/ Business

Fund of Funds to Provide Rs. 1L cr to Startups: Modi

Putting an end to the questions over effective utilisation of the ‘Fund of Funds’ under the Startup India initiative, the Prime Minister clarified that about Rs. 1,285 crore has been committed towards startups since the launch of the Rs. 10,000-crore fund in January 2016. In an interaction with young entrepreneurs from across the country, including cities such as Dehradun, Guwahati and Raipur, PM Narendra Modi said the fund of funds has helped venture capital firms in the country leverage investments …

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Legal Shield in the Works for Foreign Investments
/ Foreign Investment

Legal Shield in the Works for Foreign Investments

The civil aviation ministry is likely to approach the Goods and Services Tax(GST) Council soon for bringing aviation turbine fuel(ATF) under the tax regime.
Current India is working on a framework that will provide legal backing for a stable and predictable foreign investment regime in the country as it looks to attract more capital to help create jobs and accelerate economic growth.
The law that is in the works in the finance ministry is aimed at promoting and protecting foreign …

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/ Goods and Services Tax (GST)

Aviation ministry may want inclusion of ATF under GST

The civil aviation ministry is likely to approach the Goods and Services Tax(GST) Council soon for bringing aviation turbine fuel(ATF) under the tax regime.
Thursday´s meeting in the Capital was attended by AirIndia Chairman and Managing Director(CMD) Pradeep Singh Kharola, Pawan Hans CMD BP Sharma, the chief executive officer of a private airline, and the chief financial officers of other carriers.”We have given our suggestion to the ministry and Minister of State for Civil Aviation Jayant Sinha is likely to …

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/ Direct Taxation

Ecomm Cos may Need to Prepare for Withholding Tax in 2 Months

India Inc, in particular ecommerce platforms such as Amazon and Flipkart, may need to prepare for withholding tax provisions in two months under the goods and services tax (GST).
The tax deducted at source (TDS) and tax collected at source (TCS) provisions had been put on hold following petitions by industry that this would increase the compliance burden.
But with the GST regime stabilising, these provisions may be imposed from July 1, said a senior government official.
The TDS …

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/ Direct Taxation

Start-ups get partial exemption from angel tax

Since a start-up gets high investment because of its idea, applying Section 56(2)(viib) to recover the tax on pretext of inflated valuation would be prejudicial to the interest of the start-up. Startups to file new Form-1 and Form-2 in order to claim tax incentives.
The application in Form-1 shall be filed along with prescribed documents before CBDT to obtain a tax exemption certificate under Section 80-IAC. The Form-2 shall be filed by the start-up to claim exemption from the applicability …

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/ Business

Changing the Code: Boost for Home Buyers, MSMEs

The Insolvency and Bankruptcy Code review panel called for sweeping changes in the law aimed at easing insolvency rules for small enterprises and providing relief to home buyers by treating them as financial creditors while deeming the amount raised from them for real estate projects as financial debt.
The committee proposed that promoters of micro, small and medium enterprises (MSMEs) who are not wilful defaulters should be allowed to bid during the insolvency process. If adopted, that would vastly improve …

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/ Direct Taxation

LTCG tax benefits for unlisted stocks

The Lok Sabha on Wednesday passed the Finance Bill 2018, allowing the benefit of inflation adjustments to stocks that were unlisted till January 31 while levying long-term capital gains (LTCG) tax. The move might provide tax benefits to shareholders of the National Stock Exchange (NSE), others who have invested in employee stock ownership plans (ESOPs), and in certain merger and acquisition cases. The Bill retained the LTCG tax without removing the securities transaction tax (STT) and the indexation benefits provided
…
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/ Business

India’s GDP Growth Rises To 7.2% in December quarter, India Fastest Growing Economy ahead of China in race

The Central Statistics Office data shows that India grew at a rate of 7.2% in the December quarter (Q3) as compared to 6.3% in the second quarter (July-September) due to picking up growth in manufacturing and Service sectors. The number is a respite for an economy recovering from after effects of note ban and GST rollout. The manufacturing sector grew 8.1 percent in the third quarter of 2017-18, from 6.9 percent in the previous quarter. Government revenue expenditure also accelerated …

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Pre-2016 Startups may Get Breather from Angel Tax
/ Direct Taxation

Pre-2016 Startups may Get Breather from Angel Tax

India could shield startups floated prior to 2016 from the socalled angel tax to boost entrepreneurship in the country. The finance ministry has started discussions with the Department of Industrial Policy and Promotion (DIPP) on the certification of genuine startups to help with this.
The government has also asked tax officials not to pursue cases against startups.
“We had (earlier) said we will recognise startups only after 2016. We have sent a proposal to the DIPP. If DIPP agrees, then …

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/ Business

Highlights of Union Budget 2018-19

Finance Minister Shri Arun Jaitley presents general Budget 2018-19 in Parliament.
Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors.
Government says, a series of structural reforms will propel India among the fastest growing economies of the world. IMF, in its latest Update, has forecast that India will grow at 7.4% next year in the backdrop of services resuming high growth rates of 8% plus, exports expected to grow at 15% in 2017-18 …

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