Tamil Nadu GST Department Issues Instructions For Initiation Of Action On Non-Filers Of GST Returns

• Dec 06, 2022
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 The Tamil Nadu GST Department has issued instructions in respect of procedures for initiation of action against non-filers of returns under the Tamil Nadu Goods and Service Tax Act, 2017 (TNGST Act).

GST

Works under SBM to attract GST if not done for govts, authorities: AAR

• Dec 06, 2022

Even if supplies are made under a government scheme, these may not be exempt from Goods and Services Tax (GST) if these are not directly supplied to governments or local authorities. Work done for State Urban Development Agency (SUDA) under the Swachh Bharat Mission (SBM) and Mission Nirmal Bangla would not be exempt from GST, according to the state Authority for Advance Rulings (AAR). The work will attract 18 per cent GST, broken into 9 per cent each for central and state GSTs, it ruled.

GST

DTAA amendment by Australia likely to come into force from April 1

Dec 06, 2022                                                                                                                                                                                                                                                                                The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry on Wednesday. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million. “The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

International Tax

Rationalisation in long-term capital gains tax structure on the anvil

5TH DECEMBER,2022

The finance ministry is looking at rationalising long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefit to make it more relevant, an official said on Friday. Currently, shares held for more than one year attract a 10 per cent tax on long-term capital gains. Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long term capital gains tax. The revenue department is now looking at rationalising the tax rates as well as holding period for calculating long-term capital gains and an announcement is likely in the 2023-24 Budget to be presented in Parliament on February 1.

Income Tax

Need more direct and indirect tax reforms: Tarun Bajaj

• 5TH DECEMBER,2022
  With regard to direct taxes, there is a need to "fix the capital gains on all fronts. Second is the personal income tax and the third is to rewrite the code itself to simplify it," Bajaj told ET in an interview. "If you do that, litigation will reduce," he said, laying down the agenda for reform. He said the goods and services tax (GST) needs to be rationalised and there is a case for making the exemption-less personal income tax regime better than the old one. In the case of GST, the number of slabs needs to be reduced and another look taken at exemptions. "We are reaching a stage in our economy where we need to give complete stability to the tax structures on both sides," he said.
  

General

Need more direct and indirect tax reforms: Tarun Bajaj

• Dec 05, 2022
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There is need for further reforms in the direct and indirect tax regimes, revenue secretary Tarun Bajaj said.

With regard to direct taxes, there is a need to "fix the capital gains on all fronts. Second is the personal income tax and the third is to rewrite the code itself to simplify it," Bajaj told ET in an interview. "If you do that, litigation will reduce," he said, laying down the agenda for reform.

He said the goods and services tax (GST) needs to be rationalised and there is a case for making the exemption-less personal income tax regime better than the old one. In the case of GST, the number of slabs needs to be reduced and another look taken at exemptions. "We are reaching a stage in our economy where we need to give complete stability to the tax structures on both sides," he said.

Income Tax

I-T dept sends notices to firms to enquire about their foreign assets

• Dec 05, 2022

• The Income Tax (I-T) Department's Foreign Asset Investigation Unit (FAIU) has reportedly sent notices to local companies, including some listed entities enquiring about the hidden assets overseas. The bid to hunt for black money by FAIU was earlier limited only to individuals but has now expanded to companies, a report by the Economic Times (ET) said. The intelligence unit has sent notices to at least eight Mumbai firms and asked for information on their directors. Earlier, FAIU's enquiries were limited to residents' hidden assets, including their bank accounts and shareholding in foreign firms and trusts.

Income Tax

Budget may not be right time to restructure capital gains tax: Revenue Secretary

• Dec 05, 2022                                                                                                                                            

• The new alternative tax regime should be incentivised to encourage more taxpayers to adopt it, says Revenue Secretary Tarun Bajaj in an interview with Shrimi Choudhary. Bajaj, who superannuates today, suggests this could be done by raising the lower tax slab up to Rs 7-7.5 lakh, from the current Rs 2.5 lakh. He also stresses that restructuring the capital gains tax regime requires detailed consultation and the run-up to the Budget may not be the right time to do this.

Income Tax