Page 16 - Banking Finance MAY 2017

ROUNDUP

Five new SEZs approved New IT form to have details of transactions while
The government has approved five demonetisation
proposals, Those who deposited cash of Rs 2 lakh and more in their accounts during the
Oracle India demonetisation drive will have to make a dec-
and L&T laration in their income tax returns for the fis-
Construc- cal year 2016-17, as a follow up to the
tion Equip- government's efforts to eliminate black money
ment through the note-swap exercise.
among them, for setting up IT spe-
cial economic zones (SEZs). The SEZs In part E of the income tax form that seeks
were given approval by the Board of other information from the assessee including
bank details, another column has been added seeking details of cash deposited
Approval, chaired by Commerce Sec-
between November 9 and December 30 last year if the aggregate amount over
retary Rita Teaotia. Oracle India has
proposed to set up IT and ITeS zone this period was Rs 2 lakh or exceeded that.
in Karnataka. L&T Construction Equip-
ment has planned two similar zones Jewellery purchase exceeding Rs 2 lakh via cash to
in the State, too, according to the attract 1% tax
minutes of the meeting.
Cash purchases of jewellery will attract 1% tax collection at source from April 1
After raids in 16 states, if the amount exceeds Rs 2 lakh, as against the
current limit of Rs 5 lakh. Once the Finance Bill
ED finds over 1,000 shell 2017 is passed, jewellery will be treated on a par

companies with general goods, which attract 1% tax at
source on cash purchase of above Rs 2 lakh.
The Enforcement Directorate (ED)
has unearthed The Bill seeks to do away with the threshold of
a labyrinth of Rs 5 lakh on jewellery purchases for applicabil-
over 1,000 ity of tax collection at source because the Bud-
shell compa- get has proposed to ban cash dealings of over Rs 3 lakh and make violations
nies, including punishable with a penalty of an equivalent amount to be paid by person receiv-
those report- ing the cash. However, as there is no special provision for tax collection at source
edly linked to on its purchase, jewellery is now being clubbed in general 'goods' on which 1%
NCP leader Chhagan Bhujbal, YSR tax collection at source is triggered if a single transaction exceeds Rs 2 lakh in
Congress leader Y S Jaganmohan cash.
Reddy, former BSP leader Babu Singh
Kushwaha and former Uttar Pradesh Cabinet clears abolition of cess for GST rollout
chief engineer Yadav Singh among The Centre has decided to abolish 16 cesses and surcharges on union excise and
others. service tax as it prepared the road for rolling out
"The raids have been conducted GST from July.
based on the money trail found in Abolition of cesses, including Krishi Kalyan and
various cases of Foreign Exchange Swachh Bharat, would leave a dent of around Rs
Management Act (FEMA) and Pre- 65,000 crore on exchequer, for which it would have
vention of Money Laundering Act to find resources from the budget.
(PMLA) being investigated by the
The government is hoping that some of the re-
agency, apart from information and sources would come from higher GST mop-up as more entities would enter the
intelligence provided by the Serious tax net. Given that the Centre and the states are yet to finalise GST rates, it is
Fraud Investigation Office (SFIO) and
not clear if consumers eating in restaurants or paying phone bills would be bet-
Financial Intelligence Unit."
ter off or worse after cesses and surcharges are abolished.

16 | 2017 | MAY | BANKING FINANCE

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010