DELHI VAT
The Government of Delhi has announced its Budget for Financial Year 2016-17 has proposed to reduce the Value Added Tax (VAT) rates from 12.5 percent to 5 percent. VAT
on sweets and snacks, ready-made garments, footwear and school bags has
also been proposed to be reduced from 12.5% to 5%. Textile and fabric
are to be taxed at 5% however VAT rates for khadi and handloom fabrics
remain unchanged. It has been proposed to increase the threshold limit
of Luxury Tax from existing ₹ 750 to ₹ 1500
thereby reducing tax burden on citizens and tourists. The Government
announced that a separate Stamp Act for Delhi is on the anvil and
amendments have been proposed in Section 17 of Registration Act so as to
make compulsory registration of several new instruments.
RBI
Reserve Bank of India has clarified the provisions of Reserve Bank of India (Interest Rate on Advances) Directions, 2016 relating to the Marginal Cost of Funds based Lending Rate (MCLR) system. MCLR
is a new method that banks will adopt to declare the lending rates, and
it will replace the base rate. The new rate has to be a tenor-linked
rate with a reset clause at least once a year. Earlier, for the
customer, the MCLR, that is prevailing on the day the loan is sanctioned
will be in application till the next reset even if the benchmark rate
changes but now it is clarified, that MCLR that prevails on the date of
first disbursement, whether partial or full, shall be applicable on the
floating rate loan and future reset dates shall be determined
accordingly. The RBI has also uploaded FAQs on MCLR.
Thanks & Regards,
Meetesh Shiroya
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