Interest Equalization rate increases from 3% to 5% from MSME exporters
In order to help the exporter, it has been decided by the Government of India to increase w.e.f. November 02, 2018 Interest Equalisation rate from 3% to 5% in respect of exports by the Micro, Small & Medium Enterprises (MSME) sector manufacturers under the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit. The Scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by MSMEs across all ITC(HS) codes. It is therefore, advised that the benefit of the scheme be provided to all eligible MSME Exporters.
India and China Amend Tax Treaty for Greater Flow of Information
India and China have amended their bilateral tax treaty to enable greater flow of information and help prevent tax evasion.
“The Government of India and the People’s Republic of China have signed a protocol on November 26, 2018, to amend the Double Taxation Avoidance Agreement (DTAA) for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income,” a statement from the Central Board of Direct Taxes said Monday.
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The protocol incorporates changes required to implement treaty-related minimum standards under the action reports of Base Erosion & Profit Shifting (BEPS) Project, a global agreement to curb tax evasion.
Investor Premium in Startups Under Lens
The ministry of corporate affairs (MCA) became the latest government department after the income tax to question the premium paid by investors in start ups after issuing notices to more than 2,000 startups that have raised money since 2013.People with knowledge of the notice and MCA’s thinking on the issue said the ministry has questioned the valuations at which these start ups raised money and is focusing on companies whose valuations have fallen after the first round of fund raising. The notices were issued in the past 45 days with the ministry asking whether these start ups have sought exemptions under any government scheme.
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RBI Eases Rules for Overseas Borrowing
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Cabinet approves MoU with Mauritius on Consumer Protection and Legal Metrology
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved MoU between India and Mauritius on Consumer Protection and Legal Metrology.
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Listed entities need to disclose risk management activities in their annual report
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