Rajya Sabha passes International Financial Services Centres Authority Bill, 2019 - Pragnya IAS Academy - News Analysis.

Rajya Sabha passes International Financial Services Centres Authority Bill, 2019.

• Apart from regulating all financial services and products, the authority can also recommend any other financial products to the central government
• The Lok Sabha passed Bill on Wednesday and will become a law after the President’s assent

The Rajya Sabha on Thursday passed the International Financial Services Centres (IFSCs) Authority Bill, 2019 towards setting up a unified authority to regulate all financial services in IFSCs in the cpuntry.
An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.
London, New York and Singapore can be counted as global financial centres. The first IFSC in India has been set up at GIFT City in Gujarat’s Gandhinagar. IFSCs can be set up in an SEZ or as an SEZ after approval from the Centre.
The Lok Sabha passed Bill on Wednesday and will become a law after the President’s assent.
IFSCs would also provide Indian companies easier access to global financial markets and also enable the development of financial markets in India.
"In a path breaking reform, both Houses pass International Financial Services Authority Bill, 2019. It will set up world class unified regulator for international financial services combining powers and functions of RBI, SEBI, IRDAI And PFRDA," economic affairs secretary Atanu Chakraborty said in a tweet.
According to the Bill, the authority comprise a chairperson, and one member each nominated by the Reserve Bank of India (RBI), the Securities Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority(PFRDA). There will also be two members from the central government and full-time or part-time members.
Apart from regulating all financial services and products, the authority can also recommend any other financial products to the central government.
Currently, the banking, capital markets and insurance sectors in IFSC are regulated by multiple regulators such as RBI, SEBI and IRDAI.
"The dynamic nature of business in the IFSCs necessitates a high degree of inter-regulatory coordination. It also requires regular clarifications and frequent amendments in the existing regulations governing financial activities in IFSCs. The development of financial services and products in IFSCs would require focused and dedicated regulatory interventions. Hence, a need is felt for having a unified financial regulator for IFSCs in India to provide world class regulatory environment to financial market participants," the government had said earlier. (Source: Livemint)


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Rajya Sabha passes International Financial Services Centres Authority Bill, 2019.

GST Authority clarifies on change/transfer in ownership of sole proprietorship - Pragnya IAS Academy - News Analysis.

GST Authority clarifies on change/transfer in ownership of sole proprietorship.

The Goods and Services Tax, GST Authority has clarified that transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor.

In a circular, Central Board of Indirect Taxes and Customs, CBIC said, that the transferee or the successor will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including death of the proprietor.
It said, the applicant will be required to mention the reason to obtain registration as death of the proprietor, in the registration form, GST REG-01 to be filed electronically in the common portal. The legal heir of the dead sole proprietor will be required to give application for cancellation of the existing registration.
The GST Identification Number, GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the GSTIN of the transferor with the GSTIN of transferee. In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as transfer of business. In case of transfer of business on account of death of sole proprietor, the transferee or successor will file Form GST ITC-02 in respect of the registration to be cancelled. CBIC said, a mechanism has been specified for transferring unutilised input tax credit.
In an another circular related to verification of applications for grant of new registration, the CBIC said there have been instances when registration gets cancelled due to one reason or any other reason, such businesses prefer to apply for new registration rather than applying for revocation of cancellation of registration. It said, there is possibility that such person might not have furnished requisite returns and not paid tax for the tax periods covered under the old or cancelled registration.
It added that such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may be using the route of applying for fresh registration. One can take separate registration on the same PAN in the same State.
CBIC has asked its officials to exercise due caution while processing such applications. It clarified that not applying for revocation of cancellation of registration will be deemed to be a deficiency and could be reason for rejection of application for new registration.


The above Article can also be read using the link below:

GST Authority clarifies on change/transfer in ownership of sole proprietorship.