MM TAX CLUB

As per recent tweet from Income Tax Department, it’s updated that, Based on feedback from taxpayers on the e-campaign for Advance Tax, the Department has identified certain inconsistencies in the data of the securities market (SFT-17) provided by one of the Reporting Entities. The reporting entity has been asked to submit a revised statement based on updated information.

Hence, the data on AIS will be updated. Taxpayers are advised to wait for further updates on AIS based on the revised statement.

India-European Free Trade Association signeda Trade and Economic Partnership Agreement (TEPA) today i.e. on 10^th March 2024.

India has been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries comprising Switzerland, Iceland, Norway & Liechtenstein. The Union Cabinet chaired by the Hon’ble Prime Minister has approved signing of the TEPA with EFTA States. EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States.

Speaking on the occasion, Shri Piyush Goyal, Minister of Commerce and Industry, Food and Consumer Affairs and Textiles said:

"TEPA is a modern and ambitious Trade Agreement. For the first time, India is signing FTA with four developed nations - an important economic bloc in Europe. For the first time in history of FTAs, binding commitment of $100 bn investment  and 1 million direct jobs in the next 15 years has been given. The agreement will give a boost to Make in India and provide opportunities to young & talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets."

The agreement comprises of 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions.

EFTA is an important regional group, with several growing opportunities for enhancing international trade in goods and services.EFTA is one important economic block out of the three (other two - EU &UK) in Europe. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.

The highlights of the agreement are:

• EFTA has committed to promote investments with the aim to increase the stock of foreign direct investments by USD 100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments. The investments do not cover foreign portfolio investment.
• For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.
• EFTA is offering 92.2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s market access offer covers 100% of non-agri products and tariff concession on Processed Agricultural Products (PAP).
• India is offering 82.7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold. The effective duty on Gold remains untouched.Sensitivity related to PLI in sectors such as pharma, medical devices & processed food etc. have been taken while extending offers. Sectors such as dairy, soya, coal and sensitive agricultural products are kept in exclusion list.
• India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.
• TEPA would stimulate our services exports in sectors of our key strength / interest such as IT services, business services, personal, cultural, sporting and recreational services, other education services, audio-visual services etc.
• Services offers from EFTA include better access through digital delivery of Services (Mode 1), commercial presence (Mode 3) and improved commitments and certainty for entry and temporary stay of key personnel (Mode 4).
• TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.
• Commitments related to Intellectual Property Rights in TEPA are at TRIPS level. The IPR chapter with Switzerland, which has high standard for IPR,shows our robust IPR regime.India’s interests in generic medicines and concerns related to evergreening of patents have been fully addressed. 
• India signals its commitment to Sustainable development, inclusive growth, social development and environmental protection
• Fosters transparency, efficiency, simplification, harmonization and consistency of trade procedures
• TEPA will empower our exporters access to specialized inputs and create conducive trade and investment environment. This would boost exports of Indian made goods as well as provide opportunities for services sector to access more markets.
• TEPA provides an opportunity to integrate into EU markets. Over 40% of Switzerland’s global services exports are to the EU. Indian companies can look to Switzerland as a base for extending its market reach to EU.
• TEPA will give impetus to “Make in India” and Atmanirbhar Bharat by encouraging domestic manufacturing in sectors such as Infrastructure and Connectivity, Manufacturing, Machinery, Pharmaceuticals, Chemicals, Food Processing, Transport and Logistics, Banking and Financial Services and Insurance.
• TEPA would accelerate creation of large number of direct jobs for India’s young aspirational workforce in next 15 years in India, including better facilities for vocational and technical training. TEPA also facilitates technology collaboration and access to world leading technologies in precision engineering, health sciences, renewable energy, Innovation and R&D.

Through e-campaign, persons/entities carrying out significant financial transactions will be informed through email/SMS to urge them to compute and deposit their due advance tax on or before 15.03.2024

The Income Tax Department has received certain information on specific financial transactions undertaken by persons/entitiesduring Financial Year(F.Y.) 2023-24. On the basis of analysis of the taxes paid so far during the current financial year, the Department has identified suchpersons/entities where payment of taxes for F.Y. 2023-24(A.Y. 2024-25) is not commensurate with the financial transactions made by the persons/entities concerned, during the said period.

Hence, as a part of taxpayer service initiative, the Department is undertaking an e-campaign,which aims to intimate such persons/entities of significant financial transactions,through email (marked as Advance Tax e-Campaign-Significant Transactions for A.Y. 2024-25) and SMS, urging themto compute their advance tax liability correctly and deposit the due advance tax on or before 15.03.2024.

The Income Tax Department receives information of specified financial transactions of taxpayersfrom various sources. To increase transparency and to promote voluntary tax compliance, this information is reflected in the Annual Information Statement (AIS) module and is available to the persons/entities for viewing. The value of ‘Significant Transactions’ in the AIS has been used for carrying out this analysis.    

For viewing the details of significant transactions, the persons/entities can login to their e-filing account (if already created) and go to the Compliance Portal. On this portal, e-Campaign tab can be accessed to view significant transactions.

Persons/entities who are not registered on the e-filing website have to first register themselves on the e-filing website. For registration, the ‘Register’ button on the e-filing website can be clicked and the relevant details can be provided therein. After successful registration, the e-filing account can be logged into and the Compliance portal can be accessed to view significant transactions through the e-Campaign tab.

This is another initiative of the Department towards easing compliance for taxpayers and reinforce its commitment towards enhancing taxpayer services

Ministry of Corporate Affairs revises threshold limits for value of Assets and Turnover for purposes of combination filings under Competition Act, 2002 as a step towards ‘Ease of doing Business’

The Ministry of Corporate Affairs has revised the existing threshold value of assets and turnover mentioned under Section 5 of the Competition Act, 2002 (the ‘Act’).

Earlier, the threshold limits prescribed under Section 5 of the Act were revised in year 2011 vide notification S. O. No. 480 (E) dated 4^th March 2011. Subsequently, the threshold limits were reviewed and revised in 2016 vide notification S. O. No. 675 (E) dated 4th March, 2016.

The value of assets and turnover after revision is as under:

#: As per the revised threshold, the increase in value is 150% over the original value under section 5 of the Competition Act, 2002.

In exercise of the powers conferred by clause (a) of section 54 of the Competition Act, 2002 (12 of 2003) it has also been decided with regards to de-minimis thresholds that the value of assets and turnover be enhanced from INR 350 crore (rupees three hundred fifty crore) to INR 450 crore (rupees four hundred fifty crore) for assets and from INR 1000 crore (rupees one thousand crore) to INR 1250 crore (rupees one thousand two hundred fifty crore) for turnover.

Circular No.2/2024-Customs dated 08^th March, 2024

Encouraging Women participation in International Trade

Attention is invited to Board's Circular No. 42/2013-Customs dated 25.10.2023 regarding setting up of ‘Customs Clearance Facilitation Committee’ (CCFC) and Circular No. 13/2015-Customs  dated  13.04.2015  pertaining  to  Permanent  Trade Facilitation  Committee’  (PTFC) instituting a structured mechanism for receiving feedback from the trade and removing bottlenecks in procedure.

2.To  make  the  most  of  trade  as  a  catalyst  for  equality,  women  must  be  represented  at  all levels. Women also must be represented across different job roles and functions of trade –be it as traders,  customs  house  agents,  freight  forwarders,  or  customsbrokers.  Keeping  in  view  the growing  participation  of  women  in  the  logistics  sector,  a  conscious  effort  is  required  by  all participants including Partner Government Agencies (PGAs) and trade bodies in this regard.

3.In view of the above, ithas been decided that the Chief Commissioners/ Commissioners should henceforth: -i.Ensure Representation of women in the Permanent Trade Facilitation Committee (PTFC) and Customs Clearance Facility Committee (CCFC) meetings, preferably through women associations.

ii.Ensure inclusion of at least one agenda point from women perspective.

iii.Encourage the Trade bodies/ custodians to establish dedicated help desks and processing mechanisms for women traders and women logistics service providers.

iv.Support in upskilling women logistics service providers, freight forwarders and custom brokers by offering relevant trainings for women.

4. This Circular may be given wide publicity by issue of suitable Trade Notice/ Public Notice. Difficulties, if any, in the implementation of the above Circular may be brought to the notice of the Board.