Thursday, 14 March 2019

TAXATION UPDATES 14.03.2019





EC GIVES GO-AHEAD TO GST COUNCIL MEETING ON MARCH 19

The Election Commission has given approval for holding the upcoming GST Council meeting on March 19 to consider various issues including the implementation of lower GST rates for the real estate sector. The next meeting will be held through videoconferencing, sources said. Following the approval from the Election Commission, sources said, notices have been sent from the GST Council Secretariat to states for the 34th meeting of the Council on March 19, they said. The nod from the Election Commission was required as the Model Code of Conduct has been in force since Sunday. The meeting will be held to discuss only transition provision and related issues for the implementation of lower GST rates for the real estate sector, the sources said.
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RESOLVE ANGEL TAX ISSUES FAST, CBDT TELLS ITS OFFICERS

The Central Board of Direct Taxes (CBDT) has asked its officers across India to avoid taking coercive measures against companies that have received notices under the so-called angel tax, in what can be seen as softening of its stance on an issue that has roiled the startup ecosystem. In its written communication, the department also asked tax commissioners to resolve disputes with startups on a priority basis The tax deals with premiums paid by investors while they invest in unlisted companies. The tax department’s latest step comes after the government issued a directive recently, giving a reprieve to startups on the treatment of such investments on a prospective basis. Tax officials had questioned increasing valuations of startups even when their revenue is falling or remaining stagnant. The revenue department deems the capital in excess of a fair market value as ‘other income’ that is taxable. Also, in cases where the investor is not Indian, the tax department has in the past issued notices branding such investments as unexplained cash credits, charging a 30% tax. It had sent notices to many startups, asking them to pay the tax. The CBDT has written two sets of letters to tax officers, asking them to avoid taking coercive steps against startups. In the past, tax officers had frozen the bank accounts of startups in cases were notices were issued.
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GSTN ASKS BUSINESSES TO DOWNLOAD PROPOSED GST RETURN DOCUMENTS

The Goods and Services Tax Network has asked the taxpayers to download the new revised GST returns documents Proposed Return documents, as approved by the competent authority, can now be downloaded from the Download section of the GST Portal. This is to enable various stakeholders in adapting their systems to make them compatible with the proposed return format and business processes, GSTN said in a statement. A few days ago, the Central Government has notified the new GST returns applicable from 1st April 2019 under which the businesses can report invoices on a continuous basis. As per the recommendation of the GST Council, the new revised GST returns would be implemented on a pilot basis from April 1, 2019, and would be mandated across the country from July. The new and revised return format would obviate the need to furnish returns under the family of GSTR-1, GSTR-2, and GSTR-3, but the annual return GSTR-9 might continue, experts said.
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MORE TAXPAYERS SINCE DEMONETISATION: MADHYA PRADESH, CHHATTISGARH ADD 6.82 LAKH INCOME TAX PAYERS

The number of income taxpayers has crossed 20 lakh in Madhya Pradesh and Chhattisgarh so far this fiscal year, an official said Tuesday. The growth has been perceptible since the demonetisation and GST, and the number of new taxpayers added between then and now has risen by 6.82 lakh in MP and CG, Ajay Kumar Chauhan told. Due to this, the number of taxpayers in the two states has swelled over 20 lakh, he added. The target is to realise Rs 27,431 crore from these two states this fiscal. We have so far collected Rs 17,928 crore in income tax, he added. Chauhan said department has found irregularities in sale and purchase of 870 immovable properties in MP and CG and notices have been issued in these cases for tax collection. He said more than 100 properties have been temporarily attached under the Benami Transactions (Prohibition) Amendment Act, 2016 in these states.
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GOLD COINS FOR FREE DISTRIBUTION MAY NOT QUALIFY FOR INPUT TAX CREDIT

Giving free gold coins could prove expensive for businesses as it is unlikely to be classified for input tax credit (ITC). In sync with the Authority for Advance Rulings in Maharashtra (AAR Maha), the Finance Ministry has said ITC shall not be available to the supplier on the inputs, input services and capital goods to the extent they are used in relation to the gifts or free samples distributed without any consideration. However, experts say that ‘without any consideration’ is very vague. According to them, normally price of a ‘free gift’ is factored in the sales price of accompanying goods or services. The matter here is related with a Mumbai-based company Biostadt India Ltd. It launched a new sales promotion scheme namely The kharif Gold Scheme 2018 for its customers and decided to give gold coins (10 grams and 8 grams) on a purchase in the prescribed quantity. The company approached the AAR to find whether input tax credit (ITC) can be claimed by the applicant on procurement of gold coins which are to be distributed to customers as per the scheme. The company argued that in terms of GST law, every registered person is entitled to credit of input tax charged on any supply of goods or services which are used or intended to be used in the course or furtherance of business. The scheme launched by the applicant grants an advantage to the applicant over the competitors and ensures brand as well as market royalty which are important aspects of any business. Accordingly, the scheme is in the course or furtherance of business and thus GST paid on gold coins qualifies to be an ‘input tax’ and credit should be given. However, the tax authorities said the gold coins to be distributed by the applicant do not qualify as ‘inputs’ because the said distribution first, is not in line with basic business model. Second, it is not essential for continuity of business and third, is not concerned with making of taxable supply for consideration. The AAR observed that gold coins are not given by the applicant under any contractual obligation as no contract/agreement has been signed by customers in writing accepting the scheme floated by the applicant. Accordingly, the gold coins are given by the applicant voluntarily on fulfilment of certain conditions. Further, it said, in the present case, the statement that gold coins will be distributed to customers on achievement of certain conditions is an assurance to give away ‘gifts’ on those conditions being achieved by the customers. Accordingly, it ruled that the applicant cannot claim ITC on procurements of gold coins or on other promotional schemes.
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LEAKAGE OF RAFALE PAPERS AMOUNTS TO THEFT, HAS PUT NATIONAL SECURITY IN JEOPARDY, CENTRE TELLS SC

The Centre on Wednesday told the Supreme Court that leakage of sensitive documents by photocopying in the Rafale case amounts to theft and this has put national security in jeopardy. In an affidavit filed in the apex court, the government said that the petitioners are guilty of leaking sensitive information Those who've conspired in this leakage are guilty of penal offences including theft by unauthorized photocopying and leakage of sensitive official documents affecting national security. These matters are now subject of an internal inquiry which commenced on Feb 28, the government told the court. Petitioners Yashwant Sinha, Arun Shourie, Prashant Bhushan are guilty of leaking sensitive information, the Centre said. The defence ministry said that the documents attached by the petitioners in the Rafale review case relate to war capacity of the combat aircraft.
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RS 8-CRORE TAX RECOVERED FROM PANIPAT INDUSTRIALISTS

The state Excise and Taxation Department has recovered Rs 8 crore tax out of Rs 13 crore from the industrialists in Panipat who have been involved in tax evasion. These firm owners had used bogus bills from 25 fake firms for tax credit input. The special investigation team (SIT) of the police has also sought details of all 25 firms from the department to conduct investigations. According to sources, the department had identified 25 non-existent firms in the city that had issued fake bills of Rs 706 crore and evaded Rs 71.38 crore tax in the past two months. During investigation, the department found that more than 254 firms in the city had used bogus bills to credit input tax under the Goods and Service Tax Act and found Rs 13 crore tax evasion by these firms. The department had served notices to the registered owners of around 254 industries and directed them to deposit tax and also lodged cases against these 25 non-existing firms in Chandnibagh police station.
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MYSURU SAID COLLECTED RS.94,000 CRORE THROUGH GST EVERY MONTH

Implementation of GST (Goods and Service Tax) has been hugely successful and the Governments across the country have collected Rs. 94,000 crore through GST every month, said Sundara Raju. He said: Through implementation of GST, the filing of returns have been simplified GST has helped reduce the tax rates and the processing of registration returns has been simplified. In this scenario, so many issues have come to picture particularly fake invoices. Around 20,000 crore fake invoices have been detected across the country and GSTN (Goods and Services Tax Network) System helping them to trace these revenue leakages, he said and cautioned the industry to have their KYC (Know Your Customer) norms in place to ensure they are dealing with genuine vendors. He also mentioned that till January, in Mysuru Commisionerate alone 9,500 people have not filed their returns and asked the industry to complete the compliances.
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CHANDA KOCHHAR’S FATE WAS SEALED BY HUSBAND’S ADMISSION

Former ICICI Bank CEO Chanda Kochhar’s fate was sealed after her husband acknowledged dealings with the Videocon Group continuing over several years in April last year and the board found it difficult to believe her explanation of the sequence of events leading up to the disclosure. Conversations with officials having direct knowledge of the events show the board lost faith in Chanda Kochhar after her husband’s disclosures and her own attempts to explain the lack of transparency. Deepak Kochhar, Chanda’s husband and the man at the centre of the controversy, wrote to the board in April 2018 acknowledging his relationship with the Videocon Group. The disclosure came a few weeks after media reports about alleged conflict of interest and the relationship between him and Videocon Group. This followed a Sebi directive to the ICICI board, asking it to seek a formal letter from Deepak Kochhar detailing his dealings with the VN Dhoot-promoted group. The letter, which ran contrary to Chanda Kochhar’s assertions, forced the board to confront her and revisit her disclosures under the bank’s code of conduct rules. Board officials were peeved that Chanda Kochhar had continued to claim even after the events of 2016 that there were no business dealings between her husband and the Videocon Group. Responding to an internal ICICI inquiry, Kochhar had said there were no business dealings. It is difficult to believe that even in 2017 and 2018 she did not mention anything about the dealings in her filings, said one of the persons who did not want to be identified. She may have asked her husband after the first round of charges. If even after that the dealings did not come out, then it was not professional conduct.
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NATIONAL HOUSING BANK COMPLETES INSPECTION OF DHFL'S BOOKS

National Housing Bank (NHB) has concluded its inspection of books for Dewan Housing Finance Corporation Ltd’s alleged misappropriation of loans. The four-member committee of the housing regulator checked the company’s books of accounts in offices in New Delhi, Nagpur and Mumbai and is expected to submit its report in the next few weeks two people familiar with the matter told. The inspection ended last week. A consortium of 33 lenders, led by Union Bank of India, is said to have given clean chit to DHFL on Tuesday after they heard TP Ostwal & Associates, the auditor, which cleared the company of allegations of wrongdoing.
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CBI TO MISS DEADLINE IN RAKESH ASTHANA CASE AS IT SEEKS INFO FROM UAE

The Central Bureau of Investigation has approached the UAE authorities to verify the claims of Hyderabad-based businessman Sathish Sana Babu that he paid Rs 3 crore bribe to former CBI special director Rakesh Asthana through Dubai-based investment banker Manoj Prasad and his brother Somesh Prasad. As a result, now the agency won’t be able to complete its probe against the Gujarat cadre IPS officer within 10 weeks, as directed by the Delhi High Court. CBI sources, requesting anonymity, confirmed that a letter rogatory (a judicial request seeking information from a country) has been sent to the UAE as the alleged crime originated in Dubai. They added that since the meeting between Sana and Prasad brothers took place in Dubai, and he was allegedly shown the WhatsApp picture of Asthana there, these facts need to be verified at UAE’s end. The LR reply might take some time hence CBI will seek more time from the high court. The HC deadline for finishing the probe is set to end on March 25.
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INCOME TAX DEPT RAIDS MAYAWATI'S FORMER SECY NETRAM

Mont Blanc pens worth Rs 50 lakh, four benami luxury cars including one Mercedes and two Toyota Fortuners, besides papers of properties worth more than Rs 225 crore were discovered by income tax authorities in searches on multiple locations related to Bahujan Samaj Party chief Mayawati’s former secretary Netram. A retired 1979 batch IAS officer, Netram had held key positions in the UP government when Mayawati was the chief minister from 2007 to 2012. The income tax authorities stumbled upon 30 shell companies in most of which either family members of the assessee or his in-laws were shown as shareholders and directors, sources claimed. The searches were carried out on Tuesday. Taxmen also searched Netram’s in-laws who expressed complete ignorance about such companies in which they were shown as stakeholders, sources said. Netram’s children are authorised persons to operate bank accounts of shell companies, they said. Accommodation entries of about Rs 95 crore from Kolkata-based entry operators/companies were found, they said, adding that six properties had been acquired out of bogus share capital of Rs 95 crore. The searches have so far recovered Rs 18 lakh cash from a Lucknow house, Rs 86 lakh from the GK-1 house, and Rs 60 lakh from a linked person, sources claimed. Another Rs 50 lakh is said to be in a locker. The authorities also recovered property papers pointing to additional properties worth Rs 225 crore.
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CRACKDOWN ON TICKETLESS TRAVELLERS! INDIAN RAILWAYS ZONE EARNS WHOPPING RS 116.86 CRORE

Recently, the Western Railway zone of the national transporter said that it has earned an amount of Rs 116.86 crore from ticketless travellers The amount has been collected from passengers in the last eleven months, according to a PTI report. In a statement issued by the Western Railway, it has been stated that between April 2018 and February 2019, the zone had detected as many as 25.17 lakh cases of ticketless or irregular travel, including cases of unbooked luggage. The statement further added that the cases were registered during the regular checks conducted by 2,363 ticket checking staffers of Indian Railways. According to the statement by Western Railway, this time the recovery is 17.67 per cent more as compared to last year’s corresponding period. The spokesperson also said that if a passenger fails to pay the penalty on the spot, he or she is produced before the magistrate and is further prosecuted under the sections of 137 and 138 of the Railways Act, 1989. The Western Railway zone consists of six sub-divisions namely, Mumbai, Vadodara, Ahmedabad, Rajkot, Ratlam and Bhavnagar.
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I-T RECOVERS RS 1.64 CRORE CASH, MONT BLANC PENS WORTH RS 50L AFTER RAIDS ON RETIRED UP IAS OFFICER

Cash worth over Rs 1.64 crore Mont Blanc pens of Rs 50 lakh, four luxury SUVs and documents indicating benami assets of Rs 300 crore have been recovered during the I-T Department raids on premises linked to a retired IAS officer of Uttar Pradesh cadre, who served in top positions during Mayawati's chief ministership, officials said Wednesday. The taxman had swooped down on a dozen premises linked to 1979-batch Indian Administrative Service officer Net Ram after it had credible inputs that the former top bureaucrat and his associates have made accommodation or bogus entries of about Rs 95 crore from Kolkata-based shell firms in the past, including in the post-demonetisation period. They said after the over 26-hours long searches, the department has recovered a total of Rs 1.64 crore in cash from three houses in Lucknow and Delhi, while another Rs 50 lakh is believed to be stashed in a bank locker, which will soon be opened. The officials said the former bureaucrat was negotiating for a Lok Sabha ticket from a party and that is when he came under the scanner of the tax department. Documents related to 30 shell firms, in which Net Ram's family members and in-law's were shareholders, have been recovered and are being scrutinised.
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ED SUSPECTS ROLE OF PAK HIGH COMMISSION IN TERROR FUNDING CASE

Enforcement Directorate (ED) is suspecting the role of Pakistan High Commission to disburse funds to the Kashmiri separatists and creating unrest in Jammu and Kashmir. This has come after the law enforcement agency attached property of a Kashmiri businessman worth more than a crore in Gurugram in connection to a money laundering case and over the allegation of terror funding. In the coming days, the Enforcement Directorate can attach more properties, which could again worth in crores. According to reports, ED has received information that separatists in Kashmir received Rs 7 crore from across the border to play for their nefarious activities and create tension in the valley. ED is suspecting that the funds were routed via Pakistan's High Commission in India and through other channels. ED claims that they seized a document during its search at Bhatt's residence who works as cashier-cum-accountant with Watali.
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ROSE VALLEY SCAM CASE: INVESTORS CAN APPROACH ASSET DISPOSAL PANEL, SAYS ED

The Enforcement Directorate (ED), probing into the multi-crore Rose Valley ponzi scam case, has urged the duped investors to approach the asset disposal committee appointed by the Calcutta High Court to recover their dues. According to an ED official, the investors, who were promised high returns on their investments by the ponzi firm, are free to approach the committee which was set up following a high court suggestion in 2015. In the Rose Valley ponzi scam case, so far the ED has attached properties worth 4,600 crore, an ED official, who did not wish to be named, told PTI. The enforcement agency attached Rose Valley properties worth 2,300 crore in one go, including two dozen hotels and resorts, which till date is the single largest attachment in the case.
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DELHI COURT FIXES MARCH 18 ON FRAMING CHARGES IN MUZAFFARPUR SHELTER HOME CASE

A Delhi court on Wednesday fixed March 18 for the framing of charges in the Muzaffarpur shelter home sexual assault case. Additional Sessions Judge Saurabh Kulshreshtha passed the order after completion of the arguments of all the accused. Five people accused in the case had earlier denied allegations levelled against them by the CBI and said there was not enough evidence to prosecute them. Other accused in the case too had denied allegations against them previously. There are 21 people chargesheeted in the case.
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MUZAFFARPUR BALIKA GRIH CASE: ED ATTACHES ASSETS OF ACCUSED BRAJESH THAKUR

The Enforcement Directorate (ED) has attached immovable and movable properties including 26 Plots, three vehicles, balance in 37 bank accounts and investments in Mutual funds; insurance policies totaling amounts to Rs 7.30 crores of accused Brajesh Thakur (owner of NGO, Sewa Sankalp Evam Vikas Samiti) and his family members in Muzaffarpur Balika Grih Case. According to the agency, huge funds were received by Thakur’s NGO from the State government and other sources which were meant to be spent on welfare of girl children and others. Investigation revealed that funds received by the NGO were not utilized for the stated objectives i.e. welfare of the children. ED has said that funds received by the NGO were illegally diverted/siphoned off for acquisition of properties and personal use by Brajesh Thakur and his family members. Documents gathered during investigation revealed that Donation from other sources / Grant-in-aid from government have been received to the tune of Rs. 7, 57, 48, 820 during the financial years from 2011-12 to 2016-17, ED has said. This is evident from the fact that funds to the tune of Rs. 1,53,86,129/- have been transferred from the bank accounts of Sewa Sankalp Evam Vikas Samiti to the bank accounts of Brajesh Thakur & his family members for acquisition of huge movable and Immovable properties and also for payment of fees for medical education of Mehul Anand S/o Brajesh Thakur.
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15 SURGICAL STRIKES TOOK PLACE UNDER CONGRESS RULE, BUT IT NEVER TALKED ABOUT IT: ASHOK GEHLOT

Accusing the Modi government of politicising actions of defence forces, Rajasthan Chief Minister Ashok Gehlot on Wednesday claimed 15 surgical strikes took place during the Congress rule, but the then dispensation never talked about it. He said former prime ministers Jawaharlal Nehru and Indira Gandhi had made huge contributions for the nation, but the Modi government has never highlighted the same and instead defamed the Gandhi family. The countrymen are innocent. They think that Prime Minister Narendra Modi got the surgical strikes done, but 15 surgical strikes have taken place earlier. Under the Congress rule, surgical strikes took place 15 times, but it was never said that such action has taken place, Gehlot told. He said it was not a standard thing (on part of the government) to highlight such developments. Modi became the prime minister and satellites were launched by ISRO, but it was presented as if the satellites were launched only in his rule. It took years for former prime minister Indira Gandhi to make ISRO and hundreds of satellites were launched, the Congress leader said. The chief minister said Modi has also not acknowledged the fact that Indira Gandhi created the nation of Bangladesh by dividing Pakistan and without letting Khalistan take shape. Taking a dig at Modi, Gehlot said the prime minister should have been an actor. He should have become a Bollywood actor. Movies have actors, actresses, villain they talk about love and affection and the audiences are amused, but movies have no reality and the love and affection shown there is not true, he said.
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CROSS-LOC TRADE SUSPENDED IN J&K'S POONCH AFTER PAKISTAN VIOLATES CEASEFIRE

The cross-LoC trade was suspended on Wednesday after Pakistan Army violated the ceasefire along the Line of Control by resorting to unprovoked mortar shelling and small arms firing in Jammu and Kashmir's Poonch district, officials said. Five mortar shells hit the trade facilitation centre at Chakan-da-Bagh, damaging a few sheds, including the one housing the X-ray scanner, custodian of LoC trade centre, Poonch, Fareed Kohli told PTI. He said the shelling took place around 12.30 pm, when the process of scanning of the trucks was almost complete. There were no casualties but the shelling caused panic among those present at the centre, he said, adding that the main building remained safe. Kohli said the cross-LoC trade was suspended for the day in view of the shelling. Officials said the shelling started in Krishna Ghati sector around 10.30 am and later spread to Poonch sector.
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SINGTEL DESERVES TAX REFUND FOR GIFTING SINGAPORE GOVT A STAKE IN AIRTEL

Singapore Telecommunications Ltd. should ask for a tax refund After all, here’s a telco that got the chance to maintain its stake in an overseas business on the cusp of something new at a steep discount to the market price. And what did it do? SingTel renounced a part of those rights in favour of Singapore’s sovereign wealth fund for no consideration. Yes, gratis, free of charge. Given that GIC Pte’s investment returns play a big role in funding Singapore’s increasingly welfarist budget, it’s only fair that SingTel should ask for a tax offset against its gift to the fund. Let’s back up a bit. SingTel’s prized investment is Bharti Airtel Ltd., India’s mobile market leader. The company is raising as much as Rs 250 billion ($3.6 billion) via a rights issue to strengthen its balance sheet amid a bruising fight with Reliance Jio Infocomm Ltd., which has made a splashy entry into India’s 4G market offering cheap data and lifetime free voice calls.
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PUNJ LLOYD WINS ARBITRATION AWARD AGAINST ONGC

Engineering and construction firm Punj Lloyd Wednesday said it has won an arbitration award worth over USD 4.98 million (about Rs 34 crore) with respect to a project in Maharashtra. It said the arbitration award pertained to Heera Redevelopment Project. The Arbitration Tribunal in the matter of Punj lloyd Ltd & Anr vis Oil & Natural Gas Corporation Ltd in respect of Heera Redevelopment Project, has given an award in favor of Punj lloyd Limited for an amount of USD 4,985,866.37 with interest @ 9 per cent p.a from due date till the date of payment/ realization, the company said in a filing to the BSE. It said the award mentions payment of a further amount of USD 17,500 and USD 7,919,661. The amount of USD 7,919,661.00 has to be paid within four months from the award otherwise interest @ 12 per cent p.a.will be payable till the payment or realization thereof, the company said without giving details.
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INDIA, US TO ESTABLISH SIX US NUCLEAR POWER PLANTS IN INDIA: MEA

India and the United States on Wednesday reaffirmed their commitment to work together to prevent the proliferation of weapons of mass destruction and their delivery systems and to deny access to such weapons by terrorists and non-state actors. The agreement was reached during the ninth round of the India-US Strategic Security Dialogue held here. The Indian delegation was led by Foreign Secretary Vijay Gokhale, while the US delegation was led by Andrea Thompson, Under Secretary of State for Arms Control and International Security. The two sides exchanged views on a wide range of global security and non-proliferation challenges and reaffirmed their commitment to work together to prevent the proliferation of weapons of mass destruction and their delivery systems and to deny access to such weapons by terrorists and non-state actors, according to a statement by the External Affairs Ministry. The US also reaffirmed its strong support of India's early membership in the Nuclear Suppliers Group. They committed to strengthen bilateral security and civil nuclear cooperation, including the establishment of six US nuclear power plants in India the MEA said.
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INDIA WILL GO TO ANY EXTENT TO AVENGE HIT ON NATIONAL PRIDE: RAJNATH SINGH

Home minister Rajnath Singh said on Wednesday that India now had a new approach towards terror — that it will go to any extent to retaliate to an attack that hurts national pride. Look, this is a changed India. So, it was clear to us that we will retaliate. It was not such a difficult decision as people make it out to be. We are very clear that we will go to any lengths for the sake of protecting our national pride no country in the world can stop us from taking countermeasures, Singh told. The home minister made it clear that the military action should not be politicised, but added that talking about national pride and national self-confidence is a different matter. It’s politicisation when someone asks how many terrorists were killed. That’s like raising doubts on your security forces it’s not their (armed forces’) job to count the dead. But there’s nothing wrong in talking about our national pride or how such decisive action is a reflection of national self confidence, he said. Singh asserted that the operation was successful and completed with precision. All I can say is this mission was carried out on the basis of very credible intelligence inputs. It was targeted, and it was a successful operation, Singh told.
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WEAK MODI'S SCARED OF XI: RAHUL SLAMS PM AFTER CHINA SHIELDS MASOOD AZHAR

Rahul Gandhi Thursday hit out at Prime Minster Narendra Modi, saying he was weak and scared of Chinese President Xi Jinping. The Congress chief attacked the prime minister and said he had not spoken on China blocking the resolution in the UN Security Council. The party accused the BJP of letting Masood off the hook again and also questioned Modi what was the use of swinging with Xi. Weak Modi is scared of Xi Not a word comes out of his mouth when China acts against India. NoMo's China diplomacy: 1. Swing with Xi in Gujarat. 2. Hug Xi in Delhi. 3. Bow to Xi in China, Gandhi said on Twitter. India's bid to designate the Pakistan-based terror group Jaish-e-Mohammed's chief as a global terrorist suffered a setback with China on Wednesday putting a technical hold on a proposal to ban him following the Pulwama terror attack. With China having blocked our bid to designate Masood Azhar a global terrorist, the question on every Indian's mind is, what was the use of all the swinging with Modi and President Xi, the Congress said on its official Twitter handle.
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INDIA DISAPPOINTED AS CHINA BLOCKS BID TO BAN JEM CHIEF

India said Thursday it was disappointed by China again delaying a bid to blacklist the leader of a Pakistan-based militant group that claimed a massive suicide bombing in Kashmir last month. China on Wednesday put on hold a request by Britain, France and the United States to add the leader of JeM, Masood Azhar, on a UN sanctions blacklist which would subject him to a global travel ban, an assets freeze and an arms embargo. China -- an all-weather ally of Pakistan which has blocked three similar moves -- said it needed more time to examine the sanctions request targeting Azhar, and asked for a technical hold which could last up to nine months. In a statement, the Indian foreign ministry said it was disappointed by the outcome adding it would continue to pursue all avenues to make sure terrorist leaders who are involved in heinous attacks on our citizens are brought to justice. China has blocked three previous attempts at the committee on sanctions against Al-Qaeda and IS-linked groups to blacklist the JeM leader. The group itself was added to the UN terror list in 2001.
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SENA CAUTIONS BJP OVER INDUCTION OF LEADERS FROM OPPN PARTIES

The Shiv Sena on Thursday asked ally BJP to be cautious while inducting leaders from opposition parties, saying doing so may pose problems in future. The remark came two days after senior Maharashtra Congress leader Radhakrishna Vikhe Patil's son joined the BJP. Hitting out at opposition parties, the Sena also referred to a recent blog post of Prime Minister Narendra Modi in which he alleged that Congress and corruption were synonyms. The incoming from the Congress and NCP may be seen as beneficial today, but it can cause problems in future, we have this experience. Today, people are coming because there is power. When there is none, they will find other relations, the Sena said in an editorial in party mouthpiece 'Saamana'.
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INDIA’S EFFORTS FOR GLOBAL PHASE-OUT OF SINGLE USE PLASTICS AT UN ENVIRONMENT ASSEMBLY FAIL

India’s efforts at piloting a resolution at the fourth United Nations Environment Assembly for a global phase-out of single use plastics by 2025 failed in the face of strong opposition from the United States. The United States was opposed the idea of a time-bound phase out of single-use plastics. The US refused to acknowledge single-use plastics as a serious pollutant, and one that needed to be eliminated. Instead it articulated the view that environmental menace posed by single-use plastics could be addressed through better waste management. Single-use plastics or disposable plastics are commonly used for plastic packaging, accounting for 36 per cent of 400 million tonnes of plastic produced annually, and other items, grocery bags, food packaging, bottles, straws, containers, cups and cutlery. On Wednesday, after nearly a week of intense negotiations a compromise was worked out. It does not mention phasing out of single-use plastics, therefore no time line. Instead its focus is on better waste management. What emerged were two distinct approaches —one that viewed single-use plastic as waste management issue while the other viewed it as a class of pollutants that must be addressed at source and eliminated, said an expert privy to the negotiations. The weakened outcome was disappointment for India and the European Union. While accepting the compromise, paving the way for the adoption of the resolution by the assembly later this week, both India and the European Union stressed that they would not allow for the weakening of the reference to single use plastics in the ministerial declaration. The compromise text acknowledges the need to address the problem presented by single-use plastic products such as packaging, bags, and straws. However, rather than putting an end to the use of this class of plastic products thereby substantially reducing the generation of new plastic waste the resolution focuses on more efficient waste management.
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I'M IN NO RUSH TO COMPLETE US-CHINA TRADE DEAL, SAYS DONALD TRUMP

US President Donald Trump said on Wednesday he was in no rush to complete a trade pact with China and insisted that any deal include protection for intellectual property, a major sticking point between the two sides during months of negotiations. Trump and Chinese President Xi Jinping had been expected to hold a summit at the president's Mar-a-Lago property in Florida later this month, but no date has been set for a meeting and no in-person talks between their trade teams have been held in more than two weeks. The president, said he thought there was a good chance a deal would be made, in part because China wanted one after suffering from US tariffs on its goods. But he acknowledged Xi may be wary of coming to a summit without an agreement in hand after seeing Trump end a separate summit in Vietnam with North Korean leader Kim Jong Un without a peace deal. I think President Xi saw that I'm somebody that believes in walking when the deal is not done, and you know there's always a chance it could happen and he probably wouldn't want that, Trump said.
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US LOOKS TO TEST GROUND-LAUNCHED CRUISE MISSILE IN AUGUST

The United States aims to test a ground-launched cruise missile with a range of about 1,000 km (620 miles) in August, a Pentagon official said on Wednesday, after Washington announced last month it plans to withdraw from the Intermediate-Range Nuclear Forces Treaty. Last month, the United States said it would withdraw from the INF treaty in six months unless Moscow ends what Washington says are violations of the 1987 pact. Russia announced it was suspending the treaty. Moscow denies flouting the accord and has accused Washington of breaking the accord itself, allegations rejected by the United States. We're going to test a ground-launched cruise missile in August, said a senior defense official, who declined to be named. If the testing is successful, the missile could be deployed in about 18 months. The official said the United States was also looking to test an intermediate-range ballistic missile in November, adding that both would be conventional and not nuclear.
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CHINA HINTS IT MAY BLOCK MOVE TO DECLARE MASOOD AZHAR AS GLOBAL TERRORIST

Hours before the UN Security Council is to take up a resolution on listing Jaish-e-Muhammed chief Masood Azhar as a global terrorist, China on Wednesday hinted that it may once again block the move saying only the solution that is acceptable to all sides is conducive to resolve the issue. The fate of the proposal to designate Pakistan-based Azhar as a global terrorist by the UN Security Council will be known in less than 24 hours when the deadline to raise objections to the bid expires. The proposal to designate Azhar under the 1267 Al Qaeda Sanctions Committee of the UN Security Council was moved by France, UK and the US on February 27. I could reiterate that China will continue to adopt responsible attitude and participate in the deliberations in the UNSC 1267 Committee, Chinese Foreign Ministry spokesman Lu Kang told. China, a veto-wielding member of the UNSC, has blocked the move by India and other member nations three times in the past to designate Azhar. On the issue of listing Azhar, he said, I want to say that China always adopts a responsible attitude, engage in consultations with various parties and properly deal with this issue.
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TRUMP TO FARMERS: I LOVE YOU! BUT I STILL WANT TO CUT YOUR SUBSIDIES

President Donald Trump’s I LOVE YOU! tweet to farmers is facing another challenge: Budget cuts that will slash subsidies for crop insurance and small growers Trump’s 2020 budget, released Monday, calls for a 15 per cent funding drop for the Department of Agriculture, citing overly generous subsidies. The president is seeking one of the largest-ever cuts to domestic discretionary spending in a $4.7 trillion fiscal 2020 budget proposal that also boosts defence spending and adds $8.6 billion for building a border wall. The plan would trim the USDA budget by $3.6 billion to $20.8 billion, lowering subsidies for crop insurance premiums to 48 per cent from 62 per cent, and limiting subsidies for growers who make less than $500,000 annually. The Trump administration responded with a plan to authorise as much as $12 billion in aid, but even prior to the ruckus between the world’s two largest economies, American farmers were dealing with low prices and a decline in incomes wrought by bumper crops. Trump’s budget proposes that USDA responsibly and efficiently use taxpayer resources by making targeted reforms to duplicative programs and overly generous subsidy programs, according to the document.
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SPOTIFY FILES EU ANTITRUST COMPLAINT AGAINST APPLE FOR APP STORE RULES

Spotify has filed a complaint with EU antitrust regulators against Apple, saying the iPhone maker unfairly limits rivals to its own Apple Music streaming service. Spotify, which launched a year after the 2007 launch of the iPhone, said on Wednesday that Apple's control of its App store deprived consumers of choice and rival providers of audio streaming services to the benefit of Apple Music, which began in 2015. Central to Spotify's complaint, filed to the European Commission on Monday, is what it says is a 30 percent fee Apple charges content-based service providers to use Apple's in-app purchase system (IAP). Horacio Gutierrez, Spotify's general counsel, said the company was pressured into using the billing system in 2014, but then was forced to raise the monthly fee of its premium service from 9.99 to 12.99 euros, just as Apple Music launched at Spotify's initial 9.99 price. Spotify then ceased use of Apple's IAP system, meaning Spotify customers could only upgrade to the fee-based package indirectly, such as on a laptop. Under App store rules, Spotify said, content-based apps could not include buttons or external links to pages with production information, discounts or promotions and faced difficulties fixing bugs. Such restrictions do not apply to Android phones, it said. Voice recognition system Siri would not hook iPhone users up to Spotify and Apple declined to let Spotify launch an app on its Apple Watch, Spotify said.




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CS Meetesh Shiroya

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