Commercial taxes dept detects use of multiple QR codes by hoteliers to evade tax
The vigilance wing of the Commercial taxes department in Bengaluru has uncovered hoteliers using 30 QR codes to evade taxes and suppress actual turnovers. The search operation also discovered Rs 1.47 crore cash at the residence of one of the proprietors. The hoteliers were engaged in the supply of biriyani and non-vegetarian items, and they were receiving payments through multiple UPI accounts to hide their actual turnovers and avoid issuing tax invoices. Income Tax officials have initiated proceedings regarding the cash found. Key Points
Economic TimesElon Musk slams Biden’s call for more taxes, says ‘rich won’t see action, but burden will fall on…’
Elon Musk said President Biden's call for more taxes on the super-wealthy will only hurt lower-to-middle-income groups. He called for illegal tax-avoidance schemes. Key Points
mint4 things that can go wrong if you invest just to save tax
Many investors view tax concessions as choices that must be optimised. Why should we worry about this? We may end up with an asset allocation that wont serve our goals and needs. We may give up operational flexibility while choosing products. We may not be able to access the asset for other important uses. Key Points
Economic TimesWhen will the ETIAS entry charges in Europe be implemented? Understanding the application process
The ETIAS visa waiver program for Europe, which involves travel entry charges, has encountered another postponement. Initially planned for a May 2023 launch, the program is now slated to become effective in 2025, granting travelers additional time before its implementation. This recent delay has been officially announced by eu-LISA, the EU agency overseeing the Entry/Exit system and ETIAS. Key Points
Economic TimesKarnataka govt denies drop in liquor sales due to tax hike
The Karnataka state government has dismissed the recent fall in liquor sales as a normal occurrence and not indicative of a decrease in demand due to tax increases. The Chief Minister Siddaramaiah had increased the additional excise duty on liquor, sparking protests from the industry. The International Spirits and Wines Association of India expressed concerns that the tax increase would lead to people buying from neighboring states. The Excise department explained that the poor sales immediately after the tax revision is a temporary phenomenon and expects sales to return to normal soon. Key Points
Economic Times/cloudfront-us-east-2.images.arcpublishing.com/reuters/AWO7UUWN6JJCJJ73MRH2X25ZRY.jpg)
Switzerland's Banque Pictet admits hiding billions from US tax authorities
Swiss private bank Banque Pictet has admitted to helping U.S. taxpayers hide more than $5.6 billion from the Internal Revenue Service (IRS) and has entered into a deferred prosecution agreement with the Justice Department, federal prosecutors said on Monday. Key Points
ReutersModi-government eyes higher capital gains tax for rich to curb inequality
At the heart of the overhaul of India's direct tax laws is potential increases in capital gains taxes for top income earners, according to people with knowledge of the matter. For instance, while India levies a tax of as much as 30% on income, it taxes gains on certain asset classes such as equity funds and stocks at a lower rate. Key Points
Economic TimesApple CEO Tim Cook sells shares worth $41 million
International Business News: According to a US securities filing, Apple CEO Tim Cook gained $41.5 million after taxes on his largest share transaction in two years. According to t Key Points
Times Of IndiaUS Supreme Court mulls legality of a state's property tax 'windfall'
U.S. Supreme Court justices on Wednesday appeared sympathetic toward a 94-year-old woman in her battle with a Minnesota county government that sold her condominium to cover her unpaid taxes and kept the proceeds beyond the sum she owed in a case testing constitutional checks on excessive fines and property seizure. Key Points
ReutersVAT now? Companies face tax demand worth Rs 30,000 crore
Around 200 companies, including Colgate Palmolive, L'Oreal, and McDonald's India, have received notices from state tax authorities demanding taxes under the pre-GST regime. The states are seeking about ₹30,000 crore in taxes for the FY11-FY15 period, claiming that value-added tax (VAT) should be levied on the transfer of intellectual property rights (IPRs). Some companies argue that they have already paid service tax on these transactions. Key Points
Economic Times
Only principal commissioners or higher officials can probe into GST, other sensitive matters: CBIC
The Central Board of Indirect taxes and Customs (CBIC) has made it mandatory for high-ranking officials, such as the principal commissioner or above, to approve investigations, searches, or questioning in GST matters related to large industrial houses, multinationals, and those with national implications. This move, aimed at minimizing instances of harassment, follows a directive from Finance Minister Nirmala Sitharaman to adopt a more taxpayer-friendly approach. Taxpayers can also approach designated officials of the rank of principal commissioner in case of grievances during an investigation. Key Points
Economic TimesTaxman sending mails in cases of advance tax, transactions mismatch
The income tax department is reaching out to assesses whose advance tax payments don't match their financial transactions, urging them to correctly calculate and pay their advance tax by March 15. This initiative aims to ensure tax compliance and enhance taxpayer services. The department uses data from the Annual Information Statement to identify discrepancies and inform taxpayers. Taxpayers can log in to their e-filing accounts to view details of significant transactions and comply with tax regulations. Key Points
Economic TimesIndia approves new finance commission to suggest how federal taxes will be shared with states
Presently, India shares 42% of federal taxes with states. Next Finance Commission will submit its report by October 2025 and its recommendations will be implemented from fiscal yr 2026-27. Key Points
ThePrintCongress MP’s ‘separate nation for south India’ remark sees heated discussion in RS, BJP demands action
Karnataka MP DK Suresh said Thursday that taxes from south were going to north India & Hindi was being 'imposed' on all fronts. BJP calls it 'attack on country’s unity', demands apology. Key Points
ThePrintTata Motors urges govt to keep hybrid tax as Toyota seeks cut
Tata Motors opposed tax cuts on hybrid cars in India, citing their higher pollution levels compared to pure electric vehicles. The Indian government promotes electric vehicles with a 5% tax, while hybrids are taxed at up to 43%. Toyota, which popularized hybrids with the Prius, has been urging India to lower taxes on hybrids, claiming they reduce carbon emissions. Key Points
Economic Times
Finance ministry lauds GST, says it reduced tax rates on household goods, brought relief to every home
The Finance Ministry on Monday praised the Goods and Services Tax (GST) system on the occasion of its seventh anniversary, highlighting its role in lowering taxes on essential items such as household appliances and mobile phones, thereby providing significant relief to households. Implemented on July 1, 2017, GST replaced approximately 17 local taxes and cesses. This year's GST Day theme is Sashakt Vyapar Samagra Vikas (Empowered Trade Overall Growth). Key Points
Economic TimesIndia may feel oil pinch as Russia looks to lower crude discount to $20/bbl
Russia's finance ministry is said to planning to cut the discount [$25 per barrel to Brent crude] used for deciding taxes on the country's crude oil exports to $20 per barrel, said Russian Finance Minister Anton Siluanov. He did not elaborate on what measures being considered to improve the calculation of taxes on oil exports. Key Points
Economic TimesUnderstanding property taxes: What homeowners need to know?
As a homeowner, it's essential to understand the property taxes you're responsible for paying. Property taxes are levied on real estate and are typically based on the assessed value of the property. Key Points
mintPower Ministry asks states to withdraw any tax on generation of electricity, calls it illegal
The ministry said any tax / duty on generation of electricity, which encompasses all types of generation viz. thermal, hydro, wind, solar, nuclear, etc. is illegal and unconstitutional. Key Points
FinancialexpressCBDT starts sending emails, SMSs to assessees for mismatch in tax profile, fin transactions in FY24
The Income Tax Department has initiated an e-campaign to notify taxpayers whose taxes paid during the current fiscal year do not match their financial transactions. Through emails and SMSs marked as Advance Tax e-Campaign-Significant Transactions for AY 2024-25, taxpayers are urged to accurately calculate and deposit their advance tax by March 15. Key Points
Economic Times
Is Karnataka temple tax bill ‘anti-Hindu’?
India News: A huge political controversy erupted in Karnataka after the Siddaramaiah government passed a bill that allows it to collect more taxes from the earnings of state-owned temples. The bill was later defeated in the legislative council. Is the bill ‘anti-Hindu’? Find out here. Key Points
Times Of IndiaAhead of Budget, Commerce ministry backs import tax cuts on gold bars
The commerce ministry's support for lowering the tariffs comes ahead of the Interim Budget due next week. If a reduction in the taxes is accepted, Finance Minister Nirmala Sitharaman could announce the decision in her interim budget on February 1. Key Points
Economic TimesBudget 2024: Gem and jewellery industry calls for reduction in import duties on gold, cut and polished dia
Union budget 2024: The Gem and Jewellery Export Promotion Council (GJEPC) has called on the Indian government to lower import duties on gold and cut and polished diamonds ahead of the Union Budget. The GJEPC believes that increased import taxes on polished and cut gemstones would lead to lower exports and fewer jobs in the jewellery sector, losing its competitive advantage to rival nations like China and Thailand. Key Points
Economic TimesIndia trade department backs lower tax on hybrid cars in green push: Sources
India's combined sales and additional taxes on hybrid vehicles sales are as high as 43%, based on the size of the car, compared with the highest rate of 50% imposed on petrol and diesel cars. India taxes electric vehicles (EVs) at just 5%. The move could boost the prospects in India of Japan's Toyota Motor, the world's largest carmaker, which has been lobbying for months for lower taxes for hybrid cars, arguing such vehicles are far less polluting than petrol cars. Key Points
Economic TimesTourist tax & visa relaxations: Countries that made travel easy in 2023, and those that didn't
As the new year approaches, travelers heading to Schengen countries may face increased costs, with various European destinations implementing tourist taxes. In a contrasting move, many countries announced plans to cancel visa requirements for visitors. Key Points
Economic Times
Valuation rule for entry-level bets on e-gaming is prospective: Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman clarified that the valuation rules for imposing a 28% Goods and Services Tax (GST) on entry-level bets on online gaming platforms are prospective in effect. The clarification came during the Lok Sabha discussion on the CGST (Second Amendment) Bill. The GST Council had previously clarified that the 28% GST applies to online gaming, specifically on entry-level bets, with the effective date for amendments set as October 1. Key Points
Economic TimesGovt to stick to Rs 33.61 lakh cr tax collection target in revised estimate, no case for fuel tax cut: Off
So far, direct tax collection is up by about 20 per cent and indirect tax is higher by 5 per cent. We have data till the eight months of the fiscal and usually the collections are better in the first half. So, at the moment, we will stick to the Budget numbers in our Revised Estimates (RE), an official said. Key Points
Economic TimesCBIC raises threshold for filing appeals before CESTAT and courts
The Central Board of Indirect taxes and Customs (CBIC) has increased the threshold for filing appeals before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by ten times to Rs 50 lakh, aiming to reduce litigations. The thresholds for appeals in high courts and the Supreme Court have been doubled to Rs 1 crore and Rs 2 crore, respectively. Key Points
Economic TimesHow will lower import tax duties for Tesla EVs impact Indian car makers?
The Indian government is considering a new electric vehicle (EV) policy that would reduce import taxes for car companies, potentially allowing high-end EV manufacturers like Tesla to enter the Indian market. Under the policy, carmakers committed to local manufacturing would receive a substantial tax cut. Presently, cars priced above $40,000 face a 100% import tax, but the new policy could lower the tax rate to as low as 15%. This move could benefit Tesla and other luxury car manufacturers, but may pose challenges for local mass-market car manufacturers. Key Points
Economic TimesPowerball jackpot in US: Winner won't get $1.4 billion prize money
$1.4 billion is now the third-highest amount in Powerball jackpot history. | World News Key Points
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Apple CEO Tim Cook makes $41 mln from biggest stock sale in two years
Apple (AAPL.O) Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed. Key Points
ReutersCBDT signs 95 APAs in FY'23, highest ever since launch
The Income Tax department in India has achieved a record-high number of 95 advance pricing agreements (APA) signed in the financial year 2022-23. This marks the highest number of APA signings since the program's launch in 2012. The APA program, initiated by the Central Board of Direct taxes (CBDT), aims to create an investor-friendly and non-adversarial tax regime in the country. Key Points
Economic TimesCBIC mulling organisational restructuring to make it more effective, do away with overlapping
The CBIC is mulling a comprehensive restructuring of the organisation to make it more effective and remove overlapping, if any, as many of its functions have undergone transformation. The Central Board of Indirect taxes and Customs or CBIC (formerly knows as Central Board of Excise and Customs) was set up in 1964. Key Points
Economic Times28% GST on online gaming to yield Rs 20,000 cr annually: Revenue Secretary
The government anticipates earning an additional Rs 20,000 crore per annum after the GST Council implemented a 28% tax on full bet value for online gaming, horse racing, and casinos. Indian online gaming companies are currently only paying around 2-3% GST. Last year, the government collected only Rs 1,700 crore GST, which could have been Rs 15,000-20,000 crore if taxed on the full value. The decision has been challenged in the High Court, and the government will be pursuing all cases in the Supreme Court to recover taxes. Key Points
Economic TimesNet direct tax collection rises 16% to Rs 4.75 lakh cr so far this fiscal
The government has projected a growth of 9.6% for direct taxes in FY24. The direct tax collection so far are in line with other data that point to sustained recovery despite global headwinds. Key Points
Economic Times
Net direct tax mop-up grows 16% to Rs 4.75 lakh crore so far this fiscal
The Income Tax department in a statement said the collection has touched 26.05 per cent of the total budget estimates of direct taxes for full 2023-24 fiscal of Rs 18.23 lakh crore. Key Points
Business TodayOver 12k fake entities in GST; CBIC plans biometric authentication, tighter return filing
The Central Board of Indirect taxes and Customs (CBIC) in India is planning to introduce biometric authentication and geo-tagging in an effort to crack down on GST fraud. The biometric authentication will be used to verify the identities of individuals connected to businesses that are suspected of fraudulent activity. The CBIC chief, Vivek Johri, said that there are around 12,500 bogus entities that have been identified as claiming fake Input Tax Credit (ITC). Key Points
Economic TimesBBC acknowledges it paid lower taxes in India
BBC has been found guilty of tax evasion, admitting it underreported ₹40 crore of income in its tax returns. It needs to file revised returns and pay all dues. Key Points
mintGST collections rise 11.5% to cross ₹1.57 lakh crore in May
India’s gross Goods & Services Tax (GST) collections grew 11.5% in May, crossing ₹1.57 lakh crore, with revenues from domestic transactions rising 11% and imports yielding 12% more taxes than a year ago. Key Points
The HinduSouth Korea's Hyundai to invest $2.45 billion in India
Hyundai's move comes a few weeks after the federal government said it would raise taxes on imported cars and motorbikes, including electric vehicles (EVs), as it seeks to boost local manufacturing. India's EV industry has grown rapidly, with domestic carmakers Tata Motors and Mahindra & Mahindra as well as global rivals BYD and SAIC's MG Motor lining up launches. Key Points
Economic Times
US court rejects Trump's lawsuit against NYT report on his taxes
The judge said the reporters were simply reporting on a matter of great public interest. Mary Trump’s request for dismissal from the case is still pending. | World News Key Points
Hindustan Times