Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: form 3cd :: VAT RATES :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: articles on VAT and GST in India :: cpt
 
 
Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

Service tax exemption on loan processing fee can be a breather
February, 26th 2013

The microfinance industry is hoping that the Union Budget will exempt the loan processing fee from service tax and give tax concession on 40 per cent of their profits.

In microfinance, service tax is applicable on the loan processing fee, which is typically one per cent of the loan amount. As the average loan size is small (about Rs 8,000 per loan), a service tax exemption will make life easier for the industry and its customers.

“The relief from service tax can be then passed on to the customers,” said Alok Prasad, CEO, Microfinance Institutions Network.

CREATION OF A SPECIAL FUND

The second expectation of MFIs from the Budget is that they be given tax concessions to the extent of 40 per cent of their profit, akin to housing finance companies and infrastructure companies under Section 36(1) of the Income Tax Act.

“Similar benefit will help the microfinance companies to retain earnings and build networth,” Prasad said.

The industry is hoping that the Government will provide some critical support this Budget to enable MFIs to function effectively.

The MFIs also expect the Government to increase the corpus of the Microfinance Equity Fund, which is operated by the Small Industries Development Bank of India (SIDBI).

The Rs 100-crore fund was set up by the Government in 2011-12 and the same has been committed fully, Prasad informed.

SIDBI uses the fund for extending equity or any other form of capital for MFIs.

MFI BILL

The MFI industry is awaiting the Micro Finance Institutions (Development and Regulation) Bill - 2012 to be enacted into a law.

The wait for microfinance companies is likely to get longer at least till the monsoon session as the Bill has not been listed for business in the on going Budget session.

A Standing Committee of Parliament is reviewing the Bill, which elaborates on the role of MFIs as facilitators of credit and other microfinance services to the poor.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions