Corporate Updates – 16-11-2015


SEBI has passed orders to provide Exit to the Vadodara Stock Exchange Limited (VSEL) under the current policy. SEBI vide Circular dated May 30, 2012 had issued the Guidelines for exit of stock exchanges. This contained details of the conditions for exit of de-recognised /non operational stock exchanges, inter–alia, including treatment of assets of de-recognised / non-operational exchanges and a facility of dissemination Board for companies listed. Further, the Income Tax Authorities, Ministry of Corporate Affairs and the State Government of Gujarat are being intimated about the exit of VSEL, for appropriate action at their end.

CBEC – Service Tax:

The Government has announced 15th November, 2015 as the date from which the provisions of Section 119 would come into effect and simultaneously, Government has also notified levy of Swachh Bharat Cess at the rate of 0.5% on all taxable services. Effectively, the rate of SBC would be 0.5% and new rate of service tax plus SBC would be 14.5%. As such SBC translates into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be exclusively used for Swachh Bharat initiatives. The Board has issued Frequently Asked Questions (FAQs) on Swachh Bharat Cess wherein some of the open issues including Whether SBC would be leviable on exempted services and services in the negative list, Whether separate accounting code will be there for Swachh Bharat Cess and Whether Cenvat Credit of the SBC is available have been clarified.

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