Question: Recently the Lok Sabha has passed the Taxation Laws (Amendment) Bill, 2016 it seeks to increase the tariff rate of customs duty on rough marbles and granite blocks/slabs from current 10 per cent to-
(a) 40 Percent
(b) 30 Percent
(c) 25 Percent
(d) 20 Percent
Ans: (a)
Related facts:
- On 10 August 2016 the Lok Sabha has passed the Taxation Laws (Amendment) Bill, 2016.
- It seeks to amend the Income Tax Act, 1961, and Customs Tariff Act, 1975.
- The Companies Act, 1956, allows companies to demerge (split) into multiple companies.
- As a result of the demerger, the income, expenses and profits of the parent company are transferred to the resultant companies.
- The Income Tax Act, 1961 takes into account these transfers from the parent company for taxation of resultant companies.
- Now the new bill clarifies that these provisions will apply in case a public sector company demerges, and the resultant company is no longer a public sector company.
- The Income-tax Act, 1961 state that in the case of certain assessees, in computing profits and gains derived from business, deduction shall be allowed of an amount equal to 30% of additional employee cost incurred in the course of such business in the previous year for the specified period.
- One of the conditions provides that the employee should be employed for a period of not less than 240 days during the previous year.
- In the present bill in view of the seasonal nature of the business of manufacturing of apparel, the period of employment of an employee who is employed in this business has been reduced from 240 days to 150 days during the previous year.
- It also seeks to increase the tariff rate of customs duty from current 10 per cent to the WTO-bound rate of 40 per cent on rough marbles and granite blocks/slabs.
Reference:
http://www.newindianexpress.com/business/news/Lok-Sabha-passes-Taxation-Laws-Amendment-Bill-2016/2016/08/10/article3573133.ece
http://economictimes.indiatimes.com/industry/cons-products/garments-/-textiles/lok-sabha-clears-taxation-laws-amendment-bill-2016/articleshow/53634851.cms