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: VAT RATES :: due date for vat payment :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: form 3cd
 
 
Service Tax »
 Goods and Services Tax: Beyond audit & scrutiny, dual control still a grey area
 India to levy service tax on freight for imports on delivered basis
 Income tax relief must be blended with additional tax measures
 9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
 GST rollout uncertainty hits Budget 2017 calculations
 GST now set for July 1 roll-out, dual control hurdle finally over
 Grant of Registration under DVAT and CST
 Do not raise service tax, says Chamber
 Excise, service taxpayers to migrate to GST portal by Jan 31
 Centre, state governments work on formula for 'GST on high seas'
 What is service tax?

Remove service tax for loans given to poor
February, 12th 2016

Financial inclusion is a national priority for the government, whose commitment to inclusive growth is commendable.

The Prime Minister’s Jan Dhan Yojana initiative and MUDRA are shining examples of the government’s execution edge. Seventy per cent of the 20.5 crore Jan Dhan accounts opened are operational and the average balance is ?1, 505 per account. The Pradhan Mantri Mudra Yojana is a game changer.

In this context, we urge Finance Minister Arun Jaitley to favourably consider the following in his forthcoming Budget.

Indirect tax

Economically weaker section (EWS) versus middle class: Middle-income group gets tax concessions on insurance premium paid and also on interest paid on housing loans.

The law does not preclude the EWS from getting these concessions because they are below the tax bracket or not equipped to file a return. Then service tax on financial services extended to them becomes a poverty premium.

We would request the FM to consider waiving the service tax on any fee payable on all micro loans (less than ?50,000) extended by NBFC-MFIs and on micro insurance (sum insured of less than ?50,000) premium paid. A waiver of service tax on Rupay card will be helpful.

The revenue loss on this account will be minimal but service tax, being an indirect tax, is collected from 3.42 crore beneficiaries through NBFC-MFIs. The waiver adds to the operational efficiency.

Stamp duty

A blanket waiver of stamp duty on all deeds of hypothecation and assignment deeds executed by NBFC-MFIs will reduce the transaction cost.

Direct tax

The provision for bad and doubtful assets made by banks and FIs are allowed as a tax deduction. But not NBFC-MFIs who are also subjected to prudential norms like capital adequacy, provisioning, mark to market, ALM (asset liability management) and so on.

Therefore, NBFC-MFIs should be allowed to treat provisioning made on credit assets as a tax deductible expenditure.

The amendment in Section 36 (1) (Vii a) of the Income-Tax Act should be cross referenced to all applicable sections including Sec 115 JB.

All that the industry is seeking is a level playing field and who else can we turn to except the Finance Minister.

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

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