Today's News in Media - 05-08-2016
Ftapcci Hyd
Dear all,
GST
Big and small industries expect level-playing field
The GST bill will bring about uniform taxation across the country
and create level-playing field for both big and small industries. Experts
wonder if a single commercial tax rate for both will create hurdles for small,
medium and micro industries with them being penalised harshly for digital
non-compliance as the bill rolls out.GST, expected to roll out on April 1 next
year, will force most small-scale industries, which have been unfamiliar with
central taxes and online filing of taxes, to go in for digitisation
now.“They could suffer due to ignorance of norms and rules as the
penalties are heavy. I am not sure how these industries will cope,” said Ravindra Modi,
president of the Federation of Telangana and Andhra Pradesh Chambers of Commerce
and Industry (FTAPCCI).“Small or medium, everybody will become the same.
The big ones have more financial strength and more market reach in comparison
with small players who are affected due to lack of marketing power. We have to
really watch and see what happens to small and medium industries. I see this as
a threat,” he added.“These industries are not aware of online
operations as they did not need it in the past. Therefore, they could make
mistakes unwittingly and face penalties as this will be a paradigm shift in the
way they have to operate. Initial hiccups will be there and the government
should guide those on the procedures before bringing them into the mainstream.
When VAT was introduced a decade ago, it took a few years’ time even for
government officials to understand how the new system worked,” said Anil
Reddy Vennam, head of Nayastrap Pvt Ltd and past president of Plastic
Association.Experts wonder whether everything related to GST can be done
online. “How many small and medium industries are equipped and compatible
with digitisation? For big players it may be easy,” said Ravindra Modi. Non-compliance
will invite harsh punishment and there could even be blacklisting and
de-registration. “These issues will crop up during implementation. The
government should be lenient at the start and come up with means of addressing
issues by conducting training programmes and hold the hands of small
players,” Modi suggested. “Industries which earn more than `
10 lakh per annum will come under GST. So, the compliance requirement is more
for someone who is not conversant with systems,” said Anil.
http://www.newindianexpress.com/states/telangana/Big-and-small-industries-expect-level-playing-field/2016/08/05/article3563896.ece
Govt working on roadmap to roll out GST from April 1, 2017: Jaitley
To meet the target of April 1, 2017, Finance Minister Arun Jaitley
is eyeing the Winter Session of Parliament to see through all three pieces of
legislation connected with the Goods and Services Tax (GST) — Central
GST, State GST, and Inter-State GST.But Jaitley and his team are aware of the
key challenges — including tax rates, exemption list, and dual control
— that this tax reform faces. These issues were highlighted by the
Opposition when the Constitution Amendment Bill to enable the GST regime was
debated in the Rajya Sabha on Wednesday. Although the Congress supported the
Bill, it pointed out that the tax rate will be the key.“We will try to
finish the roadmap for GST as soon as possible,” Jaitley told reporters
on Thursday, adding that the government will try to table the Central GST and
inter-State GST Bills in the Winter Session.
http://www.thehindubusinessline.com/todays-paper/govt-working-on-roadmap-to-roll-out-gst-from-april-1-2017-jaitley/article8944797.ece
Industry body welcomes GST
The Indian Chamber of Commerce and Industry has welcomed the new
GST rule passed by the Rajya Sabha on Wednesday.A statement from chamber
president K.B. Rajan said the idea of ‘One Nation One Tax’ had been
long pending, and that the credit for it should go to both the ruling and the
Opposition parties.From a businessman’s point of view, the primary
benefit of GST is simplification of business operations, which is in line with
the Prime Minister’s vision of ‘ease of doing business’. GST
will disincentivise tax evasion and contribute to the GDP, he said.
http://www.thehindu.com/todays-paper/industry-body-welcomes-gst/article8945993.ece
‘Levy has to average manufacturing, services rates’
The standard rate of the Goods and Services Tax (GST) has to be
“the average of tax rates on manufacturing and services”, said
Chief Economic Advisor Arvind Subramanian.While noting that the proposed GST
Council would have the final say on the rate, he said: “The combined tax
of 27 per cent is on manufacturing only…. You can’t just look at
one component.”Interestingly, the rates proposed by Subramanian in his
report on ‘Revenue neutral rates for GST’ were used as one of the
key arguments by the Congress party during the debate on the Constitution
Amendment Bill to enable GST.Subramanian had suggested that the standard GST
rate should be kept at 17-18 per cent. However, this was not acceptable to
States, which wanted the GST rate to be around 22 per cent.
http://www.thehindubusinessline.com/todays-paper/levy-has-to-average-manufacturing-services-rates/article8944798.ece
Lower the GST rate, lower will be the inflation: CEA
“There is no perfect system of GST. It evolves over
time,” said Chief Economic Adviser Arvind Subramanian, noting that this
was also the case with the state value-added tax. In an interview to BusinessLine,
he said the current model of GST may be different from what he had recommended,
but stressed that it is a good model given the political complexity of
India.Subramanian, who wrote the report on revenue neutral rates for GST, said
the new tax system will create growth potential but cautioned that there will
not be a sudden upsurge in investments as that depends on other macro-economic
factors too.
http://www.thehindubusinessline.com/todays-paper/tp-news/lower-the-gst-rate-lower-will-be-the-inflation-cea/article8944823.ece
‘GST regime to boost GDP by 2%’
The much-awaited Constitution Amendment Bill to roll out the
Goods and Services Tax has finally passed the Rajya Sabha hurdle. India Inc
welcomes the crucial reform legislation with open arms. Speaking to BTVI , Godrej Group Chairman Adi Godrej
says the GST will prove beneficial to the Indian industry as it will lead to
lower prices of goods and boost production and consumption. Implementation of
the GST will lead to a GDP growth increase of about 1.5-2 percentage points, he
says. It will also lead to much higher collection of revenues by both the
Central and the State governments because evasion of indirect taxes will become
extremely difficult under the GST regime, he adds.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-regime-to-boost-gdp-by-2/article8944830.ece
Multiple taxation points under GST worry IT industry
With the passage of the GST Bill, IT companies are concerned over
multiple taxes and how it would impact the export competitiveness of the
$150-billion industry.Nasscom President R Chandrashekhar toldBusinessLine that while the GST will streamline the
taxation system, it will open up multiple taxation points. The industry
association has submitted a 72-page ready-reckoner to its members, throwing
light on various provisions that will have a bearing on the industry.Further, a
delegation also met up with Finance Minister Arun Jaitley and top officials to
highlight the concerns.
http://www.thehindubusinessline.com/todays-paper/tp-news/multiple-taxation-points-under-gst-worry-it-industry/article8944833.ece
GST an ill wind for renewable energy
The GST will increase the costs, and therefore the tariffs, of
renewable energy, industry experts say.The wind power sector today enjoys
incentives such as concessional excise and customs duties. If the GST rate is
around 18 per cent, the additional tax incidence will be around 12 per cent,
says OP Taneja, Associate Director, Indian Wind Turbine Manufacturers
Association. This will, in turn, push the cost of wind projects, he says.The
Association sees 18 per cent GST on inputs and zero rate on output as
“the ideal situation” for the wind power industry. In this case,
the taxes paid on components will be refunded to the manufacturers by the
government.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-an-ill-wind-for-renewable-energy/article8944834.ece
Constitution does not see tax as a barrier to free trade movement:
Supreme Court
A day after the Parliament passed the Goods and Services Tax Bill
for a uniform comprehensive tax regime to promote hassle-free trade, a
nine-judge Constitution Bench of the Supreme Court on Thursday observed that
tax should not act as a barrier to free trade, commerce and intercourse in the
country.The Bench is hearing petitions filed by private manufacturers and
companies against the varied entry tax levied by different States.“Once
it operates as a barrier, it stops being a tax. It becomes an obstruction and
offensive,” Chief Justice of India TS Thakur, who headed the Constitution
Bench, observed orally.
http://www.thehindubusinessline.com/todays-paper/tp-news/constitution-does-not-see-tax-as-a-barrier-to-free-trade-movement-supreme-court/article8944835.ece
Getting GST up and running
One of the biggest challenges for the timely implementation of the
Goods and Services Tax (GST) from 1 April, 2017 rests on the quick roll-out of
the Goods and Services Tax Network (GSTN) programme and the preparedness of
estimated seven million taxpayers to interact with it. This is going to be a
huge logistical challenge.What really is the GSTN? It is a Section 25,
non-government, private limited company incorporated on March 28, 2013, with a
government shareholding of 49 per cent and with private financial institutions
having a shareholding of 51 per cent.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/getting-gst-up-and-running/article8944762.ece
GSTing ahead, one hurdle at a time
The National Democratic Alliance government has successfully
cleared the firsthurdle in the process of introducing a countrywide goods and
services tax but a steeplechase lies ahead.The amendment to the Constitution
gives concurrent powers to the Centre and States to tax goods and services.
Currently, the Centre can tax goods at the manufacturing stage with excise duty
and States can tax sale of goods with State value added tax. That will change
once the GST comes into force.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/gsting-ahead-one-hurdle-at-a-time/article8944855.ece
GST: Planters want clarity on levy
Kerala’s commodities sector reacted cautiously to the
possible implications of GST on merchandise trade, saying that they will keenly
watch taxation rates under GST.“As tax rates have not been spelt out for
the tea trade in the GST Bill, we are not in a position to reveal the exact
impact on the sector,” JK Thomas, Chairman, Tea Trade Association of
Cochin, toldBusinessLine.
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/gst-planters-want-clarity-on-levy/article8944779.ece
Exempt exporters from indirect taxes in GST: EEPC
Exporters have urged the government to exempt them from all
domestic indirect taxes while rolling out the Goods and Services Tax to make
them more competitive in the global market.TS Bhasin, Chairman, Engineering
Export Promotion Council of India, said while GST will be a major reform ,
exporters may face difficulties in implementation if the Model GST Law is
adopted. Exporters should be exempted from all indirect taxes rather than
paying them and claiming refunds at a later stage. The process of tax refund
takes over six months and the delay leads to pumping in additional working
capital, he said.
http://www.thehindubusinessline.com/todays-paper/tp-news/exempt-exporters-from-indirect-taxes-in-gst-eepc/article8944818.ece
Tax rate likely to be higher than 18%
A day after the Bill to amend the Constitution was approved by the
Rajya Sabha, paving the way for the Goods and Services tax (GST), the Centre
seemed to concede that the rate at which the new indirect tax will be levied on
most goods is likely to be higher than 18 per cent.While the decision would be
taken by the GST Council, comprising the Union and State Finance Ministers,
proposed to be set up after the process of amending the Constitution is
completed, Revenue Secretary Hasmukh Adhia told a press conference that it would
be “premature” to expect the standard GST rate to be 18 per cent,
much lower than the combined excise duty and value-added tax.
http://www.thehindu.com/todays-paper/tax-rate-likely-to-be-higher-than-18/article8945219.ece
SEZs
Commerce Ministry moves FinMin again to restore sops for SEZs
Citing the country’s over-all adverse export performance and
the positive role played by Special Economic Zones in boosting shipments, the
Commerce Ministry has made a fresh proposal to the Finance Ministry to restore
tax benefits to units in the zones.It has also urged the Finance Ministry not
apply the sunset clause on such benefits as it could lead to all such sops
drying up in a few years.“We have again proposed to the Finance Ministry
that the minimum alternate tax on SEZs should either be eliminated or reduced
to 7.5 per cent and units be given longer than 10 years for its set-off against
regular taxes,” Commerce Ministry Additional Secretary Alok Vardhan
Chaturvedi said at a SEZ convention organised by industry body Assocham on
Thursday.
http://www.thehindubusinessline.com/todays-paper/tp-news/commerce-ministry-moves-finmin-again-to-restore-sops-for-sezs/article8944819.ece
BANKING
SBI’s assets will almost double in four years: chairman
State Bank of India’s assets will jump to about Rs.40-lakh
crore in four years from Rs. 22.59-lakh
crore as at March-end 2016, propelled by the proposed amalgamation of six banks
with it and the growth in the Indian economy, according to Chairman Arundhati
Bhattacharya.The six banks that are expected to merge into India’s
largest bank by March 2017 are its five associate banks — State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank
of Patiala, and State Bank of Travancore — and the Bharatiya Mahila Bank.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/sbis-assets-will-almost-double-in-four-years-chairman/article8944772.ece
RBI launches portal to curb illegal money pooling, deposit taking by
firms
To address the menace of illegal deposit taking/money pooling, the
Reserve Bank of India along with other financial sector regulators on Thursday
launched a website, which will enable members of the public to obtain
information regarding entities that are allowed to accept deposits, lodge
complaints and also share information regarding illegal acceptance of deposits
by unscrupulous entities.The RBI along with other regulators — Securities
and Exchange Board of India, Insurance Regulatory and Development Authority of
India, Pension Fund Regulatory and Development Authority, National Housing
Bank, and Registrar of Companies — and entities such as State governments
and the Economic Offences Wing have launched www.sachet.rbi.org.in , a website where such cases may be
reported to the regulator concerned. The website provides for tracking the
status of one’s complaint.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-launches-portal-to-curb-illegal-money-pooling-deposit-taking-by-firms/article8944777.ece
Recovery of stressed loans is top priority: Banks Board Bureau chief
Vinod Rai, Chairman of the Banks Board Bureau, said on Thursday
that recovery is on top of the agenda of public sector banks and at this time
they should not be saddled with the consolidation process.This comment comes
even as the government is pushing for consolidation among public sector
banks.The government had constituted the seven-member Bureau to recommend
selection of heads of public sector banks and financial institutions and help
banks develop strategies and firm up capital-raising plans.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/recovery-of-stressed-loans-is-top-priority-banks-board-bureau-chief/article8944774.ece
RBI sets up panel on household finance
The Reserve Bank of India (RBI) has set up a committee to look at
the various facets of household finance in India so as to benchmark
India’s position vis-à-visboth
peer countries and advanced countries and identify areas of priority for growth
and change.The Committee will be chaired by Tarun Ramadorai, Professor of
Financial Economics, University of Oxford, and will have representation from
financial sector regulators, namely, Securities and Exchange Board of India,
Insurance Regulatory and Development Authority of India, Pension Fund
Regulatory and Development Authority apart from RBI.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-sets-up-panel-on-household-finance/article8944773.ece
STATE
Industry upbeat on economy, efforts of Centre
The initiatives by the Centre over the last two years are slowly
showing results now.“Definitely, big corruption that we talked about has
come down,” said B Santhanam, President and Managing Director, Flat Glass
– South Asia, Malaysia and Egypt, Saint-Gobain India Pvt Ltd.There is a
palpable change in lots of things, and the industry is finding things are
becoming lot easier when compared to the past, he said at the 180th Annual
General Meeting of Madras Chamber of Commerce & Industry.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/industry-upbeat-on-economy-efforts-of-centre/article8944847.ece
RIL sets record with FY16 investment of Rs. 1.2 lakh cr
Reliance Industries’ (RIL) investment of Rs. 1,12,000 crore ($17 billion) in FY16
was the highest ever by any corporate in India’s history, the company
said in its annual report.It also reported its highest-ever net profit of Rs. 27,630 crore for the year. RIL’s
annual general meeting is set for September 1.
http://www.thehindubusinessline.com/todays-paper/ril-sets-record-with-fy16-investment-of-rs-12-lakh-cr/article8944795.ece
Amaravati can be world-class city’
Amaravati, the new capital of Andhra Pradesh, has the potential to
become a world-class city, according to a report released by Knight Frank
India.The report, which covered the two upcoming State capitals, Amaravati and
Naya Raipur, said the strategic location of Amaravati and the proposed
infrastructure developments will help the city in this regard.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/amaravati-can-be-worldclass-city/article8944840.ece
Bengal, Kerala protest against GST amendment
Hours before Union Finance Minister Arun Jaitley had spoken of the
headaches in implementing the Goods & Services Tax (GST) issues had begun
to crop up.In what could be the very first such headache for him, the Chairman
of the Empowered Committee of State Finance Ministers on the GST, West
Bengal’s Amit Mitra, and the Finance Minister of Kerala, Thomas Isaac,
have written to Mr. Jaitley, complaining that an amendment to the Bill —
that the Rajya Sabha passed on Wednesday — for amending the Constitution
to pave the way for the roll-out of the new tax departs from the consensus
reached between the Centre and the States.
http://www.thehindu.com/todays-paper/bengal-kerala-protest-against-gst-amendment/article8945217.ece
Driving without a helmet can cost you Rs. 500
Breaking the rules will now cost you more. A day after the Union
Cabinet cleared hefty fines for traffic rule violations, the state Transport
Minister Diwakar Raote announced an increase in fines for breaking traffic
rules.“The fine charged under Motor Vehicles Act is minimal. It has led
to drivers breaking the law. It is necessary to increase the fine charged for
violating traffic rules,” said Mr. Raote said on Thursday.Riders caught
without their safety helmet will now be fined Rs. 500, four time more than the
existing Rs. 100. Fines for driving without a license, driving despite mental
and physical handicaps, and for violating official orders will also be
similarly increased.
http://www.thehindu.com/todays-paper/driving-without-a-helmet-can-cost-you-rs-500/article8946149.ece
GO 123: State government to challenge court verdict today
The Telangana government will appeal before a division bench of
the High Court on Friday, seeking stay of the order of a single bench that
quashed Government Order 123 on land acquisition for Mallannasagar project.Chief
Minister K. Chandrasekhar Rao reviewed with Irrigation Minister T. Harish Rao
and officials the implications of the verdict by the single judge bench.
http://www.thehindu.com/todays-paper/go-123-state-government-to-challenge-court-verdict-today/article8945853.ece
CM to raise SCS with Modi today
The stage is set for the crucial meeting of Andhra Pradesh Chief
Minister N. Chandrababu Naidu with Prime Minister Narendra Modi.The Prime
Minister’s Office has confirmed the Chief Minister’s appointment
with Mr. Modi at 11 a.m. on Friday. Though the Chief Minister is said to be
meeting the Prime Minister for formally inviting him to Krishna Pushkarams,
slated to commence from August 12, he is likely to raise a host of issues
pertaining to the State, particularly the promise of the special category
status (SCS) made on the floor of Parliament at the time of the bifurcation two
years ago.
http://www.thehindu.com/todays-paper/cm-to-raise-scs-with-modi-today/article8945362.ece
BJP to announce Gujarat CM today
The BJP is set to announce successor of Gujarat Chief Minister
Anandiben Patel in a meeting of the party’s legislators, including party
chief Amit Shah, who arrived here on Thursday and held a series of one-to-one
meetings with State leaders.Among those who met Mr. Shah are senior Minister
Nitin Patel, State BJP chief Vijay Rupani, Gujarat unit in-charge Dinesh
Sharma, organising secretary V. Satish and Bhikhubhai Dalasania and Union
Minister Purushottam Rupala, besides several State Ministers. Mr. Shah,
however, did not meet Ms. Patel.
http://www.thehindu.com/todays-paper/bjp-to-announce-gujarat-cm-today/article8945646.ece
TS-RTA’s online adventure faces glitches
Three days after the Telangana Transport Department went
‘live’ with its online services, teething troubles continue to hold
sway over it. Complaints that the RTA server was not responding to several of
the 59 processes continued to pour in.The most heard was that it was refusing
users multiple transactions, like one seeking a driving licence (DL) renewal
and a change of address, or a spelling correction in the name with change in
nomenclature in a DL from Motorcycle With Gear to a Light Motor Vehicle
(Non-Transport) and the like.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/tsrtas-online-adventure-faces-glitches/article8945904.ece
GE to invest up to $31 m in wind project in AP
GE Energy Financial Services will invest up to $31 million in a
subsidiary of independent power producer Mytrah and thus support development of
a 200 MW wind energy project in Andhra Pradesh.Mytrah Vayu (Tungabhadra) Pvt.
Ltd has entered into a definitive agreement with Guayama P.R. Holdings B. V.,
an investment vehicle of GE Energy Financial Services in this regard.
Announcing this on Thursday, the IPP with focus on renewable energy said that GE
has agreed to invest $ 31 million in MVTPL to support the development of a 200
MW wind energy project in Andhra Pradesh. GE will invest up to 49 per cent of
the capital of MVTPL.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/ge-to-invest-up-to-31-m-in-wind-project-in-ap/article8945912.ece
‘Haritha Haram’ progressing well: Etala
Minister for Finance and Civil Supplies Etala Rajender said
‘Telanganaku Haritha Haram’ programme is progressing steadily as a
movement with the active participation of all sections of society for the transformation
of the State into ‘Golden Telangana”.Participating in a Haritha
Haram programme in Siddartha High School in Bhagathnagar locality in Karimnagar
on Thursday, he called upon the students to play a crucial role in the
plantation of saplings and its survival by nurturing them.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/haritha-haram-progressing-well-etala/article8946345.ece
US team promises all help to develop Vizag as smart city
A high-level team from the United States on Thursday promised all
help to develop Visakhapatnam as a smart city and improve broadband
connectivity to ensure a bundle of value added services with distinctive
delivery mechanism.“Connectivity matters,” was the main motto of
their message during their interaction with the government officials and
faculty members of Andhra University.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/us-team-promises-all-help-to-develop-vizag-as-smart-city/article8946491.ece
GLOBAL
Stop eulogising terrorists, says Rajnath at SAARC meet
Launching a direct attack on Pakistan at the SAARC conference in
Islamabad, Home Minister Rajnath Singh said on Thursday that “terrorists
should not be eulogised as martyrs” and those who give them support,
encouragement, sanctuary, safe haven or any other assistance must be isolated.
Mr. Singh, who addressed the SAARC Interior Ministers’ conference in
Hindi, cited the terrorist attack at the Pathankot airbase and the 26/11 Mumbai
attack and said strong condemnation of such incidents was not enough.In an
apparent reminder of the patronage enjoyed by the 1993 Mumbai blast accused
Dawood Ibrahim in Pakistan, Mr. Singh said the implementation of the SAARC
Regional Convention on Suppression of Terrorism and its Additional Protocol
becomes crucial as it would ensure “that those commit.
http://www.thehindu.com/todays-paper/stop-eulogising-terrorists-says-rajnath-at-saarc-meet/article8945218.ece
This is for the information of the members.
R. KULKARNI
Joint Director