Tuesday, 20 September 2016
Monday, 19 September 2016
|Picture Courtesy www.a1facts.com|
Please refer my earlier post where i mentioned that our PM Shri Modi is fully confident on GST implementation on its scheduled time as 01st of April,2017, the government is trying its best to do it. In recent, the Modi government is considering advancing the winter session of Parliament to pass the Central GST (CGST) and Integrated GST (IGST) Bills, and pave the way for the implementation of the new tax regime.
The session is generally convened in the third or fourth week of November. The government, however, is looking to start the session from the first fortnight of November, just after the festival season.The Winter session of Parliament is generally convened in the third or fourth week of November. The government, however, is looking to start the session from first fortnight of November, just after the festival season.
Terming GST reform as a "game changer", Cabinet Secretary P K Sinha today said the government is working "overtime" to implement the indirect tax regime from April 1 next year.
The government is keen for early passage of the Central GST (CGST) and Integrated GST (IGST) bills, as it will give enough time to the Finance Ministry for implementation of the GST. The two bills are supporting legislations to the Constitutional Amendment Bill approved in the Monsoon session of Parliament.GST, being a constitutional amendment, required a ratification by 50 percent of state Assemblies, which has been achieved.
Earlier this month, President Pranab Mukherjee had given his assent to the bill. The Cabinet had also approved setting up a powerful GST Council a week ago, which will decide on the tax rate, exempted goods and the thresholds. The CGST and IGST bills have been drafted on the basis of the model GST law. The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemption. The IGST law would deal with inter-state movement of goods and services.
The Constitution (122nd Amendment) Bill, 2016, for introduction of the GST in the country was accorded assent by the President on September 8 and the same has been notified as the Constitution (101st Amendment) Act, 2016."GST is the biggest game changer. But it is also a challenge. We are working overtime to make it happen from April 1, 2017," Sinha said at the Chief Secretaries Conclave last week organised by industry chamber PHDCCI in Delhi.The Government wants to implement the tax reform from April 1 next year so as to ensure a smooth rollover to the changed tax structure from the beginning of the new fiscal and to avoid mid-year alterations.
Mr. Sinha assured that the GST and other path breaking reforms that the government has committed to its people will be implemented as promised.
Read more at:http://www.firstpost.com/business/gst-bill-centre-to-advance-winter-session-of-parliament-to-pass-bill-3009864.html
Saturday, 17 September 2016
ESOP’s are Employee Stock Option Plans under which employees receive the right to purchase a certain number of shares in the company at a predetermined price, as a reward for their performance and also as motivation for employees to keep increasing their performance. It is also a kind of employee benefit plan, similar in some ways to a profit-sharing plan.Employees typically have to wait for a certain duration known as vesting period before they can exercise the right to purchase the shares.
Many companies like Infosys in their early days used to award employees and even clerical staff with ESOP’s. This way, there were able to manage their direct costs. Moreover, giving ESOP’s to employees was also a way of motivating the employees to work harder by creating the sense of ownership and directly rewarding employees for increase in the company’s valuation.
In recent news one can see how Cash bonanza is on the way for employees of payments company Citrus Pay, as bigger rival PayU agrees to buy the Mumbai company for about Rs 860 crore, in one of the biggest deals in the Indian financial technology space. About 50 employees are set to share in the spoils with an estimated Rs 43 crore being allocated as returns on the employee stock option plan (ESOP). About 15 employees are set to rake in over Rs 1 crore, with an office boy who was one of the first employees at the company taking home Rs 50 lakh.
When the employees are given shares of the same company in which they are working, it gives them a sense of feeling that now they are not employees of this organisation but are the owners. As they are now they owners, they also have a share in the profits of the company. In fact, since employees directly benefit from the increase in the share price, they focus on overall value creation for the company.