Taxation
No pursuit of MAT claims, no reopening old tax demands: CBDT
This follows Finance Minister Arun Jaitley's Friday announcement of a high-level committee for looking into the issue of levy of MAT on FIIs
 
The Central Board of Direct Taxes (CBDT) on Monday said it will not issue any new demands for payments, and will take no coercive action to pursue claims that have already been filed under the controversial minimum alternate tax (MAT).
 
This follows Finance Minister Arun Jaitley's Friday announcement of a high-level committee for looking into the issue of levy of MAT on FIIs.
 
"In the light of FM's announcement, officers dealing with International Taxes have been advised that no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the cases for foreign companies. Issues of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation," a CBDT circular said here.
 
Replying to the debate on the Finance Bill, 2015-16, in the Rajya Sabha last week, Jaitley said that he had received a large number of representations on MAT applicable to FIIs as well as a few other tax issues, which are essentially legacy issues, and these would be referred to a committee headed by Justice A.P. Shah, the chairman of the Law Commission.
 
Jaitley had announced exempting FIIs from paying MAT on the capital gains earned by them, but soon after the income tax department sent notice to at least 90 foreign portfolio investors (FPIs).
 
With the uncertainty created by MAT, foreign investors sold around $630 million in Indian shares and bonds on Wednesday, marking the biggest single-day sales since January 2014.
 
As per preliminary depositary data, it was the biggest single day sell-off since foreign investors sold around a net $877 million on January 27, 2014, when emerging markets suffered from withdrawals sparked by fears of the US Federal Reserve raising interest rates.
 
Shares and bonds wiped out entire gains for the year over the past few weeks, with the Nifty down 11 percent since hitting a record high on March 4.

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Ramalinga Raju, others get bail in Satyam case
A city court on Monday granted bail to B. Ramalinga Raju and all other accused in multi-crore-rupee accounting fraud.
 
The metropolitan sessions court granted bail to Satyam Computers Services Limited (SCSL) founder Ramalinga Raju and his brother Rama Raju on a personal bond amount of Rs.1 lakh each.
 
Another brother Suryanarayana Raju and seven others were given bail with bonds of Rs.50,000 each.
 
Raju, the kingpin of the scam, and other convicts, currently lodged in Cherlapally Central Prison here, had filed the bail application besides challenging their conviction and sentences.
 
The additional chief metropolitan magistrate's court on April 9 had found them guilty in the case relating to the country's biggest accounting fraud, which came to light in 2009.
 
The court had sentenced them to seven years' rigorous imprisonment. It also imposed a fine of Rs.5.5 crore each on Ramalinga Raju and Rama Raju.

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More gains for Nifty, Bank Nifty and Sensex – Monday closing report
Nifty may be headed for 8,500 over the next few days and Bank Nifty towards 18,400
 
A positive closing of the US indices Friday and an oversold status of many stocks triggered a rally in India on Monday. The positive closing of US indices was on the back of robust headline reading for US employment. Higher opening of the NSE’s CNX Nifty was followed by a gradual up move. 
 
The S&P BSE Sensex opened at 27,249 while Nifty opened at 8,243. After hitting a low at 27,231 and 8,225, both Sensex and Nifty moved higher to reach the level of 27,544 and 8,333, respectively. Both the indices closed near to the day’s high. Sensex closed at 27,507 (up 402 points or 1.48%), while Nifty closed at 8,325 (up 134 points or 1.63%). Bank Nifty too had the similar trading pattern. It opened at 17,921 and hit a low at 17,842. From there it moved up to the level of 18,241 and closed at 18,200 (up 403 points or 2.27%). NSE recorded a volume of 67.67 crore shares. India VIX fell 2.54% to close at 18.6250.  
 
The Indian government will unveil data on inflation based on the consumer price index (CPI) for April 2015 Tuesday.
 
The union government Monday reportedly decided to send the controversial Land Acquisition Bill to the joint committee of Parliament in view of continued opposition to the proposed legislation. 
 
Rating agency Moody's said credit conditions are likely to improve for rated Indian corporates over the next 12-18 months on the back of upturn in economic activities, government's reform push and transmission of monetary easing.
According to research firm Gartner, Indian IT infrastructure spending is expected to rise 3.3% to $2.02 billion in 2015 as companies invest in building and modernising their data centres.
 
ICICI Bank’s KV Kamath Monday was appointed head of the BRICS New Development Bank being set up by the group of emerging economies formed by Brazil, Russia, India, China and South Africa.
 
Coming back to Indian stock markets, Bank of Baroda rose 16.88% to close at Rs169.65 on the BSE. It was the top gainer in ‘A’ group on the BSE. It posted an improved quarter on quarter topline for the March 2015, although its bottom line suffered due to increased provisions and contingencies. It hit a 52-week low last week. State Bank of India (SBI) rose 5.44% to close at Rs276.05 on the BSE. It was the top gainer in the Sensex 30 pack while Hindustan Unilever fell 3.34% to close at Rs864.70 on the BSE. It was the top loser in the pack. Religare Enterprises fell 3.54% to close at Rs343.60 on the BSE. It was the top loser in ‘A’ group on the BSE.
 
 On Friday, US indices closed in the green. The US Labour Department data showed on Friday nonfarm payrolls increased 223,000 in April 2015, while the unemployment rate dropped to a near seven-year low of 5.4%.
Most of the Asian indices closed mostly in the green. Shanghai Composite (3.04%) was the top gainer while SET Composite index of Thailand (0.61%) was the top loser.
 
China cut interest rates for the third time in six months on Sunday to stimulate growth and manage its huge debt. The People's Bank of China cut its benchmark, one-year lending rate by 25 basis points to 5.1% effective from today and its benchmark deposit rate by the same amount to 2.25%.
 
European indices were trading in the red while US Futures were trading marginally in the green. Eurogroup finance ministers will meet today to discuss once more Greece's progress in implementing economic reforms in exchange for bailout funds as it gets dangerously close to running out of cash. The Greece government is facing a 750 million euro ($832 million) debt repayment to the International Monetary Fund (IMF) tomorrow.
 

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