Changing GST rules, pending refunds continue to hamper SEZ exports
Incessant changes to the goods and services tax (GST) rules, also affecting refunds, and procedural issues affect export from special economic zones (SEZs). The Export Promotion Council for Export Oriented Units & Special Economic Zones (EPCES) has listed a number of persisting procedural and regulatory obstacles. “There have been a staggering 367 changes to the GST rules till April 15, since the new tax structure came into being last year,” EPCES Chairman Vinay Sharma said.
Sebi could make ‘pre-trade’ allocation mandatory in Indian markets
The Securities and Exchange Board of India (Sebi) will soon issue a set of rules for trade allocations of institutional investors such as mutual funds (MFs) or foreign portfolio investors (FPIs). Sources say Sebi could make ‘pre-trade’ allocation mandatory. Currently, pooled investors, including MFs and FPIs, are allowed to buy blocks of shares from the market without assigning these to a specific scheme. Under the new framework, funds will have to determine beforehand how much of the purchased shares would go into each scheme.
Creditors of Essar Steel could appeal against NCLT order
The committee of creditors (CoC) for Essar Steel may appeal against the order of the bankruptcy court questioning the lenders’ decision to call the second round of bids and directing them to give existing applicants 30-days to correct the problems in their bids. Two senior officials, who did not want to be named, said this issue was discussed at a closed-door marathon meeting of lenders on Tuesday. But no decision was taken. The move, if it happens, will be prompted by the fact that the lenders are not satisfied with financial bids received from Arcelor Mittal and Numetal, the two bidders, two senior officials said.
Rs 110 crore tax demand: Income Tax tribunal rules in favour of Flipkart
In a relief to e-commerce firms, the Income Tax Appellate Tribunal (ITAT) in Bangalore on Wednesday invalidated the revenue department’s treatment of their marketing expenditure as well discounts offered to retain market share as asset-creating capital expenditure that are “not deductible” from income. The ITAT decision came in the case of Flipkart, which was asked last year to pay Rs 110 crore as tax for FY16, while the company claimed nil tax liability as it had posted a loss of close to Rs 800 crore.
Videocon loan case: Tax department issues show-cause notice to Deepak Kochhar
The income tax department has issued a show cause notice to Deepak Kochhar, husband of ICICI Bank CEO Chanda Kochhar, in the wake of those sent earlier to his company NuPower Renewable after getting no response on queries about investments by Mauritius-based entities. “Show-cause notice has been sent out to him in his individual capacity… a detailed questionnaire has been sent,” said a senior income tax official aware of the development. The tax department has also sought details of Deepak Kochhar’s personal assets
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