New Delhi: Tata Motors Limited has announced that its demerger into separate commercial vehicle and passenger vehicle businesses will take effect on October 1. The move comes after receiving approvals from its board, regulators, and the National Company Law Tribunal. As part of the demerger, shareholders will receive one share in the new commercial vehicle company for each fully paid Tata Motors share held on the record date, the company said in a filing to the exchanges.

The record date is pending announcement and will be revealed after the completion of statutory filings. Upon confirmation of the record date, investors will receive one share in the CV and PV companies for each Tata Motors share they own. Shares will be automatically credited to investors’ demat accounts, with voting rights remaining proportionate across both entities. Both companies will set their own dividend policies moving forward.

As part of the demerger, Tata Motors will split into two separate listed entities. The commercial vehicle business arm housed in TML Commercial Vehicles Ltd. (TMLCV) is expected to be renamed to Tata Motors Limited once the demerger is complete.

Tata Motors will rename its existing listed company to Tata Motors Passenger Vehicles Ltd., retaining its passenger vehicle and electric vehicle businesses, as well as investments like Jaguar Land Rover.

Girish Wagh, who currently heads Tata Motors’ CV operations, will lead the new commercial vehicle company, while Shailesh Chandra, the current head of the passenger vehicle and electric vehicle divisions, will spearhead the PV-focused company.

Tata Motors announced that the demerger aims to unlock value and enhance corporate efficiency, highlighting the distinct market dynamics, opportunities, and capital requirements of its CV and PV businesses.

Tata Motors first announced plans for a demerger in 2024. The appointed date for accounting and valuation purposes is July 1, 2025, while October 1 marks the legal effective date.

Sir Keir Starmer was repeatedly pressed on whether VAT could be increased in the forthcoming Budget.

The prime minister was asked at least five times by the BBC’s Laura Kuenssberg if he would rule out raising VAT, with Chancellor Rachel Reeves expected to have to put up taxes or cut spending in November to meet her own rules on government borrowing.

Speaking ahead of Labour’s party conference in Liverpool, the PM said “the manifesto stands” and that more would be revealed in the Budget.

New Delhi: The Employees’ Provident Fund Organisation (EPFO) has introduced a revamped electronic challan-cum-return (ECR) facility from the wage month of September, aimed at making return filing easier and error-free for employers and establishments, as per the latest notification issued by the Central Provident Fund Commissioner.

The new facility separates the process of submitting returns from payment generation. It also includes system-based validations to prevent the filing of incorrect returns. The updated system will automatically calculate damages and interest under sections 14B and 7Q of the Employees’ Provident Funds Act.

It will also make it mandatory for employers to pay interest under section 7Q along with monthly contributions. Section 7Q requires employers to pay interest on pending dues until the date of payment, while section 14B allows EPFO to impose penalties for defaults in payment.

Despite the changes, the existing file format for returns (.txt) will remain the same. Employers will be able to file regular, supplementary, or revised returns through the system. An EPFO official said the move is part of efforts to make the organisation more user-friendly.

The changes are expected to reduce data-entry errors that have made return filing cumbersome in the past. The revamped system will also help prevent errors in pension contributions under the Employees’ Pension Scheme (EPS). For instance, employees earning more than Rs 15,000 a month are not eligible for EPS, but many employers mistakenly make contributions under this head. The new system will flag such errors before filing, ensuring correct submissions.

Similarly, EPS membership ends at 58 years of age unless an employee opts for deferred pension. Earlier, the system did not stop remittances into the pension fund for employees above 58, leading to grievances. Now, the revamped ECR will automatically restrict contributions after 58 years unless specifically marked for deferred pension by the employer.

The EPFO hopes these measures will simplify compliance, reduce mistakes, and provide greater clarity to both employers and employees.