Hello Readers,
Greetings of the Day ! 🙏
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Today's Word of Wisdom -
Forgive others, not because they deserve forgiveness. But because we deserve Peace.
If you can not find the brighter side of life. Then, Polish the darker side.Attitude of adjustment is the firstly instrument to live a life.
डर का ना होना साहस नहीं है, बल्कि डर पर विजय पाना साहस है। बहादुर वह नहीं है जो भयभीत नहीं होता, बल्कि वह है जो भय को परास्त करता है।
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28 December 2017 Updates 📄📄📄
MSME
Small Industries Development Bank of India (SIDBI) has launched the ‘Udyamimitra’ Portal(www.udyamimitra.in) as a universal loan portal to improve accessibility of credit and hand holding services to Micro, Small and Medium Enterprises (MSMEs). Through the portal, entrepreneurs can apply online for MSME loans upto Rs.2 crore without physically visiting bank branches. Various Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies, Small Finance Banks and Financial Technology (Fintech) companies have been boarded on the portal. Government has taken several steps to extend easy loans to MSMEs, which inter-alia include, advise to all Scheduled Commercial Banks (SCBs) to achieve a 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs) to ensure enhanced credit flow, allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth in number of micro enterprise accounts, adoption of one cluster, operationalising at least one specialised MSME Branch in every district etc.
CBEC - GST
CBEC has notified the amended Central Goods and Services Tax (Thirteenth Amendment) Rules, 2017 which shall come into forceon the date of their publication in the Official Gazette. The amendments are being carried out to revised the GST Returns and Forms to have some additional information’s. The FORM GSTR-1 is being revised to include the details w.r.t Zero rated supplies and Deemed Exports; FORM GST RFD-01, to have new Statement 1A, w.r.t ITC accumulated due to inverted tax structure; FORM GST RFD-01A to have revised declaration. Stakeholders are requested to use revised forms only.
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#Economy:Close to 71.24 crore mobile numbers - both new connections and existing - and 82 crore bank accounts have been linked with 12-digit biometric identifier Aadhaar. Linking of Aadhaar with personal bank accounts is being done based on the amendments that have been effected in the Prevention of Money Laundering Rules 2005. Linking of Aadhaar with the mobile number has been effected in pursuance of Supreme Court.
#Finance:The Govt slashed interest rates on small savings schemes, including NSC and PPF, by 0.2% for the January-March period from the rates applicable in the previous quarter, a move that will prompt banks to lower deposit rates. At the same time, investments in the five-year Senior Citizens Savings Scheme has been retained at 8.3%. A finance ministry notification said rates have been reduced across the board for schemes such as NSC, Sukanya Samriddhi Account, KVP and PPF.
#Over 4.5 lakh Indians have acquired foreign citizenship in 117 countries since 2014 till date.
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Only Registered Promoter is Liable to Pay Tax under Kerala Lotteries Act: SC [Read Order]
Read more at: http://www.taxscan.in/registered-promoter-liable-pay-tax-kerala-lotteries-act-sc/15435/
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Lok Sabha passes GST (Compensation to States) Amendment Bill 2017 [Read Bill]
Read more at: http://www.taxscan.in/lok-sabha-passes-gst-compensation-states-amendment-bill-2017/15441/
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142 listed companies fined for not employing women directors on the board_*
*Section 149* of Companies Act, 2013 (the Act) read with the corresponding rules *requires every listed company* and prescribed class of companies to have a *women director*
*Section 172* of the act lays down *punishment for non-compliance* Registrar of companies has *filed prosecutions against 202 non-compliant public unlisted companies* In case of *36 unlisted PSUs* reference have been made to administrative ministries for ensuring compliances in this regard. Securities and Exchange Board of India (SEBI) has *also mandated under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015* for the appointment of at least one woman director on the boards of listed companies. *54 and 88 number of companies* including PSUs listed on National Stock Exchange and Bombay Stock Exchange respectively which had *not appointed women directors* as on 30.09.2017 have been *levied fine* for non-appointment of women directors, as per fine structure prescribed by SEBI.
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IMF & World Bank, trying to protect the Foreigner's interest, if & when the "Bail-in" clause is promulgated in India.
Now, the World Bank (WB) and the IMF (International Monetary Fund) want this "bill to be more draconian against the bank's depositors".
This report is dated 22 Dec 2017, and there is a related press release from SEBI (Securities & Exchange Board of India) too, in this link. http://www.moneylife.in/article/imf-world-bank-want-frdi-bill-to-have-more-onerous-conditions-for-creditors/52558.html . In essence, the gist of their recommendations to India, are as under :.
1. As of now, the foreign depositors of an Indian Bank have to first make, their share of sacrifice or accepting a write-off of their deposit. Then come the Indian Depositors. But WB now wants that clause removed. In which case, the Indian & Foreign depositors would be treated at par. Essentially they are trying to protect the "foreign depositors"
2.As of now, the Resolution Authority would have to work in tandem with RBI, to decide on issues like, "which of the banks should be offered the bail-in support or what level of sacrifice should be demanded from the depositors. Whether 50%, 60% or all of the "deposit value" beyond Rs. 1 lac.
3. Now WB & IMF want the "Resolution Authority" (RA) to be a super-power and not answerable to anyone, apart from the PM of the Nation. They want to provide the RA, unhindered Hitleric powers, which can then crack the whip on the innocent depositors. at will.
4. When the Indian banks have their branches abroad, say in London, they want that London Branch, to use the value of all the assets of that branch, to first pay-off the creditors of that branch, by utilizing all its cash reserves.
5. This is a tyrannical step aimed at protecting the foreign suppliers, at all costs. This will be opposite of what would happen in India, wherein the local suppliers of furniture & bank-vaults are also asked to make their share of sacrifice.
6. Should our Govt. which is so very keen to protect the depositors' interest, be even be looking at these oppressive amendments. If ever this bail-in bill is brought in, with these types of conditions, forget about your savings and go to Himalayas.
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: A Demand Notice of an Unpaid Operational Debt can be issued by a Lawyer on behalf of the Operational Creditor: SC [Read Judgment]
Read more at: http://www.taxscan.in/demand-notice-unpaid-operational-debt-can-issued-lawyer-behalf-operational-creditor-sc/15431/
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NCLAT allowed the appeal of a company by holding that if the petition under Section 10 IBC is complete in all respects, the same cannot be dismissed on the ground that secured creditors (banks) had invoked the provisions of SARFACIE Act for recovery of debts due.
Leo Duct Engineers Ltd LSI 2185 NCLAT 2017
NCLAT has dismissed the appeal of corporate debtor filed only on the ground that there was mismatch of amount claimed six months in a communication than the amount claimed in the company when there is no bona fide dispute of debt due. Mintri Tea co Ltd LSI 2186 NCLAT 2017
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Hoardings erected by Railways on its premises can’t be Taxed by the Municipal Corporation: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/hoardings-erected-railways-premises-cant-taxed-municipal-corporation-bombay-hc/15383/
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No Service Tax on Retention Fee charged by Hospitals: CESTAT Delhi [Read Order]
Read more at: http://www.taxscan.in/no-service-tax-retention-fee-charged-hospitals-cestat-delhi/15401/
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Bitcoin Holders are under scanner of Income Tax Department for suspected Tax Evasion
Read more at: http://www.taxscan.in/bitcoin-holders-scanner-income-tax-department-suspected-tax-evasion/15428/
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💥# *TAXATION UPDATES* #💥
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*_Falling GST revenue: Taxing times ahead! CBEC asks officials to go after non-filers_*
In what showed the government’s anxiety over the *“high” transitional credit claims* and *absence of invoice-matching hitting* the goods and services tax (GST) collections, the Central Board of Excise and Customs (CBEC) has *sent another missive* —the third in less than a month—to its field formations, *warning against any laxity* in the credit verification process. CBEC chairperson Vanaja N Sarna asked tax officials “to *ensure non-filers of GSTR-3B* (summary returns) are *brought into the fold* and made to file these returns. *Tax needs to be paid* or *nil tax liability claimed* with the filing of GSTR-3B. Despite a *gradual rise* in the taxpayers registering on the GST Network (GSTN) to over 95 lakh, the first four months (July-October) saw only about 60 lakh of these filing even the summary returns. The more detailed ones —which include the invoice-wise details on inward and outward supplies—have anyway been suspended till March-end. While the government has *relaxed many stringent compliance requirements* including reverse charge mechanism, comprehensive returns filing, electronic way bill and tax collected at source, it has *left the department* with virtually *no mechanism to identify evasion* and *plug revenue leakages* In the absence of granular data, the tax department had asked tax officials to *manually collect information* of the top 100 assessees in their jurisdiction. The officials were also asked to *compare available details* from GSTR-3B filings with data collected for the corresponding period last fiscal. However, officials said they encountered many uncooperative assesseess as an informal request to share information was not mandatory on them. The collection of information manually is nearly impossible with the resources at the disposal of the department, a tax officials said. He added that despite the problems the tax department was left with no option but to carry out the onerous exercise to the extent it could.
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*_Mobile cos seek additional 6 mths to sell pre-GST stock_*
Mobile handset companies, under the aegis of Indian Cellular Association, have *sought additional six months to liquidate pre-GST period devices* so that they can *avail input tax credit* The deadline to avail input tax credit by mobile firms on handsets manufactured before July 1 is December 31, 2017. Our feedback is that the six-month July-December 2017 period is *insufficient to liquidate the old stock* at least 20-30 per cent stock is still in pipeline in the vast supply chain under 35 GST jurisdictions, Pankaj Mohindroo said in a letter to Finance Minister Arun Jaitley on December 23. The ICA has *sought extension of time period* by at least 6 months, saying by that time the stock will be exhausted. Mohindroo said there will be *no revenue loss* as such since duty has already been *paid on the products* and *facility to avail input tax credit* for *unlimited duration* is *available* in the GST regime. There is *no reason why the trade* should be *denied* similar carry forward in the cases of unrebated taxes *suffered in the pre-GST regime* he said. The Indian mobile device industry size in the current year is estimated at Rs 1.5 lakh crore and the number of transactions in the industry will be at least 4-5 times of this value, since the same item changes hands several times in the supply chain from raw material to finished goods and then to the wholesalers, distributors, retailers and consumers, the ICA letter said. There is a *lot of resentment* in the trade on this and we understand that some parties have *gone to the High Court* and have *secured interim relief* Others too may have gone to court to have the judgement extended to them also. Petitions on the same lines are being filed before the High Court in the other GST jurisdictions. Even the Supreme Court may be seized of the matter, he said. Mohindroo said that *extension of deadline* till June 30, 2018 will *ease the transition* to GST and give relief without hurting industry and trade.
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*_Revenue concerns may push back further GST cuts_*
With revenue concerns surfacing, a *reduction in goods and services tax* (GST) rates for *consumer durables* in the *28 per cent slab* may take longer than expected. With almost three months to go for the fiscal year to end, pruning the *28 per cent slab* again may *not happen in the next GST Council meeting* in January. According to officials, the *January meeting* will *not discuss rate reduction* and the *focus* will be on *stabilising revenue collection* The meeting in January is unlikely to look at reducing rates. A decision will be taken after the Union Budget is presented in February. The revenue position will become clear after that, a senior official in the Council told. The focus was to *meet the revenue collection target* he added. The Centre and the states should collect Rs 91,000 crore a month, according to the target set on the basis of the Budget Estimates of the Union government and specific formula for the states. The formula is taken from the *compensation being given* to the states, assuming their revenue collection will grow 14 per cent over the base year of 2015-16. *Fiscal uncertainties* were *voiced* after the collections touched their lowest in October at Rs 83,346 crore and a *further slowdown* is expected after the *impact of the massive rate reduction* in the November meeting is accounted for. With almost three months to go for the fiscal year, the *focus* is on *improving revenue collections* another official said. Union Finance Secretary Hasmukh Adhia has asked states and union officers to *review revenue collections* in the first five months compared to the corresponding period last year. The slowdown in revenue collection prompted the Council in its meeting on Saturday to do a *nation-wide roll-out of the electronic way bill* from June 1 next year to *plug revenue leakages and tighten enforcement* The roll-out of the bill for inter-state movements of goods would be advanced to February 1 from April 1 decided earlier. *Revenue collections* have been *erratic* and are yet to *settle down in view of changes* in rates and transitional provisions. The government may *take some more time to analyse the impact* of the changes before it embarks on further streamlining the GST rate structure, said Bipin Sapra. Saloni Roy of Deloitte said after the statement that the GST rates of 12 and 18 per cent could be combined to make a single rate, there had been hopes that, we may see *another rate revision, possibly downwards* like the one witnessed in the mid-November. However, considering that *GST collections* are *yet to stabilise* this rate rationalisation may happen only after we see GST revenue collections achieving some stability, said Roy. The GSTN has introduced the facility for tax officers of all states and union territories to examine and monitor the details of all returns and ledgers.
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*_Plea for more relief in GST_*
Appealing to the Union government to favourably consider a *number of proposals* which would *pave way for industrial growth* in southern Tamil Nadu, a delegation from Madurai District Tiny and Small Scale Industries Association (MADITSSIA) *called for more relief* in the Goods and Services Tax (GST). K.P. Murugan, said their delegation met Union Ministers and senior officials of Railways, Finance, Health and Family Welfare, Commerce and Industries in New Delhi recently. Mr. Murugan said the proposed Madurai-Thoothukudi industrial corridor would *get an impetus* only when a special officer in the rank of an IAS was posted. For this, the State government should also evince interest. There were many small and medium enterprises which were keen to set up garment units in the belt. There was potential for good employment generation. Secretary B. Muruganantham said expediting Madurai-Bodi BG line project and introduction of a second day train between Madurai and Chennai would benefit business people. Commerce Minister Suresh Prabhu had assured the delegation that a *favourable climate* would be *ensured for small scale units* For instance, since pappad units would not be making huge investments, they would be given relief under Factories Act. The delegation called for *more relief in the GST regime* Penalties and fines imposition should be waived for the units at least till July 2018. Similarly, banks should be told to *extend the norms* for declaring NPA accounts. When slowdown in the economy had forced many industries to declare lay-off and faced closure, the banks should give relief for at least one year for any account. Union Minister Pon Radhakrishnan told the delegation to *prepare a roadmap* for developing southern districts by 2030. The MADITSSIA would *create a platform* towards this objective, the delegation said.
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_DCIT. vs. Ace Multi Axes Systems Ltd._
S. 80-IB: The *incentive* meant for *small scale industrial undertakings cannot be availed* by undertakings which do *not continue as small scale industrial undertakings* during the relevant period. Each assessment year is a different assessment year. The fact that the *object of legislature* is to *encourage industrial expansion* does not mean that the *incentive* should *remain applicable* even where on account of *industrial expansion* the small scale industrial undertakings ceases to be small scale industrial undertakings. The fact that in the initial year eligibility was satisfied is irrelevant.
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_Goodwill Theatres Pvt. Ltd._
Taxability of mesne profits: High Court's approach of *dismissing the Dept's appeal* only because the Tribunal relied on Narang Overseas 111 ITD 1 (Mum) (SB) and the appeal against which had been *dismissed for non-removal of defects* is *not correct* The High Court ought to decide the question on merits.
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_Amira Pure Foods Pvt. Ltd vs. Pr CIT_
S. 263 Revision: Explanation 2 to s. 263 inserted w.e.f. 01.06.2015 does *not override the law* as interpreted by the various High Courts whereby it is held that the CIT *cannot treat the AO's order* as being *erroneous and prejudicial to the interest* of revenue *without conducting an enquiry* and recording a finding. If the Explanation is interpreted otherwise, the CIT will be *empowered to find fault* with each and every assessment order and also to *force the AO to conduct enquiries* in the manner preferred by the CIT, thus prejudicing the mind of the AO, This will *lead to unending litigation* and *no finality in the legal proceedings* which *cannot be the intention of the legislature* in inserting the Explanation.
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_Maharaj Garage & Company vs. CIT_
S. 271(1)(c) Penalty: The requirement to obtain *previous approval* of the IAC is *mandatory* as it is to *safeguard the interests* of the assessee against arbitrary exercise of power by the AO. *Non-compliance* may *vitiate the penalty order* However, the requirement in s. 274 that the assessee must be *given a reasonable opportunity of being heard cannot* be *stretched* to the extent of framing a specific charge or asking the assessee an explanation in respect of the quantum of *penalty proposed to be imposed*
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_Hindustan Coca Cola Beverages Pvt. Ltd vs. CIT_
S. 194H, 201(1): An *obligation to deduct TDS u/s 194H arises* only if the relationship is that of *"principal and agent"* and if a "payment" is made. As the *relationship* between the assessee and the *distributor* was that of *"principal to principal"* and as the *"discount"* did *not amount to a "payment"* there was *no liability to deduct TDS*
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_Daniel Merchants Private Limited vs. ITO_
S. 68 Bogus share capital: Law laid down in Subhlakshmi Vanijya Pvt. Ltd vs. CIT 155 ITD 171 (Kol), Rajmandir Estates 386 ITR 162 (Cal) etc that the CIT is entitled to *revise the assessment* order u/s 263 on the ground that the AO did *not make any proper inquiry* while accepting the explanation of the assessee insofar as receipt of share application money is concerned *cannot be interfered* with.
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_Pr CIT vs. Baisetty Revathi_
S. 271(1)(c) *penalty* can be *levied* only where the *charge is unequivocal and unambiguous* The AO must specify whether the charge is of *concealment of particulars of income* or *furnishing of inaccurate particulars* thereof and which one of the two is sought to be *pressed into service* He is *not permitted to club* both by interjecting an ‘or’ between the two. The ambiguity in the *show-cause notice compounded* by the confused finding of the AO that he was satisfied that the assessee was guilty of both renders the *proceedings void* (K. P. Madhusudhanan 251 ITR 99 (SC) & MAK Data 358 ITR 593 (SC) distinguished.
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_CIT vs. Chaphalkar Brothers Pune_
Taxability of subsidies: A *subsidy granted* by the Govt to *achieve the objects of acceleration* of industrial development and generation of employment is capital in nature and not revenue. The fact that the *incentives* are *not available unless and until commercial production* has *started* and that the incentives are not given to the assessee expressly for the purpose of purchasing capital assets or for the purpose of purchasing machinery is irrelevant. The object has to be seen and not the form in which it is granted.
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_Bhushan Steel vs. CIT_
Taxability of subsidies: *Supreme Court stays judgement* of the Delhi High Court in CIT vs. Bhushan Steels And Strips which held that if the *recipient* has the *flexibility of using* it f any purpose and is *not confined* to using it for capital purposes, the subsidy is revenue in nature and is taxable as profits.
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💥 # *GENERAL UPDATES* # 💥
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*_Give asset details or lose foreign posting: Govt to babus_*
All *IAS officers* have been asked to *submit details* of their *assets by next month* and *warned* that the failure to do so would *lead to a denial of vigilance clearances needed* for promotions and foreign postings. The Department of Personnel and Training (DoPT) has written to all Central government departments, states and union territories asking them to *ensure submission of Immovable Property Returns* (IPRs) by IAS officers working with them by January 31, 2018. In view of the DoPT's instructions dated April 4, 2011, it is reiterated that *failure* to ensure timely submission of IPR would result in *denial of vigilance clearance* Establishment Officer and Additional Secretary P K Tripathi said in the recent missive. According to the 2011 instructions, officers who did *not submit* their IPR as on January 1, 2018, on time would be *denied vigilance clearances* and will *not be considered for promotions and empanelment* for senior-level posts in the government of India. Those who do *not submit property details on time* will *not be considered for any posts* of the Central government including foreign postings, a senior DoPT official said. An *online module* has been *designed* for the purpose of filing of the IPR. Officers have the option of uploading the hard copy of the IPR by January 31 in the online module, the December 22 letter said. There are *5,004 Indian Administrative Service* (IAS) officers working across the country, according to the DoPT's latest data.
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*_25% of swachh cess hasn’t reached dedicated fund_*
During the last two years, the government *collected more than Rs 16,400 crore as Swachh Bharat cess* meant to fund sanitation schemes, but the Comptroller and Auditor General (CAG) has pointed out nearly a quarter of the collection has stayed outside the dedicated fund. While collections through the 0.5% cess on all services was meant to be transferred to a non-lapsable Rashtriya Swachhta Kosh, over Rs 4,000 crore remained outside the RSK schemes. CAG said *Rs 12,400 crore, around 75% of total collections* was *transferred to the RSK* and used for identified schemes in the last two years. The rules stipulated that the resources of RSK were to be distributed in the ratio of 80:20 between Swachh Bharat Mission (Gramin) and Swachh Bharat Mission (Urban). However, the ministry of drinking water and sanitation expended the entire amount on Swachh Bharat Mission (Gramin) without leaving any provision for Swachh Bharat Mission (Urban), the auditor pointed out on the portion of funds utilised. The national auditor has said that the experience was similar with other cesses. The CAG has found that in case of *six major cesses* where *total collections* were to the tune of *Rs 4 lakh crore* till 2016-17, over *Rs 1.81 lakh crore, or nearly 45%* of the funds collected, remained unutilised and were not *transferred from the government's Consolidated Fund* has pointed out that large amounts collected through cess *remained unutilised* thus defeating the purpose for which they are created. In a report tabled in Parliament last week, the CAG has said that against the *total collection of Rs 83,497 crore* towards the *secondary and high of India* to the dedicated funds or the intended schemes. Opposition parties in Parliament had earlier *raised the issue of non-utilisation of cesses* and had demanded an explanation from the government for unnecessarily burdening taxpayers with additional levies. The CAG too, er education cess during 2006-07 to 20016-17, nothing was "transferred to the earmarked fund as neither the schemes were identified on which the cess proceeds were to be spent nor the designated fund was created to deposit the proceeds of the cess". The levy collected remained with the consolidated fund of India for general expenditure of the government. The government had created the research and development cess in 1986. It was to be levied on all imported technology and the fund used to encourage indigenously developed technology. From 1996-97 to 2016-17, the government collected *Rs 7,885 crore as R&D cess but disbursed only Rs 609 crore to the Technology Development Board* (TDB), the fund meant to encourage indigenous R&D. The auditor also examined the cess under central road fund and found that the Centre had collected over Rs 2.43 lakh crore from 2010-11to 2016-17 but transferred only Rs 1.95 lakh crore to the CRF, with a shortfall of over Rs 48,000 crore.
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*_State of Governance and Grievance Redress: 16 Out of 17 Insurance Ombudsman Missing_*
Insurance policyholder’s *grievance redressal system* is in *complete mess* with 16 out of 17 insurance ombudsman centres in the country currently vacant. *Insurance ombudsman* is *missing in offices* across India for one to three years. How many complaints have stacked up across India? New year 2018 will have *number of complaints outstanding increasing* as posts of Insurance Ombudsman continue to remain vacant. So, it is not surprising that number of cases get delayed at Ombudsman level even as number of complaints keeps increasing. Are *consumer issues not much of a priority* to the insurance regulator? In September 2017, written about *Mumbai ombudsman office not having full time ombudsman* for the past 18 months. Insurance Ombudsman from Pune had been *given additional charge* of Mumbai office to help solve the complaints. Is it justified considering the volume of complaints handled by Mumbai and Pune offices? Even worse, the Pune ombudsman has *retired* and hence there is *no respite for policyholder complaints* from Maharashtra and Goa. Mumbai region, which has three to four times of the average insurance complaints handled in an Ombudsman office, has been impacted by lack of Ombudsman services. The *grievance redressal machinery* has been *disrupted* and aggrieved parties may have been considerably inconvenienced. Metros like Mumbai and Delhi get high volume of insurance complaints. Surprisingly, even *Delhi has no ombudsman* How can Insurance Regulatory and Development Authority of India (IRDAI) have no Insurance Ombudsman in service for 16 out of 17 insurance ombudsman centres in the country? Currently, only Noida has an Ombudsman, who is given additional charge of Chandigarh. But, he is set to retire in January 2018. Will *IRDAI create a record next month* of having *no ombudsman present in India* All the ombudsman offices will be without a head and hence no hearing of cases? It will be a dubious record for IRDAI Chairman who is set to retire early 2018. It is not the first time insurance Ombudsman offices are without its head. Around five years ago, there was no Ombudsman in Ahmedabad for almost a year. Again, there is no Ombudsman in Ahmedabad for over three years. Having an Ombudsman in Ahmedabad office seems to be an exception rather than a norm. *Insurance grievances are on the rise* Both life and non-life have almost equal share of complaints. The main difference between them is that life insurance complaints include mis-selling by intermediary, while non-life insurance has grievances against third party administrator (TPA) or surveyor. Wrongful denial or partial settlement of claims is a major grouse of policyholders. The other reasons for complaint are, dispute in regard to premium paid or payable in terms of the policy, dispute on the legal construction of the policies in so far as such disputes relate to claims, delay in settlement of claims and non-issue of any insurance document to customers after receipt of premium. The *Ombudsman office helps in settling matters* when there were inordinate delays in courts, including consumer courts. The Ombudsman is an *independent office* that *provides speedy and cost-effective resolution* of customers' grievances if the insurance grievance cell of companies has not been able to provide satisfactory response to complaints. The *waiting period* for a policyholder after filing the complaint with the Ombudsman is *three to six months* when the Ombudsman is operating. Any disruption due to non-availability or part-time Ombudsman working, a long backlog of cases gets built up. Obviously, when *consumers file a complaint* they are *not given a timeframe* in which they can hope to get a hearing or redressal.
The institution of Insurance Ombudsman had been *useful in providing remedies* to aggrieved insurance policy holders. There are *17 insurance Ombudsman offices across the country* Banking Ombudsman Scheme would now *include deficiencies arising out* of sale of insurance, mutual fund or other third party investment products by banks as well as complaints regarding mobile banking and electronic banking service in the country. In a recent notification, Reserve Bank of India (RBI) says, “The *pecuniary jurisdiction of the Banking Ombudsman* to *pass an Award* has been *increased to Rs20 lakh* from existing Rs10 lakh. *Compensation not exceeding rupees hundred thousand* can also be *awarded* by the Banking Ombudsman to the complainant for loss of time, expenses incurred as also, harassment and mental anguish suffered by the complainant.
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*_As Elders spar, Centre lists 9 Bills for passage in House_*
Unfazed by the *repeated disruptions* in Rajya Sabha over Prime Minister Narendra Modi’s “Pakistan barb” at his predecessor Manmohan Singh and former vice-president Hamid Ansari, the Centre has *listed nine legislations* to be *considered* by the Upper House for the *three working days* in this week. Keen to end the impasse, Rajya Sabha Chairman Venkaiah Naidu has reportedly convened another meeting with Leader of Opposition Ghulam Nabi Azad and Leader of the House and Finance Minister Arun Jaitley. The duo had met last week in the presence of Naidu, but a *consensus on the smooth running of the House* could *not evolved* The Opposition parties are likely to meet on Wednesday morning to chalk out the further strategy. Naidu apparently wants the ruling party leaders to reach out to the Opposition. The government had maintained in the House that there was nothing condemnable in Modi’s remarks and said he had not spoken of a conspiracy at the dinner hosted by Congressman and former Minister Mani Shankar Aiyar, in which Pakistan former foreign minister Khurshid Mahmud Kasuri also participated. The Opposition, on the other hand, demanded a clarification from Modi and said the Prime Minister had not behaved in a dignified manner. Among the *nine legislations listed* for the Upper House’s consideration are the Indian Institute of Petroleum and Energy Bill, the State Banks (Repeal and Amendment) Bill, the National Bank for Agriculture and Rural Development (Amendment) Bill, the Whistle Blower’s Protection (Amendment) Bill — all of which have been passed by Lok Sabha. Other than that, the crucial Prevention of Corruption (Amendment) Bill, cleared by a Select Committee of Rajya Sabha, has also been scheduled. The Rajya Sabha may *also take up a discussion* on Statutory Resolution seeking disapproval of the GST (Compensation to States) Amendment Ordinance and will consider the Goods and Services Tax (Compensation to States) Amendment Bill, 2017, which replaces the Ordinance. The *Bills replacing Insolvency and Bankruptcy Code (Amendment) Ordinance* and Indian Forest (Amendment) Ordinance, will *also be considered* by the Elders. The Repealing and Amending Bill, the Repealing and Amending (Second) Bill, the Central Road Fund (Amendment) Bill, the Appropriation (No.5) Bill, and the National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2017 are also scheduled to be taken up in Rajya Sabha.
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*_Triple talaq bill to be introduced in Parliament on Dec 28_*
A bill seeking to *criminalise the practice* of *instant triple talaq* among Muslims is *set to be introduced* in the Lok Sabha on Thursday. The Muslim Women (Protection of Rights on Marriage) Bill is *listed for introduction* in the Lok Sabha by Law Minister Ravi Shankar Prasad on December 28, according to the list of business in the Lower House. The bill, prepared by an *inter-ministerial group* headed by Home Minister Rajnath Singh, makes *instant triple talaq or talaq-e-biddat in any form* -- spoken, in writing or by electronic means such as email, SMS and WhatsApp -- *"illegal and void"* and provides for a jail term of three years for the husband. It was cleared by the Union Cabinet earlier this month. The bill was listed for introduction last week, but Parliamentary Affairs Minister Ananth Kumar later said that it would be introduced this week. As per the provisions of the bill, the husband could also be *fined* and the *quantum of fine* would be *decided by the magistrate* hearing the case. The bill is being introduced as the practice still continued despite the Supreme Court striking down 'talaq-e- biddat'. The proposed law would only be *applicable to instant triple talaq* and it would *give power to the victim* to approach a magistrate *seeking "subsistence allowance"* for herself and minor children. The woman can also seek the custody of her minor children from the magistrate who will take a final call on the issue.
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*_90% Central schemes already under DBT, action may now shift to states_*
The *amount transferred to citizens directly* into their bank accounts through Direct Benefit Transfer (DBT) will cross the *big mark of Rs 1 lakh crore* in the present financial year and could end up seeing a *massive 50% jump* over the amount transferred through the DBT in 2016-17, says the joint secretary (DBT Mission), Peeyush Kumar. Prime Minister Narendra Modi has often cited the *Rs 57,000-crore worth savings* made through DBT by elimination of duplicate and fake beneficiaries to stress how his government has ensured benefits flow in their entirety to people without leakages. Ahead of the 2019 elections, this could become the biggest plank as the *savings figure* is expected to *rise given 399 schemes* are now under the DBT’s ambit compared to just 142 till March this year. While around *Rs 74,000 cr* was *transferred* through DBT in 2016-17, the first nine months of this financial year has already seen nearly Rs 85,000 cr being transferred through DBT. This figure could end up over Rs 1.15 lakh cr by the end of 2017-18, Kumar told. The number of *DBT beneficiaries* this financial year have *also risen* from around 35 cr in 2016-17 to nearly 60 cr, implying nearly half the country’s citizens are now covered under DBT. Over *119 cr transactions* have been *carried out* this year, meaning a DBT beneficiary got at least two benefits through the scheme. We have identified nearly *460 central schemes to be covered* under DBT and almost 400 are now under its ambit. So 90% of work is done at Centre’s level, Kumar said. The two big schemes in which maximum money is being transferred are the LPG Pahal Scheme and MGNREGA programme. The focus now, as per directions at a review meeting last month, is now to bring *states also on the DBT network* and encourage them to implement their schemes through the same mechanism. About *1,700 schemes of the states* have *adopted the DBT model* which include the centrally sponsored schemes but that is only 25% of the work taking all the states together. The cabinet secretary had written to all states saying they should also reap benefits like the Centre does for central-sponsored schemes by adopting DBT for their state schemes. Centre estimates states pay ?3 lakh cr each year in benefits as part of their own schemes and hence there a *massive potential of savings*
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*_SBI Manufacturing index inches up to 53.1% in December_*
*Manufacturing activity* showed *moderate growth* with annual SBI Composite Index rising to 53.1 in December compared to 53 in the previous month. The SBI Composite Index has mainly *two indices* - SBI Monthly Composite Index and SBI Yearly Composite Index. The month-on-month index *declined to 50.6* showing *low growth* in the month compared to 51.2 in November. This indicates a *possible slowdown in IIP growth* in the next couple of months. We, however, believe even though the momentum may have *slowed down* the outlook for some of the sectors appears largely positive, SBI Research said. One such sector is the fertilizer sector. The financials of the 26 fertilizer companies reported an *improvement in operations* in terms of operational and post-tax *growth in the first half* of the fiscal. The bottom line of the sector grew by 34 per cent, while the top line grew by only 2 per cent, it said. The new project announcement in the *fertilizer sector* is showing an *upward trend* with 13 projects in FY14 to 34 projects in FY17 entailing an investment of Rs. 23,614 crore in FY17 from Rs. 10,172 crore in FY14. This indicates some renewed interest in the sector, the report said.
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*_India challenges China as world's biggest LPG importer_*
India is *set to surpass* China as the *biggest importer of liquefied petroleum gas* (LPG) this month as a drive to replace wood and animal dung fires for cooking boosts consumption. Shipping data in Thomson Reuters Eikon shows *LPG shipments to India* will *reach 2.4 million tonnes* in December, pushing it ahead of top importer China, on 2.3 million tonnes, for the first time. India's LPG purchases have surged from just 1 million tonnes a month in early 2015 on the back of a government programme to bring energy to millions of poor households relying on open fires. The growth in India is amazing. The fact that they have grown from 140 million subsidized household connections in 2015 to 181 million now is very impressive, Ted Young, chief financial officer at Dorian LPG told Reuters. With a fleet of 22 tankers, U.S.-based Dorian is one of the *world's biggest LPG shippers* LPG, a mixture of propane and butane, is used for cooking and transport, as well as in the petrochemical industry. The global market is similar in size to liquefied natural gas (LNG), at around 300 million tonnes traded a year, although both are dwarfed by the market for crude oil, which stands at well over 4 billion tonnes a year. *India's average monthly imports* in 2017 of about *1.7 million tonnes* are well still behind China's 2.2 million tonnes, but it has jumped ahead of third-placed Japan on about 1 million tonnes. Dorian LPG expects "plenty of upside for Indian LPG" imports due to rising use in cars following an Indian tax on gasoline, the company said in a presentation this month. China, India and Japan together make up about 45 percent of global LPG purchases. *India's biggest supplier* by a large margin is the *Middle East* which has so far enjoyed a virtual supply monopoly. However, a surge in U.S. shale drilling, which yields LPG as a byproduct of crude oil and natural gas output, means American LPG exports have started to appear in India. Eikon data shows the first regular U.S. LPG shipments to India began at the start of 2017 at around 50,000 tonnes to 100,000 tonnes a month, rising to more than 200,000 tonnes in December. While that is just a tenth of Middle Eastern shipments, U.S. LPG is becoming increasingly price competitive. Propane at the Texan Mont Belvieu hub <PRO-USG> costs $99 cents per gallon ($516 per tonne), excluding freight. The current Saudi contract price is $590 a tonne, excluding shipping. U.S. suppliers have already made big inroads in Japan, currently meeting half of all demand.
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*_India to become world's fifth largest economy in 2018, says CEBR_*
India looks *set to leapfrog* Britain and France next year to become the *world's fifth-largest economy in dollar terms* a report showed on Tuesday. The Centre for Economics and Business Research (Cebr) consultancy's 2018 World Economic League Table painted an upbeat view of the global economy, boosted by cheap energy and technology prices. India's ascent is part of a *trend* that will see Asian economies *increasingly dominate* the *top 10 largest economies* over the next 15 years. Despite temporary setbacks. *India's economy* has still *caught up* with that of France and the UK and in 2018 will have overtaken them both to become the *world's fifth largest economy in dollar terms* said Douglas McWilliams, Cebr deputy chairman. McWilliams said *India's growth* had been *slowed by restrictions* on high-value banknotes and a new sales tax, a view shared by economists polled by Reuters. *China* is likely to overtake the United States as the *world's No.1* economy in 2032, Cebr said. Because the impact of President Trump on trade has been less severe than expected, the *USA* will *retain its global crown* a year longer than we anticipated in the last report, the report said. While Britain looks *set to lag behind* France over the next couple of years, Cebr predicted that Brexit's effects on Britain's economy will be less than feared, allowing it to overtake France again in 2020. Russia was vulnerable to low oil prices and too reliant on the energy sector and looked likely to fall to 17th place among the world's largest economies by 2032, from 11th now. A Reuters poll of economists in late October *suggested global economic growth* in 2018 looks likely to *quicken slightly* to 3.6 percent from 3.5 percent this year - with risks to that forecast lying on the upside.
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*_Tax-free no more: Saudi Arabia, UAE to roll out VAT in 2018_*
Saudi Arabia and the United Arab Emirates, which have long lured foreign workers with the *promise of a tax-free lifestyle, plan to impose a 5 percent tax* next year on most goods and services to *boost revenue* after oil prices collapsed three years ago. The value-added tax, or VAT, will apply to a range of items like food, clothes, electronics and gasoline, as well as phone, water and electricity bills, and hotel reservations. Elda Ngombe, a 23-year-old college graduate who's looking for a job in Dubai, said there's one specific purchase she's planning before next year's price hike: "Makeup, because I can't live without makeup." I am scared because everything is *actually expensive* already in Dubai. The fact that it's *actually adding 5 percent is crazy* she said. There will be some *exemptions for big-ticket costs* like rent, real estate sales, certain medications, airline tickets and school tuition. Higher education, however, will be *taxed* in the UAE. Extra costs parents pay to schools for uniforms, books, school bus fees and lunch will also be taxed, as will real estate brokerage costs for renters and buyers. Other Gulf countries are expected to implement their own VAT scheme in the coming years. Stores, gyms and other retailers are trying to make the most of the *remaining tax-free days* in Saudi Arabia and the UAE, *encouraging buyers* to stock up before the VAT is rolled out on Jan. 1, 2018. Even with a *five percent jump in prices* the tax rate is *still significantly less* than the average VAT rate of 20 percent in some European countries. If you compare with Europe, I don't think it's as expensive. Only in rent and food, said Vera Clement, a mother and assistant manager of restaurants from France who has lived in Dubai for three years. We are *going to be more careful* when we buy something, she added. The National newspaper, based in Abu Dhabi, says the cost of living in the UAE is expected to rise about 2.5 percent next year because of the VAT. Salaries, meanwhile, remain the same. As the government adjusts to lower oil prices, the UAE is expected to raise around 12 billion dirhams ($3.3 billion) from the tax. Meanwhile, Saudi Arabia recently unveiled the biggest budget in its history, with plans to spend 978 billion riyals ($261 billion) this coming fiscal year as the government forecasts a boost in revenue from the introduction of VAT and plans to reduce subsidies. Still, Saudi Arabia is facing a budget deficit until at least 2023. The International Monetary Fund has recommended oil-exporting countries in the Gulf introduce taxes as one way to raise non-oil revenue. The IMF also recommends Gulf countries introduce or expand taxes on business profits. IMF Mideast director Jihad Azour said VAT is part of a long-term tax reform to *help Gulf states* reduce their dependence on oil revenues. It is something that will allow the government to *diversify revenues* he told The Associated Press on the sidelines of an event in Dubai, adding that any immediate slowdown in spending by consumers next year will be compensated for with government investments. In line with IMF recommendations, Saudi Arabia and the UAE this summer *imposed a 100 percent tax on tobacco products and energy drinks* and a *50 percent tax on soft drinks* VAT, however, is by far the most wide-ranging tax to be rolled out in the two countries.
Though the Gulf has long been associated with being a tax-free haven, foreign companies- except in Bahrain- pay corporate income taxes. In Oman, locally-owned companies also pay taxes. *Customs duties* are in *place* though medicine, food and raw material for industry were exempt in the past. While *not labeled a tax* there have also been *extra fees* associated with government services, including electricity bills for foreigners in the UAE, for example. Foreigners make up about a third of the Saudi population and far outnumber locals in the UAE. For now, anxious residents have been reassured that there are *no immediate plans to impose a payroll tax* which could prompt an exodus of highly-skilled expatriate workers. Saudi Arabia first introduced personal income, capital gains and corporate taxes in the 1950s, but within six months the law was revised to exclude nationals, according to the Oxford Business Group. In the mid-1970s, during an oil boom and construction drive in Saudi Arabia, the country suspended income taxes on foreigners altogether to attract more expatriates to live and work in the country. Even so, many residents in the Gulf say the cost of living is already high. Rent can easily eat up a third of income in places like Dubai. Additionally, millions of foreigners across the Gulf send a significant portion of their salaries to relatives back home, leaving them with maybe a third or less of their salary to live off of each month. *Five percent* is, when you put it on top of everything, it will be a *lot* said Anna Carig, a pregnant school nurse from the Philippines. *Salaries are not coming up and so it will definitely affect everything*
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*_McDonald’s shops in east India shut_*
McDonald’s estranged JV partner Vikram Bakshi has said *nearly all outlets of the fast food chain* in East India have been *shut* and several others in the north are on the brink of closure due to *discontinuation of supplies* by its logistics partner. All in all, there are 80 outlets that have been hit by this cut-off in supplies by Radhakrishna Foodland, a move which is seen as a fallout of the ongoing spat between the fast food major and Bakshi. Almost all the outlets in East India have been shut because of the move by the logistics partner, and others (in North India) are also *under pressure due to the supply crunch* Bakshi told PTI, adding that a total of over 80 outlets are suffering, considering the *limited stock* each outlet has. In a letter dated December 20, Radhakrishna Foodland Pvt Ltd wrote to CPRL, the 50:50 JV between Bakshi and McDonald’s India, saying it is *discontinuing the supply chain services* due to *reduction in volume and uncertainty of future* among others, as also non-payment of a certain additional amount. The otherwise *massive business* in the festive season for McDonald’s is *set to hit a bump* which will affect the food chain’s revenue. Our long-standing logistics vendor Radhakrishna Foodland allegedly in collusion with McDonald’s Corporation and their wholly owned subsidiary McDonald’s India Pvt Ltd. has decided to *hold back stock paid* for approximately Rs. 10 crore by us, Bakshi said in a letter to landlords and developers of his outlets. He further wrote: “While the American company and its subsidiary, MIPL, may have with their *usual mala fide and malicious actions* managed to give CPRL a *temporary business setback* at the end of the year and during this high sale festive season, yet we have made and are *making alternative arrangements* and shall be back to serve our customers very soon. Bakshi has been at loggerheads with the fast food chain over the management of CPRL after he was ousted from the post of MD of the McDonald’s franchisee in August 2013. McDonald’s India in August *terminated the franchise agreement* and had asked CPRL *not to use its brand system, trademark, designs* and its associated intellectual property, among others. Bakshi had *moved the NCLT* following termination of the licence by McDonald’s India Pvt Ltd (MIPL). When contacted, the McDonald’s India spokesperson said, “We were informed that their vendors have stopped delivering supplies. This is between CPRL and their vendors, not MIPL.”
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*_Modi urged to ensure old age pension is not less than 50% of minimum wage_*
Noting the depreciating value of *old age pension* by almost half in the country in the past decade, noted social activists Baba Jadhav and Aruna Roy have written to the Prime Minister Narendra Modi urging him to ensure that the *amount paid is not less than 50 per cent of the notified minimum wage* The letter, written on behalf of the Pension Parishad, a *network of 100 civil society organisations* is in response to recent reports indicating that the Centre was considering a *potential increase in pension* We have been acutely distressed at the *complete neglect* of the government and the *low priority accorded* to the *social security pension schemes* in successive governments. The Indira Gandhi National Old Age Pension Scheme (IGNOAPS) has remained at a meagre Rs. 200 per month since 2006. Over the past 10 years, this has depreciated in value by 50 per cent and it now amounts to less than a day’s minimum wage in most parts of India,' said the letter. Calling for *recognition of the contribution of the elderly* to the *progress of the country* Jadhav and Roy said the least the government can do is to *ensure* that they are *not denied* their *right to live with dignity* in their advanced years. The *Task Force constituted* by Ministry of Rural Development in 2012 and the Sumit Bose committees have *repeatedly recommended ensuring income security* for a larger number of elderly people by increasing the amount and coverage and indexing the pensions to correct for devaluation due to inflation. These recommendations have not been accepted, the letter noted, adding that *piecemeal approaches to increasing pension amounts* will *not address the problem* What is required is *systematic protection* and for *social security* of the elderly, including timely payments, social audits etc. Jadhav and Roy have, therefore, demanded that a *universal and non-contributory old age pension* be *established immediately with a minimum monthly pension* amounting to 50 per cent of minimum wages, that it be indexed and revised periodically based on inflation, and below poverty line criteria should not be used for selection, as also Aadhaar/UID must not be made mandatory for disbursement.
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*_Centre releases Rs 167 crore to 9 states for border development_*
The Home Ministry has *released Rs 167 crore to nine states* with *international border* for the *development of infrastructure in forward areas* an official said. The *states* which will benefit include to Meghalaya, Punjab, Rajasthan, Bihar, Sikkim, Tripura, Assam, Himachal Pradesh and West Bengal under the Border Area Development Programme (BADP), the official said. The fully centrally funded BADP programme covers all villages which are located within 0-10 km of the International Border in 17 states. However, priority is given to those villages which are identified by border guarding forces for speedy development of infrastructure. The *schemes permissible* under the BADP include activities relating to the cleanliness mission, skill development programmes, promotion of sports activities, promotion of rural tourism, border tourism and protection of heritage sites. Construction of helipads in remote and inaccessible hilly areas which do not have road connectivity, skill development training to farmers for the use of modern and scientific technique in farming, organic farming are other areas which come under the BADP. While Rajasthan and Punjab share border with Pakistan, West Bengal, Assam, Tripura and Meghalaya share boundary with Bangladesh. Bihar *shares border* with Nepal, Sikkim shares border with Nepal and Bhutan and Himachal Pradesh share border with China. Earlier, the Home Ministry had released Rs 174 crore to six states having international border under the same programme.
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*_New $318 million loan Agreement Signed with World Bank to Support Climate Resilient Agriculture – over 500,000 Farmers to Benefit in Tamil Nadu_*
The Government of India, the Government of Tamil Nadu and the World Bank *signed a $318 million loan agreement* for the Tamil Nadu Irrigated Agriculture Modernization Project to *promote climate resilient* agriculture technologies, improve water management practices, and increase market opportunities for small and marginal farmers. About *500,000 farmers* of which a majority are small and marginal, are expected to *benefit* from improved and modernized tank irrigation systems. The project will *rehabilitate and modernize* about 4,800 irrigation tanks and 477 check dams, spread across 66 sub-basins, in delivering bulk water to irrigation systems. Tamil Nadu, being a water-stressed state, continues to experience water shortages which are expected to further exacerbate in the future. Rehabilitating and modernizing irrigation tanks will *improve the reliability and availability* of irrigation water for farming communities, making them less prone to climatic hazards. More than 160,000 ha of currently partially irrigated lands will come into full irrigation under this project, said Sameer Kumar Khare. This project will help Tamil Nadu scale up its *efforts to unlock the full potential* of its agriculture sector. It will *support farmers improve the efficiency* of water used in farming, diversify into high value crops, and produce crops that are resilient to the increasing threats of climate change. Such efforts will be a win-win for all, leading to better use of scarce water resources and raising household incomes of farmers, said John Blomquist. Though significant progress has been made during the past decade in crop diversification, still there is *scope for achieving a higher level* Paddy is the dominant crop occupying 34 percent of total cropped areas, whereas fruits and vegetables are grown on 11 percent and pulses and oilseeds on 14 percent of total cropped areas. By helping farmers’ access modern technologies, linking them to markets, and providing postharvest management support, the project will enable farmers to shift from a mono crop paddy system to mixed cropping including high-value crops (fruits, vegetables, and spices), pulses, oilseeds, and millets.
To enhance the ability of crops to withstand expected adverse impacts of climate change, the project will *support smallholder producers adopt new conservation technologies* such as the System of Rice Intensification (SRI) and Sustainable Sugar Initiative (SSI). They reduce average water usage by 35 percent and increase yields by 22 percent per ha. The project is expected to increase the yield of rice, maize, and pulses by 18–20 percent. The project will also coordinate with other World Bank-supported projects in Tamil Nadu and at the national level, including the Tamil Nadu Rural Transformation Project, National Hydrology Project, and National Groundwater Improvement Project to ensure synergy and enhance long-term project impact. The *$318 million loan* from the International Bank for Reconstruction and Development (IBRD) has a *5-year grace period* and a *maturity of 19 years*
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DMHO cannot be treated as Assessee-in-Default since DDOs are liable to Deduct TDS on Payment to Pharmacist, Ads etc: ITAT [Read Order]
Read more at: http://www.taxscan.in/dmho-cannot-treated-assessee-default-since-ddos-liable-deduct-tds-payment-pharmacist-ads-etc-itat/15408/
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# *GST*: The first five months (JUL to NOV 2017) collection stood at Rs.3,67,679 Crores but revenue collection declines in Oct-Nov with Nov’17 collection at Rs.80,808 Cores. In total, 53.06 Lac Taxpayers files return for Nov till 25th Dec, 2017 against 99.01 Lac.
# *CBDT* has notified the Income Tax (25th Amendment) Rules, 2017 whereby A new proviso shall be inserted after Rule 127 (2) to deal with the situations where the communication cannot be delivered or transmitted to the address available with the Income Tax Authorities.
# *E-Commerce* entities are mandatorily required to display the MRP among other details on pre-packaged commodities w.e.f. 1st JAN 2018. May face financial penalties and even jail term if they do not comply with new rules.
# *SEBI* has issued a Standard Format of Application under Regulation 11(1) of SEBI (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011 (Sast Regulations).
# *IT*: Power of tribunal u/s 254 to rectify an order - The Tribunal travelled far beyond its power of rectification in accepting the assessee’s various contentions which were not confined to pure factual errors apparent on the record. – Pr.CIT Vs Nirma Limited (2017 (12) TMI 1270 - Gujarat High Court).
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*Condonation of delay in submission of ITR-V or EVC within 120 days by providing reason for delay at income tax efiling website*
*-Steps required-*
As of now for e-filed return which is not digitally signed, the taxpayer is required to either send a signed copy of Income Tax Return Acknowledgement a.k.a ITR-V or do e-verification popularly known as EVC. The time limit for sending ITR-V or EVC is 120 days from the date of e-filing of ITR.
Income Tax E-filing website has added a new feature for condonation of delay in submitting ITR-V or EVC within 120 days.
Now, the assessee/taxpayer can provide the reason for delay in submission of ITR-V or e-Verification. In addition, he/she will be given an option to e-verify the return after 120 days by giving reasons for delay.
Steps required for condonation of delay in submission of ITR-V or EVC within 120 days.
The assessee should perform the following steps to request for intimation:
*Step 1*
Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
*Step 2*
Go to the ‘My Account’ menu located at upper-left side of the page ⇒ Click ‘Service Request’ ⇒ Select the ‘Request Type’ as ‘New Request’ and Select the ‘Request Category’ as ‘Condonation Request’ ⇒ Click ‘Submit’
*Step 3*
Choose the suitable option located under ‘Response’ column ⇒ Click Submit
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CBDT released data that just over 2 crore Indians, or 1.7 % of the total population, paid income tax in the AY- 2015-16. Whereas The number of ITR filers was 4.07 crore.
GST: Now the Dashboard have been updated for those who opted for Composition after 16th August 2017.
GSTR- 3Bs for the Jul-Sept quarter can be filed without any late fees a consolidated GSTR 1 for the Jul-Sep quarter.
SEBI has issued a Standard Format of Application under Regulation 11(1) of SEBI (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011 (Sast Regulations).
Govt is likely to give the SEBI the power to regulate private placements by any Indian entity at a time when the capital markets regulator is finalizing norms for crowdfunding.
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SEBI
SEBI has issued a Standard Format of Application under Regulation 11(1) of SEBI (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011 (Sast Regulations). The said regulations, gives power to the Board to grant exemption from the obligation to make an open offer for acquiring shares. Further, as per Regulation 11(3) of SAST Regulations, the acquirer shall file an application with the Board, supported by a duly sworn affidavit, giving details of the proposed acquisition and the grounds on which the exemption has been sought. In order to ensure uniformity of disclosures in such applications, it has been decided to provide a standard format for filing of application with SEBI. The instructions along with the list of document to be attached and procedure to be followed for making an application for exemption are provided in the circular and shall be applicable to all the applications that are filed with SEBI after the date of this circular.
CBDT
CBDT has notified the Income Tax (25th Amendment) Rules, 2017 which shall come into force from the date of their publication in the Official Gazette. A new proviso shall be inserted after Rule 127 (2) to deal with the situations where the communication cannot be delivered or transmitted to the address available with the Income Tax Authorities. In such situations, the communication shall be delivered or transmitted to the following address available with the Bank or the Post Master General or Insurance Company or the address of the assessee as furnished in Form No.61 or Form No.61A or the address of the assessee as available in the records of the Government or the address of the assessee as available in the records of a local authority.
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📺 *Updates*
➡1. Sum paid by ‘UTV’ to cable operators for airing of channels on agreed frequencies was liable to sec. 194C TDS
➡2. Cost of goods ordered to be destroyed as per prevention of Food Alteration Act not allowed as deduction
Assistant Commissioner of Income-tax, Circle 3 (2), Ahmedabad v. Vishnu Packaging*
➡3. Licence fee received for letting out hotel building along furniture and fixings was business income
Palmshore Hotels (P.) Ltd.
v. Commissioner of Income-tax, (Appeals)-I, Trivandrum*
🙏Thank you🙏
Have a nice day