RBI:
The Cabinet has approved a framework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps. The government also said there would be no job losses after any of the mergers. The Cabinet has given in-principle approval for Public Sector Banks to amalgamate through an Alternative Mechanism (AM). The decision would facilitate consolidation among the Nationalised Banks to create strong and competitive banks, however the decision would be solely based on commercial considerations. The proposal must start from the Boards of Banks and then shall be placed before the Alternative Mechanism (AM). After in-principle approval, the Banks will take steps in accordance with law and SEBI’s requirements. The final scheme will be notified by Central Government in consultation with the Reserve Bank of India.
GST
GST Authorities have issued clarification w.r.t Selling of space for advertisement in print media on the basis of the queries being raised regarding GSTapplicability on the same. Selling of space for advertisement in print media is leviable to GST @ 5%.If the advertisement agency works on principal to principal basis, that is, buys space from the newspaper and sells such space for advertisement to clients on its own account, that is, as a principal, it would be liable to pay GST @5% on the full amount charged by advertisement agency from the client. On the other hand, if the advertisement agency sells space for advertisement as an agent of the newspaper on commission basis, it would be liable to pay GST@ 18% on the sale commission it receives from the Newspaper. ITC of GST paid on such sale commission would be available to Newspaper. However, if the advertisement agency supplies any service other than selling of space for advertisement, such as designing or drafting the advertisement, and such supply is not a part of any composite supply, the same would be liable to tax @18%. If such supplies are part of any composite supply, the rate applicable for the principal supply shall apply. It has been clarified that, everything depends on the terms of the contract between the newspaper, advertisement agency and the client and GST shall be levied accordingly.
News from NIRC of ICSI
NIRC is celebrating CSBF Week from 21st August, 2017 to 26th August, 2017. On 26th August, 2017, a Cultural Evening dedicated to CSBF being organised by NIRC-ICSI from 6 PM onwards at Airforce Auditorium, Subroto Park, New Delhi. Live performance by Bollywood Singer Tarun Sagar & Performance by Song & Drama Division, Ministry of I & B. Free for members who become member of CSBF at the venue of the cultural evening or Donate Rs. 7,500/- to CSBF at the venue. Free for Corporate Members of NIRC. Fee for others : Rs. 600/-.
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