Spinning Mills Cut Production
Due to the increase in Cotton Price during the last 2 weeks the cotton mills are cutting production ti minimise the losses. The Price Candy (356kilo) was Rs 32500 in January has now increase to Rs 50000. It is anticipated that Rs 15/ kg loss will be incured by an average mill manufacturing 10000 kg of yarn a day. To Combat recorrence of price raise a Government fund is required to purchase stock from the farmers.
A sub-committee on pricing of Cotton Advisory Board has decided to begin tracking rates across different markets in the country closely, with minimum, maximum and average monthly rates instead of the current format of just the average. Reporting of prices will also be gradually moved to the metric system from the current, the advantage being easier comparision with global measurement systems.

Private Bodies to Act as incubators under Start-Up India
Under the Start-Up India action plan the Governemt has certified Nasscom and iSprit along with other 18 Private organisations. To Act as Incubators currently government is running 278 Incubators which are allowed are certifies and recomend startup. Nasscom will provide sector – specific services in their where-houses.
The department of industrial policy and promoted ( IPP) has formed a monitoring committee headed by DIPP Secretary to review action plan’s implimentation once in a month.
The Government plan’s to create Sector-Specific Incubator under Atal Innovation Machine
Useful Links
Innovation and Start-ups 
National Institution for Transforming India
NITI Aayog

Last Date for filing TDS return
Rule 31A Income Tax Act Ammended with effect from 1st June 2016 has change the last date of filing TDS return for each quarter as follows;
Q1 31st July
Q2 31st October
Q3 31st January
Q4 31st May
filing TDS return
 
 

Revised Budget:
Overall deficit: Rs. 711.38 cr.
Additional Resource Mobilisation: Rs. 805 cr.
Additional expenditure announced: Rs. 730.10 cr. Concessions: Rs. 5 cr.
Cumulative deficit: Rs. 746.69 cr.
Startup & IT will get boost

• Rs 25 crore for 1000 start-ups
• Rs 110.54 crore has been allocated for the development of MSMEs, business incubators and start-ups
• Rs 452.87 crore for Information Technology sector
• Rs 25 crore allocated for InfoCity at Pala, Kottayam
• Rs 7.6 crore for Technopark

KERALA REVISED BUDGET 2016-17 – Major Heighlights
 
 

CBDT vide the press release dated 06/07/2016 has informed public that ICDS shall be applicable from 01/04/2016 ie. previous year 2016-17 ( Assessment year  2017-18). The link is given below;
Computation and Disclosure Standards (ICDS)

The word “Support Services” was substituted with all services vide The Finance Act 2015, which was  made effective from 01.06.2015. However, effective date of amendment of the section was notification w.e.f. 01.04.2016 thereby all services provided by the Government is subject to service tax on reverse charge basis.
In my article published in our Bulletin in the month of April 2012 provided the Frequently Asked Questions (FAQ), wherein I have  clarified what is Government ? and what are the services provided by the Government ? which is reproduced below…
All services other than following provided by the government are excluded from the definition of service.

1. Services by the Department of posts by way of speed post, express parcel post, life Insurance and Agency services provided to a person other than Government.
2. Services in relation to an aircraft or a vessel, inside or outside the precincts of a port oran airport.
3. Transport of goods or passengers.
4. Support services, other than services covered under clauses.   (i) to (iii) above, provided to business entities;

Some of the examples are: providing Birth / Death Certificate, Marriage Certificate, Completion Certificate, Passport, etc.,
Since all Services provided by Government are now excluded from the negative list by amending Sec 66D which has been made effective from 1st April 2016 and hence recipient of such services from the government have to discharge 100% service tax liability on Reverse Charge Mechanism.
Circular No. 192/02/2016-Service Tax

Input Tax Credit (ITC) is available for Goods & Services Tax (GST) paid or payable by a registered person on the purchases or expenses incurred for the business activities.
 Criteria To Claim Input Tax Credit (ITC)

1. You must be a registered person, that’s taxable person.
2. The goods or services must have been acquired in the course or furtherance of the business. ITC is claimable on acquisition of capital assets used in the business.
3. Goods or services are acquired for making taxable supplies.
4. You must hold a valid tax invoice.
5. Tax invoices must be in the name of the registered person.
6. No ITC shall be available on tax component of capital goods where depreciation is claimed on such tax component.

          ITC Credit adjustments

•  ITC towards IGST shall be utilised towards IGST, CGST & SGST in that order
•  ITC towards CGST shall be used for CGST first and balance towards IGST
•  ITC towards SGST shall be utilised towards SGST and balance towards IGST
•  ITC towards CGST shall not be utilised for payment of SGST

GST GUIDE FOR INPUT TAX CREDIT

Ammendments in TDS shall be substituted w.e.f 01/06/2016
TDS rates ammended by CBDT notification number 30/2016 dated 29/04/2016

Implementation Of GST May Boost FMCG Prospects In 2016 
 

The Union Cabinet on Wednesday cleared a Rs 10,000-crore fund for startup companies and a mega spectrum auction that is likely to fetch about Rs. 5.66 lakh crore to the exchequer. Finance Minister Arun Jaitley also said the Cabinet had approved Rs 6,000-crore aid for apparel manufacturing. The government said the move will create around 1.75 lakh jobs in the industry in the next three years.
http://scroll.in/latest/810434/cabinet-sanctions-rs-10000-crore-fund-for-startups