was received pursuant to Service Agreement (SA) with Indian group entity (SSIPL), was to be treated as ancillary and subsidiary to license fee (taxed as royalty) received from SSIPL under another agreement viz. License Agreement (LA) which was towards use of trade name, trademark, logo and the rights to use software;[TS-288-ITAT-2018(Mum)]
  • Delhi ITAT Special Bench (majority view) rules in favour of Nokia Networks OY (assessee, a Finnish company), holds Nokia India Pvt. Ltd. (NIPL, Indian subsidiary) does not constitute assessee’s PE in India for AYs 1997-98 and 1998-99; [TS-289-ITAT-2018(DEL)]
  • Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction
  • CBDT dedicates Fortnight for Disposal of Pending Appeals.
  • Central Govt has decided to make PAN mandatory for remitting money abroad as the RBI has decided to stringent norms for Liberalized Remittance Scheme (LRS) as per which, anyone who is utilizing the scheme will now have to share PAN details – something that was not applicable earlier with regards to CA transactions up to $25,000.
  • Kolkata ITAT allows Sec. 10AA benefit to assessee in respect of international trading, warehousing and consultancy income for AY 2009-10; ITAT acknowledges that trading activity is not expressly covered u/s 10AA, but observes that as per the Special Economic Zone Act, 2005 (SEZ Act) and its Rules, 2006, definition of ‘service’ included trading activity; [TS-292-ITAT-2018(Kol)]
  • Mumbai ITAT confirms CIT(A)’s Rs. 50cr relief to industrialist Anil Ambani, allows Sec. 37(1) deduction for ‘consent’ fees /”settlement charges” paid by Mr. Ambani w.r.t charges of alleged violation of SEBI Act/Regulations; AO disallowed the said amount, reasoning that the payment was for ‘violation’ of provisions of SEBI Act and hence made for an ‘offence’ and therefore liable to be disallowed by invoking Explanation to Sec. 37(1); [TS-291-ITAT-2018(Mum)]

INDIRECT TAX

  • LAST DATE FOR SUBMITTING GSTR 1 FOR registered persons filing monthly returns for the month of May 2018 is 10th June 2018.

FAQ on E-WAY BILLS:

  • Query:If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
  • Answer:The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.
  • Query: How the transporter is identified or assigned the e-way bill by the taxpayer for transportation?
  • Answer:While generating e-way bill the taxpayer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update further transportation details in Part B of eway bill.

MCA UPDATES     

  • MCA has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases.
  • The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.

RBI UPDATES

  • RBI extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset. This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
  • RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year, citing a major upside risk to the baseline inflation on the back of high crude oil price. The central bank said that there was a 12% increase in the price of Indian crude basket, which was “sharper, earlier than expected and seems to be durable”

SEBI UPDATES

  • Sebi extended the date for submission of Aadhaar details by those investing in capital markets till a final judgment by the Supreme Court on proposed mandatory linking of 12-digit unique ID for all financial dealings.

OTHER UPDATES

  • last date for online claim of Unstructured CPE hours extended to 30th June – ICAI(Last date for submitting Self Declaration form for claiming CPE Hours under Unstructured Learning Activities for the Calendar Year 2017 – has been extended from 31st May, 2018 to 30th June, 2018)
  • Online Facility for members to update Email ID, Mobile & Address – ICAI has launched an Online Form for Members by which they can update their Mobile number and e-mail ids which are currently available in ICAI records.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 4th June 2018

Direct Tax:

  • Cochin ITAT rejects assessee’s (a software company) stand that payment to its sister concern (‘USTIPL’) under the sub-contracting agreement amounts to reimbursement of expenses, upholds applicability of TDS u/s 194J; Perusing agreement between assessee and USTIPL, ITAT notes that assessee had engaged USTIPL to depute resources and provide other administrative support to manage its project requirements with clients and in consideration, assessee had to reimburse all expenses incurred by USTIPL on the resources deputed to assessee and the apportioned cost of specific support services; [TS-278-ITAT-2018(COCH)]
  • ITAT upholds TNMM as most appropriate method (MAM) rejecting assessee’s CUP/CPM for AY 2011-12, follows Tribunal ruling in assessee own case stating that comparability under CUP method was not only faulty but devoid of proper analysis due to various assumptions and in absence of reliable data; Admits additional grounds in relation to inclusion / exclusion of comparables being fundamental and necessary for adjudication; Rejects assessee’s contention to exclude E-Zest solution as it was engaged in end-to-end development and software project development services; Remits comparability of 15 companies on various grounds such as contradicting observations of DRP and assessee, non-adjudication by lower authorities etc.; [TS-208-ITAT-2018(Bang)]
  • CBDT issued official notification for reward schemes for Income Tax Informants https://studycafe.in/2018/05/cbdt-issues-reward-schemes-for-income-tax-informants.html

Indirect Tax

  • CBEC has extended the time the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2017 to June, 2018, till the 31st day of July, 2018. Vide notification no 25/2018
  • For GST Refund GSTR-1 & 3B not must for all. Composition taxpayer to file GSTR-4, ISD-GSTR-6 & non-resident-GSTR-5. Circular 45/19/2018-GST of 30.5.18.
  • The Central Board of Indirect Taxes and Customs (CBIC) have asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
  • CBEC issued procedure for sanction of pending IGST refund claims where records have not been transmitted from GSTN to DG systems.CIRCULAR NO.12/2018-CUSTOMS [F.NO.450/119/2017-CUSIV], DATED 29-5-2018
  • Eight state governments on Thursday announced their plans to roll out the electronic way bill (e-way bill) mechanism for transport of goods within their territories by June 3, a move that would lead to pan-India implementation of the crucial ant-evasion system under the goods and services tax (GST)

FAQ on E-WAY BILLS:

  • Query:How the distance has to be calculated, if the consignments are imported from or exported to other country?
  • Answer:The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

MCA UPDATES 

  • Delhi High Court has sought a formal explanation from the MCA for its twin circulars of September 2017 that deregistered over 1 lakh companies for failure to file annual returns for three years and disqualified their directors.

RBI updates

  • RBI has ended the special dispensations granted earlier for NBFCs owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 18TH MAY 2018

Image result for corporate and professional updatesDirect Tax:

  • Gujarat HC reverses ITAT order, holds that payment to education society for recouping deficit in payment of tuition fees of employees’ children does not amount to perquisite for AY 2000-01 and 2001-02; Notes that the children of the employees were studying in that Education Society and were paying fees at a subsidized rate and burden borne by assessee per child per month never exceeded Rs. 1000; [TS-246-HC-2018(GUJ)]
  • Ahmedabad ITAT opines that location of AO, at the point of time when Tribunal hears and determines the case, is relevant for determining jurisdiction of bench to hear stay/appeals, however,  directs registry to place matter before the President for final decision on transfer of assessee’s case to Delhi benches ; [TS-240-ITAT-2018(Ahd)]
  • Where asssessee had charged depreciation for wind mills at a higher rate than what is mentioned in Schedule XIV of Companies Act, 1956,as windmill had not performed at expected level and nothing was brought on record to show how and on what basis, higher rate of depreciation was arrived,while computing book profit AO had restricted the depreciation as per Schedule XIV of Companies Act, 1956 and holding that assessee had no reason to provide depreciation at a higher rate.-Indus Finance Corporation Ltd. v. Deputy Commissioner of Income Tax.
  • HUF does not come under specified category of relative under section 56(2) (vii), Explanation (e); therefore, money received by an individual from HUF as gift would not considered as valid gift.-Gyanchand M. Bardia v. Income Tax Officer.
  • Incurred in connection with issue of shares was to be held as capital in nature: Madras- HC Sterling Holiday Financial Services Ltd. v. Assistant Commissioner of Income Tax.
  • Income Tax could be levied only when real income would accrue to assesse. Where a dispute was pending between assessee-contractor and builders, only income that had come to assessee in relevant assessment year would be taxable and not income that would have come to it if claims against builders were allowed.-HC of Kerala- Commissioner of Income Tax v. Sushil Thomas Abrahum.
  •  for individuals and HUF having income from any sources except profits and gains of business and profession, including NRIs.
  • ITR-1 Sahaj was activated earlier by the department for resident Indians having income from salaries, house property and bank interest with total income of up to Rs 50 lakh.

INDIRECT TAXES

  • Constructing residential accomodation for police couldn’t be classified as construction of complex services.-CESTAT New Delhi BENCH, Gupta Construction Company v. Commissioner of Central Excise.
  • Replacing old damaged water lines of villages was classifiable as commercial construction services.-CESTAT New Delhi- Vijay Kumar Kataria v. Commissioner of Central Excise, Delhi.
  • Where applicant is a supplier of materials for erection of towers, testing etc. called Tower Package and supply of allied services like survey and erection of towers etc. and wants a ruling on whether he is liable to pay tax on freight bills, it is held that applicant supplies works contract service and GST is to be paid at 18 per cent on entire value of composite supply, including supply of materials, freight and transportation, erection, commissioning etc.and it is merely a composite supplies.-AAR West Bengal-EMC Ltd.,In re.
  • GST waives off late fees from October for taxpayers who were unable to file GSTR-3B due to technical issues of Trans-1 filing, failed to file TRANS-1 before December 27, 2017.
  • Accommodation and restaurant services provided by applicant engaged in hotel business within premises of Hotel, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State; said services constitute ‘intra-State’ supplies and are taxable accordingly-AAR Karnataka.
  • 31 May is last day to file GSTR-1 for April if turnover 1.5 cr or more. For May file by 10 June & for June by 10 July i.e before GSTR-3B. Notification No. 18/28 March.
  • No late Filing fee if GSTR-3B from October 17 – April 18 filed by 31 May, where TRAN-1 submitted by 27 December but filed by 10 May due to technical issues.

FAQ on E-WAY BILLS:

  • Query: How is the validity of the e-way bill calculated?
  • Answer:The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 310KMs then validity period is 3+1 days.

OTHER UPDATES

  • Aadhaar not mandatory for central govt. employees for getting pension: Minister of State for Personnel. Press Trust of India.
  • DGFT has issued trade notice w.r.t Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4.

Key Date:

  • GSTR Return summary for April: 20.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates 17th April 2018

Image result for CORPORATE AND PROFESSIONALDirect Tax:

  • Kolkata ITAT grants exemption u/s 54 to assessee (an individual) for AY 2010-11, rules that mere availing of housing loan from bank cannot justify denial of exemption u/s 54 when the primary conditions for exemption have been satisfied ; Revenue denied benefit u/s 54 on the ground that assessee had obtain house building loan and capital gains earned from sale of residential units were not invested in new residential unit; Notes that assessee sold his residential units during FY 2009-10 and purchased a new residential flat whose possession was received in June, 2010, thus clarifies that the transaction was well within time stipulated u/s. 54.  [TS-176-ITAT-2018(Kol)]
  • Allahabad High Court held that Deemed dividend u/s 2(22)(e) not attracted in absence of ‘actual’ payment. [TS-179-HC-2018(ALL)]

Indirect Tax:

  • Central Board of Indirect Taxes and Customs gives clarification on the queriesregarding processing of refund applications for UIN agencies.
  • E-Way Bill system for Intra-State movement of goods, has been implemented from 15.04.18 for the States of Andhra Pradesh, Gujarat, Kerala, Telangana & Uttar Pradesh.
  • Last date for submitting GSTR 3b and payment of taxes for March 2018 is 20th April 2018.
  • The Central Board of Indirect Taxes and Customs, inter-alia, lays down procedure for recovery of central excise duty / service tax and CENVAT credit thereof riasing out of proceedings under existing law, unless recovered thereunder, and that of inadmissible transitional credit, as “arrears of tax” under CGST Act. Circular No. 42/16/2018-GST DT 13/04/2018.
  • CBIC has issued Circular, clarifying the various procedures for interception of conveyances, etc. in the light on compulsory introduction of e-way for inter-state movement of goods w.e.f April 1, 2018 and intra-state movement of goods Circular No. 41/15/2018-GST dt 13/04/2018.
  • GST Rate of Rubber Wood is 18%: In an order by the Authority for Advance Ruling, ( AAR ) Kerala, the authority clarified that rate of GST on rubber wood as 18% under the HSN4403

FAQ on E-WAY BILLS:

  • Query: How to generate the e-way bill from different registered business places?
  • Answer: The registered person can generate the e-way bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.

MCA updates

  • It is proposed to amend Companies (Registration Offices and Fees) Rules 2014 to levy additional fee @Rs.100 per day for filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013. Once notified, the additional fee @Rs.100 per day (beyond  the normal date of filing) shall become payable in respect of 23AC, 23ACA, 23AC XBRL, 23ACA XBRL, 20B, 21A, MGT-7, AOC-4, AOC-4 XBRL and AOC-4 CFS.

Key Dates:

  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 13TH APRIL 2018

Image result for CORPORATE AND PROFESSIONALDirect Tax:

  • Delhi High Court held that Reopening after 4 years with approval of DIT instead of JCIT is invalid Yum! Restaurants Asia Pte. Ltd. Vs. Dy. DIT & Ors. (Delhi High Court)
  • HC: Dismisses Revenue’s appeal; Confirms location savings, human & supply-chain intangibles TP-adjustment deletion[TS-230-HC-2018(DEL)-T P]
  • ITAT: Can’t exclude companies with operating losses considering functional similarity and profits at GP-level [TS-188-ITAT-2018(Kol )-TP]
  • Madras HC refuses to lift attachment on immovable property purchased by petitioner from a tax defaulter, noting that demand notice under Rule 2 of second schedule (as mandated u/s. 281) was served upon tax defaulter prior to the execution of the sale transaction, remarks that “The moment such a notice was served …, by virtue of Rule 16(1) of the second schedule, he became incompetent to deal with the property.”[TS-166-HC-2018(MAD) ]
  • CBDT gives Clarification regarding applicability of standard deduction to pension received from former employer
  • Shares of unquoted shares to be taxed at (deemed) fair value

Indirect Tax:

  • CESTAT Delhi held the finished products which are different types of food preparations and are new marketable products and are liable to excise duty subject to due classification as available in the Central Excise Tariff.M/s Bharat Hotel Limited Vs CCE (CESTAT Delhi)
  • Central Board of Indirect Taxes and Customs gives Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.

FAQ on E-WAY BILLS:

  • Query: In case the consignor or consignee is not having, what is to be entered in GSTIN column?
  • Answer: If the consignor or consignee is unregistered taxpayer and not having GSTIN, then the user can enter URP (Unregistered Person) in the corresponding GSTIN column.

MCA Updates

  • Directors disqualification is being removed by filing writ petition in the High court.  Last date to approach High court isApril 30, 2018.
  • Extension to 30.04.2018 of last date to file AOC-4 XBRL e-Forms using Ind AS. MCA General Circular No. 01/2018.

RBI updates

  • RBI increased the bond investment limit for foreign portfolio investors (FPI) by 0.5 per cent to 5.5 per cent of outstanding stock of securities in 2018-19 and 6 per cent of outstanding stock of securities in 2019-20.

Key Dates:

  • Due date for payment of PF for the month of March: 15.04.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

How to file return under UAE VAT

Image result for uae vatAs per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.

USE OF ACCOUNTING SOFTWARE

The business in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file.

UPLOAD RETURN

On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

VAT RETURN FORMAT     

The VAT return file should be in XML or MS Excel format.

Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal.

VALIDATE OR AUTHENTICATE

Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.

Once the VAT return file is authenticated, you are required to fill the other details required by FTA and submit.

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 28TH FEB 2018

Image result for corporate and professionalDirect Tax: 

  • 153A proceedings not restricted to those materials which were already available with dept. before search -Where pursuant to search and enquiry unaccounted consideration from purchaser had been unearthed, it could not be said that other material already available with Department had been relied upon in proceedings.Kerala HC- DR. A. V. Sreekumar v. CIT
  • No reassessment merely to investigate into accommodation entries without holding prima facie belief of escaped income- Reopening was not permissible merely to investigate facts (information about accommodation entry transactions availed by assessee) without holding prima facie belief based on relevant material towards escapement of income.ITAT Ahmdbd- Mrs. Sejal J. Panchal v. Income-tax Officer.
  • Mumbai ITAT allows set off of brought forward house property losses of AY 2009-10 and 2010-11 against income of relevant AY 2012-13 to assessee, holds Sec. 79 provisions inapplicable observing that 2 individual shareholders who became direct shareholders of assessee in AY 2012-13 (50% each) also beneficially held more than 51% of voting power through intermediate companies as at the end of previous year relevant to AY 2009-10 and 2010-11;[TS-82-ITAT-2018(Mum)]
  • ITAT Jaipur held that exemption u/s 54F cannot be denied merely for property purchase in wife name. Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
  • CBDT set higher target for zones which are performing well. It said we are looking at better advance tax collection for January-March quarter. We will be able to achieve the landmark Rs 10 lakh crore targets.

Indirect Tax:

  • CESTAT Delhi held that without marketability excise duty not leviable on semi- finished Granules, Extracts and oils.  M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

Gst updates

  • CBEC has introduced an alternative mechanism enabling the exporters to rectify the mistakes in cases where IGST refund is stuck due to invoice mismatch.
  • Online filing enabled at GST Portal, of Letter of Undertaking (LUT) GST RFD-11, to be filed in case of Exports without GST.
  • CBEC has sanctioned Rs 4,000 cr worth refunds to exporters since October. Still 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs.
  • issues directions on non-utilization of disputed credit & non-transition of blocked credit- Circular No. 33/07/2018-GST, 23rd Feb., 2018.
  • GST/Excise:Government has directed jurisdictional deputy commissioner to release security lying in form of bank fixed deposits proportionately as per the proportionate mega certificate issued by Ministry of Power for excise duty exemption. Circular No. 1064/03/2018-CX

MCA Update:

  • MCA specified that Chapter IX, Section 129 of Companies Act, 2013 Shall not apply to the companies engaged in defense production to the extent of application of relevant Accounting Standard on segment reporting. Dated 23rdFebruary 2018.
  • The Insolvency and Bankruptcy Board of India has issued a circular to designate the website ibbi.gov.inand details of the manner of publishing such Forms on the designated website.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Defaulting companies and their disqualified directors who have not filed application before NCLT for revival, What is the remedy available?
  • Answer: such companies and disqualified directors shall not be eligible to avail benefits under this Scheme as the Scheme clearly lays down that only companies whose application of revival has been filed before NCLT u/s 252 can avail benefits of this Scheme, subject to favourable order from NCLT for revival. Hence, in order to avail benefit under this Scheme, first application has to be made to NCLT u/s 252 and favorable order for revival is also to be obtained during the validity of the Scheme and thereafter overdue documents to be filed within the prescribed time limit under the Scheme.

Other updates

  • EPFO raises minimum life insurance for EPF-covered employees to Rs 2.5 lakh w.e.f. Feb 15, 2018. EFPO Notification dated 15.02.2018.
  • Commerce and industry ministry has appointed four institutes, including IIFT and ICAI, to interact with stakeholders and suggest measures to push India’s ranking in World Bank’s ease of doing business index.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 26TH FEB 2018

Image result for corporate and professional updates

Direct Tax:

Gujarat HC upholds ITAT order, confirms unexplained cash credit addition u/s 68 in case of assessee (an individual), with respect to receipt of unsecured loan despite confirmation from lender;  [TS-71-HC-2018(GUJ)]

Pune ITAT deletes Sec. 40(a)(i) disallowance for non-deduction of TDS u/s. 195 on payment of lease line charges by assessee (an Indian company) to its US parent, holds payment was not royalty under India-USA DTAA; [TS-70-ITAT-2018(PUN)]

Indirect Tax:

CBEC has issued directions under Section 168 of the CGST Act regarding non-transition of CENVAT credit under section 140 of CGST Act or non-utilization thereof in certain cases-reg. Vide Circular  No. 33/07/2018-GST, dated 23rd February 2018.

FAQ on Condonation of Delay Scheme (CODS):

Query:   Which companies cannot file overdue documents under CODS, 2018?

Answer:   Companies which have been struck off by ROCs or whose name have been removed from the Register of Companies u/s 248(5) of the Companies Act, 2013 by the ROCs shall not be eligible to file documents under this Scheme. Such companies can however, make application to NCLT for revival and upon successful order for revival avail benefits of this Scheme during the period of its validity only.

RBI Update:

The Reserve Bank of India (RBI) today launched the Ombudsman Scheme for Non-Banking Financial Companies (NBFC) vide Notification dated February 23,2018  for redressal of complaints against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934. Dated 23rd February 2018.

 Quotes of the day

“There are two primary choices in life; to accept conditions as they exist, or to accept the responsibility for changing them.”

 Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Highlights of Union Budget 2018-2019

Image result for budget 2018 for salaried

  • Slab rates kept same.
  • Education Cess and SHEC rates increased to 4% from existing 3%.
  • Charitable / Religious Trusts claiming exemption under section 11 & 12 or under section 10(23C) for a business conducted by them will be needed to follow the provisions of section 40(a)(ia), 40A and 40A(3) i.e. TDS compliance to be ensured, Cash payments to restrict within limits of Rs. 10,000 only.
  • Salaried assessee to avail a standard deduction of Rs. 40,000/-
  • Payment received on termination or modification of terms and conditions of a contract relating to business now to attract taxation.
  • A businessman converting stock in trade into capital asset has to pay the tax on the appreciation.
  • Number of amendments made in the Income Tax Act to give sanctity to the ICDS applicability like:
    • Marked to market losses as per ICDS to be permissible under section 36.
    • Foreign exchange difference in revenue items arising as per ICDS applicability to be recognised as profit or loss.
    • Insertion of section 43CB proposed to provide validity to the applicability of percentage completion method on construction contracts.
  • Immovable property relating stamp duty valuations having impact under section 43CA, 50CA and 56(2)(x) relaxed to the extent of 5% difference of the consideration received or accruing as a result of transfer.
  • Changes in income computation formula in case of truck and loading tempo operators under section 44AE for heavy goods vechile Rs. 1000 per ton of gross vehicle weight formula on per month basis to be adopted and for other vehicle Rs. 7500/- as old provision to continue.
  • Reduction in scope of exemption claimable under section 54EC from any long term capital asset to the long term capital arising on account transfer of land or building or both only. Further the redemption period of bonds also proposed to be increased to 5 years.
  • An employee leaving the job may be in receipt of any compensation or other payment from any person in connection with such termination or for the modification of terms and conditions of such employment shall be taxable for the same as income by way of other sources, amendment proposed under section 56.
  • Certain amendments made under section 79, 115JB and 140 to acknowledge and provide relief in cases covered under the Insolvency and Bankruptcy Code 2016.
  • Health insurance premium contribution in case of senior and very senior citizens extended to Rs. 50,000/- : amendment under section 80D
  • Quantum of deduction under section 80DDB for medical treatment in case of a senior citizen and very senior citizen increase from Rs. 60,000 and Rs.80,000 respectively to Rs. 1,00,000/-
  • Increase in scope of section 80IAC by modifying the definition of ‘eligible business’ as to include even start-up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment or wealth creation. Further last dated of incorporation of business extended from 31.3.2019 to 31.03.2021.
  • Relation of minimum number for days of employment of an employee to 240 days also relaxed to just 150 days in case of footwear or leather products even.
  • New deduction section 80PA proposed to be inserted to provide 100% deduction to Producer Companies from eligible business being marketing of agricultural produce grown by the members or purchase of agricultural implements, seeds, livestock or other articles intended for agriculture or processing the agricultural produce of the members.
  • Section 80TTB to be inserted to provide relief to senior citizens in respect of income arising in form of interest from banking company, cooperative society and post office to the extent of Rs. 50,000 for a financial year. However in such case the benefit of section 80TTA shall not be available.
  • Proposed insertion of section 112A to tax long term capital gain arising on account of transfer of listed shares and units of equity oriented mutual fund units @ 10% on an amount exceeding Rs. 1 lakh. However cost for such purposes prima-facie to take color from fair market value as on 31.01.2018.
  • Dividend in the nature of section 2(22)(e) also to attract dividend distribution tax on company @ 30%.
  • Alignment of dividend distribution tax rates on dividends distributed by various kinds of mutual funds under section 115R.
  • Prima-facie adjustment under section 143(1) on account of mismatch between form 26AS and form 16 or 16A not to take place wef AY 2019-2020.
  • New sub-section (3A) proposed to be inserted under section 143 to bring up an e-assessment procedure as per Budget Speech of Hon’ble Finance Minister.
  • ICDS further strengthened by making necessary amendment in section 145A.
  • New section 145B proposed to provide certain exceptions of taxation in certain special cases.
  • No TDS from senior citizen resident payees for payment of interest on time and recurring deposits upto Rs. 50,000 during a financial year.
  • No substantial amendments in assessment, TDS, TCS, remedies and penalty procedures.

Union Budget 2018

The proposed tax rates for the next financial year 2018-19

Tax Rate* for an individual for the A.Y. 2019-20
Income Rates of Income-tax
Individual (Age less than 60 Years) Senior Citizen (Age above 60 Years) Super Senior Citizen (Age above 80 Years)
1 Up to Rs. 2,50,000 Nil Nil Nil
2 Rs. 2,50,000 to Rs. 3,00,000 5% Nil Nil
3 Rs. 3,00,000 to Rs. 5,00,000 5% 5% Nil
4 Rs. 5,00,000 to Rs. 10,00,000 20% 20% 20%
5 Above Rs. 10,00,000 30% 30% 30%

*The above rates are exclusive of surcharge and cess.

A resident individual, whose taxable income does not exceed Rs. 3, 50,000, can claim a tax rebate under section 87A. The amount of rebate shall be lower of 100% of income-tax or Rs. 2,500.

Tax Rates* for Corporate Assessee for the A.Y. 2019-20
Status of Taxpayer Rates of income-tax
1 Firms/Local Authority 30%
2 Domestic Company 30%/25%#
3 Foreign Company 40%
# Tax rate is 25% if turnover or gross receipts of the domestic company in the previous year 2016-17 doesn’t exceed Rs. 250 crore

*The above rates are exclusive of surcharge and cess.

Tax Rates* for Co-operatives Societies for the A.Y. 2019-20
Income Rates of income-tax
1 Up to Rs. 10,000 10%
2 Rs.10,000 – Rs.20,000 20%
3 Above Rs. 20,000 30%

*The above rates are exclusive of surcharge and cess.

*Rates of Surcharge
Particulars Taxable Income
50 Lacs to 1 Crore 1 Crore to 10 Crores Exceeding 10 Crores
Individuals/HUF 10% 15% 15%
Firm/ Local Authority/ Co-operative Society Nil 12% 12%
Domestic Company Nil 7% 12%
Foreign Company Nil 2% 5%
Co-operative Societies Nil 12% 12%

*The health &education cess at the rate of 4% shall be computed on aggregate of Income-Tax and Surcharge.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

A quick glance on Impacted the Economy & Taxation on Budget 2018

Image result for budget 2018 india

Arun Jaitey recalls the measures — like GST, FDI, demonetisation, etc. — taken by the NDA government in the past four years that have impacted the economy of the country. 

The government estimates 7.2-7.5% GDP growth in second half of the current FY18.

Fiscal deficit for 2017-18 at 3.5% and projected for 2018-19 at 3.3%

Divestment target for 2018-19 has been set at Rs 80,000 crore

Proposed spending on rural infra is Rs 14.34 lakh crore.

Rs 5 lakh per family annually to be given for medical reimbursement under the National Health Protection Scheme.

Impact on Taxation in Budget 2018

  • No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax. However Education cess is being increased from 3 to 4 % to be known as Education and Health cess.
  • However  for Domestic Companies having total turnover or  gross receipts  not exceeding  Rs 250 crores in Financial year 2016-17 shall be liable to pay tax at 25% as against present ceiling of Rs 50 crore in Financial year 2015-16.
  • Long term Capital gain exemption under section 10(38) in respect of listed STT paid shares being withdrawn.
  • However capital gain up to 31.1.2018 shall not be taxed as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
  • Tax on STT paid long term capital Gain will be 10% under Section 112A. Further such tax will be liable for TDS.
  • Standard Deduction of Rs 40,000 for salaried employees. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800.
  • Provision of Section 43CA, 50C and 56(2) (x) being amended to allow 5% of sale consideration in variation Vis a Vis stamp duty value. On account of location, disadvantage etc.
  • Provision of section 40(IA) and 40A (3) and 40A (3A) are being made applicable to Charitable Trust. Hence expenditure incurred without deduction of tax and in cash will not be eligible as application of income under section 10(23C) and section 11(1) (a).
  • Agriculture Commodity Derivative income /loss also not to be considered as speculative under section 43(5).
  • Income Computation and Disclosure Standards (ICDS) being given statutory backing in view of decision of Delhi High Court decision.
  • Marked to market loss computed as per ICDS to be allowed under section 36.
  • Gain or loss in Foreign Exchange as per ICDS to be allowed under new section 43AA.
  • Construction Contract income to be computed on percentage completion method as per ICDS.
  • Valuation of Inventory including Securities to be as per ICDS.
  • Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
  • Conversion of stock in trade to capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.
  • 54EC benefit of investment in Bonds to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.
  • PAN to be obtained by all entities including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2, 50,000 or more. All directors, partners, members of such entities also to obtain PAN.
  • All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.
  • Assessments to be E assessment under new section 143(3A).
  • No adjustment under section 143(1) while processing on account of mismatch with 26AS and 16A.
  • Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.
  • Penalty for non filing financial return as required under section 285BA being increased to Rs 500 per day.
  • PAN to be used as Unique Entity Number for non- individuals from April 1.
  • Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.

INDUSTRIAL IMPACT  ANALYSIS

  • This budget will accelerate economic growth, it is focused on all sectors: PM Modi
  • Prime Minister Narendra Modi praises his finance minister Arun Jaitley for delivering a budget that is “farmer friendly, common citizen friendly, business environment-friendly and development friendly.”
  • Govt’s health scheme to cover 10 crore poor families is world’s largest government-funded health protection scheme.
  • Arun Jaitley proposed to tax long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation.
  • Electronic IT assessment will be rolled out across the country, leading to greater efficiency and transparency: FM
  • Mobile phones set to become costlier as custom duty on them has been increased to 20 per cent.
  • Health and education cess has been increased to 4 per cent.
  • For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000: FM Jaitley
  • FM Jaitley proposes to introduce tax on distributed income by equity oriented mutual funds at 10 per cent.
  • Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses: FM Jaitley
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent: FM
  • Arun Jaitley says that the government does not propose any changes in tax slabs for the salaried class this year.
  • FM proposes a fiscal deficit of 3.3% of GDP for 2018-19.
  • Finance Minister Arun Jaitley proposes revising emoluments as per the following structure:– Rs 5 lakh for the President of India
    — Rs 4 lakh for the Vice President
    — Rs 3.5 lakh for the Governors
  • Jaitley also proposes automatic revision of emoluments of Parliamentarians every five years, indexed to inflation.
  • We have already exceeded our disinvestment target, announces Arun Jaitley.
    Disinvestment target for 2017-18 has been exceeded and will reach Rs 1 lakh crore. Target for 2018-19 is Rs 80,000 crore.
  • 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access.
  • Government will take all steps to eliminate use of cryptocurrencies which are funding illegitimate transactions.
  • Govt announces Amrut program to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth Rs 19,428 core will be awarded: FM
  • NITI Aayog will establish a national programme to direct our efforts in the area of Artificial Intelligence towards national development: FM
  • Airport capacity to be hiked to handle 1 billion trips every year.
  • Arun Jaitley says that 4,000 km of new railway track will be laid down by 2019.
  • All railways stations with footfall more than 25,000 to have escalators, says the Finance Minister.
  • Mumbai transport receives Rs 40,000 crore.
  • The government will undertake redevelopment of 600 major railway stations across the country.
  • Arun Jaitley announces capital expenditure of Rs 1,48,528 crore for Indian Railways in 2018-19.
  • National Heritage City Development Augmentation Scheme has been undertaken to preserve and protect heritage cities in the country, announces the Finance Minister.
  • Government to contribute 12 per cent of EPF contribution for new employees in all sectors: FM
  • Infrastructure is the growth driver of economy: Jaitley
  • Target of 3 lakh crore for lending under PM Mudra Yojana: FM
  • MSME enterprises are a major element for growth, says Jaitley. He also added that mass formalization of MSME sector is happening after demonetization and GST.
  • Govt will launch health scheme to cover 10 crore poor families, Arun Jaitley says.
  • The Government is slowly but steadily progressing towards universal health coverage
  • Government aims to bring 60 crore bank accounts under the Jan Dhan Yojana.
  • Eklavya schools to be started for Scheduled Tribe populations: Finance Minister
  • Rs 600 crore allocated to Tuberculosis patients undergoing treatment.
  • Govt will set up two new Schools of Planning and Architecture, says Finance Minister Jaitley.
  • To tackle brain drain, Jaitley announces scheme to identify bright students pursuing B Tech in premiere engineering institutes, and providing them higher-education opportunities in the IITs and IISc. These students will receive handsome fellowships, and will be expected to dedicate a few hours to teach in higher education institutions weekly.
  • Specialized railway university to be set up at Vadodara.
  • Jaitley proposed integrated BEd programmed for teachers: “training of teachers during service is essential.” Technology will be the biggest driver in improving the quality of education.
  • Budget allocates money for social security and protection programme for all widows and orphaned children.
  • We have a target to provide all Indians with their own homes by 2022, says Jaitley.
  • Ujjwala scheme to amplify targets, will now provide 8 crore rural women free LPG connections.
  • Air pollution in Delhi-NCR has been a cause of concern, govt has proposed subsidized machinery for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh and NCT Delhi.
  • Govt of India will take necessary measures to put in place measures for the state government to purchase surplus solar power produced by local farmers at suitable prices.
  • Arun Jaitley proposes a sum of Rs 500 crore for ‘Operation Green’ on the lines of ‘Operation Flood’.
  • Food processing sector is going at an average of 8 per cent per annum.
  • We have been saying it for years that India is primarily an agricultural country: Jaitley
  • Arun Jaitley on Minimum Support Price of agricultural products: Only increasing the MSP is not enough, the government will fix the MSP of agricultural products at 1.5 times the market rate.
  • Our emphasis is on generating higher benefits and productive employment for the farmers: Jaitley while addressing the agricultural sector in his Budget speech 2018.
  • Our government has worked sincerely, and without weighing the political costs, hoping that benefits are delivered to people at their doorsteps. The Direct Benefit Transfer system of India is a success story that is reiterated across the world: Jaitley.
  • This year’s Budget will particularly focus on agriculture, says Jaitley.
  • The finance minister also pointed out that India is one of the fastest-growing economies in the world.
  • Indian economy has performed very well since our government took over in May 2014, says Arun Jaitley.

SECTOR WISE ANALYSIS IN BUDGET 2018

budget impact on Banking and Financial Sector

The government’s decision to impose long-term capital gains tax on equity investments may dent investor sentiment for financial services companies, life insurers and providers of mutual fund products including IDFC Ltd., Reliance Capital Ltd., Aditya Birla Capital Ltd., ICICI Prudential Life Insurance Co Ltd., HDFC Standard Life Insurance Co Ltd., General Insurance Corp of India

budget impact on Defense Sector

Jaitley praised the armed forces and promised an industry-friendly policy to promote defense production as he addressed parliament. But there was no indication of a huge boost to defense spending. Companies such as Bharat Forge Ltd. may not see a boost.

Impact of budget on agriculture sector  

Farmers have been protesting across the country. This budget promises to raise the minimum price offered to farmers for crops, while investing heavily in agricultural markets across India. It also delivers more money for rural areas, including irrigation projects and aquaculture projects, and directs state governments to purchase extra solar power generated by farmers using solar-powered pumps. Agriculture-focused companies such as Shakti Pumps India Ltd., Jain Irrigation Systems Ltd., KSB Pumps Ltd., Kirloskar Brothers Ltd., Avanti Feeds Ltd., Waterbase Ltd., JK Agri Genetics Ltd., PI Industries Ltd. could benefit.

Health Care Providers

The government’s new flagship National Health Protection Scheme, which aims to insure as much as 500 million people for up to 500,000 rupees a year of care, could benefit companies such as Apollo Hospitals Enterprise Ltd., India’s largest hospital company, as well as Fortis Healthcare Ltd.

Effect of budget on Transport Companies

With Jaitley promising record infrastructure spending on roads and railways, construction and engineering firms, as well as train wagon-producers, could benefit. That includes Larsen & Toubro Ltd., Hindustan Construction Co Ltd., NCC Ltd., IRB Infrastructure Developers Ltd., Dilip Buildcon Ltd., Titagarh Wagons Ltd., and Cimmco Ltd.

FOR Consumer Companies in budget

With boosted spending on India’s vast hinterland, fast-moving consumer goods companies such as Hindustan Unilever Ltd., Britannia Industries Ltd. and Marico Ltd.could benefit as day laborers get jobs and disposable income. Other companies with rural exposure include: Hero MotoCorp Ltd., Mahindra & Mahindra Ltd., Larsen & Toubro Ltd.

Budget effect on Jewelers

Gold necklaces hang on display at a jewelry store in Pune. With 60 percent of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

Impact of budget on Airports

With the government pledging to expand regional airport construction, firms such as GMR Infrastructure Ltd. and GVK Power & Infrastructure Ltd. could benefit.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)