Categories
India

SPS Steel sees Rs 25 crore profit before tax after takeover

SPS Steels Rolling Mills Limited is looking at a profit before tax to the tune of Rs 25 crores for the fiscal 2019-2020 nine months after its takeover by the Shakambhari Group.

Last fiscal SPS steel that ran into red, already now has a profit before tax of around Rs 19.5 crore by the end of third quarter and is looking at a figure of Rs 25 crore by the end of the financial year in comparison to the losses of -5 cr in the financial year 2018-19.

“The expected turnover for the SPS will be a rise of 200 per cent from Rs 480 crores to approximately RS 900 crores for the financial year 2019-20. The company aspires to achieve the turnover of 1500 crores in the financial year 2020-21. The Shakambhari Group’s aggregated turnover is targeted at 3000 crores for the financial year 2019-20 and in the fiscal year 2020-21, the group is aiming to achieve a turnover of 4000 crores.

We have a vision of a green environment in this sector. It is with this vision that we are in the process of installing a captive power plant that will improve production efficiency, bring cost control, reduce carbon foot print and create zero waste,” said Mr Deepak Kumar Agarwal, CMD, Shakambhari Group.

He further added, “The mother company plans to invest another Rs 150 to Rs 200 crore in the coming fiscal while tidying up the meaningless expenditures. Our expansion process includes a steel melting shop that will help us reach around 3 lakh TPA from one lakh TPA.” The group has taken serious measures for modernization of the plant and is in negotiation for foreign collaborations for technology upgradation. Set of positive measures are being injected into the system for further enhancement of the quality, increase and maximize its productivity aided by cost reduction, reducing carbon print and creating a zero waste plant.

“There has been an increase in manpower generating further employment. The figures have risen by 20 per cent resulting in employment of 340850 man-days in permanent, casual and tertiary employment,” said Mr Deepak Kumar Agarwal, CMD, Sakhambhari Group.

Mr. Ankit Mittal, VP, Business Development, Sakhambhari Group said that SPS Steel is aggressively penetrating into the market. “We have added more than 200 dealers in West Bengal alone and are looking to grab around 15 per cent share of this segment by the end of the financial year. We have started to penetrate in Jharkhand, Bihar, Odhisa and North East as well as in North Indian markets. We are moving in the direction to make ELEGANT STEEL a pan India brand, while looking into opportunities of setting up manufacturing facilities in South, North and Western part of the country.”

SPS Steel annual production of last year amounting to 96000 TPA will be 1.75 lakh TPA by the end of the fiscal showing marked growth in production capacity also. By 2020-21, the production is expected to reach 3 LTPA. The Shakambhari Group will be producing its premium QST bars from their other facilities also.

Being a responsible corporate citizen, Shakambhari Group has undertaken various community welfare activities under its CSR activities like distribution to tri-cycles for physically challenged persons, installation of water filter cum purifier with water cooler for drivers, workers and local citizens, school Bag and tiffin distribution to the local school kids, blanket distribution to the need ones.

Categories
India

Budget extends tax on NRIs for receiving gifts from resident Indians

The expensive gift that you kept for your overseas cousin or friend may attract tax from this year with the Budget 2019-20 proposing to impose withholding tax all such transfers, plugging an earlier loophole that allowed its tax- free treatment.

The Finance Bill 2019 has imposed tax on any sum of money paid or any property situated in India, transferred by a person resident in India to a person outside India, as it would be deemed to accrue or arise in India. The changes will be applied for all such transfers made on or after July 5, 2019.

Currently gifts given by Indian residents to non-resident Indians – apart from the specified list of relatives – would be claimed as non-taxable. This is because the earlier tax put the onus on the recipient of the gift to make the disclosure and pay tax. As a gift to NRIs means that income is accrued abroad, it remained outside the tax net.

But now, all gifts to NRIs will be income accruing in India and would be taxed as per the normal slab rates applicable to resident Indians. This means that the origin of the gift becomes important for tax purpose, instead of the destination of the gift abroad.

The onus will be on the recipient (the NRI in this case) of the gift to disclose such gifts received if they originate in India and then pay a tax on it.

So, if the value of the gift is above Rs 10 lakh, the recipient will have to pay 30 per cent tax. The tax rate would get higher if the value of the gift, be it payment for studies or a house abroad, is more than Rs 2 crore or Rs 5 crore. In such cases, the highest tax rate for super rich, i.e. 35.7 and 42.7 per cent respectively would apply.

For the purpose, gift will constitute shares, property, vouchers, cash etc exceeding Rs 50,000 made to anyone, apart from the specified relatives or blood relations.

While making gifts to NRIs taxable, the Budget has proposed that in a treaty situation, the relevant article of applicable DTAA (double taxation avoidance treaty) shall continue to apply for such gifts as well.

This amendment will take effect from April 1, 2020 and will, apply in relation to the assessment year 2020-21 and subsequent assessment years.

The specified relatives list in terms of Section 56 of the Income Tax Act is fairly wide. It includes brothers and sisters, and their spouses. Gifts to this category will not attract any tax. But acquaintances, friends, and other close family relations would come under the purview of the tax.

(IANS)

Categories
Business

New compounding rules make it difficult for tax evaders to get away

Tightening the screw on tax evaders, the revised guidelines issued by the Income Tax (I-T) Department have made serious offences under black money and benami laws “generally” non-compoundable.

This means that a person or entity would not be able to settle a case of tax evasion by just paying the tax demand, penalty and interest.

The new guidelines will kick in from June 17, 2019 and apply to all cases for compounding received on or after this date.

Listing 13 cases, where the offences are not to be generally compounded, and also grouping the offences in two parts, the Central Board of Direct Taxes (CBDT) has directed its senior officers to circulate the revised guidelines for compliance by concerned authorities.

Offences forming category ‘A’ include failure to pay tax deducted at source under Chapter XVII-B or tax payable under Section 115-0. Failure to pay the tax collected at source also falls under this category.

The category ‘B’ offences include willful attempt to evade tax, failure to produce accounts and documents, and false statement in verification.

While the first category offences are open to compounding, offences such as willful evasion of tax and removal or concealment or transfer or delivery of property to thwart tax recovery in a search operation are not to be compounded.

“Offences under Sections 275A, 275B and 276 of the Act will not be compounded,” said the new guideline that supersedes the one issued in 2014.

The guidelines state that a category ‘A’ offence on more than three occasions would not be generally compounded.

Any offence which has bearing on any offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 would not be generally compounded, the revised guidelines said.

Further, any offence which has bearing on any offence under the Benami Transactions (Prohibition) Act, 1988 would not merit compounding by tax authorities.

The CBDT guidelines said that offences committed by a person which, as per the information available with the Principal Chief Commissioner of Income Tax and other officials concerned, have a bearing on a case under investigation (at any stage including enquiry, filing of FIR/complaint) by the Enforcement Directorate, CBI, Lokpal, Lokayukta or any other Central or state agency are also not to be normally compounded.

“Notwithstanding anything contained in these guidelines, the Finance Minister may relax restrictions in Para 8.1 for compounding of an offence in a deserving case, on consideration of a report from the Board on the petition of an applicant,” said the tax body.

(IANS)

Categories
Business India

Reliance Communications rubbishes French media report on tax issue

The Reliance Communications on Saturday rubbished a media report which claimed that taxes to the tune of 143.7 million euro were waived by the French authorities for a France-based company of Anil Ambani “just a few months” after Prime Minister Narendra Modi announced the decision to buy 36 Rafale fighters in 2015.

In a statement issued here, the Reliance Communications clarified that the tax issue of its subsidiary Reliance FLAG Atlantic France SAS pertained to the year 2008 and had been settled as per the local laws, much before the Indian government decided to purchase Rafale jets from French company Dassault.

“Reliance Flag tax issue pertains to 2008, nearly 10 years old,” the company said.

“Reliance Flag says the tax demands were completely unsustainable and illegal. Reliance denies any favouritism or gain from settlement,” it added.

The statement added that the Reliance Flag settled the tax disputes as per legal framework in France available to all companies operating in France.

“During the period under consideration by the French Tax Authorities in 2008-2012 (nearly 10 years ago), Flag France had an operating loss of Rs 20 crore (2.7 million euro).

“French tax authorities had raised a tax demand of over Rs 1,100 crore for the same period. As per the French tax settlement process as per law, a mutual settlement agreement was signed to pay Rs 56 crore as a final settlement,” the company said.

The deal for procurement of 36 Rafale fighter jets from Dassault was announced in April 2015 during Modi’s visit to Paris.

FLAG France owns a terrestrial cable network and other telecom infrastructure in France.

IANS

 

 

Categories
Entertainment

Megastar Amitabh Bachchan shells out Rs 70 crore as tax

Megastar Amitabh Bachchan paid Rs 70 crore as tax for the financial year 2018-19.

“Mr Bachchan has paid Rs 70 crore tax for the financial year 2018-19,” his spokesperson said in a statement.

In the recent past, Big B also paid off loans of 2,084 farmers in Muzaffarpur, Bihar. He has also donated Rs 10 lakh to the family members of each victim of the February 14 Pulwama terror attack.

This year, he was seen in ‘Badla’. Shot largely in Glasgow, Scotland, it is a mystery thriller which also features Taapsee Pannu, Amrita Singh, Tony Luke, Manav Kaul and Tanveer Ghani. The film is produced by Red Chillies Entertainment and Azure Entertainment. An official adaptation of the 2017 Spanish film ‘The Invisible Guest’, its story follows an interaction between a lawyer and a businesswoman regarding a murder.

Big B will soon be seen in fantasy trilogy ‘Brahmastra’, produced by Dharma Productions. It is releasing this Christmas. Also backed by Fox Star Studios, the movie stars Ranbir Kapoor, Alia Bhatt, Amitabh Bachchan and Nagarjuna in key roles.

Besides this, he is making his Tamil film debut too.

IANS

Categories
India

Tax office complains against Karnataka Chief Minister

The Income-Tax office filed a complaint with the Election Commission against Karnataka Chief Minister H.D. Kumaraswamy for staging a protest demonstration at its office in the city on March 28 over the raids on contractors in the state, an official said on Wednesday.

“We have forwarded the complaint to the state director general of police to inquire into the incident, as elected representatives holding constitutional posts participated in the protest demo with others against a tax office and its officials,” a poll official told IANS.

Besides Kumaraswamy, Deputy Chief Minister G. Parameshwara, state Water Resources Minister D.K. Shivakumar, Congress Legislative Party leader Siddaramaiah and Congress state unit president Dinesh Gundu Rao staged protest with leaders and cadres of the ruling allies – JD-S and Congress.

“The protest by ministers and legislators against the tax office was an unlawful assembly and a threat to the life of tax officials when the model code of conduct for the 2019 general election was in force since March 10, recalled the official.

The chief minister, his deputy and some cabinet ministers descended on the tax office in the city centre with JD-S and Congress leaders hours after I-T sleuths launched a search operation on contractors of public works in Bengaluru, Mandya and Hassan in the southern state.

“The protest was staged, slogans were raised against our top officer and threatening speeches were made by the leaders of the alliance partners even after the officer clarified that no raids were launched on ministers or legislators,” an I-T official told IANS.

Refuting Kumaraswamy’s charges, the top official said on March 28 that raids on contractors were based on credible information received.

aceNo MP (Member of Parliament), MLA (Member of Legislative Assembly) or minister have so far been covered in the searches, which are being carried on contractors and connected persons across the state,” said I-T Director-General for Karnataka B.R. Balakrishnan in a statement then.

In series of tweets, a rattled Kumaraswamy accused the tax office of planning raids on important leaders of the ruling parties.

“The police will investigate the case and take action,” the poll official added.

The tax office also wrote to the state revenue department on the protest and speeches made, accusing its officials of making selective raids.

“The activities of the tax office should not be politicised, personalised or trivilised. In particular, statements which sound like an incitement to violenceAissued by persons holding responsible posts are deplorable,” said Balakrishnan.

Claiming all the raids resulted in collecting credible evidence on tax evasion, Balakrishnan said the searches on politically exposed persons have covered the entire political spectrum.

IANS

Categories
India

Rahul says no angel tax, no permissions for new business

Congress President Rahul Gandhi on Thursday promised incentives for entrepreneurs and start-ups to boost job creation in the country, saying there will be no permissions required for the first three years of any new business, no angel tax and sold incentives based on the number of jobs created.

He also promised easy bank credit if the party is voted to power in the Lok Sabha elections.

“Youngsters, Want to start a new business? Want to create jobs for India? Here’s our plan for you: 1. ZERO permissions for the first 3 years of any new business. 2. Goodbye Angel Tax 3. Solid incentives & tax credits based on how many jobs you create. 4. Easy Bank Credit,” Gandhi said in a tweet.

The move is seen as an effort by Gandhi to woo the youth ahead of Lok Sabha elections and keep the focus on economic issues.

Gandhi has been criticising the ruling BJP and Prime Minister Narendra Modi for failing to create promised jobs and the issue is a major poll plank of the Congress .

The promises are part of Congress plan to boost employment opportunities if it comes to power and provide a viable roadmap to achieve the objectives.

IANS

Categories
India

Kumaraswamy calls Karnataka tax raids ‘revenge politics’

Accusing Prime Minister Narendra Modi of misusing the Income-Tax Department to threaten political leaders of the ruling JD-S and Congress in Karnataka, Chief Minister H.D. Kumaraswamy on Thursday said the I-T raids were nothing but “revenge politics by the BJP-led NDA government”.

“The Income-Tax Department raids on some businessmen and our important political leaders in the state is revenge politics by the Modi government. I will not be cowed down,” Kumaraswamy told reporters here.

Terming these raids as Modi’s real and open surgical strikes, the Chief Minister alleged that the offer of a constitutional post to the I-T Director-General B.R. Balakrishnan has helped the Prime Minister in his revenge game.

“Highly deplorable to use government machinery and corrupt officials to harass opponents during election time,” tweeted Kumaraswamy.

IANS

Categories
Business

Anti-black money moves brought Rs 1.3 lakh cr income to tax; Goyal

Presenting the Interim Budget 2019-20, Union Finance Minister Piyush Goyal on Friday said the measures taken against black money by the Centre since 2014 have brought income of Rs 1,30,000 crore to tax.

Asserting the Modi government’s commitment to eliminate black money from the economy, he said measures like Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Fugitive Economic Offenders Act, 2018 and demonetisation were taken that have started showing results.

“The measures taken by the government in the last four and a half years have also led to seizure and attachment of assets worth about Rs 50,000 crore.

“During this period, benami assets worth Rs 6,900 crore and foreign assets worth Rs 1,600 crore have also been attached,” Goyal said.

“As many as 3,38,000 shell companies have been detected and deregistered and their directors have been disqualified,” he added.

Further, Goyal said the direct tax collections went up by 18 per cent in 2017-18 and the tax base expanded by 1.06 crore with more than one crore filing tax returns in the financial year 2017-18.

Anti-black money moves brought Rs 1.3 lakh cr income to tax: Goyal

IANS

Categories
India

MPs chant ‘Modi, Modi’ over tax exemptions on Friday

BJP members and their allies brought the Lok Sabha down thumping tables and chanting “Modi, Modi” when Finance Minister Piyush Goyal on Friday announced a tax exemption for people earning less than Rs 5 lakh annually.

The Minister prefaced his remarks with concerns for the middle class and made the pre-election budget announcement with a bonanza for those who mostly constitute the salaried and pensioners.

The announcement was met with loud thumping of desks by a majority of parliamentarians and a beaming Prime Minister Narendra Modi.

Congress President Rahul Gandhi did not seem impressed by the move.

The thumping soon gave way to loud chants of “Modi, Modi” by the treasury benches. Goyal could resume his speech only after the chanting abated.

MPs chant 'Modi, Modi' over tax exemptions

IANS

Categories
Business

No tax for individual annual incomes up to Rs 5 lakh

In a bonanza for the country’s middle class in an election year, the government on Friday proposed tax exemption for individual annual incomes of Rs 5 lakh.

Presenting the Interim Budget 2019-20, acting Finance Minister Piyush Goyal proposed doubling the standard deduction threshold for individual annual incomes from the current Rs 2.5 lakh to Rs 5 lakh.

IANS