Latest news with #MonikaYadav
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Business Standard
5 days ago
- Business
- Business Standard
'US remittance tax, tariffs to cost India billions in lost investments'
The original version of US President Donald Trump's "One Big Beautiful Bill" included a 5 per cent excise duty on outward remittances Monika Yadav New Delhi Listen to This Article A proposed 3.5 per cent US tax on remittances, combined with 10 per cent reciprocal tariffs on imports, could significantly impact India's economy, according to analyses by the Centre for WTO Studies. The measures are projected to reduce remittance inflows by billions of dollars and amplify trade costs, disproportionately affecting Indian households reliant on overseas earnings. 'The policy move by the US could have multiplying effects on the economy, including tightening household budgets in India, slowing local consumption, reduced returns from physical and financial assets due to lower investment, and weakening one of the country's most resilient sources of foreign
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Business Standard
25-05-2025
- Automotive
- Business Standard
IFTRT bats for GST rate rationalisation to boost green logistics push
Calls for slashing of rates to promote green mobility, single tax slab for goods transport services Premium Monika Yadav Delhi Listen to This Article The Indian Foundation of Transport Research and Training (IFTRT) has called for urgent rationalisation of Goods and Services Tax (GST) rates to promote the adoption of green commercial vehicles (CVs), fuel-efficient radial tyres, and simplified taxation for goods transport services. In its representation to the GST Council ahead of the constitutional body's next meeting, IFTRT has recommended slashing the GST rate on electric and CNG commercial vehicles from the existing 18 per cent to 5 per cent, aligning them with the concessional rate already available to electric passenger vehicles. The think tank argued that lowering the GST burden on green
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Business Standard
19-05-2025
- Business
- Business Standard
SC upholds use of input tax credit for mandatory GST appeal deposit
In the context of GST, a tax credit refers to input tax credit, or ITC, which means the credit of GST paid on purchases that a business can use to offset the GST liabilities on sales Monika Yadav In a relief for businesses, the Supreme Court on Monday ruled that taxpayers could use their electronic credit ledger (ECrL), a digital record of tax credits earned from purchases, to make advance deposits required in the case of disputes on goods and services tax (GST). In the context of GST, a tax credit refers to input tax credit, or ITC, which means the credit of GST paid on purchases that a business can use to offset the GST liabilities on sales. This overrides demands by tax authorities that only the electronic cash ledger (ECL) be used. The ECL tracks cash payments like taxes, penalties, or fees. According to experts, the ruling ends discomfort for businesses, which can preserve cash by using ECrL balances instead. The dispute began when Yasho Industries, a Mumbai-based specialty chemicals manufacturer, was asked to pay ~3.36 crore 'only in cash' (via ECL) as a pre-deposit in an appeal despite having enough credits in its ECrL. The Gujarat High Court in October upheld the company's position, citing a 2022 government circular . The Supreme Court thereafter dismissed the Revenue's appeal. While the Revenue's circular said taxpayers could use ECrL for output tax liabilities, it did not define whether pre-deposits for appeals fell in this category. The term 'output tax' typically refers to tax on outward supplies, not procedural deposits. This ambiguity allowed tax authorities to insist on ECL payments for disputes, arguing that pre-deposits were not tax liabilities but procedural mandates. While Circular No. 172/2022 clarified that taxpayers could use the ECrL for output tax liabilities, it did not explicitly define whether pre-deposits for appeals fell under this category. The term 'output tax' typically refers to taxes on outward supplies, not procedural deposits. This ambiguity allowed tax authorities to insist on payments for disputes, arguing that pre-deposits were not 'tax liabilities' but procedural mandates. The Gujarat High Court and Supreme Court, however, ruled that under the circular pre-deposits qualified as compliance with tax obligations, closing this interpretational gap. The apex court Bench, comprising Justice B V Nagarathna and Justice Satish Chandra Sharma, rejected the Revenue's special leave petition (SLP), upholding the Gujarat High Court's decision in Yasho Industries Ltd vs Union of India. 'The Supreme Court's decision will provide relief to millions of taxpayers by allowing the use of the electronic credit ledger,' said Abhishek Rastogi, founder of Rastogi Chambers, who argued for the taxpayer before the Supreme Court. 'The GST Council always intended ensuring a seamless and taxpayer-friendly mechanism for filing appeals, but a myopic interpretation by certain executive authorities had created unnecessary hurdles. This ruling rightly restores the balance.' According to Saurabh Agarwal, tax Partner, EY, this ruling, by allowing taxpayers to use their existing credit to make these pre-deposits, will free up their cash. 'If they eventually win their case (in GST disputes), they won't have to claim refunds because the adjustment would already be within their credit ledger. It's a win-win in terms of immediate cash flow and avoiding hassles,' he said.
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Business Standard
16-05-2025
- Business
- Business Standard
US remittance tax plan raises discrimination concerns for overseas Indians
The bill proposes the levy on all cross-border remittances made by non-citizens, including H-1B, L-1, and F-1 visa holders, as well as green card holders Monika Yadav Shivani Shinde Ruchika Chitravanshi New Delhi/Mumbai/New Delhi Listen to This Article A proposed 5 per cent 'excise tax' on remittance transfers by non-citizens in the United States (US) has caused concern about discrimination in the Indian diaspora, and among policymakers and tax experts. Part of US President Donald Trump's 'The One, Big, Beautiful Bill,' the measure, if passed, could significantly affect Indian professionals who send money from the US to support families in India or invest in the country. The Bill proposes the levy on all cross-border remittances made by non-citizens, including H-1B, L-1, and F-1 visa holders, as well as green card holders. US citizens and nationals are exempt from
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Business Standard
14-05-2025
- Business
- Business Standard
Finance ministry considers 10% duty on key telecom gear amid tax disputes
Plans new product classification for items at heart of Samsung, Nokia cases Monika Yadav New Delhi Listen to This Article The Union finance ministry is considering levying a 10 per cent Basic Customs Duty (BCD) on a key category of mobile tower components through a new product classification, aiming to curb the misuse of tariff exemptions and bolster domestic manufacturing. This policy rethink comes against the backdrop of two high-profile disputes involving Samsung India and Nokia Solutions – which have claimed zero-duty benefits on the import of such items. The government, however, considers this as a case of misclassification. Earlier this year, Samsung was served a $520 million tax demand for allegedly misclassifying the imports of remote radio heads (RRHs)
