December 15 is an important day on the calendar of the Central Board of Direct Taxes (CBDT). It is the date on which the third installment of advance tax for corporates and the second installment for all other assesses (including individuals, HUF etc) is due.

The Kelkar Committee has cautioned us that a business-as-usual scenario for the current year may lead to the fiscal deficit rising to 6.1 per cent of GDP. This would have grave consequences for the economy is, therefore, totally unacceptable. The Committee has recommended a number of reform measures in taxation, disinvestment and expenditure.

. Some of the participating CEOs raised tax related issues including non-applicability of MAT for non-life insurance sector at par with life insurance companies and zero rated service sector on crop insurance, tools, senior citizen policy, RSBY and other exempt categories.

While releasing the Guidance Paper Hon’ble Finance Minister also announced some new exemptions as follows:(a) Service provided by advocates to other advocates and business entities upto a turnover of Rs. 10 lakh in the preceding financial year.(b) Exemption to firm of advocates on the same lines as individual advocates.(c) Auxiliary educational services and renting of immovable property provided by educational institutions in respect of education exempt from service tax.

In a function held today (20-6-2012) in North Block, Hon’ble Finance Minister released the Guidance Paper on the new approach to service tax. The public release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST).

Union Finance Minister, Shri Pranab Mukherjee released the Guidance Paper on the new approach to service tax, here today. The release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST).

Today, Fitch Ratings have issued a press release on India’s sovereign credit rating. Fitch has reaffirmed India’s long-term Foreign and Local Currency Issuer Default Rating (IDR) at BBB(-). It has, however, revised India’s outlook to Negative from Stable.

I would also like to highlight the need to ensure that claims are settled in the shortest possible time frame. I notice that large numbers of claims, especially in the General Insurance companies, are pending for final settlement. You may like to take up a drive to ensure that this pendency is minimized.

The Union Finance Minister Shri Pranab Mukherjee will review the annual performance of Public Sector Insurance Companies during his meeting with the Chief Executive Officers of Public sector insurance companies, here tomorrow. The focus of review by the Finance Minister will be to have a business strategy for 2012-13 onwards in a manner that there is healthy balance between the growth and long-term business sustainability as well as providing accessibility of insurance coverage in unserved areas. Besides it, the review will also focus on business process re-engineering so as to ensure that service delivery, including policy renewals and claim settlement as well as grievance redressal becomes more customer/ policyholder-friendly. Emphasis will also be to widen the coverage under agriculture insurance by bringing in all loanee farmers as well as non-loanee farmers under the ambit of agriculture insurance.

Union Finance Minister Pranab Mukherjee on Sunday said all the money kept by Indians abroad is not black money and noted that India has signed treaties with 37 countries to know the details of such illegal wealth.