Water to space: India, Israel ink 7 key strategic pacts during Modi visit

Sign a $40-mn R&D fund for joint innovation in agriculture, water, energy and technology

India and Israel on Wednesday elevated their ties to the “strategic partnership” level with a vow to do “much more together” to combat growing radicalisation and terrorism and pitched for “strong measures” against those financing and providing sanctuaries to terror groups.(Economy news)

The issue of terror and “strategic threats” along with various other topics like cooperation in defence and security, water, agriculture, space and West Asia figured prominently in the talks between Prime Minister Narendra Modi and his Israeli counterpart Benjamin Netanyahu here on Wednesday.

After the wide-ranging talks, the two sides signed seven pacts covering areas like innovation, water conservation, agriculture and space.

India and Israel also agreed to set up a $40 million fund for industrial Research and Development, and innovation fund, with both countries contributing $20 million each.

“Our goal is to build a relationship that reflects our shared priorities and draws on enduring bonds between our peoples,” Modi, who is the first Indian Prime Minister to visit Israel, said in a joint media appearance with Netanyahu.

India, Israel ink 7 pacts 

India and Israel signed 7 agreements to step-up cooperation in key sectors like space, agriculture and water conservation after Prime Minister Narendra Modi held in-depth talks with his Israeli counterpart Benjamin Netanyahu

• MoU signed between Department of Science & Technology and Israel’s National Technological Innovation Authority for setting up of $40 million worth India-Israel Industrial R&D & Technical Innovation Fund 

• Ministry of Drinking Water & Sanitation, and Israel’s Ministry of National Infrastructure, Energy & Water Resources signed a pact on National Campaign for Water Conservation in India 

• The second one was signed between Uttar Pradesh Jal Nigam and the Ministry of National Infrastructure, Energy & Water Resources on state water utility reform in India 

• In the farm sector, the two countries have agreed upon India-Israel development cooperation - a three-year work programme in agriculture from 2018 to 2020 

• They also agreed for cooperation between the Isro and the Israel Space Agency (ISA) regarding cooperation in atomic clocks 

• Besides, separate MoUs were signed between Isro and ISA for cooperation in GEO-LEO optical link, and in electric propulsion for small satellites 

Modi, on the second day of his three-day visit, said India and Israel live in “complex geographies” and are aware of “strategic threats” to regional peace and stability.

“India has suffered first-hand the violence and hatred spread by terror. So has Israel,” he said, adding the two leaders had “agreed to do much more together to protect our strategic interests and also cooperate to combat growing radicalisation and terrorism, including in cyberspace.”(Read more)

MRP: Retailers can sell pre-GST goods with new price stickers till 30 Sep

After 30 September, the printed MRP on pre-packaged commodity will have to include GST rate

 

The government has allowed retailers with unsold pre-GST stocks to stick new prices on them for sales, taking into account the post-GST changes. This means that companies have time till 30 September to clear unsold pre-GST goods with a revised MRP to be displayed along with printed sale price to reflect the changes post the new tax regime kicking- in.

The old MRP will have to be clearly on display along with the revised MRP sticker. But from 1 October, all pre-packed goods will have to have just one MRP including the GST.The old MRP will have to be necessarily displayed on the unsold inventories and the new rates can be reflected by way of stickers or through online printing alongside.

On items where the price has to be increased for unsold stocks, the manufacturer or packer or importer will have to give at least two advertisements in two or more newspapers informing people about the change.

MRP or Maximum Retail Price is the highest price that can be charged after including all taxes. But in case of some commodities, the tax rate has changed post Goods and Services Tax (GST), altering the MRP. This created a problem for several businesses which were left with large volumes of unsold pre-packed items when the GST came into force from 1 July.

The difference between the retail sale price originally printed on the package and the revised price “shall not, in any case, be higher than the extent of increase in tax” or in the case of imposition of fresh tax on account of the implementation of the GST, it said. “The original MRP shall continue to be displayed and the revised price shall not overwrite on it,” the notification said.

For reducing the MRP, a sticker of revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer on the label of the package.(Read more)

Just in 5 days 3,500 helpdesks, 8,000 tax consultants emerge : GST rollout

Industry bodies, trader and retailers associations have set up helpdesks across the country

In the last 72 hours, Abhishek Chugh, a 30-year-old accountant has been a friend, philosopher and guide to more than 250 anxious retailers, traders, shopkeepers, who approached the GST helpdesk in Chandni Chowk in New Delhi. The biggest indirect tax reform — the goods and services tax  (GST) — was rolled out on July 1. Some worried about their fate of business even broke down, leaving Chugh a little awkward while he tried hard to convince them that things were not as bad as they seemed.

“On Monday, two small-time shopkeepers broke down. They said that they do not have the money to buy computers, nor do they know how to use them. I explained that they do not need to buy computers and it is not that capital-intensive,” he said.

Chugh is not the only one out there guiding people through the tax maze. According to various industry bodies, more than 3,500 GST helpdesks, 8,000 tax consultants, 100 helplines have all come up in the last five days.

Industry bodies, trader and retailers associations have set up helpdesks across the country to assist businessmen in finding answers to all their GST related issues.

In the last few days, majority of the queries received have been on GST rates, Harmonized System of Nomenclature Codes and business-to-consumer invoice format and requirements.

According to industry experts, a number of tax consultants have been hired on part-time basis to sit at these helpdesks and help them with anything and everything related to the GST. “Every trader body is having a set of helpdesks to aid businessmen. We have 122 GST clinics of our own, manned by around 150 consultants. Many of the traders are concerned about how they will get input tax credit and if value-added tax credit would be transferred to GST or not,” said Praveen Khandelwal, secretary general, Confederation of All India Traders (CAIT).(Read full story)

Congress demands roll back of 5% GST on LPG cylinder

LPG has been put in 5% GST slab, earlier a 2 to 4% VAT was imposed on LPG in some states

 

The Congress on Tuesday demanded that the five per cent Goods and Services Tax (GST) levied on domestic LPG cylinder be removed as it was burdening the poor.

"The price of domestic LPG cylinder has gone up by Rs 32 in parts of the country after the GST became effective. This is affecting common people, the poor especially. We demand that the GST on domestic LPG cylinder be removed immediately," senior AICC spokesperson Ajay Maken told reporters here.

LPG has been put in the five per cent GST slab. Earlier a two to four per cent VAT was imposed on LPG in some states.(Economy news)

Maken accused the government of not passing on the benefits of drop in global crude oil prices to people of the country.

"The government is making profits to the tune of Rs 3 lakh crore every year by not slashing prices of fuel here. On the one hand, it is making profits and on the other, it is burdening the poor by imposing GST on the LPG cylinder," Maken added.

He claimed food and beverages, helmets, hair oil, tooth paste, tea, coffee, butter, curd, cement and mineral water are some of the items prices of which have shot up, notwithstanding the government's assurance that their rates will drop once the GST is in force.

Maken also described the GST as 'Gayi Savings Tumhari' (your savings have vanished).

The GST came into force on July 1.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Lower taxes to fire up revenues, earnings for cigarette makers

After 5 years of decline, cigarette industry expected to post volume growth under GST framework

economy news: Shares of cigarette companies were among the biggest gainers on Monday after the central board of excise and customs last weekend clarified on the goods and services tax structure on cigarettes. The new tax structure is expected to be about 6 per cent lower at around 58 per cent vs 63-64 per cent earlier. While ITC (up 5.7 per cent), VST Industries (4 per cent) hit their 52-week highs, Godfrey Phillips India too was up 2 per cent. The key beneficiary though is seen as ITC, which commands an estimated 80 per cent market share in the duty-paid cigarette industry in the country.

There are twin triggers for the optimism around cigarette makers. The first is the boost to volumes given the expectation of lower cigarette prices. Cigarette prices are likely to decrease by 8-10 per cent primarily in the 64 mm category, which will lead to a 5-7 per cent volume growth annually over the next two years. For the past five years, the legal cigarette industry has seen a decline of 5-6 per cent in its sales volume, while illegal trade has gained.

Abneesh Roy of Edelweiss Securities believes if these (6-7 per cent gains) are passed on there is volume benefit estimated at 5 per cent for FY18 for ITC. Given ITC’s market share, pricing power and largely inelastic demand it will benefit the most among cigarette makers from the lower indirect taxes.

An ITC spokesperson told Business Standard that the company welcomes GST and is taking effective steps to pass on the benefits to the consumer wherever such benefits accrue due to the recently announced GST rates.

The other reason for the run up in stock prices, especially for ITC is due to lower relative valuations. Analysts at Credit Suisse had highlighted in a note today that the ITC stock trades at 32 per cent discount to Hindustan Unilever, which is the highest discount in nearly 10 years. Arnab Mitra and Rohit Kadam of Credit Suisse believe that there is significant scope for re-rating in ITC as the earnings momentum comes back to the high teens trajectory that ITC achieved prior to FY14. On the back of higher contribution from the cigarettes business, Edelweiss Securities estimates that there would be 15-18 per cent annual earnings growth for ITC over the next two years. While new launches in the FMCG business (non-cigarette) is expected to add to overall revenues, cigarettes will continue to be the main driver of sales and profit. Cigarette segment contributes about 58 per cent of ITC’s revenues and 87 per cent of profit.

The key gains for cigarette makers is expected in the entry level, 64mm category. Sameer Deshmukh of Reliance Securities agrees and says this category accounts for 25 per cent of ITC’s sales volume. The 69 mm category (50 per cent of ITC’s volumes), had stagnated over the past couple of years.

His reasoning is based on the projection that the budget brands like Gold Star Super Star, Capstan and others will be directly competing with the bidi and the illegal cigarette segment where chances of converting a bidi smoker to budget cigarette will be the easiest.

Richard Liu and Vicky Punjabi of JM Financial say that players such as VST Industries can price its 64mm offering at Rs 2.65 a stick and yet make the same realisation as it did earlier at Rs 3. They believe that a Rs 2.5 a stick pricing for 64mm would lay out a smooth ladder to facilitate bidis-to-cigarettes up-trading. Under the GST framework, tax on bidi has increased to 28 per cent with additional cess from the current tax level of 18-20 per cent. While the effective price on bidi will increase, cigarette prices will decline. (Read more )

 

GST is a big positive, but I'm not investing in India yet: Jim Rogers

Interview with chairman of Rogers Holding

Economy news : As global equity markets continue on their journey north, JIM ROGERS, chairman of Rogers Holdings tells Puneet Wadhwa that he expects a correction going ahead. His decision of not to invest right now is not India specific, but has to do with the problems relating to how the major global economies are shaping up. Edited excerpts:

India has implemented the biggest tax reform in history - the goods and services tax (GST). What are your thoughts on the development?

With the implementation of GST, Prime Minister Modi has done what he said earlier. If GST can overhaul the tax system in India, it will be wonderful. This is the best thing to have happened to India by a politician since its independence, i.e. since the last 70 years.

What do you expect from the government in its remaining tenure? Do you see populist measures take centre stage with 2019 general elections in mind?

Well, Narendra Modi has done many populist things in the past. I think the last Union Budget had a number of populist measures as well. But, I don't know how populist will the GST will prove to be, as it is likely to disrupt a lot of people's lives. However, in the end, the measure will be good as it will overhaul the tax system in India. With the elections coming up in 2019, I am sure there will be other populist measures. Every politician in the world prepares for elections by giving away as much as he can.

What's your view on India now as an investment destination? Are you planning to invest here?

No, not yet. That's because I am not investing anywhere in the world right now. I am worried about the global financial markets and hence, I am in a wait-and-watch mode. If the United States (US), Japan or any other major market has problems, it will be a bad one. I am worried that the next time we have an economic slowdown, it's going to be very, very bad and will impact everyone. My decision of not to invest right now is not India specific, but has to do with the problems relating to how the major global economies are shaping up.

So, what's your view on the global financial markets from here on? Is a crash coming soon?

I expect a global financial problem in the latter half of the current financial year or in 2018, especially in the US. The US is the largest debtor nation in the world now, and its debts are mounting. Its stock markets are at an all-time high and the central bank is continuing to raise interest rates. I expect problems in the financial markets sometime later this year, or in the next year.

What factors will trigger a correction, in your view?

There are many things. It is always a combination of factors that we don't expect. In 2007, Iceland went bankrupt and most people didn't know there was a country by that name and that it was running into a crisis. And then Ireland went broke. And then Bear Stearns went broke. Lehman Brothers, too, went broke. Problems spiral like that and then cause a crash across the financial markets.
Read full story 

GST not being charged twice over on credit card payments: Govt busts myths

Please do not recirculate such message without checking it with authority," Adhia said.

Economy news : Two days into the GST regime, Revenue Secretary Hasmukh Adhia today took to Twitter to bust "seven myths" that were doing the rounds about the new tax regime.

Adhia, the architect behind the country's largest tax reform, sought to dispel concerns that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice.

"This is completely untrue. Please do not recirculate such message without checking it with authority," Adhia said.

India ushered in the Goods and Services Tax (GST) regime on the intervening night of June 30 and July 1.

A four-tier tax slab -- 5, 12, 18 and 28 per cent -- has been decided with essential items like salt, unpacked food grains, healthcare services being kept zero rated.

People have been posting in social media pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier.

Busting the myth that GST rates are higher than VAT, Adhia said, "It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now."

He reiterated that businesses can continue to do business under GST with provisional ID number and need not wait for Goods and Services Taxpayer identification number(GSTIN).

"Provisional ID will be your final GSTIN number. Start business," Adhia said.

He said that businesses need not generate all invoices on computer or internet alone. "Invoices can be generated manually also."

On the rumour that businesses which were earlier exempt will immediately need new registration before starting business now, Adhia said, "You can continue doing business and get registered within 30 days".

He said small retailers need not file invoice-wise details in their return forms and retailers will have to just file one return form as the two other forms will be auto populated by the computer.

"There is only 1 return with 3 parts, out of which first part filed by dealer and two other parts auto populated by computer," he said.

Adhia also said that internet is not needed all the time to do business under GST. The reality is internet would be needed only while filing monthly return of GST, he said.

In a statement, the finance ministry said the two days post GST rollouthas passed "without any major problems being reported" from the field offices.

Read More...

 

Soon, travel in Railways' new 'Economy AC' coaches at fares lower than 3AC

Passengers will not require blankets as the temperature will be around 24-25 degrees

Economy news: Train passengers will soon have the option of travelling in a new class of 'Economy AC coaches' with fares less than normal 3AC tariff.

The proposed fully AC train will have three-tier Economy AC coaches besides AC-3, AC-2 and AC-1 classes as part of the transformation exercise. An added feature would be automatic doors.

However, the passengers will not require blankets in the Economy AC class like other AC coaches as the temperature will be around 24-25 degrees.

Currently, Mail and Express trains have Sleeper, Third AC, Second AC and First AC classes while Rajdhani, Shatabdi and recently introduced Humsafar and Tejas trains are fully air- conditioned.

Economy policy:The Railways is exploring an idea to introduce fully AC trains in select routes, aiming to provide comfort by facilitating AC travel for maximum passengers.

An exercise has been undertaken for a transformation in service by upgrading existing facilities in trains and stations and a separate cell has been created by the Railways for this.

"There will not be any chilling effect like in other AC classes and the temperature will be fixed around 24-25 degrees. The aim is to make the passengers comfortable and not make them feel the outside heat," said a senior Railway Ministry official.

The recently launched Humsafar Express, comprising 3-AC coaches only, has become very popular.

The fully AC train with more Economy  AC coaches is expected to cater to more passengers.

However, the details of the Economy AC class are to be worked out before deciding for manufacturing such coaches, said the official.

Why a 'cashless' economy would hurt the poor: A lesson from India

India and other governments have failed to see the impact on poor, who seldom use banks

India recently tried to reduce the use of cash in its economy by eliminating, overnight, two of its most widely used bills in what was called demonetization.

While the effort – initially explained as an attempt to curb “black money” – has been a failure in many respects, it was part of an ongoing and global push toward cashlessness.

What India and other governments have failed to contend with, however, is the adverse effect such severe policies have on the poor, who seldom use banks.| economy policy

India’s working poor rely almost exclusively on cash, with about 97 percent of all transactions involving an exchange of rupees. With 93 percent of the country working in informal off-the-books jobs, most transactions entail personalized relationships rather than standardized forms of legal contract or corporate institutions.

My own research on the persistence of Delhi’s informal recycling economy shows just how important cash is to low-income laborers.

How Delhi’s informal recycling economy works

For the past few years, my work has focused on informal garbage collectors in a northwest Delhi neighborhood who collect garbage for middle-class residents across the city.

Beyond collecting trash, these workers also constitute the city’s only recycling service by separating out and selling plastics, papers, metal and other valuable scrap – including human hair sold for wigs and stale bread used for cow feed. The money they earn from selling these materials is how they support their families.| read full story 

GST to bring economic freedom, imagination to India: Anil Ambani

Stage is set for another 'historic tryst with destiny', said the industrialist in the Parliament

 

Industrialist Anil Ambani on Thursday termed the Goods and Services Tax (GST), being rolled out from July 1, as India's "economic freedom" and said it would make the country the biggest free and democratic market in the history of humankind.

Speaking here at a mutual fund industry event, the Reliance Group chairman said there are many ways of counting the benefits of GST and as many of counting its costs.

"But there is just one way of describing its true promise. GST is not just another piece of reform or transform, however significant. GST is the liberation of our economic imagination. It is our economic freedom," he said.

Ambani said there are moments in the life of a nation when history is made not in small steps of incremental gain but in giant leaps of ambition.| economy news

"We, the people of India, are privileged to bear witness to one such moment in time," he said, referring to the proposed rollout of GST on midnight of June 30.

"Seventy years ago, at the stroke of the midnight hour, our first Prime Minister, Jawaharlal Nehru, spoke movingly in the Central Hall of Parliament about India's tryst with destiny.

"At the same mid-night hour tomorrow, as our honourable Prime Minister Narendra Modi rises to address a waiting nation from the same august Central Hall, India will be set on course for another historic tryst with destiny," he said.

Ambani said the free market is perhaps the greatest force for economic good in the human history of all earthly inventions.|economy policy

He said the free market is a force for generating wealth and transforming lives and the real promise of GST is the promise of economic liberation.

With the promise of 'One Nation, One Tax, One Market', it would create a borderless world of 1.3 billion people -- producers and consumers engaged in a seamless exchange of goods and services, skill sets and capital, labour and ideas.

Ambani said the world has seen nothing like this before and in less than 48 hours, India will emerge as the biggest free and democratic market in the history of humankind.

"In tandem with its policy precursor -- demonetisation -- GST will forever change the ground rules of doing any kind of trade, commerce or business in India.

"The leadership advantage is backed by strong macro- economic stability," he said while adding that the economy has moved from low inflation to high growth, from fiscal rectitude to prudential current account management, and fom one of the highest savings rates in the world to one of the fastest rates of economic growth.

He said that from insolvency code to NPA resolution, the present government has undertaken a fundamental overhaul of India's financial infrastructure while consolidating and strengthening the banking sector.

"But the greatest achievement of the government lies in the area of financial inclusion, thus setting in motion a growth dynamic for financial intermediaries which is unprecedented in its scope and size," he added.

Aadhaar-PAN linking: Only 1 day left How to do it in easy steps

It's mandatory to link Aadhaar with PAN. Here's why

Individuals having PAN will have to link it to their existing 12-digit biometric Aadhaar number from July 1

economy news |Come July 1, the Modi-government's measures to track tax evasion through multiple PAN cards will come into effect. It is now mandatory for you to link your existing Aadhaar numbers with PAN to be able to file your income-tax (I-T) returns.

Finance Minister Arun Jaitley, through an amendment to tax proposals in the Finance Bill for 2017-18, had made linking Aadhaar mandatory for filing I-T returns.

The revenue department has said "every person who has been allotted PAN as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the principal director-general of income tax (systems), or DGIT (systems)".

It's mandatory to link Aadhaar with PAN. Here's why.

1. Individuals with PAN will have to link it to their existing 12-digit biometric Aadhaar numbers from July 1 | economy policy

2. While applying for permanent account number (PAN), Aadhaar number or Aadhaar enrolment ID will have to be mandatorily quoted.

3. Linking of Aadhaar and PAN must for filing of income-tax returns (ITR)

Linking of your Aadhaar with your PAN is no longer a cumbersome exercise. You can do it by just an SMS. Your mobile number and e-mail id will help you receive alerts related to your Aadhaar and to access Aadhaar services easily. The Income Tax Department earlier this month issued advertisements and described how both the unique identity numbers of an individual can be linked by sending an SMS to either 567678 or 56161.

Here is how you can use the SMS facility to link Aadhaar with PAN
Send SMS to 567678 or 56161 in following format:
UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>
Example:
UIDPAN 111133333321 AAAAAEEEEE

People can also visit the official e-filing website of the department to link the two identities, in both the cases-- identical names in the two databases or in case where there is a minor mismatch. (Read full story)

GST launch mock drill today: Know how Team Jaitley is preparing for July 1

GST war room is an important element in the government's launch effort

With three more days to go before India's biggest tax reform in decades is implemented, the Narendra Modi-led government is all geared up to ensure that nothing goes amiss on July 1. For this, a mega rehearsal has been planned today in the Central Hall of Parliament. The rehearsal, scheduled to be held at 10 PM, may be supervised by either Parliamentary Affairs Minister Ananth Kumar, his deputies Mukhtar Abbas Naqvi and S S Ahluwalia, or Secretary Rajiv Yadav, official sources told Firstpost.|economy news

Officers from various departments including those from the finance ministry will be part of the rehearsal event, they said.

The GST Feedback and Action Room set up by the Central Board of Excise and Customs (CBEC) is keeping a close watch to ensure all processes are in place for a smooth rollout.

"A special war room has been created to address doubts arising over GST, beforehand," a senior government official told The Economics Times.

It will operate from eight in the morning to 10 in the evening, providing a single window for the resolution of any GST-related issue.

economy policy| GST war room

The war room is an important element in the government's launch effort. It is backed by many government officials. Every ministry and department has created GST cells dedicated to the sectors they deal with.

Custom departments: porters and traders will start filing bills of entry and shipping in the new format aligned with the GST framework starting today.

CBEC has directed field formations to answer any query industry and small businesses may have. Centre has asked officials to respond to those who walk into their offices seeking clarification.

Field officials have been directed to assist taxpayers and businesses with regard to aspects of GST. 

(READ MORE)

Trinamool to boycott midnight GST function, Congress and others might too

The June 30 midnight event is a function and therefore not mandatory for members to attend

Several Opposition parties are likely to boycott the June 30 midnight function in Parliament to mark the rolling out of the Goods and Services Tax (GST) regime. West Bengal Chief Minister Mamata Banerjee today said that her party Members of Parliament will not attend the event in protest.

While the government has invited former prime minister Manmohan Singh to share the dais with President Pranab Mukherjee and Prime Minister Narendra Modi, the Congress party is also mulling a boycott.

The June 30 midnight event is a function and not a session of parliament, and therefore not mandatory for members to attend.|economy policy 

Banerjee today said her party was deeply concerned about GST implementation. "After demonetisation, this unnecessary disastrous hurry is another epic blunder of the Centre," she said.

The West Bengal CM said her party supports GST but it required more preparation. She said the entire business community, especially the small and medium ones, are scared and confused.

"Essential commodities such as medicines are not available in many places and prices of various commodities are rising for lack of clarity and mismanagement," Banerjee said, cautioning of chaos in the wake of hurried implementation of GST.

Banerjee said her parliamentary party will stay away from the function, but advised the government to take six months more for proper implementation of GST related rules and regulations.| economy news

Meanwhile, voices are growing within the Congress favouring a boycott. There are concerns, including from the former prime minister, that the event is designed to demean first prime minister Jawaharlal Nehru's "tryst with destiny" speech at the midnight session of Parliament on the eve of the Indian Independence on 15 August,1947.

A final decision is likely to be taken in the evening by the Congress.

Won't stop Sikkim road construction, says China as 'area is not under border disputes'

It's not time for India to display arrogance toward China," it said.

China on Wednesday justified the construction of a road in the Sikkim sector, saying the area "undoubtedly" is located on its side of the border as per the 1890 Sino-British Treaty.

"According to the treaty, 'zhe' is the ancient name of Sikkim," Chinese Foreign Ministry spokesman Lu Kang said in a statement.| economy news

"As per this treaty, the area over which the Indian army has raised objection is undoubtedly located on the Chinese side of the border," he said.

The statement came a day after the Chinese military accused the Indian army of stopping the construction of the road in what it claims to be China's "sovereign territory" in the Sikkim section of the India-China border. Lu said the Sikkim segment of the China-India border was recognised by both China and India.|Economy policy 

"Indian leaders, the Indian government-related documents, the Indian side in the Sino-Indian boundary issue Special Representatives meeting confirmed that the two sides signed the treaty in 1890, the 'Sino-British treaty' and the China-India boundary of Sikkim to have the direction of a consensus," he said.

"Compliance with these treaties and documents is an international obligation that not to be shirked by the Indian side," he added.

Last night a Chinese foreign ministry statement said "the Indian border guards crossed the boundary in the Sikkim section of the China-India border and entered the territory of China and obstructed normal activities of the Chinese frontier forces in the Donglang area recently, and the Chinese side has taken counter-measures."

Earlier in the day, Lu said China lodged a diplomatic protest with India accusing Indian troops of "crossing the boundary" in the Sikkim section and demanded their immediate withdrawal.

He also asserted that it has shut the Nathu La pass entry for Indian pilgrims travelling to Kailash Mansarovar because of the border standoff.

Also a hard-hitting article posted on the website of the state-run Global Times tonight on the issue said, "Indian troops' provocation brings disgrace to themselves" and they should be forced to retreat "by all necessary means".

"The Indian government made no objection to the Sikkim section of the China-India border. Allegations of intrusions along the western section of the China-India border often emerge, but face-offs in the Sikkim section are rare. The Nathu La pass in Sikkim was reopened in 2006, because there is no border dispute between China and India over this area," it said.

READ MORE :

 

Full GST rate list: Here are the tax rates for all goods and services

Foodgrains are slated to cost less from July 1

Economy news| Foodgrains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council today decided to exempt the daily-use commodities from the levy.

Here's a complete  GST rate  list of all 1,211 items but six were finalised at the first day of the two-day meeting in Srinagar of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives.

Also, here's a complete list of all the items that the GST Council has broadly approved as the rates of GST Compensation Cess to be levied on certain goods.

Read our full coverage on GST

Modi-Trump meet: American Indians want PM to take up H-1B visa, hate crimes

Tensions ran particularly high this year when two Indian engineers were shot, one fatally, in Kansas

With Prime Minister Narendra Modi of India set to meet President Trump on Monday for the first time, many Indians in communities like this one have had high hopes for the relationship between the two leaders — both of whom swept to power as media-savvy political outsiders pledging to revive their national economies.

In a string of storefronts here in “Little India” that pay tribute to Hindu deities, Yogi Patel, 52, runs the Laxmi Pan Center, which is named after the goddess of wealth and sells a betel nut breath freshener. He has lived in the United States for 32 years and is a strong supporter of Mr. Trump.| economy policy

“Trump is doing the right thing. He’s doing good for U.S. citizens and America,” he said, switching between English and Hindi to explain that he grew up in Gujarat, the state that Mr. Modi led as chief minister before the 2014 election. “And I am from both countries.”

But as Mr. Trump has tried to crack down on immigration and withdrawn from the Paris climate agreement, singling India out as a country that has gained unfairly from the accord, the meeting of the two leaders with nationalist leanings and sizable social media followings has taken on a more complicated tone for others in the Indian diaspora.

economy news| Mr. Trump is “a little bit unpredictable,” said Vasudev Patel, who voted for Mr. Trump and is the secretary of the Overseas Friends of Bharatiya Janata Party, USA, Mr. Modi’s party. “Nobody knows when he will make what comment. And the next day he will say he didn’t say that. He’s like an Indian politician.”

Of the roughly three million people of Indian descent in the United States, 65 percent are Democrats or lean Democratic, according to a 2012 survey by the Pew Research Center. But on both sides of the debate, political analysts say last year’s election has ignited a wave of political engagement among Indians in the United States, and that is also driving interest in this week’s meeting.

“Most immigrants who come are really trying to make a life for themselves and their families. They’re really concerned about the mortgage on the house, the papers to get their green card, family back at home,” said Devesh Kapur, a professor at the University of Pennsylvania and an author of “The Other One Percent: Indians in America.”

“This has now become a wake-up call that they cannot stand as aloof,” he added.

The diaspora in the United States sees itself as a wealthy and powerful segment of the population, with Indian-born business leaders, including Microsoft’s Satya Nadella and Google’s Sundar Pichai, rising to prominence in recent years.

The median income of an Indian-American household is $88,000, well above the $49,800 average for the United States as a whole, according to the Pew survey. And 38 percent of Indian-Americans have advanced degrees, compared with just 10 percent of the rest of the United States population.

“Indian-Americans or Indians here are politically active,” said Tanvi Madan, the head of the India Project at the Brookings Institution. “They are in the policy space. They have integrated in a substantial way. You see them on prime-time television show and in sports.”(read more)

 

Kohli was asked about Kumble's approach while coaching and he stoically maintained his stancz



Opening up for the first time, Virat Kohli on Thursday said that he will never reveal dressing-room details, in an apparent reference to the now retired coach Anil Kumble's statement that their partnership had become "untenable".

Kumble stepped down a couple of days back due to differences with the India captain.

Kohli said "he respects" Kumble's decision to quit and that there is highest regard for him as a player.
"Obviously Anil bhai has expressed his views and he has taken a decision to step out and we will respect that decision. It's something that has happened right after the tournament," Kohli said on the eve of the first ODI against the West Indies.

While he felt that Kumble is entitled to his opinion, in a roundabout manner, the skipper spoke about how dressing room details are sacred to him, which, at any cost, can't be shared with the public.
"One thing for sure is that I have had 11 press conferences that have happened during the Champions Trophy. We have created a culture over the last 3-4 years that whatever happens in the change room, we have tried to maintain the sanctity of the change room throughout. That is what the whole team believes in. For us that is paramount," Kohli stated.

The skipper said that he and his players respect Kumble's achievements as a player.

"I have total respect for him as a cricketer and what he has achieved for the nation. All the years that he has played. There's no taking away that aspect of him at all. And we all respect him totally," Kohli very consciously made it clear that he won't talk about coach Kumble's role.

(Read More…)

Decoding 'unpredictable' Trump's India policy will be Modi's biggest challenge in US

A public validation of the India-US strategic partnership by Trump would be important

Prime Minister Narendra Modi’s meeting with US President Donald Trump will provide the first real indication of where US policy on India is headed under the new administration and whether progress is guaranteed or dubious.

It might be one of Modi’s most challenging meetings with a foreign leader, whose election came as a surprise to world leaders, throwing old calculations about US leadership off while making the evolution of a multipolar world a near certainty. Trump is focused inward and it is unlikely he would become an internationalist any time soon.

Modi will have to assess whether Indo-US relations will remain upwardly mobile and stay on the trajectory set by former presidents George W. Bush and Barack Obama, or if ties will plateau in the short term under Trump. That India has not indulged in ostentatious criticism of the US president is a plus.| economy news

Modi moved India closer towards the US during the Obama administration, issuing a joint vision statement on the Indo-Pacific and declaring that the two democracies had overcome the “hesitations of history”. The oft-cited phrase may still hold true but to what extent is the question.

economy policy| A public validation of the India-US strategic partnership by Trump would be important. Trump’s unpredictability has sent India back to the hedging table, reinvigorating old friendships and exploring new ones. It can be argued that Modi’s recent visits to Germany, France and Russia, and his determined outreach to Japan represent a new version of India’s old strategy of diversification, albeit with renewed determination. Modi will visit Israel next month in the first ever prime ministerial trip and abandon another hesitation of history, as it were.

As India repositions itself and adjusts to new realities, the relationship with the US remains key for both strategic and economic reasons, and the convergence of interest is unlikely to disappear. The US is an important trade partner, an attractive destination for Indian students and a source of high technology, even if demanding in the process.

“The best outcome of the meeting? Trump sees investing in India as good for his interests and for the US national interest,” said Ashley J. Tellis, a prominent strategic expert who has advised former presidents on South Asia. “Asian security and China’s rise were big issues for Bush and Obama and India enjoyed a pride of place in their calculations.”

'I am poor, receive ration' painted on houses in Rajasthan's Dausa

This initiative has been taken so that only the needy can avail the benefits of the govts' scheme

economy news | In a bizarre case, several houses in Rajasthan's Dausa district were found painted with 'I am poor, receive ration'.

Several houses in this region have been painted in yellow by administration with their names and a message on it saying, "I am poor, receive ration from National Food Security Act (NFSA)."
Around 70 percent of the total population of this region takes benefit of this government scheme and have this humiliating message painted outside their houses.

As per the local administration, this initiative has been taken so that only the needy can avail the benefits of the governments' scheme.

"At the time of the Congress, many got themselves registered to avail the benefits of the
government's scheme. But the one who deserve to get the right are still deprived of it. The ruling government has taken this initiative for the backward class," said a NFSA official.|economy policy

Meanwhile, the villagers also claimed that they were told that they will be paid Rs. 750 if they allowed their homes to be marked.

"Even when we opposed, they painted our walls with this message. We feel very humiliated but what can we do. The government is just making fun of us by painting this," said a villager.

The NFSA was undertaken during the United Progressive Alliance (UPA) government, as per which the people belonging to backward classes were given five kilograms of food grains per person per month at subsidised rates.

[read more]

 

GST on gold: Buying and making jewellery to get expensive for customers

It can be said that those who are not computerised and internet savvy have to be out of business

The Goods and Service Tax (GST) Council has been kind enough to provide a special 3 per cent GST to gems and jewellery sector ( the exception being rough diamonds at 0.25 per cent).

Going by the economic survey of India and the hype which was created in the run-up to this meeting, a much higher rate was feared. However, the rate of GST for jewellery is in line with what it was under the old tax regime.|economy news

GST has increased paperwork and lot of compliance. Only time will tell if we as a country or an industry are ready for it.

The immediate impact would be on the investment buying of gold by consumers as the resale value will be down by three per cent. Here' an example:

Mr A bought gold worth Rs 100
Paid GST                                Rs 3
                                         —————
Total cost                            Rs 103

Now, after 6 months he wants to sell this gold and presuming that the gold price remains constant, he will get Rs 100 and the GST amount would be lost at the consumer level.

The transaction impact cost has increased from about one per cent to three per cent.

From the government's point of view, this is in line with their thinking/ planning — don’t invest in physical gold, rather invest in gold sovereign bonds. The consumer will also be better of as there is an interest coupon attached to bonds and it tracks local gold prices.

The exchange business of old jewellery for new ones will also be affected as the cost of 3 per cent will affect the transaction.| economy & policy

Another area which will affect the industry and the consumer is making of gold jewellery out of gold/scrap supplied by the customer. At present, there was no tax impact on the making of jewellery. Labour or making charges of jewellery were exempt from service tax (similar exemption was also under excise rules ). Under GST no such exemptions exist and making charges will be subject to 18 per cent GST. This is an undesired result.

Export from domestic tariff area (other than SEZ ) will be hit on two counts:

One, there is no exemption from GST for gold procured for export purposes. This would mean a higher blockage of working capital.

Banks can deposit banned Rs 500, Rs 1,000 notes with RBI by July 20: Govt

This is the second window the government has provided to banks, post offices and cooperative banks

The government has permitted banks and post offices to deposit junked Rs 500 and Rs 1,000 notes with the Reserve Bank by July 20.|economy news  

This is the second window the government has provided to banks, post offices and cooperative banks for depositing the junked notes with RBI.

The earlier window was open till December 31, a day after the 50-day period of demonetisation of high value currency.

"Such specified bank notes may be deposited by such bank, post office or district central cooperative bank, as the case may be, in any office of the Reserve Bank, within a period of 30 days from the commencement of these rules," said a government notification.

It further said that they should get the exchange value by credit to the account of such subject to the satisfaction of the RBI of the conditions specified.|economy policy

RBI will accept deposits collected by any bank or post office by December 30, 2016 or by any District Central Cooperative Bank from November 10-14, 2016 should be deposited within 30 days, the notification said.

They should also cite valid reasons for non-deposit of the specified bank notes within the period, it said.

 

Saudi to impose family tax: What it means to 41 lakh Indians & their family

Indians form Saudi Arabia's largest expat group

economy news|Saudi Arabia has always been a popular destination for job seekers. However, starting next month, things are about to change for the worse for expats. From July, Saudi will be collecting a new tax from expats and their dependents. The 'dependent fee' will be 100 Saudi riyals (approx. Rs 1,723, as on Wednesday) per month for each dependent. The amount is expected to increase gradually every year until 2020.

According to TOI, several Indians employed in Saudi Arabia are planning to send their dependents back to India as it is likely to prove a big financial burden for them.

Indians form Saudi Arabia's largest expat group and hence, will be most affected. Reportedly, 41 lakh Indians are currently working in the Kingdom.

Will this help Saudi as it struggles with financial crisis

Expat levy is seen to boost kingdom's revenues amid low oil prices. However, according to Gulf News, "reforms such as the levy on foreign workers may help augment government revenues, but they can increase the cost of doing business in the kingdom."

Companies in Saudi Arabia currently spend 200 Saudi riyals per month to cover the levy for every non-Saudi employee. This applies to organisations where foreigners exceed the number of local workers.|latest economy news

Migrant rights activist Bheem Reddy Mandha said several people had already sent their families back in the past four months. "The men have become forced bachelors," he told TOI.

Saudi - a no income tax

According to iExpats.com, the International Monetary Fund (IMF) is urging the Gulf states to introduce more taxes to soften the impact of falling government revenues as the price of oil drops, leaving a black hole in budgets.

"Saudi Arabia has one of the most liberal labour policies globally, with very few restrictions on importing foreign labour to work in the kingdom,” says the government.

"Currently, neither Saudi nationals nor foreign labourers pay income taxes, and this policy will remain in place.”

Why is the Kingdom of Saudi so popular for Indian job seekers?

The kingdom is home to largest Indian passport holders outside India with around 41 lakh Indians working there and over 400 Indian companies. It is attractive because so far Saudi has not imposed any tax on income earned.

Saudi law provides full protection to all expatriates, which includes a unified labour contract and provisions that prohibit employing persons in jobs different from the profession stated in the contract, said Saudi Ambassador Saud Al Sati.

In an interview to TOI, he said, rules prevent workers from being made to work longer than five hours at a stretch. Whenever Saudi authorities are provided with valid information, detailed investigations ensue, and violators face action."

Full text of Kumble's resignation letter as he quits as India head coach Edit

Kumble stayed back in England instead of travelling with the team for their next assignment

Legendary leg-spinner Anil Kumble has decided against continuing as the head coach of the Indian cricket team, it was announced on Tuesday.

According to reports, Kumble, whose one-year tenure was scheduled to end at the conclusion of the ICC Champions Trophy in England and Wales, stayed back in England instead of travelling with the team for their next assignment in the West Indies.


Here is the full text of his resignation letter:
I am honoured by the confidence reposed in me by the CAC, in asking me to continue as Head Coach. The credit for the achievements of the last one year goes to the Captain, the entire team, coaching and support staff.

Post this intimation, I was informed for the first time yesterday by the BCCI that the Captain had reservations with my ‘style’ and about my continuing as the Head Coach. I was surprised since I had always respected the the role boundaries between Captain and Coach. Though the BCCI attempted to resolve the misunderstandings between the Captain and me, it was apparent that the partnership was untenable, and I therefore believe it is best for me to move on.

Professionalism, discipline, commitment, honesty, complementary skills and diverse views are the key traits I bring to the table. These need to be valued for the partnership to be effective. I see the Coach’s role akin to ‘holding a mirror’ to drive self-improvement in the team’s interest.
In light of these ‘reservations’, I believe it is best I hand over this responsibility to whomever the CAC and BCCI deem fit.

Top 5 common mistakes to avoid while filing your income tax returns

Here is a list of things to help you sail through

economy news | With the due date of July 31 fast approaching, it is that time of the year again when the taxpayers need to file their I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit. The basic exemption limit for individuals is Rs 2.5 lakhs and for senior citizens, it is Rs 3 lakhs. So, if your income exceeds this limit, you need to file the tax return by the due date. Filing of tax return requires caution to avoid mistakes. Keeping in mind few things can make your tax filing a breeze.

Here is a list of things to help you sail through:

 

1. Choose the right ITR Form applicable

There are total 7 ITR forms available for e-filing.This year a lot of changes has been made in these forms. Make sure that you choose the right ITR form applicable to you. For example, there are two I-T return forms - ITR-1 and ITR-2 available for salaried individuals at the moment, and your sources of income will decide which form to use. ITR 3 is applicable for the person having income from business whereas last year ITR 4 was applicable for business income. So pick the correct ITR form. The Tax Department will refuse to accept your form in case you have chosen the wrong one.

2. Claim all the Deductions

Ensure that you have claimed all the deductions allowed under various sections of I-T Act that you are eligible for. For example under Sec 80C- PPF, PF, school tuition fees of children etc, under Sec 80D- Health insurance premium and so on.In case of Salaried individuals, they can claim such deductions even if it is missed in Form 16, provided that such investments are done before 31st March 2017.| economy policy

3. List all sources of income including Interest Income

Firstly, you need to identify your sources of income under different heads. Under the I-T Act, all incomes earned by persons are classified into five different heads, such as income from salary, income from house property, income from business or profession, income from capital gains, and income from other sources. Thus, you should identify all your incomes from different sources, just to ensure that you haven't missed out something while filing your return. Many taxpayers do not report interest income in returns thinking that since the tax has already been deducted by the bank. But even though TDS has been deducted on any of your income, it has to be disclosed in your return.

Banks chart plan for 12 large NPA accounts, Lanco Infra first to be booked

Lenders have been asked to register against these defaulting borrowers in NCLT within a month

economy news| Lenders on Monday began meeting to initiate proceedings against 12 stressed accounts identified by the Reserve Bank to be referred under the Insolvency and Bankruptcy Code (IBC), sources said.

The accounts identified by the RBI include Amtek Auto (Rs 14,074 crore), Bhushan Steel (Rs 44,478 crore), Essar Steel (Rs 37,284 crore) Bhusan Power and Steel (Rs 37,248 crore), Alok Industries (Rs 22,075 crore), Monnet Ispat (Rs 12,115 crore) and Lanco Infra (Rs 44,364.6 crore).

Lanco Infratech, power and road construction firm, became the first among the "dirty dozen" companies to be booked by IDBI Bank.

"Lanco Infratech (LITL)...vide letter dated June 17, 2017, intimated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that RBI directed IDBI Bank, the lead bank of LITL to initiate Corporate Insolvency Resolution Process (CIRP) for LITL under the Insolvency and Bankruptcy Code, 2016,” the company said in a filing on Saturday.|Economy policy 

The list also named Electrosteel Steels (Rs 10,273.6 crore), Era Infra (Rs 10,065.4 crore), Jypaee Infratech (Rs 9,635 crore), ABG Shipyard (Rs 6,953 crore) and Jyoti Structures (Rs 5,165 crore) as defaulting borrowers.

According to sources in Finance ministry various banks held meeting today to chart out future course of action regarding some of the accounts identified by RBI.

"In today's meeting, banks met to finalise their action plan for some of the accounts before referring to the National Company Law Tribunal (NCLT)," said a banker.

Bankers met to discuss accounts such as Amtek Auto, Bhushan Steel and Essar Steel, among others, said another banker.

The lenders have been asked to register against these defaulting borrowers in NCLT within a month.

 

Bankers' meet begins today to decide on 12 large defaulters RBI named

These 12 accounts have an exposure of more than Rs 5,000 crore each, with 60% or more bad loans

 

economy news| Bankers are meeting from Monday to finalise their next course of action on six of the 12 bad loan accounts for immediate referral to NCLT after the RBI named the largest defaulters to face bankruptcy proceedings.

The first set of six troubled accounts are Bhushan Steel (Rs 44,478 crore), Essar Steel (Rs 37,284 crore), Bhusan Power and Steel (Rs 37,248 crore), Alok Industries (Rs 22,075 crore), Amtek Auto (Rs 14,074 crore) and Monnet Ispat (Rs 12,115 crore), a banker said.

According to RBI, these 12 accounts owe Rs 2.5 lakh crore to the system, which constitutes around 25 per cent of gross bad loans.

The other accounts named for bankruptcy action, according to bankers, include Lanco Infra (Rs 44,364.6 crore), Electrosteel Steels (Rs 10,273.6 crore), Era Infra (Rs 10,065.4 crore) Jaypee Infratech (Rs 9,635 crore) ABG Shipyard (Rs 6,953 crore) and Jyoti Structures with a defaulted loan of Rs 5,165 crore.

Last week, the RBI's internal advisory committee (IAC) had sent the list of 12 accounts to bankers for immediate reference under the Insolvency and Bankruptcy Code (IBC). These 12 accounts are led by SBI (six of them), PNB, ICICI Bank, Union Bank, IDBI Bank and Corporation Bank, according to bankers.|Latest economy news

"Beginning Monday, banks are meeting to discuss six of the 12 accounts named by the RBI before referring accounts to the National Company Law Tribunal (NCLT) by the end of this month," a banker told PTI.

Since these are large accounts and involve multiple banks, the lenders will try to take a common view on all administrative requirements before referring these accounts to the NCLT.

Another banker said, "they will also decide on the appointment of insolvency professional (IP) who will later decide on the resolution plan and submit it to the lenders for their consideration".

While ABG Shipyard, Amtek Auto, Alok Industries, Bhushan Steel, Bhushan Power and Steel, Electrosteel Steels, Jaypee Infratech, Jyoti Structures and Monnet Ispat and Energy did not respond to e-mails sent to them, Era Infra and Lanco Infra could not be contacted.

Duty on mobiles after GST: iPhones to get costlier; local brands won't gain

Smaller players could be routed; major Indian brands may not get any significant advantage

 

The Union government is mulling imposing a 15 per cent basic customs duty (BCD) on the import of finished mobile handsets once the Goods and Services Tax (GST) comes into effect.

The move is intended to protect manufacturers who have set up units in India and put a curb on the outflow of foreign exchange to countries like China, Taiwan, and Vietnam.Boosting local manufacturing or assembly of mobile phones is a key part of Prime Minister Narendra Modi’s pet project — Make in India.| Economy news

What the government intends to do?

The Commerce and Industry Ministry had proposed a customs duty of 15 per cent on smartphone imports. Under the Phased Manufacturing Program (PMP) developed by the ministry of electronics and information technology, the government aims to enable large-scale manufacturing of mobile phones. As local value addition in handsets remains as low as two per cent at present, sub-parts such as mechanics, microphones, receivers, keypads, and USB cables, among others, have been targeted in the initial stage.

The PMP covers mechanics, die cut parts, microphone and receiver, keypad and USB cable in the current financial year. It also aims to promote the indigenous manufacturing of populated printed circuit boards, camera modules and connectors in 2018-19, and display assembly, touch panels, vibrator motor and ringer in 2019-20.

The government is also in the process of formulating the second phase of the PMP, which it expects will enhance value addition to 58.3 per cent in feature phones and 39.6 per cent in smartphones.| Latest economy news

What will be the consequences?

While the government’s upcoming move could be well intended, a look at the current dynamics of the sector raises some important questions. Will an import duty on finished handsets be able to save Indian brands from being routed by Chinese vendors — a story which is currently unfolding? What happens to smaller local players who are heavily dependent on imports and will Indian consumers benefit from the move?