Tuesday, 5 March 2019

TAXATION UPDATES 05.03.2019





NO GST REFUNDS FOR FOREIGNERS AS OF NOW: FINANCE MINISTRY

Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the Finance Ministry has said in reply to an RTI query. It was asked to provide details on procedures for foreigners to get GST refunds on goods purchased by them in India. Some western nations provide refunds of certain taxes on goods purchased by foreigners there. Please note that Section 15 of the IGST (Integrated Goods and Services Tax) has not yet been enforced Therefore the reply of this office is nil information currently, the Central Board of Indirect Taxes and Customs (CBIC) said in reply to the Right to Information (RTI) application filed by this PTI correspondent. According to the section, integrated tax paid by a tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions and safeguards as may be prescribed. For the purposes of this section, the term ‘tourist’ means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes, the Act says.
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REDUCE GST RATE ON LPG CONVERSION KITS TO 5 PER CENT: AUTO LPG INDUSTRY

India’s Auto LPG industry has sought a reduction in the goods and services tax (GST) rates on LPG conversion kits for automobiles from the current 28 per cent to five per cent to boost vehicle conversions to the environment-friendly fuel. Indian Auto LPG Coalition, the apex industry body for auto LPG in India, said that high GST rates were hampering conversion to LPG, which is much cleaner transport fuel as compared to petrol. In a statement, the association said putting an efficient and non-polluting fuel under the highest GST slab is counter-productive to the government’s focus on cleaning India’s urban air quality. The high GST rates are proving detrimental to the conversion industry and hampering the growth of the clean and environment-friendly transport fuel. Even as we work on making electric vehicles a reality on Indian roads in the long term, we must not ignore more readily available options and lose sight of more easily do things to fight environmental pollution. Encouraging auto LPG conversion is one of the most viable and easy solutions to our air quality concerns in the short term, Gupta said. Auto LPG emits almost negligible particulate matter than either diesel or petrol vehicles; 96 per cent lesser nitrogen dioxides (NOx) than diesel; 68 per cent lesser NOx than petrol. NOx is hugely responsible for respiratory ailments among urban dwellers. Auto LPG also emits about 22 per cent lower carbon dioxide (CO2) than petrol which is comparable to the CO2 emissions of CNG.
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INDIA-US TRADE ISSUES

United States of America today has given a 60-day withdrawal notice to India on the Generalized System of Preferences (GSP) benefits extended by US. Since the review initiated by the US in April 2018 on India's GSP benefits, India and US have been discussing various trade issues of bilateral interest for a suitable resolution on mutually acceptable terms. GSP benefits are envisaged to be non-reciprocal and non-discriminatory benefits extended by developed countries to developing countries. In India's case the GSP concessions extended by the US amounted to duty reduction of only USD 190 million per annum. The US had initiated the review on the basis of representations by the US medical devices and dairy industries, but subsequently included numerous other issues on a self-initiated basis. These included issues related to market access for various agriculture and animal husbandry products, relaxation / easing of procedures related to issues like telecom testing / conformity assessment and tariff reduction on ICT products. The Department of Commerce engaged with various Government of India departments concerned with these issues, and India was able to offer a very meaningful way forward on almost all the US requests. In a few instances, specific US requests were not found reasonable and doable at this time by the departments concerned, in light of public welfare concerns reflective of India's developing country status and its national interest. India was ready to address US concerns regarding medical devices in principle, by putting in place a suitable trade margin approach in a reasonable time frame to balance concerns about fair pricing for the consumers and adequate remuneration for the suppliers. On the issue of dairy market access, India has clarified that while our certification requirement, that the source animal had never been fed animal derived blood meal,is non-negotiable given the cultural and religious sentiment, the requested simplified dairy certification procedure, without diluting this requirement, could be considered. Acceptability of US market access requests related to products like alfalfa hay, cherries and pork was conveyed. On reduction of our IT duties, India's duties are moderate and not import stopping. Any MFN duty reduction would almost entirely benefit third countries. Accordingly, India conveyed willingness to extend duty concessions on specific items in which there is a clear US interest. On telecom testing, India was willing to consider discussions for a Mutual Recognition Agreement. Due to various initiatives resulting in enhanced purchase of US goods like oil and natural gas and coal the US trade deficit with India has substantially reduced in calendar years 2017 and 2018. The reduction is estimated to be over USD 4 Billion in 2018, with further reduction expected in future years on account of factors like the growing demand for energy and civilian aircrafts in India. This reduction has happened in the face of a rising overall US trade deficit, including with some other major economies. India is also a thriving market for US services and e-commerce companies like Amazon, Uber, Google and Facebook with billions of dollars of revenue. The issue of Indian tariffs being high has been raised from time to time. It is pertinent that India’s tariffs are within its bound rates under WTO commitments, and are on the average well below these bound rates. India’s trade weighted average tariffs are 7.6%, which is comparable with the most open developing economies, and some developed economies. On developmental considerations there may be a few tariff peaks, which is true for almost all economies. India was agreeable to a very meaningful mutually acceptable package on the above lines to be agreed to at this time, while keeping remaining issues under discussion in the future.
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TRUMP'S TRADE ACTION ON INDIA TO HIT FARM, MARINE EXPORTS THE MOST: FIEO

India's exports of farm, marine and handicraft products to the United States could be hit by US plans to end a preferential trade treatment to the country in the next two months, an official at India's main exporters' body said on Tuesday. We fear that our labour-intensive exports of agriculture, marine and handicraft products to the US would be hit hard, Ajay Sahai, told.
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ED INVESTIGATING AT LEAST 6 HIGH-VALUE LOANS IN ICICI BANK-VIDEOCON CASE

The Enforcement Directorate (ED) is probing at least six high-value loans sanctioned to firms between 2009 and 2011 when Chanda Kochhar was the chief executive officer and managing director at ICICI Bank. The probe agency suspects there have been kickbacks or illegal gratification for extending these loans The enforcement agency, interrogating Kochhar for the fourth consecutive day on Monday, said she had been cooperating in the investigation. However, she was not clear about certain transactions, it said. Also, she maintained she was not aware about the nuances of the business deals involving her husband Deepak Kochhar’s firms. Some of these accounts which are under agency’s lens include $530 million (approximately Rs 3,763 crore) to Essar Steel Minn­esota LLC, Millennium Appli­ances (Rs 175 crore), Sky Appli­ances (Rs 240 crore) Techno Electr­onics (Rs 110 crore), Appli­comp India (Rs 300 crore) and Vide­ocon Industries (Rs 750 crore). The agency’s said to have crucial evidence indicating a complex money trail involving some front entities and multiple transactions. It has raised question around the timings of the investments in Deepak’s firm and the loan disbursement. The investment and the loan disbursal happened in the same year, said an official in the know. Meanwhile, the ED would soon seek judicial assistance through letter rogatory (LR) from its foreign counterparts in Mauritius and Singapore to gather information about certain transaction between Deepak Kochhar’s firms and Matix group and the probable links with some of the Essar group companies.
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CHANDA KOCHHAR QUIZZED BY ENFORCEMENT DIRECTORATE FOR OVER 8 HRS ON FOURTH DAY

Enforcement Directorate (ED) on Monday quizzed former ICICI Bank chair Chanda Kochhar for over eight hours, on the fourth consecutive day of questioning. The agency also questioned Matrix Group chairman Nishant Kanodia for the second time. The Matrix Group and its holding entity, Firstland Holdings, are based in Mauritius. Kanodia is the son-inlaw of Ravi Ruia, vice chairman of the Essar Group. Both companies are accu- sed of being used for round tripping investments into NuPower Renewables, owned by Chanda and her husband Deepak Kochhar, by a whistle blower. The central agency is probing dealings of NuPower with Videocon as well as the Matrix Group. Chanda has not been cooperating in the investigation We have quizzed her on the loans granted to the two entities and their group companies by ICICI but she insists that the decision was taken by the sanctioning committee. When quizzed on the money infused by various companies linked to the two groups in her husband’s account, she says she wasn’t aware of the dealing of her husband’s companies. The probe is focused on unearthing of quid pro quo favours and the subsequent laundering of the alleged kickback received in the guise of loans. We are trying to unearth how loans given to NuPower were actually kickbacks received in lieu of the loans sanctioned by the bank (ICICI) when Chanda Kochhar was at the helm and were used to create private assets by the accused couple, added the above mentioned official.
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EXPORTS LIKELY TO BE HIT AS US MOVES TO END MAJOR TRADE BENEFITS TO INDIA

Ending months of speculation, the Donald Trump administration has decided to cut benefits to Indian exporters under its Generalized System of Preferences (GSP) scheme. At the direction of President Donald J Trump, US Trade Representative Robert Lighthizer announced today that the United States intends to terminate India's and Turkey's designations as beneficiary developing countries under the GSP program because they no longer comply with the statutory eligibility criteria, the United States Trade Representatives office announced late on Monday. India, having exported goods worth $5.6 billion to the US in 2017-18 under GSP, is the largest beneficiary of the scheme. The GSP is the largest and oldest US trade preference programme designed to promote economic development by allowing duty-free entry for thousands of products, mostly from developing nations. While Turkey was also been removed from the GSP list on Monday, the USTR came down particularly hard on India. India has implemented a wide array of trade barriers that create serious negative effects on United States commerce, it said. Back in November last year, the US President had signed an executive order to end the duty-free status of 50 Indian exports to the US. These included inorganic and organic chemicals, agricultural products like cucumbers and gherkin, and certain types of animal hide. These were part of a global list of 90 items — from a large group of nations including Brazil, Argentina, Thailand, Egypt and Ecuador — for which prevailing rates of import tariff were to be be levied when imported into the US.
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ICC WELCOME TO TAKE GLOBAL EVENTS OUT OF INDIA: BCCI OFFICIAL ON TAX ISSUE

The Board of Control for Cricket in India (BCCI) in the recent ICC quarterly meeting was told by the world body to get tax exemption for conducting future global events like the 2021 T20 World Cup and 2023 ODI World Cup. If BCCI fails to get the exemption it will have to bear the tax liability in hosting the showpiece events. But the move has not gone down well with certain sections within the board. BCCI official said that the ICC was free to move the tournament out of India if it felt that was the way forward as matters related to tax needed the government's approval and external pressure would not help. We will abide by what the Tax Department and the Ministry decides on this. We would love for the World Cup to take place here, but if the ICC wants to play hard ball, they must be ready for everything. If they want to take the ICC tournament out of India, it's fine. Let BCCI then take the revenue out of the ICC and see who loses more. There is no way that the BCCI should agree to this. The ICC cannot on the one hand say that they aim to have an inclusive approach and on the other hand look at every possible opportunity to hurt India's interest, the official signed off.
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PENALTY FOR DELAYED FILING OF GSTR 3B RETURNS

As per Circular No 76/50/2018 GST Dated 31st December 2018 CBIC has clarified that

1. As per the provisions of section 73(11) of the CGST Act, penalty is payable in case self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
2. It may be noted that a show cause notice (SCN for short) is required to be issued to a person where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised for any reason under the provisions of section 73(1) of the CGST Act. The provisions of section 73(11) of the CGST Act can be invoked only when the provisions of section 73 are invoked.
3. The provisions of section 73 of the CGST Act are generally not invoked in case of delayed filing of the return in FORM GSTR-3B because tax along with applicable interest has already been paid but after the due date for payment of such tax.

It is accordingly clarified that penalty under the provisions of section 73(11) of the CGST Act is not payable in such cases. It is further clarified that since the tax has been paid late in contravention of the provisions of the CGST Act, a general penalty under section 125 of the CGST Act may be imposed after following the due process of law.
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‘WE HOPE TO ACHIEVE THE REVISED GST REVENUE ESTIMATE’

The hit suffered by the exchequer following the income tax rebate announced for individuals with incomes of up to 5 lakh will be more than offset by the overall growth in direct tax collections, Ajay Bhushan Pandey says. On the indirect tax side, he says that the government expects to at least achieve its revised estimate for GST revenue which is lower than what has been initially budgeted for the year. Can you estimate by how much Goods and Services Tax (GST) revenue for the year will fall short of what is needed? We have done a realistic assessment of how much revenue we are going to get in this year and accordingly we have revised our budgetary estimates for the current year. In the case of the GST, we have brought down our revised estimates to a lower value as compared to what we had given in our budgetary estimate. The reason is that during the 1.5 years of GST, we had done lots of adjustments in terms of process as well as rates. The rates have been brought down on many items. The financial implication of the rate reduction is about 90,000 crore a year Based on all these, accordingly for the current year, we have brought down our revenue estimates. And that much we hope to achieve.

Have you been able to estimate the impact on revenues following the I-T rebate given to those earning up to 5 lakh a year? We have given a full income tax rebate to those whose total taxable income is less than 5 lakh a year. This is basically to provide relief to the people who are in the middle class and particularly those who are earning even in that class. The total benefit that we are going to provide to this class is about 18,500 crore in a year, so that is the likely impact on our revenues. Can the government afford this the when GST revenue has already been revised downwards? If you see our direct tax revenue, there we have increased the revised estimate by 50,000 crore And this, despite the reduction in tax rates. Companies are asking for corporate tax rates to be reduced to 25%. We have a policy, which we had announced in 2015, that the rates of the income tax for the corporates would be brought down to 25% and it has been, over the years, brought down to that level. About 99% of the companies are being taxed at a rate of 25%. Only 1% of the companies are in the range of 30%. Now, we will have to watch for the revenue trend and then the appropriate decision will be taken in due course. As far as the remaining tax proposals are concerned, they will be considered by the government when the full Budget is presented in July. Is the GST 2.0 system of invoice matching still on track to begin from April 1, 2019? The GST Council has already taken a decision that the new return system will come from July 1 The new return system will be a very simplified system. Earlier, we had a system of GSTR 1, GSTR 2, and GSTR 3. Now, in place of that, there will be only one return. The system will be such that it will require minimum information from the taxpayers so that the compliance burden will be less. At the same time, it will also incentivise self-compliance because the entire design of the GST system is such that it promotes self-compliance rather than someone going and doing inspections and forcing compliance.

What additional information will this new return filing system give? If you see the design of the new return system, first of all what we have done is that the monthly returns will be applicable to only those who are having a turnover of more than 5 crore The smaller taxpayers will be given relief. People with a turnover of between 1.5-5 crore will file only on a quarterly basis. These are some of the advantages we have given. Only the minimal information, which is required for the system to determine the compliance, has been taken and this was done in consultation with the States and stakeholders.
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FISCAL DEFICIT OF 19 STATES WORST IN PAST EIGHT YEARS; INDIRECT TAXES HIT REVENUE COLLECTION

Aggregate fiscal deficit of 19 states amounted to 25.9% of the budget estimate (BE) in Q3FY19, almost double the average of 13.2% during the last five years. Consequently, fiscal deficit touched 62.5% of BE during 9MFY19—the worst in at least the past eight years. Higher deficit was a result of weak tax receipts and higher spending Total spending grew by a healthy 14.5% y-o-y in 9MFY19, led by strong growth of 23.1% in capital spending. However, growth in total receipts of 19 states lagged at 12.9% y-o-y during 9MFY19. A combined analysis of the Centre and 19 states (general government) reveals that total receipts of the general government were weak in 9MFY19, as tax growth (at just 8.6%) was the weakest in seven years. Indirect taxes (incl. GST) were the key culprit, rising by a meagre 5.8% y-o-y in 9MFY19, as against an average growth of 16.1% in the last three years. General government spending rose by 11% y-o-y in 9MFY19 – faster than the growth seen in receipts. As a result, fiscal deficit of the general government amounted to 91.7% of BE – the worst in at least eight years.
Indirect tax collections in Q4 have amounted to 44% of the collections seen during the first nine months of the fiscal during the last three years. Assuming a similar ratio for Q4FY19, we estimate that indirect taxes are likely to fall short of the BE by as much as 2.1 trn in FY19. The Centre has projected revised estimates for FY19 to fall short of the BE by 730 bn. Taking this into account, the shortfall in indirect taxes is expected to amount to 1.4 trn in FY19. We have assessed the aggregate fiscal positions of the 19 state governments that have published their fiscal data up to Dec’18. These 19 states account for 90% of the aggregate state budgets. The aggregate fiscal deficit of 19 states amounted to 25.9% of the BE in Q3FY19, as against an average of 13.2% in Q3 over the last five years. Consequently, during 9MFY19, aggregate fiscal deficit of the 19 states touched 62.5% of BE (v/s an average of 44.3% across last five years)—the worst in at least the past eight years. The Centre’s fiscal deficit, at 112.4% of BE, was also the highest in at least 19 years. The aggregate fiscal deficit number of 19 states during 9MFY19 masks the substantial differences in the fiscal deficit of individual states. Bihar’s fiscal deficit was 5.5x the full-year BE during 9MFY19, while Kerala, Rajasthan and Madhya Pradesh almost breached their full-year targets during the period. On the other hand, the fiscal position of Uttar Pradesh, Karnataka, Jammu & Kashmir, Jharkhand and Himachal Pradesh remained quite comfortable. The largest Indian state—Maharashtra ran a fiscal surplus amounting to 25% of BE in 9MFY19.
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EXPLAINED: WHY NO INPUT TAX MAY WIDEN SCOPE OF BLACK MONEY IN REAL ESTATE

The government's decision to do away with input tax credit (ITC) for Goods and Services Tax (GST) levied on housing could increase the scope of using black money in the real estate sector. However, experts have different views on the extent of the impact, as the government is working on mitigating such risks. In the absence of ITC, the trail of invoicing will not be available. This may have opened up the scope of employing black money in the sector again, says Pankaj Kapoor. Real estate contributed about 6-7 per cent to India's gross domestic product (GDP) in 2017. According to a 2018 KPMG report, the sector is expected to contribute about 13 per cent to the GDP by 2025 and the industry is seen becoming the third largest globally at around $1 trillion by 2030. The sector was worth $120 billion in 2017. Under GST, builders had an incentive to file invoices for the purchase of construction materials and inputs to claim ITC and their complete transaction trail could be monitored as a result, he explains. These inter-linkages, according to him, ensured that the builder's cash flow and work flow were transparent. Employing black money in the sector had become difficult and any under-invoicing on the part of the builder could be uncovered, he adds. By setting in place this data-driven system where everything is measurable, GST would have weaned real estate off of black money over time, says Kapoor. Further, according to him, it had also become difficult for builders to accept black money from buyers. With the absence of ITC some builders might find that the incentive to file invoices has reduced. Instead, there could be an incentive to buy construction material or land in cash. This would be cheaper for builders as they can escape paying GST on these inputs. In turn, this opens a window for the deployment of black money to make the said purchases. As input tax credit is removed, some unscrupulous developers may resort to cash payments for items with high GST and replace them with invoices for lower GST or zero-GST items. Invoice matching and input tax credit was an effective way to cull this practice. But with this change, risk increases of misreporting GST, explains Ankur Dhawan.
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NEW GST RULES TO BOOST TAX PAYMENTS IN CASH

A new rule on businesses adjusting their final GST liability against credit for taxes already paid on raw materials and services is pushing up their tax payments made in cash, experts say. The amendments prescribe the order in which credits for past payment of various components of GST can be adjusted against the tax liability on the final output of a business. The new norms restrict using credits for central and state components of GST (CGST and SGST) unless credits for taxes paid on inter-state transactions are fully used GST involves two equal components on any transaction—Central and state GST—that go to the respective governments. Inter-state supplies attract integrated GST (IGST), which is eventually apportioned between the union and state governments. According to the new norms, credit for IGST has to be exhausted before using credit for central or state GST paid in the past for meeting CGST and SGST liability, respectively. This, in many cases, leads to a situation where the more flexible IGST credit is used up for paying CGST liability fully, forcing businesses to pay at least part of SGST liability in cash. It takes away the flexibility in utilization of tax credits Unlike credits for IGST, the same for CGST and SGST can’t be cross-utilised. This results in tax payment in cash while tax credits remain on the books of the company.
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GST CUT, RERA HAVE MADE REALTY BUYER'S MARKET BUT WAIT TILL APR 1 TO BUY

The government has made buying homes easier by slashing the Goods and Services Tax (GST) tax on under-construction properties. Rates have been cut from 8% to 1% for affordable homes and from 12% to 5% for regular units. Moreover, the size of what constitutes an affordable home has been too been revised. A 60 sq. mt unit in a metro and 90 sq. mt home in a non-metro, valued at up to Rs 45 lakh, will now fall under affordable housing. The government, however, has also eliminated input tax credit (ITC) benefit to builders, which the builders were required to pass on to buyers. Elimination of ITC could impact the base prices of properties. In the affordable segment, sellers may marginally increase the product prices to partially compensate for their loss due to loss of input tax credit, says Shveta Jain. Prices could rise in the mid-range and luxury projects. However, competition may force some developers to keep a lid on prices, even at the cost of reduced margins. To ensure that standing stock and under construction units get sold, builders may be forced to maintain their current prices, says Girish Shah. Elimination of input tax credit could reduce ambiguity for buyers This is a notional benefit at best and depends entirely on whether the builder passes it on to buyers. It is a fairly big amount for the largest segment of potential homebuyers and ignorance about the exact transmission mechanism and timeline is not helpful, says Anuj Puri. So, reduced GST without ITC could work in the favour of buyers.
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GOVERNMENT TO GIVE CASUALTY FIGURE IN AIRSTRIKE: IAF CHIEF

IAF chief Air Chief Marshal BS Dhanoa said Monday that the death toll depends on the number of people present in target and the IAF doesn't count number of dead and the casualty figure in air strike on Balakot camp will be given by government, referring to the air strike on February 26, 2019. Commenting on the aerial dogfight between India and Pakistan, the Air Chief Marshal said that the MiG-21 used against the F-16 is an upgraded aircraft with advanced weapons system. The MiG-21 Bison is a capable aircraft, it has been upgraded, it has better radar, air-to air missiles and better weapons system. When the adversary attacks you, every aircraft available is used, he explained in his briefing to the media. The bombs hit target (sic) precisely. Israeli Spice 2000 bombs were used, confirmed BS Dhanoa. Speculation had been rife over the ammunition used ever since the air strikes had taken place. The target has been clearly amplified by the Foreign Secretary in his statement. If we plan to hit the target, we hit the target, otherwise why would he (Pakistan PM) have responded, if we dropped bombs in the jungles why would he respond, the air force chief commented. BS Dhanoa said, I do not know the conditions of the deal between US and Pakistan, whether it was not supposed to be used for offensive purposes. But we have pieces of the AMRAAM and we have clear evidence that F-16s were used by Pakistan.
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PAINED TO SEE LACK OF ACTIONS ON RISKY TAXPAYERS: CBIC

The Central Board of Indirect Taxes (CBIC) has pulled up its field formations for lagging behind their state-level counterparts in revenue collection and enforcement of anti-evasion measures. In several letters written by CBIC member John Joseph to the zonal heads of the indirect tax administration (FE has reviewed these), he has pointed out how they are lax on using the data analytics reports generated on ‘risky taxpayers’. Except the zones of Mumbai, Bengaluru, Panchkula, Delhi, Guwahati, Chandigarh, Nagpur, Bhopal, Kolkata, Ranchi, Vadodara and Bhubaneshwar, in all other zones the shortfall is higher than the state administration. Our collections are much below the targets, John wrote to 21 chief commissioners in early January. Later in the month, Joseph reminded the field formations that director general of analytics and risk management (DGARM) had prepared reports on 88,000 GST registrants based on their compliance behaviour He asked each range to verify the contents of the report for at least three taxpayers each week, and upload feed back on the same so that reports can be improved upon. Joseph, saying: I am much pained to observe that even after 3 weeks with almost 88,000 GSTN number being sent by the ARM to the field for verification, only about 1,500 feed backs have been received in the DDM portal so far. Except for 12 commissionerates other have not even provided a single feed back. The anti-evasion efforts under GST suffered a setback in the first few months of launch when the government had to suspend the full-fledged return-filing system owing to glitches in the system and complaints from taxpayers that compliance was too cumbersome. Since then, GST compliance has been curtailed to single summary return filing form although its expected that a comprehensive yet simplified system would be in place from July. Further, he added that the performance needed to improve to ensure 9,000 verification are done every week by 3,000 ranges being spread across the country. However, till late February, five zones had still not uploaded a single feedback on ‘risky taxpayers’ report uploaded by DGARM, Joseph said. DGARM came into existence on the same day as GST was rolled out. Its mandate is to generate actionable intelligence from huge amount of data generated under GST.
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‘HIGH GST RATE HIT HOUSING SECTOR’

The high rate of Goods and Services Tax (GST) on under-construction properties (which was reduced recently) led to the fund crunch in the housing sector and also among non-banking finance companies (NBFCs), according to Indira Rajaraman, economist and a former member of the Reserve Bank of India’s board. In the earlier funding model (prior to GST regime), for construction of houses, housing companies obtained working capital through sale of apartments before the construction even began. This had the property of getting consumer commitment [even] before the start of the projects, she said. Dr. Rajaraman was pointing out to the construction sector being one of the examples of distortionary content under the GST. She pointed out that for under-construction property, the GST was 18% and with one-third abatement of value of land, the effective rate was 12%. Clearly, the taxation of pre-construction purchase at 18% with simultaneous exemption of completed housing implied the intent to shatter that financing model, perhaps to squeeze out the use of untaxed cash (black money) in the construction sector, Dr. Rajaraman said. Post-GST, the construction sector turned for funding to NBFCs which had already received investible funds after demonetisation flooded banks with cash in November 2016. This was followed subsequently by financing from mutual funds, she added. The GST Council does not seem to have thought through the implication of shattering that business finance model of the sector (housing), which played a key role both in terms of job creation and fulfilling the housing needs, she added. Now, the rates on under-construction properties had been reduced to 5% without credit for taxes and to 1% for affordable under-construction properties, recently, she said. The move should help in gradual pick up of housing demand and improve the health of housing sector and NBFCS, Dr. Rajaraman said.
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DELHI COURT EXTENDS INTERIM PROTECTION FROM ARREST GRANTED TO ROBERT VADRA TILL MAR 19

A Delhi court on Saturday extended the interim protection from arrest granted to Robert Vadra till March 19 in a money laundering case lodged by the Enforcement Directorate (ED).
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DRDO CHAIRMAN TO BE HONOURED WITH MISSILE SYSTEMS AWARD BY US-BASED AIAA

DRDO Chairman G Satheesh Reddy has been honoured with the prestigious Missile Systems Award by the American Institute of Aeronautics and Astronautics (AIAA) for his excellence in the field of missile systems technology. Reddy will be awarded the Missile Systems Award 2019 along with Arizona-based Raytheon Missile Systems' Rondell J Wilson, the Virginia-based professional society of aerospace engineering announced in a statement.
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RCEP MEMBERS MUST SHOW FLEXIBILITY TO RESOLVE PENDING ISSUES: SURESH PRABHU

The member nations of RCEP bloc must empower their negotiators to adopt flexibility for resolving pending issues coming in the way of concluding the negotiations for the proposed mega trade agreement, Suresh Prabhu said Saturday. The proposed mega trade deal Regional Comprehensive Economic Partnership (RCEP) agreement, is being negotiated by 16 countries — 10-member Asean group and India, Japan, China, South Korea, Australia and New Zealand. We should empower our negotiators with mandate to show flexibilities and accommodation on outstanding and pending issues, Prabhu said. He said that a lot of ground still needs to be covered this year. We should be mindful of the limitations ahead, given that there are only three more rounds this year at the technical level, he said. So far 25 rounds of talks have been concluded but the members have yet to finalise the number of goods on which customs duty will be eliminated. Issues are also pending in services sector as India is demanding greater flexibility to promote trade in services. Further, he said that some countries of RCEP bloc including India will be going for elections this year, but the momentum of the negotiations should be continued. The 16-member Regional Comprehensive Economic Partnership (RCEP) bloc aims to cover among the issues related to goods, services, investments, economic and technical cooperation, competition and intellectual property rights. RCEP members want India to eliminate or significantly reduce customs duties on maximum number of goods it traded with them. India’s huge domestic market provides immense opportunity of exports for RCEP countries. But lower level of ambitions in services and investments, a key area of interest for India, does not augur well for the agreement that seeks to be comprehensive in nature.
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GOVERNMENT ISSUES ALERT TO ENHANCE SECURITY AT ALL AIRPORTS

The government on Saturday issued an alert for all airports and airlines in the country, asking them to enhance the existing security measures as it has received intelligence inputs in the aftermath of the Pulwama attack and subsequent developments. It is imperative to enhance the existing security measures being taken at all the civil aviation installations like airports, airstrips, airfields, air force stations, helipads, flying schools, aviation training institutes etc. so that no untoward incident takes place, the alert notification read. The BCAS has asked airlines and airports to take 20 specific enhanced security measures which will be in operation till further orders. The security measures include strict access control to regulate entry into terminal building, airside, all operational area and other aviation facilities. The BCAS has directed enhanced screening of passengers including 100 per cent full pat down search at pre-embarkation security checkpoint, and enhanced random screening of staff and visitors at the main gate to the terminal building. No vehicle should be parked in front of the terminal building and there should be intensive checking of vehicles entering car parking area, according to the alert notification. Another measure is -- strict on ground monitoring of regulatory guidelines for operations of non-conventional aerial platform like microlight aircraft, aero models, paragliders, unmanned aerial systems (UAS), drones, power hang gliders and hot air balloons. The BCAS has suggested enhanced screening of passengers, staff, and hand baggages and strengthening of anti-terrorism/anti-sabotage measures and placement of quick response teams at all airports. Regarding catering, the alert notification said, Inspection by the chief security officer of the airline concerned from the presetting stage to vehicle check and entry into airside. Airport Security Unit/Aviation Security Group to ensure thorough check of the vehicle through under view mirror, cabin search etc and checking of the driver and attendant and their ID matching of signatures.
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PM MODI HAS AGAIN FAILED IN THIS QUARTER’S NUMBERS, SAYS RAHUL GANDHI

Rahul Gandhi Saturday hit out at Prime Minister Narendra Modi over declining growth in the third quarter of this fiscal, saying the chowkidaar has once again failed in the numbers of the quarter. False promises, false games. The chowkidaar has failed again in this quarter’s numbers, the Congress chief said on Twitter, citing a news report that India’s growth declined to 6.6 per cent in the quarter ending December 2018. Quarterly growth rates of 2018-19 puncture the claims of government. Q1 was 8 %, Q2 was 7 % and Q3 was 6.6 %. This is the swan song of the BJP government. If Q4 growth rate declines further, as is expected, that will expose the government completely, Chidambaram tweeted.
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400 ADDITIONAL BUNKERS SANCTIONED FOR BORDER RESIDENTS IN J&K'S POONCH, RAJOURI

The Jammu and Kashmir administration on Saturday sanctioned additional 400 individual bunkers for the twin districts of Poonch and Rajouri which witnessed intense shelling from Pakistani troops over the past five days. In view of the heightened cross-border shelling, the government has sanctioned additional 200 individual bunkers each for Poonch and Rajouri districts, an official spokesman said. The administration has directed officials to ensure speedy construction of these bunkers and it said the funds would be placed with the deputy commissioners concerned through the Rural Development Department. The bunkers will get built in the next one month as per the prescribed specifications, the spokesman said.
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NIRBHAYA CASE CONVICTS MAY SOON FILE CURATIVE PETITION AGAINST DEATH PENALTY, COURT TOLD

Three convicts in the 2012 gang rape and murder case might soon file a curative petition challenging the death penalty, a Delhi court was told on Saturday. Anu Grover Baliga Saturday heard a plea filed by the parents of Nirbhaya seeking death warrant of four convicts without any delay. He told the court that the Tihar jail authorities have also stated the same in their reply to the plea. The court also directed the jail authorities to file a status report in the case by April 6 -- the next date of hearing.
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SAMJHAUTA EXPRESS SERVICES RESTORED, TRAIN TO RUN FROM INDIA ON MARCH 3

The Samjhauta Express will leave for Pakistan from Delhi on Sunday after the two neighbours agreed to start services at their ends, a senior railway official told PTI. The official said the first train from India will leave on March 3. While Pakistan had cancelled its services right after an air strike by the Indian Air Force, India cancelled the operations of the Samjhauta Express on February 28. The Railway Board in an order had said all operations of the Attari Special Express, Delhi-Attari-Delhi, which together with the Pakistani line from Wagah-Lahore is known as the Samjhauta or Friendship Express, will remain cancelled. It had also said that the cancellation was due to purely operational reasons. Sources said after the missive about Pakistan’s resumption of services was conveyed to the board, it was decided that services on the Indian end will resume too.
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WING COMMANDER ABHINANDAN FACED MENTAL HARASSMENT IN PAKISTAN: SOURCES

Wing Commander Abhinandan Varthaman went through mental harassment during his captivity in Pakistan but did not face any physical torture
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ABHINANDAN IS BACK BUT WITH A RIB FRACTURE AND SOME BRUISES

Indian Air Force pilot Wing Commander Abhinandan Varthaman who returned to India on Friday night after being in the Pakistan Army’s captivity has suffered a rib fracture, back contusion and some bruises. This came to light during his medical checkup at the army’s Research and Referral (R&R) hospital in Delhi, officials said on Saturday. He also underwent a MRI scan at the hospital, which showed that he didn’t suffer spinal and brain injuries officials said. They added that Varthaman has suffered no ‘significant’ injuries However, he has been admitted at the hospital for two days for observation and recuperation from a fractured rib and a back contusion. He is likely to be discharged by Tuesday. Thereafter, he will have a debriefing with top government officials, including from the Indian Air Force, on his plane crash and what happened to him during his captivity, besides his own assessment of the situation there. Nirmala Sitharaman met Varthaman with senior government officials on Saturday afternoon. While the defence ministry is yet to reveal the venue, sources said it was at the R&R hospital.
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ABHINANDAN VARTHAMAN NOT RELEASED UNDER ANY PRESSURE, SAYS PAK FOREIGN MINISTER

Pakistan was not under pressure or any compulsion to release Indian pilot Abhinandan Varthaman, foreign minister Shah Mehmood Qureshi said. India maintained that the Pakistani decision was in consonance with the Geneva Conventions. Pakistan was under intense pressure from the US, the UAE and Saudi Arabia to de-escalate the tensions with India in the wake of the Pulwama terror attack and release the Indian pilot. Qureshi said: We wanted to convey to them (India) that we do not want to increase your sorrow, we do not want your citizens to be miserable, we want peace. Qureshi dismissed the notion that the captured IAF pilot was released owing to pressure or as a compulsion.
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PAK WILL NOT ALLOW ITS SOIL TO BE USED FOR TERRORISM AGAINST INDIA: QURESHI

Pakistan will not allow its soil to be used for terrorism against any state, including India, Shah Mehmood Qureshi said that the nerve centre of the Jaish-e-Mohammad terror group has been taken over by the government. India submitted its dossier, if India wants to conduct talks on this, then we are ready for it, Qureshi said. He said that there is a new government with a new mindset and a new approach in Pakistan and its policies are very clear. However, Qureshi said that there was still confusion over whether the JeM had claimed responsibility for the attack or not. The confusion is (that) the leadership (of JeM) when contacted, said no, he said. They have denied that, that's the confusion.
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INDIA-PAK CONFLICT: JEM CHIEF MASOOD AZHAR SUSPECTED TO HAVE RENAL FAILURE

Massod Azhar, the founder of the dreaded terrorist group Jaish-e-Mohammad (JeM), is suspected to be afflicted with renal failure and is under regular dialysis at an army hospital in Rawalpindi in Pakistan, officials said. Recent reports indicate that Masood Azhar is now afflicted with renal failure and is under treatment and regular dialysis at the army hospital in Rawalpindi, the headquarters of the Pakistan Army, a senior security official said.
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RESOLUTION SUBMITTED IN PAKISTAN PARLIAMENT TO ENDORSE IMRAN KHAN FOR NOBEL PEACE PRIZE

A resolution was submitted in Pakistan Parliament on Saturday to endorse Prime Minister (PM) Imran Khan for the prestigious Nobel Peace Prize due to his efforts to de-escalate resent tension with India. Fawad Chaudhry on Saturday submitted the resolution in the secretariat of National Assembly, the lower house. The resolution stated that Mr. Khan’s decision of releasing Indian Air Force pilot Wing Commander Abhinandan has de-escalated the hostility between Pakistan and India. The resolution is expected to be taken up on Monday when it is scheduled to convene its session.
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NO CHANCE OF DIALOGUE AT ANY LEVEL WITH PAKISTAN BEFORE 'CREDIBLE AND VISIBLE ACTION' AGAINST TERROR GROUPS, SAYS INDIA

Even as Pakistan Prime Minister hoped to have talks with India following the release of Indian Air Force pilot Abhinandan Varthaman, India has ruled out any chance of talks at any level with Islamabad India has demanded that Pakistan must take immediate and verifiable action against the Jaish-e-Mohammed, responsible for the Pulwama terror attack in which 40 CRPF personnel were killed, before it can hope for talks. Sources in India said on Saturday that there is no chance of dialogue at any level with Pak until it takes credible and visible action against terrorists.
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PAKISTAN IN TROUBLE? US SEEKS INFORMATION ON 'MISUSE' OF F-16 AGAINST INDIA

The US is seeking more information on the potential misuse of American-made F-16 fighter jets by Pakistan against India in violation of the end-user agreement the State Department has said. The Indian Air Force on Thursday displayed parts of an AMRAAM beyond visual range air-to-air missile as evidence to conclusively prove that Pakistan deployed US-manufactured F-16 fighter jets during an aerial raid targeting Indian military installations in Kashmir after India's anti-terror operation in Balakot. We are aware of these reports and are seeking more information, a State Department spokesperson told. Due to non-disclosure agreements in Foreign Military Sales contracts, we cannot discuss the specifics of end user-agreements contained within, Lt Col Kone Faulkner, a Defense Department spokesperson told PTI. The United States, which is the largest seller of high-tech defence equipment globally, and has a strong end-user monitoring agreement, as a matter of practice takes all allegations of misuse of defense articles very seriously.
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UK MINISTER SIGNS EXTRADITION ORDER FOR WANTED BOOKIE SANJEEV CHAWLA

Sajid Javid has ordered the extradition of alleged bookie Sanjeev Chawla to India to face charges of cricket match-fixing dating back to 2000. The UK Home Office confirmed on Saturday that the minister had given the go-ahead for Chawla to be sent to India after Westminster Magistrates' Court had over-ruled its previous ruling earlier this year to find no bars to his extradition. Chawla, a key accused in the cricket match-fixing scandal involving former South African captain Hansie Cronje in 2000, has 14 days from the date of the order to file an application to seek leave to appeal against the order. On 27 February 2019, the Secretary of State (Javid), having carefully considered all relevant matters, signed the order for Sanjeev Chawla's extradition to India, said a Home Office spokesperson.
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OVER 250 TERRORISTS KILLED IN IAF AIR STRIKES, CLAIMS BJP CHIEF AMIT SHAH

BJP President Amit Shah on Sunday said over 250 terrorists were killed in the airstrike carried out by the Indian Air Force (IAF) on the 13th day of dastardly Pulwama Terror attack. In 5 years two major incidents happened. In URI and Pulwana after Uri attack our army entered Pakistan and did a surgical strike and took revenge of our soldiers' death. After Pulwama attack, everyone thought surgical strike can't be done this time now what will happen?. At that time Prime Minister Narendra Modi led central government did an airstrike on the 13th day and killed more than 250 terrorists without any harm on our side, Shah said.
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JEM CHIEF MASOOD AZHAR 'ALIVE', SAYS PAKISTAN MEDIA

India's most wanted terrorist and Jaish-e-Mohammed chief Masood Azhar is alive a Pakistani media report said on Sunday, quoting unnamed sources close to his family. The media reports claiming that JeM leader is dead are false, Geo Urdu News reported. The report came amid speculation on social media that JeM founder has died.
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UN COULD DESIGNATE MASOOD AZHAR A GLOBAL TERRORIST ON MARCH 13 UNLESS CHINA BLOCKS MOVE

The French-led proposal backed by the US and the UK to designate Masood Azhar a global terrorist by the United Nations Security Council (UNSC) is expected to be passed next week if China doesn’t block it The chair of the UNSC sanctions committee has notified that unless he hears to the contrary by 3 pm on March 13, he will assume that its members have no objection to the addition of Azhar to the 1267 ISIL (Da’esh) and Al-Qaida Sanctions List. This will be a shot in the arm for India, despite Pakistani claims that the Azhar-headed Jaish-e-Mohammed (JeM), based in that country, was not behind the Pulwama attack that killed more than 40 paratroopers and heightened border tensions. Pakistan has said Azhar is in the country and suffering from renal failure. ISIL and Da’esh are alternative names for the ISIS terror group. The chair has the honour to transmit, for the consideration of the members, a proposal from the United States, the United Kingdom and France to add an individual, Mohammad Masood Azhar Alvi,to the ISIL (Da’esh) and Al-Qaida Sanctions List, according to the notification. All eyes are now on China, given its track record of blocking proposals to put Azhar on the list since 2010. India remains cautious, according to well-informed sources. However, there are hopes in certain uarters that China may relent this time under advice from both the US and Russia amid geopolitical shifts and the attractions of the Indian market.
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HUAWEI CFO SUES CANADIAN GOVT, POLICE FORCE OVER 'FALSE IMPRISONMENT'

Meng Wanzhou, the Chief Financial Officer (CFO) of Chinese tech giant Huawei, has sued the Canadian government the national police force and the country's border agency, alleging serious breaches of her constitutional rights when she was detained, searched and interrogated at the Vancouver International Airport last December. Meng's lawyers revealed on Sunday that the lawsuit against the federal government, Canada Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP) was filed on Friday in the British Columbia Supreme Court, reports the Canadian Broadcasting Corporation (CBC). In the claim, the embattled Huawei CFO said that she was seeking damages for misfeasance in public office and false imprisonment. It says Meng was held for three hours without explanation and access to a lawyer before an RCMP constable told her why she was arrested. The lawsuit has also alleged that Meng suffered mental distress, anxiety, and loss of liberty as a direct result of her detention at the airport on December 1, 2018, while in transit to Mexico and South America. It also alleges that the officers obtained a warrant ordering Meng's immediate arrest, but intentionally delayed that arrest under the guise of a routine border check in order to extract evidence from her, CBC said.
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CANADIAN PM JUSTIN TRUDEAU SHUFFLES CABINET AMID CORRUPTION SCANDAL

Canadian Prime Minister Justin Trudeau has shuffled his cabinet to fill the role vacated by an ex-minister who accuses him and others of inappropriately interfering to avoid prosecuting a major Canadian company Trudeau named a new veterans affairs minister Friday after Jody Wilson-Raybould resigned from the cabinet on February 12. Wilson-Raybould testified Wednesday that Trudeau, his staff and other officials imposed pressure on her to avoid criminal prosecution of Montreal-based SNC-Lavalin in a case involving allegations of corruption in Libya. She said they pushed for an agreement that would let the company pay reparations but avoid a conviction.
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RUSSIA VOWS MORE SUPPORT FOR VENEZUELAN 'FRIEND' MADURO, INCLUDING AID

Russia on Friday vowed to maintain support for the embattled regime of its Venezuelan friend President Nicolas Maduro, including with humanitarian aid supplies. Delcy Rodriguez in Moscow, Russian Foreign Minister Sergei Lavrov said President Vladimir Putin expressed support and solidarity for his colleague and friend Maduro in the country's political standoff with the opposition. Russia will continue to assist the Venezuelan authorities in resolving social and economic problems, including through the provision of legitimate humanitarian aid, Lavrov told. Battered by an economic meltdown, Venezuela descended into political crisis when opposition leader Juan Guaido declared himself interim president in January and asserted that Maduro was no longer legitimate. Lavrov said Russia had recently sent to Venezuela 7.5 tonnes of medical supplies and received a request for more shipments. We are currently considering it, he said. He added that Russia was also sending mass supplies of wheat to Venezuela, claiming those shipments helped normalise the humanitarian situation in the country, which is crisis-ridden despite its oil wealth.
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HUAWEI PLANS BILLIONS IN DIVIDENDS FOR STAFF DESPITE ROW WITH US: SOURCES

China's Huawei is set to reward employee shareholders with a 3 per cent rise in cash dividends that are worth billions of dollars, according to company sources and Reuters calculations - a move expected to boost morale as it battles a US-led drive against its telecom gear. The payout also appears to indicate profit growth as well as confidence that the company can survive US accusations that its telecoms network equipment may enable espionage by the Chinese government, analysts said. Known for its so-called wolf culture that demands high levels of dedication from employees in return for high pay, Huawei Technologies Ltd boasts that some 80,000 of its workers own nearly all of the company's shares - a scheme viewed as unique for a firm of its size. Total returns per share dropped 7 per cent to 2.61 yuan, they added. That follows a stock split. There will also be a 1 to 1.56 stock split for 2018, the sources said.
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TRADE WARS: PRESIDENT TRUMP ASKS CHINA TO IMMEDIATELY REMOVE AGRICULTURAL TARIFFS

President Donald Trump said he has asked China to immediately remove all tariffs on U.S. agriculture, including beef and pork, citing progress in trade talks between the two nations. Trump noted in a tweet Friday that he refrained from increasing U.S. tariffs on Chinese goods to 25 percent from 10 percent on March 1, as he said he would in the absence of progress toward an agreement. China imposed retaliatory tariffs on American agricultural products last year, though Trump did not indicate that his demand was limited to those penalties. Soybeans, as well as beef, pork and chicken products were on the first batch of retaliatory tariffs on $34 billion worth of imports imposed in July, and were subject to an extra 25 percent duty. It’s unclear what effect Trump’s demand could have on ongoing talks, which the president signaled earlier this week were moving toward an agreement. American officials are preparing a final trade deal that Trump and China’s President Xi Jinping could sign within weeks, people familiar with the matter have said, even as a debate continues in Washington over whether to push the Beijing government for more concessions. Trump, said: Speaking of China we’re very well on our way to doing something special. But we’ll see. I am always prepared to walk, he said. I’m never afraid to walk from a deal, and I would do that with China, too, if it didn’t work out. If China were to remove the tariffs, it would likely be a huge boon to U.S. crop markets that have been caught in the trade war crossfire. Ending the tariffs would dovetail with a proposal by Beijing to buy an additional $30 billion a year of American agricultural products including corn, soybeans and wheat as part of a possible agreement.
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PM NARENDRA MODI MADE INDIA 'CORRUPTION-FREE': YOGI ADITYANATH

Yogi Adityanath has inaugurated and laid the foundation stone of projects worth Rs 131 crore in Maharajganj district and claimed that Prime Minister Narendra Modi made India corruption-free. Adityanath also praised the soldiers and said: Terrorists don't understand the language of love so Indian soldiers did 'Shiv Tandav' with surgical strike. Actually, a lot of terrorists were killed during surgical strike but Pakistan is hiding the facts, he claimed. Adityanath said: The Modi government started several welfare schemes for poor and realised the dream of corruption-free India. He also instructed the officials to complete all development works of the state as soon as possible.
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AHMED PATEL RAISES QUESTIONS ON EC NOT ANNOUNCING LOK SABHA ELECTION DATES

Ahmed Patel on Monday raised questions on the Election Commission not announcing dates for general elections and asked whether it was waiting for the prime minister's official travel programme to conclude. He also accused the poll body of giving a long rope to the government to campaign at the cost of the state exchequer. Is the Election Commission waiting for the Prime Minister's official travel programs to conclude before announcing dates for general elections (sic). Using government functions as an excuse for political rallies, flooding TV/radio and print with political ads. It is seems that EC is giving the government a long rope to campaign till the last moment using public money, he said on Twitter.
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PLEASE USE COMMON SENSE: PM MODI TO OPPOSITION ON HIS RAFALE REMARKS

Modi said India would not sit quietly in the fight against terrorism and would do all to cure it from the root, which lies in Pakistan. I said if Rafale was acquired in time it would have made a difference (during the February 27 dogfight), but they say Modi is questioning our air force strike, he said. Please use common sense. What I said was if we had Rafale at the time (of aerial dogfight), then none of our fighter jets would have gone down and none of theirs saved, he added. Lashing out at statements from opposition party leaders who demanded proof of the February 26 air strike on a Jaish-e-Mohammed terror camp in Pakistan's Balakot, Modi said his objective was to end terror while that of the opposition was to remove him. The root of terrorism disease is in the neighbouring country, should we not cure the disease from its root, he said.
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IAF'S SUKHOI JET SHOOTS DOWN PAK MILITARY DRONE NEAR INDO-PAK BORDER

A fighter jet of the Indian Air Force on Monday shot down a Pakistani military drone in Bikaner sector of the Indo-Pak border using an air-to-air missile, government sources said. The Pakistani drone was shot down by a Sukhoi-30 aircraft at around 11:30 AM, minutes after a ground-based radar station detected the flying machine, they said. It was the second unsuccessful attempt by Pakistan to send a spy drone inside India in the last six days.
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FORCES ON ALERT EVEN WHILE CALM RETURNS TO BORDER

The situation along the India-Pakistan border is de-escalating but the Army has not pulled back formations mobilised in the aftermath of the February 14 Pulwama attacks and 100 ceasefire violations, indicating a continuing distrust. The India-Pakistan border is calmer, but there is still unease and suspicion on the Pakistani forces, said an official. The Border Security Force, which guards the 2,289.66 km International Border (IB) with Pakistan, says that it has ‘sensitised’ its troops in the wake of the recent tensions between the two countries. As we are deployed right at the IB, we have extra sensitised our troops in light of what has happened. We like earlier as well are remaining alert, said an official. Regular ceasefire violations along the LoC have only added to the distrust around Pakistan. Indian forces remain alert They have not moved back the formations deployed along the border after Indian security agencies noticed that Pakistan too has not pulled back its own formations, especially at the Line of Control (LoC), and supported them with armoured tanks and infantry combat vehicle columns. Deployments on both sides are unlikely to move out any time soon.
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J&K: PAKISTAN VIOLATES CEASEFIRE IN AKHNOOR SECTOR, INDIAN ARMY RETALIATES

Pakistan on Monday violated ceasefire in Jammu and Kashmir's Akhnoor sector. Firing from across the border started at 3 am and stopped at 6:30 am. Indian Army retaliated effectively. Further details are currently awaited. Meanwhile, Samjhota Express train services also resumed on Monday. The services of the train were temporarily suspended amid India-Pakistan tension which has been prevailing since Pulwama attack. The train on Monday departed from Lahore for India. There were in 151 passengers in 7 compartments.
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ALLOW DUTY-FREE IMPORTS OF 85% PRODUCTS: CHINA

China has asked India to allow duty-free import of 85% of its products into the country, a move that is putting pressure on policymakers as they grapple with the complex negotiations for Regional Comprehensive Economic Partnership (RCEP) to create the world’s largest free-trade agreement. India has offered to open up 74% of its market to Chinese goods in a phased manner but Beijing is not satisfied with the proposal. During bilateral discussions with China, officials were told that the Asian giant was willing to give duty-free access to 92% of Indian exports, provided New Delhi raised the bar by opening up more. Compared to other countries where over 90% of imports can come duty-free India has offered lower concessions to China. Even the current offer is fraught with the risk of goods from across the border swamping Indian markets and further impacting the massive trade deficit, which was estimated at $63 billion during the last financial year. But officials conceded that there is little option before India but to open up its market gradually with a long tariff phase-out period so that domestic players have time to adjust to competition. We have opportunities in segments where China may be a dominant player. Plus, we are seeking up to 20 years to dismantle the import duties, said a senior trade official.
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MODI GOVERNMENT NOT SHY LIKE UPA TO TAKE ON PAKISTAN: HARDEEP PURI

Hardeep Singh Puri has charged the erstwhile Congress-led UPA dispensation with being shy in giving a befitting reply to Pakistan and asserted the Modi government has reversed this tendency. Puri mentioned about the safe return of Wing Commander Abhinandan Varthaman and said, The previous UPA government was shy to take on Pakistan, saying that both are nuclear-powered nations and any conflict will be dangerous. But the Modi government does not feel so and India retaliated (for) the terror attack in Pulwama boldly, the career-diplomat-turned politician said.
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GUJARAT: BUILDER ACCUSED OF DUPING TRUST OF RS 74 LAKH

The managing trustee of a charitable trust that runs the Tulip International School has in a complaint filed with the Bopal police station accusing two builders of cheating them of Rs 74 lakh. Yogesh Shridhar, in his complaint stated that in April 2016, the trust decided to buy 11 flats in a scheme 'Gopinath Pride' under Sanket Co-operative Housing Ltd. The scheme was being carried out by Vipul Patel and Mithalal Dave. The trust paid Rs 50 lakh as advance to buy the houses as residential quarters for its employees. Later they also paid the remaining Rs 14 lakh. Shridhar in his complaint said that six months ago, the builder came and got their photograph and signature for the allotment papers but did not give them the said documents. The complaint states that after six months the trust got to know that someone else was living in the flat for which the trust had paid. When Sreedhar's son went to the builder to clarify on the matter he not only threatened to kill him but also said that he would commit suicide and name him as an accused. The trust then investigated and found that of the 11 flats allotted to the trust, one had been sold to a couple from Thakkarbapanagar. It was then that the trust realised that they have been cheated.
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TERRORISTS BEING TRAINED TO CARRY OUT OPERATIONS THROUGH SEA: NAVY CHIEF

Weeks after the Pulwama attack, Navy Chief Admiral Sunil Lanba on Tuesday warned that there are reports about terrorists being trained to carry out operations through the sea. Lanba said the Pulwama attack was perpetrated by extremists that were aided by a State that seeks to destabilise India. We also have reports of terrorists being trained to carry out operations in various modus operandi, including through the medium of the sea, he said. The Navy chief said this part of the world had witnessed multiple forms of terrorism in recent years and few countries in the region had been spared. India, however, faces a far more serious version of state-sponsored terrorism, he said. Lanba also emphasised the importance of the Indo-Pacific Region. There is a renewed focus of the world on the seas. This is principally due to the geoeconomic and geopolitical significance of the maritime domain.
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PAKISTAN SUSPENDS RAWALAKOT-POONCH BUS SERVICE

Pakistan has suspended cross-border bus service between Jammu and Kashmir and Pakistan-occupied Kashmir (PoK), days after temporarily suspending Samjhauta Express. The bus service between J&K’s Poonch and PoK’s Rawalakot was suspended on Monday after Pakistani authorities refused to open the gate at Chak da Bagh crossing point.
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PAKISTAN ANNOUNCES CRACKDOWN ON UN TERROR LIST GROUPS

Pakistan on Monday announced the freezing of accounts and seizure of assets linked to organisations banned by the UN Security Council (UNSC), as pressure mounted on the country to crack down on militant groups amid tensions with India. The move comes after weeks of heightened tensions in South Asia after a massive suicide bombing in Kashmir killed 40 Indian troops on February 14, with the attack claimed by Pakistan-based militant group Jaish-e-Mohammed. Pakistan's foreign office said in a statement that the government had issued the United Nations Security Council (Freezing and Seizure) Order, 2019. A senior foreign office official, requesting anonymity, said this order means the government will take control of assets and control all the accounts of organisations banned by the UNSC. The United States pressed Pakistan last month to punish those behind the Kashmir attack, with State Department spokesman Robert Palladino urging all countries to uphold their responsibilities pursuant to the United Nations Security Council resolutions to deny safe haven and support for terrorists.
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INDIA, RUSSIA TO INK $3 BILLION NUCLEAR SUBMARINE DEAL THIS WEEK

India is set to sign a $3-billion deal with Russia this week to lease another nuclear attack submarine that will be customised and fitted with indigenous communications systems and sensors. The deal for the Akula class submarine — dubbed Chakra III after the first two similar vessels India obtained from Russia — will be the biggest signed with Moscow since the $5.5-billion contract for the S-400 air defence system was finalised last year. The intergovernmental agreement for the submarine lease is likely to be inked on March 7 and that the vessel will be ready by 2025 after an extensive building programme on mothballed hulls at a Russian shipyard.
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STOP POLITICISING AIR FORCE ACTION: CONGRESS TO PM MODI

The Congress leadership on Monday accused the Prime Minister and the BJP leadership of politicising the recent IAF strikes against terror camps in Pakistan and demanded what was the basis of BJP chief Amit Shah’s claim that over 250 terrorists were killed during the Balakot strikes. Accusing PM Modi of unfairly targeting the Congress and other opposition parties despite them extending support to the government and the IAF, AICC spokesperson RPN Singh said: It is extremely shocking that the PM chose to accuse the opposition despite the Congress president and the Party standing by the government. While we continue to back the government, we would like to know how did BJP president Amit Shah know that 250 terrorists were killed? Senior Congress leader Kapil Sibal asked the PM whether international media reporting that no militant was killed during the raids amounted to them being pro-Pakistan. Sibal, in a tweet, said several international media houses, such as the New York Times, London-based Jane’s Information Group, Washington Post, Daily Telegraph, The Guardian and Reuters, reported that there was no proof of militant losses at Balakot. Aren’t you guilty of politicising terror? Sibal asked.
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AFZAL GURU’S SON IS LOOKING FORWARD TO HIS INDIAN PASSPORT

Ghalib, the son of hanged Parliament attack convict Afzal Guru, in whose name the Pulwama suicide bomber blew a CRPF convoy on February 14, is proud of owning an Aadhaar card. At least I have one card to show. I am happy, Guru’s 18-year-old son tells, turning over-joyous as he shows off his Aaadhar card at his home, situated against the mountains of Gulshanabad covered with Sunday night’s snow. With doting maternal grandfather Ghulam Mohammad and mother Tabassum by his side, Ghalib is quick to insist that he must now have an Indian passport. I will be a proud Indian citizen when I get my passport says Ghalib.
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CLINTON RULES OUT ANOTHER PRESIDENTIAL RUN, BUT SAYS 'NOT GOING ANYWHERE'

Hillary Clinton has for the first time ruled out running for president in 2020. I'm not running, but I'm going to keep on working and speaking and standing up for what I believe, Clinton said. I want to be sure that people understand I'm going to keep speaking out, Clinton said. I'm not going anywhere. What's at stake in our country, the kinds of things that are happening right now, are deeply troubling to me. Asked if she would run again for some kind of public office, she seemed to avoid ruling that out. I don't think so, but I love living in New York and I'm so grateful that I had the chance to be a senator for eight years and to work with people across our state, said the former secretary of state and senator for New York state.
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THIRD TIME LUCKY: EX-NISSAN CHIEF GHOSN WINS BAIL AFTER 3 MONTHS IN JAIL

Former auto industry titan Carlos Ghosn moved a step closer to freedom Tuesday as a Tokyo court unexpectedly granted him bail after more than three months in a detention cell. It was the latest twist in a case that has kept Japan and the business world gripped since the tycoon's shock arrest on November 19 over suspicions of financial misconduct. The court set bail at one billion yen (USD 9 million), but prosecutors are likely to appeal the decision and could even file additional allegations against the 64-year-old to keep him from leaving detention. Under his bail terms, Ghosn is banned from leaving Japan and must adhere to conditions aimed at preventing him from fleeing or destroying evidence.
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INDIAN-ORIGIN MAN GETS JAIL TERM, $2.6 MILLION FINE FOR EMBEZZLEMENT IN US

An Indian-origin man has been sentenced to nearly three years in prison and ordered to pay $2.6 million in restitution for being convicted of mail fraud and embezzlement. Dinesh Shankar, 41 of San Jose, California was sentenced to 33 months in prison as a result of the mail fraud conviction for embezzling from a medical device company, US Attorney David Anderson said. In addition to the prison sentence and the $2.6 million restitution, he was also ordered to serve a three-year term of supervised release. Shankar will begin serving his sentence this year. According to the plea agreement, from March 2013 until January 2018, Shankar was an employee of a medical device company. Beginning July 2013 until December 2017, he submitted false expense reports and false invoices to the company's finance department, causing the company to pay more than half a million dollars in excess of the legitimate expenses and expenditures for services provided to the company. In addition, Shankar admitted that he created false invoices that appeared to be issued by six different entities, which were actually fictitious business names for entities that he controlled.
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INDIA CHARGES HIGH IMPORT TARIFF, WANT A RECIPROCAL TAX: DONALD TRUMP

India is a very high-tariff nation US President Donald Trump alleged on Saturday, stating that he wants a reciprocal tax or at least some kind of tax India is a very high-tariff nation. They charge us a lot, Trump said. Trump touched a wide range of issues including domestic, global and bilateral relationship with countries like India. He said, When we send a motorcycle to India, it's a hundred per cent tariff. They charge 100% when India sends a motorcycle to us, we brilliantly charge them nothing. So, I want a reciprocal tax or at least, I want to charge a tax. It's called the mirror tax, but it's reciprocal, Trump asserted. Look at motorcycles as an example. (In) India, it was 100 per cent. I got them down to 50%, just by talking for about two minutes. It's still 50% vs 2.4% (on imported motorcycles to the US). Again, other than that, it's a very fair deal, the president had told reporters at the White House on January 24. I say, fellows, listen, they are charging us a hundred per cent. For the exact same product, I want to charge them 25%. I feel so foolish charging 25, because it should be a hundred. But I'm doing 25 only because of you. I want to get your support, he said. For one thing, they don't respect us. They think we're stupid. They don't respect us. But let me tell you something, the world respects our country again, he said. America is now booming like never before. Other countries are doing very poorly, Trump said.
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INDIA, US NEAR AMICABLE TRADE DEAL: NEW DELHI TO REPLACE PRICE CAP FOR STENTS, US MAY LIFT LEVY ON STEEL

Ending months of negotiations, India and the US could soon clinch a trade deal, resolving vexed issues like extra American tariff on Indian steel and New Delhi’s price cap policy for medical equipment, while granting each other greater market access in sectors including agriculture. Though Washington is yet to make its final offer, as part of the deal, India will likely replace its extant price cap regime for coronary stents with a trade margin policy, similar to the one notified last week for 42 cancer drugs. India is also likely to accede to the US demand to scrap/cut duties on seven ICT products, including mobile phones costing over 10,000, smart watches and telecom network equipment. Currently, these items attract up to 20% customs duties. For its part, the US has indicated that it will allow an exemption to India from its extra 25% levy on stipulated steel products, provided New Delhi offers to cap the volume of its annual supplies to the average of the past three years, official sources said. They added that New Delhi is willing to allow up to 30% margin over the cost of stent production. The move is aimed at easing concerns of American manufacturers like Abbott Laboratories and Boston Scientific Corp, while keeping a leash on huge margins cornered by intermediaries at the cost of patients. In 2017, the Indian drug pricing regulator slashed prices of coronary stents by as much as 85% and slightly revised the rates last year. India has sent its proposals to the US. The Trump administration is expected to take a call on these and convey its final position to India soon, said one of the sources. India also wants the US to delink its demand for greater market access from New Delhi to the so-called generalised system of preference (GSP). Reuters recently reported that India could lose the GSP concession, under which it enjoys zero tariffs on $5.6 billion of exports to the US a year, in the strongest punitive action against New Delhi under US President Donald Trump.
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WANT PERMANENT SEAT FOR INDIA IN REFORMED UN SECURITY COUNCIL: FRANCE

France, which assumed the March Presidency of the United Nations Security Council, has reiterated its support for India as the permanent member of the powerful UN organ saying the UNSC's enlargement is the first crucial part towards its reform. India has been calling for the reform of the UN Security Council along with Brazil, Germany and Japan for long, emphasising that it rightly deserves a place at the UN high table as a permanent member. France, a veto-wielding permanent member of the 15-nation Security Council, last month moved a fresh proposal in the UNSC along with the US and the UK to designate Pakistan-based terror group Jaish-e-Mohammed chief Masood Azhar as a global terrorist. We want enlargement of the Security Council in the two categories of non-permanent and permanent categories - India, Brazil, Germany and Japan - and equitable representation of Africans and so that is the first crucial part of it, French Permanent Representative to the UN Franois Delattre told. Heusgen, said that the key to UN reform is openness through three different areas - the openness of the Security Council that entails expansion of the 15-nation, partnership and openness to civil society. Germany will take over the Presidency in April. He stressed that the UN cannot be recognised as a centre of gravity for multilateralism throughout the world unless it can step-up partnerships and focus should also be made on openness to civil society, business world, NGOs and trade unions, which are all stakeholders that breathe life into the UN. India is at the forefront of efforts at the UN to push for urgent long-pending reforms of the Security Council.




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Thanks & Regards,
CS Meetesh Shiroya

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