www.ranjca.com


	[email protected] 040-6655 2655


	Prologue Team Ranj Key Offerings Get in Touch Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Instalment Bulletins Notification Circular Income Tax Company Law Service Tax Excise Matters Customs RBI SEBI FEMA Labour Laws Central Sales Tax Accounting Standards The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Cost Inflation Index Rates of NSC Interest Gold and Silver Rates Rates of Depreciation Under Income Tax Act Rates of Depreciation Under Companies Act ROC Fee Structure (As per Companies Act, 2013) ROC Filing Fees (As per Companies Act, 2013) Application & Petition Fees (NCLT) Rates of Stamp Duty Limited Liability Partnership Fees National Industries of Classification IFSC Codes MICR Codes HSN Rate List Comparison of Deduction u/s 80TTA & 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) The Central Excise Act, 1944 Customs Act, 1962 Central Sales Tax Act, 1956 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 The Limited Liability Partnership ACT, 2008 The Securities and Exchange Board of India Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 Maharashtra Value Added Tax Act (2002) Rajasthan Value Added Tax Act, 2003 Bihar Value Added Tax Act, 2005 Karnataka Value Added Tax Act, 2003 Andhra Pradesh Value Added Tax Act, 2005 The Uttar Pradesh Value Added Tax Act 2008 West Bengal Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Gujarat Value Added Tax Act, 2003 Tamilnadu VAT ACT, 2006 Other Statutes The Indian Partnership Act, 1932 Societies Registration Act, 1860 Reserve Bank of India Act, 1934 Competition Act, 2002 Monopolies and Restrictive Trade Practices Act, 1969 Foreign Exchange Management Act, 1999 The Employees' State Insurance Act, 1948 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 Profession Tax Act Right To Information Act, 2005 Equalisation Levy Act, 2016 The Insolvency And Bankruptcy Code, 2016 Maharashtra Real Estate Regulatory Authority and Rules THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 GST Laws IGST Act , 2017 Central Goods and Services Tax Act, 2017 Union Territory Goods and Services Tax Act, 2017 GST (Compensation to States) Act, 2017 Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules Customs Valuation Rules Service Tax Rules Central Sales Tax (Delhi) Rules, 2005 Central Sales Tax (Maharashtra) Rules Entry Tax Rules Cenvat Credit Rules, 2017 GST Valuation Rules , 2016 Corporate Laws Rules Companies Rules, 2014 The Companies Unpaid Dividend Rules, 1978 Limited Liability Partnership Rules, 2009 LLP Winding up Rules, 2012 VAT Laws Rules Delhi Value Added Tax Rules, 2005 Maharashtra Value Added Tax Rules, 2005 Haryana Value Added Tax Rules, 2003 Andhra Pradesh Value Added Tax Rules, 2005 The West Bengal Value Added Tax Rules, 2005 The Uttar Pradesh Value Added Tax Rules, 2008 Punjab Value Added Tax Rules Rajasthan Value Added Tax Rules, 2006 Bihar Value Added Tax Rules, 2005 Karnataka Value Added Tax Rules, 2005 Telangna VAT Rules 2005 Gujarat Value Added Tax Rules, 2006 Tamilnadu VAT Rules, 2007 Other Statutes Baggage Rules, 2016 Profession Tax Rules NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998 NBFC and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 NBFC Auditor’s Report (Reserve Bank) Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules The Insolvency and Bankruptcy of India Rules GST Rules Central Goods and Services Tax Rule, 2017 Forms Income Tax Forms Wealth Tax Forms ROC Forms (As per Companies Act, 1956) Companies Unpaid Dividend Forms Limited Liability Partnership (LLP) LLP Winding up Service Tax Forms NBFCs Forms FEMA Forms ROC Forms (As per Companies Act, 2013) Income Declaration Forms VAT Forms DVAT Forms MVAT Forms Bihar VAT Forms Karnataka VAT Forms UPVAT Forms Haryana VAT Forms WB Vat Forms Punjab VAT Forms Tamil Nadu VAT Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply News Query Careers Admin Login Time Sheet

Govt panel for tax changes

Suggests ending STT on equity derivatives, stamp duty on index ones; also for rupee's internationalisation,other changes

A government- appointed panel has recommended abolition of the securities transaction tax (STT) in equity derivatives.

The standing council on international competitiveness of the Indian financial sector also suggested doing away with the stamp duty on cash- settled products such as index derivatives.

After the Special Investigative Team ( SIT) on undisclosed money noted any investor wanting to invest through participatory notes could invest afresh as a foreign portfolio investor (FPI), the council said it wanted regulatory clarifications on these instruments, through which unregistered investors invest in Indian markets.

Tackling GAAR

It has also suggested the government take measures to internationalise the rupee on the lines of the Chinese renminbi and remove uncertainty about availing of treaty benefits under the proposed General Anti- Avoidance Rules ( GAAR) on taxes.

The finance ministry has asked the public to give suggestions on the councils report by October 6.

The council was constituted in 2013 under the chairmanship of the economic affairs secretary. It also comprises the chief economic advisor, financial sector experts and economists.

The report said since STT and stamp duty add to transaction costs in equity derivatives, “STT should be removed. Stamp duty should not be applicable to cash- settled products such as index derivatives, as there is no delivery of the underling (product) taking place.” STT, announced by then Finance Minister PChidambaram in the first Budget of the earlier government, is now levied on all sale transactions on futures &options.

It is 0.01 per cent of the traded price of futures and 0.017 per cent on options premiums.

A 0.125 per cent STT is payable on the settlement price by the buyer of an option that is exercised.

If STT is paid, there is no long- term capital gains tax but if it is not paid, the latter is levied at 10 per cent.

The global scene

“In India, the levy of STT is used to determine the applicable rate of capital gains tax, with transactions charged to STT attracting a lower rate of capital gains tax. In addition, exchange transactions on which STT is paid are deemed non- speculative and can avail greater tax set- offs. Since STT is not levied on the entire currency forward and options segment, these transactions may be liable to a higher rate of capital gains tax, and may be deemed as speculative for the purpose of availing tax setoff," the report said.

In the aftermath of the Chinese central bank devaluing its currency, many prominent voices in India, including the Reserve Bank of India ( RBI), have called for internationalisation of the rupee and sought to differentiate it from capital account convertibility.

Internationalisation refers to a state where exporters from other countries agree to take payment in rupees and where the currency risks in international borrowings are borne by lenders rather than borrowers in India.

According to RBI, countries that can borrow in their own currency are less susceptible to international crises.

“Consider a time- bound plan for internationalisation of the rupee, in line with the plans of the Chinese government for internationalisation of the renminbi,” says the report, listing it as a priority for the government and the financial authorities over the longer term.

On the controversial GAAR, announced in 2012 by then finance minister Pranab Mukherjee and delayed by Arun Jaitley in his 2015- 16 budget, the report stated: “ The proposed GAAR... offers insufficient guidance on availing treaty benefits even for existing categories of FIIs ( foreign institutional investors).” It wanted certainty over these aspects. Among the other proposals, the report calls for creation of a working group for common clearing among exchange- traded products, equity, equity derivatives and currency derivatives, removal of regulatory restrictions on domestic FIs participation in equity derivatives, allowing foreign entities with commodity exposure to participate in Indian commodity derivatives, and moving to residencebased taxation over the longer term.

BLUEPRINT FOR CHANGE

The panel suggested doing away with the stamp duty on cash- settled products such as index derivatives
The finance ministry has asked the public to give suggestions on the councils report by October 6
The council was constituted in 2013 under the chairmanship of the economic affairs secretary
The council comprises the chief economic advisor, financial sector experts and economists

Business Standard, New Delhi, 8th Sept. 2015