Saturday, 13 April 2019

TAXATION UPDATES 13.04.2019





DIRECT TAX TARGET MAY BE SCALED DOWN IN BUDGET

The direct tax target of Rs 13.80 lakh crore for the current fiscal may be scaled down in the regular Budget to be announced after the formation of the new government at the Centre, a source said. The Department of Revenue may pitch for lowering the current target of Rs 13.80 crore in the Budget. It is difficult to grow 21 per cent (over the actual revised direct tax collections of Rs 11.4 lakh crore). The current target is a huge order to be filled. In the last fiscal, a target of Rs 12 lakh crore could not be accomplished, said the source. The quantum of reduction could be discussed, it added. The Interim Budget in February estimated to collect Rs 13.80 lakh crore in direct taxes, including corporate tax and personal income tax, compared to Rs 12 lakh crore in the last fiscal -- representing a growth of 15 per cent. But the Rs 12 lakh crore target could not be fulfilled due to sluggish personal income tax collection which fell short by Rs 50,000 crore. The original direct tax target for 2018-19 was Rs 11.5 lakh crore, which was later increased to Rs 12 lakh crore. The revised target for the current fiscal would be discussed and detailed before it makes it to the final print of the general Budget in July this year. The source said that revenue targets are set by the Department of Revenue in consultation with the Budget division of the Economic Affairs Department. At the time of the Interim Budget, Revenue Secretary A.B. Pandey had said that Rs 13.80 lakh crore was a 'realistic' target for the current fiscal.
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AMITABH BACHCHAN SHELLS OUT RS 70 CRORE AS TAX

Mr Bachchan has paid Rs 70 crore tax for the financial year 2018-19, his spokesperson said in a statement. In the recent past, Big B also paid off loans of 2,084 farmers in Muzaffarpur, Bihar. He has also donated Rs 10 lakh to the family members of each victim of the February 14 Pulwama terror attack.
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DAS TO REPORT TO THE MINISTRY ON DEFENCE PURCHASES ACROSS THE WORLD AND ABOUT POTENTIAL EXPORT OPPORTUNITIES

Nirmala Sitharaman on Tuesday said that defence attaches in Indian missions abroad have been asked to report and discuss with the defence ministry on the latest defence purchases across the world and potential export opportunities for India in this. She also said that the reporting by the attaches will help officials who are involved in purchasing new defence equipment. The attaches, numbering at least 40, have met ministry officials during the defence expo last year and the Aero India-2019 in February. She also said that the defence ministry has held discussions with the finance ministry that a part of the budget allocated to defence which has not been utilised in a particular year should not be taken back, so that it is available for upcoming expenditures in the next few years. Sitharaman said, I was really surprised that our defence attaches don’t even report to the ministry. Once posted out, they are dealing with the foreign service and ambassador. But what is happening in the global world tell me every six months why should the report come through MEA. Tell me what kind of technologies are attracting the globe towards that country or tell me what a country needs some of the things that you produce here. She added that the attaches were asked to return to India and discuss with the ministry on the defence technologies across the world. For the first time we had to make it a point for the DAs to come here. Once in a year to sit and consult us as to what we should do periodic reports also helps those officials who have to plan purchasing of equipment. The defence attache should be alerted of what is happening in different parts of the world on defence equipment, she said. There have already been two meetings with defence attaches during the expo and the air show, she said. We had the defence attaches come and tell us what is happening across the world on defence purchases and marketing and related production, she explained. She added that several countries are willing to purchase defence equipment from India. I am glad to say that today our missiles are so sort after by many countries. The underlying point we are placing before these organisations (DPSUs) whether producing missiles or aircraft is that there is a market outside. They (countries) want to purchase from India. Even our warship building capability is well recognised outside. There are a lot of countries saying give us that capacity, she said.
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BUILDERS FACING TOUGH CHOICE IN GST RATES FOR ONGOING REALTY PROJECTS

Builders and home buyers are trying to understand the best deal for them under the new Goods and Services Tax (GST) rates for ongoing projects and it seems to be turning into a double-edged sword for some. Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits. However, the choice between the two rates for ongoing real estate projects is not proving to be an easy one with concerns over how the over-used credit will be calculated and adjusted in case the new rate is taken and the customer reaction if the builder chooses to stay with the old rate and there is no reduction in the prices. According to Niranjan Hiranandani, the problem is only transitional in nature and for under construction and ongoing projects. This is a transition issue and once newer projects take over, this problem will go away. But the transition will take some time, he pointed out. This is further compounded by the fact that with the ongoing Lok Sabha elections, there is little opportunity for any clarity from the GST Council or the Finance Ministry. The confusion may continue for a while till the time the developer and buyer settle on which rate should be adopted that will benefit both, noted Suresh Nandlal Rohira, adding that having faced such situations in the past on change in rates in restaurants, the government should give additional moratorium period to transition and settle such issues. Experts pointed out that there were a number of complaints to the National Anti-Profiteering Authority following the rate GST changes for restaurants. Some builders are also unsure whether revised agreements and prices can be submitted for registration under the Real Estate Regulatory Authority. It's not an easy decision for the builder to decide whether to stay with the old scheme or opt for the new scheme for ongoing projects. If they continue with the old scheme, then managing the customer sentiment would be a challenge. In the new scheme, the mechanism for recovery of input tax credit from the customer needs to be well thought through, said Pratik Jain.
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VIJAY MALLYA FAILS TO DELAY USD 40MN DIAGEO CLAIM, LEGAL COSTS MOUNT IN UK

Even as Vijay Mallya renewed an appeal against his extradition to India, the liquor tycoon suffered another legal setback on Friday in a separate USD 40-million claims case brought by British liquor giant Diageo plc in the UK High Court. Justice Clare Moulder ruled against the 63-year-old businessman's application to seek a delay in the full hearing in the case scheduled for May 23 and additionally ordered him to pay legal costs of 34,000 pounds. She was extremely critical of the unexplained delays by Mallya in clearing the unpaid invoices of his previous solicitors Greenwoods, which resulted in his new solicitors Joseph Hage Aaronson (JHA) finding themselves in difficulty and wanting to seek an unfair adjournment. The delay is at best unexplained and arguably of the defendant's [Mallya] own making. In my view, the claimants [Diageo] are entitled to have their claim progressed expeditiously, Justice Moulder said, concluding that Mallya was the author of its own misfortune. The claimants say that if the May hearing is adjourned they will suffer prejudice there would be a race in relation to Mallya's assets which are subject to a number of competing claims; Mallya may be extradited and this will affect the ability to enforce the judgment against him, the judge noted, in reference to the extradition order and worldwide freezing order already in place against Mallya. While the judge agreed to a short extension until April 23 for Mallya's new lawyers to submit their evidence to the court, having missed an April 5 deadline, the judge ordered that meanwhile the businessman must pay additional legal costs of 34,000 pounds for Diageo's lawyers within 28 days. Diageo, which had acquired Mallya's United Spirits nearly six years ago, is claiming USD 40 million paid to him as part of an alleged breach of agreement. The UK-based drinks giant is also claiming USD 140 million from Mallya, his son Sidhartha and two companies linked to them for alleged questionable payments. The case, dating back to November 2017, is being contested by Mallya and will now go ahead for a full hearing at the Business and Property Courts of the UK High Court on May 23.
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VIJAY MALLYA RENEWS APPLICATION FOR APPEAL AGAINST EXTRADITION

Embattled liquor tycoon Vijay Mallya has submitted a renewal application in the UK High Court, making another attempt at appealing against his extradition to India to face fraud and money laundering charges amounting to 9,000 crore. The 63-year-old former Kingfisher Airlines boss failed in his first attempt at an application seeking leave to appeal in the court last Friday and had five business days to renew that application to seek a brief oral hearing before a High Court judge, where his lawyers will further plead his case against being extradited to India. A renewal form has been received and will be listed in due course, a High Court official said on Friday. Sajid Javid had signed off on a Westminster Magistrates’ Court order for Mallya to be extradited to face the Indian courts back in February. Mallya then filed an application for permission to appeal against that decision in the High Court, which was refused by Justice William Davis, giving him a week to apply for oral consideration via a renewal application. The case will now be listed in the coming weeks for a hearing before a judge, where Mallya’s legal team and the Crown Prosecution Service (CPS) — arguing on behalf of the Indian government — will go head to head to reiterate factors for and against the businessman’s extradition to Arthur Road Jail in Mumbai. As per legal procedure in the UK, Mallya’s first written leave to appeal application had been passed on Justice Davis, who was to make a decision on the basis of papers submitted and rejected that application on papers. A judge must now decide following an oral consideration in coming weeks if Mallya’s appeal can proceed to a full hearing.
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I-T DEPT RUBBISHES REPORTS OF RAIDS AT RESIDENCE, TEMPLE OF DEVE GOWDA'S FAMILY PRIEST

The Income Tax (IT) department on Friday clarified that the media reports on raids having been conducted at places linked to the family priest of a 'prominent political leader' in Karnataka and Goa were false. No such search or checking of any sort has been done by the Income Tax department in Karnataka, IT Public Relation Officer (PRO) said in a press release. The statement comes after various media portals on April 12 reported that the IT officials raided an ancient Shiva temple at former Prime Minister HD Deve Gowda' s native village Haradanahalli in Hassan district. Reports also mentioned that the residence of the family priest.
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PENDING VAT APPEALS: PUNJAB HC RESTRAINS UT ADVISOR FROM PASSING ANY FINAL ORDER

The Punjab and Haryana High Court Thursday ruled that appointment of Advisor to the UT Administrator as chairman of Value Added Tax Tribunal, without inclusion of any judicial member in the forum, is against the mandate of apex court. The High Court also directed the advisor not to pass any final orders in any of the 30 pending appeals against tax assessment till further orders from court. Advisor is an IAS officer who may be a good administrator but cannot be inferred to be totally independent, impartial and a good adjudicator, the order reads. The division bench of Justices Jaswant Singh and Arun Kumar Tyagi in an interim order said it needs to be examined whether the advisor has any expertise in taxation matters, warranting his appointment without any judicial member in the tribunal. The administration’s counsels were unable to disclose whether he had any expertise in taxation matters. The advisor is performing part time duty of chairman of the tribunal and full time job of advisor, and being a functionary of UT Administration, his appointment clearly amounts to transfer of judicial function to executive, which is not permissible, the division bench said in the order, adding, the pendency of 30 appeals or the concurrence of the High Court Chief Justice on administrative side to the appointment cannot be a ground to overlook mandate of apex court. Observing that every citizen has a right to be heard by an independent, impartial and judicious adjudicator, the division bench in the order further stated, This court cannot doubt integrity or administrative ability of advisor but he cannot be expected or viewed to be independent and impartial when he is overall incharge of affairs of UT Chandigarh. The order was passed in a petition filed by the pharmaceutical company, Ind-Swift Limited, Chandigarh, against the advisor’s appointment as chairman of the tribunal, under Section 4 of the Punjab Value Added Tax Act, 2005. A demand of Rs 14.33 crore tax has been raised from the company by authorities, for alleged wrong availment of Input Tax Credit for the year 2011-12, through an order passed on January 14, and an additional demand of interest of Rs 20.15 crore with penalty of Rs 31.61 crore has also been made. An appeal against the tax assessment was dismissed by the Deputy Excise and Taxation Commissioner (DETC) on February 15, for non-compliance of the requirement of deposit of 25 per cent. The appeal against the dismissal is now pending before the VAT tribunal, and the 25 per cent deposit has already been paid by the company in pursuance to the High Court orders. The Director of the company, Nav Rattan Munjal, was granted interim bail by the High Court on February 22 in the FIR regarding alleged wrong availment of Input Tax Credit, after nearly two and a half months of custody. Akshay Bhan, on behalf of the company, argued that assessment order is barred by limitation because assessment was framed after the expiry of three years period, prescribed for framing assessment. Bhan further argued that the authorities are duty bound to appoint a judicial member in the tribunal in accordance with the view taken by Supreme Court in some cases and alleged the Excise and Taxation Department appointed its own Advisor as the sole member or chairman to decide the appeals. Though the court did not agree with the petitioner counsel’s argument that tribunal must consist of more than one member, it observed the plea for appointment of a judicial member in the forum.
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‘YOU WILL NOT LET THIS COUNTRY REMAIN IN PEACE’: SC JUNKS PLEA TO PERFORM PUJA IN AYODHYA

The Supreme Court on Friday dismissed a plea seeking permission to perform prayers at the undisputed part of the 67.7 acres land in Ayodhya. You will never let this country remain in peace. There will always be something, Chief Justice of India Ranjan Gogoi told the petitioner. The apex court also refused to withdraw the Allahabad High Court order imposing a penalty of Rs five lakh on the petitioner. Rejecting a similar petition earlier, the high court had imposed a fine of Rs five lakh on another petitioner seeking permission to offer namaz at the disputed site.
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BRIBERY CASE AGAINST RAKESH ASTHANA: HC ASKS CBI TO FILE TIMELINE ON NEED FOR SENDING LRS TO NATIONS

The Delhi High Court Friday directed the CBI to file a timeline of events relating to the ongoing investigation in a bribery case involving the agency's former special director Rakesh Asthana and the need for sending Letters Rogatory (LRs) to various countries. The court questioned the CBI for not sending the LRs till now even though it had passed in January the order dismissing the pleas of Asthana and two others seeking to quash the FIR. Justice Mukta Gupta said the document, to be filed through Additional Solicitor General (ASG) Vikramjit Banerjee, should also include when the requirement of issuing LRs came to the knowledge of the investigating officers and the details of the CBI officers who spent last 2-3 months on it. The ASG will prepare a list of dates and events indicating when the requirement of LRs came to the notice of the IOs. Who spent these 2-3 months and how, resulting in not sending the LRs till date, the court said, asking the agency to file the document in a sealed cover. The court listed the matter for April 23 for further hearing on CBI's application seeking more time to complete the probe in the case lodged against Asthana, DSP Devender Kumar and middleman Manoj Prasad.
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SC NOTICE TO BENGAL GOVT FOR ALLEGEDLY HARASSING OFFICIALS FOR LUGGAGE CHECKING OF TMC LEADER’S WIFE

The Supreme Court on Friday issued notice to the West Bengal government on alleged harassment of custom officials at Kolkata airport for checking the luggage of a Trinamool Congress leader’s wife. Ranjan Gogoi, an apex court bench also termed the alleged incident very very serious. Someone has drawn our attention to something. It is very very serious. We do not know whose claims are bona fide, said the bench, also comprising Justice Sanjiv Khanna. It did not consider the submission of senior advocate A M Singhvi that no notice was required to be issued on the petition.
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SC DIRECTS EX-JHARKHAND MINISTER TO SURRENDER BEFORE RANCHI COURT BY APRIL 15

The Supreme Court Friday directed former Jharkhand minister Yogendra Sao to surrender before a court in Ranchi by April 15 in cases related to rioting and inciting of violence. A bench headed by Justice S A Bobde said that Sao will have to surrender by Monday. Advocate Tapesh Kumar Singh, appearing for Jharkhand, said that Sao can surrender before the concerned trial court in Ranchi. He said all the case records have been transferred to Ranchi in compliance with the apex court order. The apex court order came on a plea of Sao seeking clarification of the order on the place of his surrender. The top court had on April 4, trashed Sao’s plea seeking to campaign for the Congress in the current Lok Sabha polls and cancelled his bail, saying he has violated the bail conditions. It had transferred the trial of 18 cases against Sao and his wife Nirmala Devi to Ranchi from Hazaribagh district in Jharkhand.
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VOTE FOR ME, YOU WILL NEED ME ONCE ELECTIONS ARE OVER: MANEKA TO MUSLIMS

Maneka Gandhi told Muslims to vote for her as they will need her once the Lok Sabha elections are over. We are not Mahatma Gandhi's children that we keep giving and not get anything in return she said in Muslim-dominated Turabkhani area on Thursday. Gandhi, the BJP candidate from Sultanpur Lok Sabha constituency, claimed she is all set to win and told the Muslim audience that you might need me tomorrow. The Congress reacted strongly with spokesperson Randeep Singh Surjewala saying she is trying to divide people on the basis of caste and community. I am winning. I am winning because of the help and love of the people, Maneka Gandhi said at the meeting in Sultanpur, a constituency earlier held by her son Varun Gandhi. But if my victory is without the Muslims, I will not feel very good, she said, adding she will be left with a bitter feeling. If Muslims come for some work after this, I will think why bother, what difference will it make. Suggesting that it was matter of give and take, she added, We are not Mahatma Gandhi's children to keep giving without getting anything in return. The minister asked them to check with the people in Pilibhit, her earlier constituency. If there is even one person who says there had been something wrong on my part, don't vote for me, she said. Gandhi said she had come with an open mind and they may feel that they might need me tomorrow. This election I have already won, and you will need me and want to lay the foundation for this. She also asked people to pass on this message to others.
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CONGRESS READY FOR ALLIANCE WITH AAP IN DELHI ALONE: CHACKO

The Congress officially made it clear that an alliance with the Aam Aadmi Party (AAP) will not materialise if it insisted on seats in Haryana and Punjab. P.C. Chacko said the understanding with AAP was that it would contest on four seats while Congress would contest on three on the basis of vote share of the two parties. However, Mr. Chacko said AAP changed their demands as its leader Sanjay Singh insisted on having a tie-up in Haryana and Punjab as well. Mr. Chacko said this was not possible as political situation was different in every State and the party is compelled to go alone. Even today we are ready to ally with them for Delhi, said Mr Chacko. He also revealed that Congress chief Rahul Gandhi had authorized him to negotiate with AAP to prevent a split in the anti-BJP votes.
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BJP COMPLAINS TO EC OVER ARJUN MODHWADIA'S REMARKS AGAINST PM NARENDRA MODI

A day after Congress leader Arjun Modhwadia wrote to the Election Commission demanding a complaint be registered against prime minister Narendra Modi for seeking votes in the name of martyrs, the Gujarat BJP complained to the EC against Modhwadia for using unparliamentary language and words like 'donkey' while criticising the PM. In a letter to EC on Wednesday, the state BJP's legal cell said that Modhwadia's remarks were an insult to the constitutional post and a violation of model code of conduct. Modhwadia during a public rally at Deesa town in Banaskantha uttered unparliamentary, abusive and foul words against the PM by describing him as a 'donkey. This is a clear violation of code of conduct and an insult to the constitutional post, BJP said in the letter. The letter claimed that Modhwadia had a record of using abusive language against the PM since the 2002 state polls.
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PM MODI ATTACKS CONGRESS-JDS COALITION IN KARNATAKA; DUBS IT AS ’20 PER CENT COMMISSION GOVT’

Narendra Modi Friday dubbed it as a 20 per cent commission government. Modi said the Congress-JDS coalition’s only mission is commission, attacking it on the issue of corruption. Modi branded the earlier government (Siddaramaiah’s) as a 10 per cent commision government, but now with Congress and JDS joining hands, it had become a 20 per cent commission government. He asked whether the Lok Sabha elections was about nation first or family first, as he attacked the dynasty politics of several anti-BJP parties. Modi also asserted that there was a wave across the country favouring the return of his government. In the first phase of Lok Sabha polls on Thursday, the opposition parties would not be able to sustain, Modi said. Phir Ek Bar Modi said, and the huge crowd roared in approval saying, Modi Sarkar.
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PM MODI TO ADDRESS RALLY IN BENGALURU ON SATURDAY, BJP EXPECTS 2 LAKH PEOPLE

Prime Minister Narendra Modi will address a BJP rally at Palace Grounds in Bengaluru on Saturday evening. The rally is expected to start at around 4.30 pm. This is PM's second rally in Karnataka in a space of four days. On Tuesday, he addressed campaign rallies at Chitradurga and Mysuru. The party is expecting a turnout of two lakh plus voters, and hence, has installed 11 large LCDs screens. According to Ashok, as many as 11,000 people have registered through the online to participate in the rally on Saturday.
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NO ONE CAN SEPARATE KASHMIR FROM INDIA TILL BJP EXISTS: SHAH

Amit Shah Friday asserted no one can make India part with the state as long as the BJP exists Shah also alleged that the Congress and other opposition parties are unhappy with the success of the Indian Air Force's strike on terrorist camps at Balakot in Pakistan in retaliation for the Pulwama terror attack. Omar Abdullah has suggested appointing a separate prime minister for Kashmir. Is it possible to have two PMs in a country? Can there be a second PM in Kashmir? Rahul Baba (Gandhi) is silent on his poll ally Abdullah's suggestion (separate PM for Kashmir). He has not uttered a word, Shah told. Asserting that Kashmir is an inseparable and inalienable part of India, the BJP chief said, No one can take away Kashmir from us. As long as the BJP exists, Kashmir will continue to be an integral part of India. Lashing out at Gandhi family's close aide Sam Pitroda, who advocated talks with terrorists, the BJP president asked, Tell me whether we should hold a dialogue with terrorists or bomb them? If we get bullets from Pakistan, we will retaliate with more lethal ammunition, he declared.
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CONGRESS ACCUSES SMRITI IRANI OF ‘FALSIFYING’ EDUCATIONAL RECORDS

The Congress on Friday called Smriti Irani a serial liar, and said that she should be disqualified from contesting the polls. The party alleged that she had falsified records of her educational qualification and submitted contradictory affidavits to the Election Commission.Priyanka Chaturvedi also accused Ms. Irani of misusing her influence and power as a Union Minister. Union Minister Smriti Irani, who had been rubbishing Opposition’s claim that she is not a graduate, yesterday [Thursday] accepted that she enrolled for an undergraduate course in Delhi University, but did not complete it, she said. Chaturvedi, accusing her of being guilty of offence under Section 125A and Section 33 of the Representation of Peoples Act.
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MODI GOVT'S OFFICIALS INVOLVED IN BIGGEST MONEY LAUNDERING SCAM, CLAIMS CONGRESS

Kapil Sibal, played out a video clip of a sting operation in which, he claimed, a government official said BJP’s top leadership was involved. The official, reportedly identified as one Rahul Ratharekar from the government’s intelligence agency, claimed to an undercover reporter that officials from 26 department were involved in the money exchange operation. According to Indian media, the video was shot at a Mumbai hotel in July last year. RBI’s deadline to exchange old currency expired on December 31, 2016. A media outlet, citing Sibal, reported that the Indian intelligence agency official said currency notes worth thousands of crores were printed abroad and transported into India by special aircraft. According to report, a team of government officials drawn from different departments were engaged in the exchange of old notes for new post demonetisation. Another video clip showed the official of a private bank carrying out the exchange of old currency for new ones.
He, however, did not authenticate the videos and maintained that all the names mentioned in the clip were in the public domain and could be independently verified by the official.
Sibal was quoted as saying: The government, CBI and ED will not arrest them, because ED [Enforcement Directorate] protects those who loot the country.
The former Law Minister’s press conference on Tuesday was said to be the second in a series on the issue of demonetisation. On March 26, Sibal had reportedly played out another sting by TNN, where an alleged BJP worker was involved in such an exchange of old currency. Another Congress member Randeep Surjewala was quoted as saying: If this is not ‘anti-national,’ then what is? Will the Supreme Court show the courage to take note and hold the corrupt accountable?
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‘WHY IS SHARAD PAWAR SILENT ON THE ISSUE OF TWO PMS,’ NARENDRA MODI ASKS IN AHMEDNAGAR

Targeting Nationalist Congress Party (NCP) chief Sharad Pawar yet again, Prime Minister Narendra Modi on Friday remarked as to why Mr. Pawar had allied with the Congress party which in turn stood with those leaders wanting separate Prime Ministers for India and Jammu and Kashmir. While I have no expectations from the Congress, I failed to understand Sharadrao (Mr. Pawar). He had split the Congress [in 1999] to form the NCP allegedly for the sake of the country. Yet today, he has allied with the Congress and is silent and refuses to speak on those seeking two Prime Ministers, one in India and one in J & K Mr. Pawar, how can you even sleep after allying yourself with the Congress? said Mr. Modi, addressing a massive rally in Ahmednagar city. Further targetting the NCP chief, the Prime Minister said: Did you include the word ‘Nationalist’ in your newly formed party [the formation of the NCP in 1999] merely to hoodwink the people of the country. Since when have you begun viewing this country from a foreign prism. Each day [of the UPA government in power] brought news of fresh scams. You [read the electorate] will have to decide this time whether to vote for honest chowkidars or corrupt dynastic politicians, Mr. Modi said.
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US, FRANCE AND UK GIVE 'ULTIMATUM' TO CHINA TO LIFT HOLD ON MASOOD AZHAR: REPORT

The US, France and the UK have asked China to lift its hold by 23 April on a resolution banning Jaish-e-Mohammed chief Maulana Masood Azhar by the United Nations. China had on 14 March stalled a proposal co-sponsored by France, UK and the US to ban Azhar, who group claimed responsibility for the 14 February suicide attack on an Indian paramilitary convoy in Kashmir’s Pulwama region killing 40 personnel — igniting tensions between India and Pakistan. Following China’s objection in March, the US had circulated a resolution among the UN Security Council (UNSC) members on banning Azhar by the UNSC. France, US and the UK had given an ultimatum to China to lift its hold by 23 April on the proposal to ban Azhar under the UN’s 1267 committee that sanctions terrorist groups like Al-Qaeda and the Islamic States besides their affiliates. If China did not lift its hold by then, the US would formally introduce its resolution on banning Azhar at the UNSC bypassing the 1267 sanctions committee, the report said. Getting the resolution to ban Azhar through the UNSC requires all five permanent members to go along with it ie US, France, UK, Russia and China voting for the resolution or China abstaining without vetoing the move. It also requires four other votes in support of the resolution from the 10 non permanent members of the UNSC. Banning Azhar under UN norms would mean placing strictures on his travel and activities including collecting funds for his Jaish e Mohammed group. China’s hold on the Azhar proposal in March was the fourth time it has blocked such a move. China and Pakistan are self proclaimed all weather friends — something that has caused deep disquiet in New Delhi. Lately Indian officials have said that New Delhi was willing show patience as long as it takes and work to persuade Beijing to ban Azhar.
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INDIA'S OIL IMPORTS FROM IRAN SLUMP 60% IN FEB Y/Y: SOURCES

India's oil imports from Iran in February plunged by over 60 percent from a year ago to about 260,000 barrels per day (bpd) as New Delhi cuts imports under a sanctions waiver deal with Washington, data compiled by Reuters showed. The United States introduced sanctions aimed at crippling Iran's oil revenue-dependent economy in November but gave a six-month waiver to eight nations, including India, which allowed them to import some Iranian oil. India has been allowed by Washington to continue to buy about 300,000 bpd oil till early May. India's February imports from Iran were about 4 percent lower than January's purchases, the data showed. Iran was the eighth biggest oil supplier to India in February compared with seventh in January, and slipped from third position it held a year ago, the data showed. In the first 11 months of this fiscal year that began in April, India's oil imports from Iran rose by 5.6 percent to 486,400 bpd as refiners boosted purchases ahead of the U.S. sanctions drawn by discounts offered by Tehran, the data showed.
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CLIMBING CRUDE OIL PRICES PUT INFLATION OUTLOOK AT RISK

A rebound in oil prices poses a risk to India’s benign inflation expectations that last week allowed the central bank to deliver its second rate cut of 2019. With crude at a five-month high, many investors are turning less confident about the Reserve Bank of India’s pace of monetary easing, though a slowdown in economic growth and subdued inflation still support an easing bias. The low headline print gave Governor Shaktikanta Das and the rate-setting panel the space to cut rates by 25 basis points each in February and April to support the economy. Some economists see room for one more reduction provided food and fuel costs do not spike. Data due on Friday will probably show headline inflation quickened to 2.8 per cent last month from 2.5 per cent in February. The recent rise in crude prices, if sustained, could pose a challenge to both economic growth and inflation outlook, said Dharmakirti Joshi. Forecast for Brent, the benchmark for half the world’s oil, has been lifted on the back of production cuts, and the RBI sees prices being pushed up further should the US-China trade tensions be resolved swiftly. The two sides are nearing a trade deal, with talks aimed at clinching one within the next month continuing. A recent study by the central bank showed a $10 rise from $65 a barrel will lead to a 49 basis points increase in headline inflation, while a similar increase from $55 a barrel would give around a 58 basis-point boost to headline inflation.
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US AGENCY CONDUCTS H-1B VISA LOTTERY FOR 2 LAKH APPLICATIONS, OVERALL CHANCE OF SELECTION IS 42%

The number of applications for the H-1B visa has risen slightly over last year, by a little over 10,000 to close at 2.01 lakh for the current season 2019-20 (fiscal year 2020). The date for accepting applications had commenced on April 1. For the fiscal 2020 season, which would permit successful visa beneficiaries to work in the US earliest from October 1, United States Citizenship and Immigration Services (USCIS) received 2.01 lakh applications, a slight rise of 5%, as against 1.90 lakh applications last season. This was disclosed by the USCIS in a release issued late night on April 11. On April 5, the agency had announced that it had received a sufficient number of H-1B cap applications to reach the annual ‘regular’ quota of 65,000. It had also announced that USCIS would determine if it had received a sufficient number of applications to meet the masters’ cap. Annually only 65,000 visas are allotted under the regular cap (also known as general quota) and an additional 20,000 visas under the master’s cap (for those having an advanced degree from US universities). For last filing season, which had closed on April 6, 2018, USCIS had later announced that it had got 95,885 applications which were eligible for Masters cap. It has not yet disclosed this figure for the current season. This year, at least 42% of cap filings will be selected against the quota of 85,000, though USCIS typically accepts more than the annual quota to account for cases that are ultimately denied or withdrawn. The odds for advanced-degree cases are somewhat higher because these filings get a second chance for selection if they are not chosen in the initial lottery, states Fragomen, a global firm specialising in immigration laws.
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TRUMP'S SPACE FORCE COLLIDES WITH SKEPTICAL CONGRESS

The Space Force that President Donald Trump wants to launch has run headlong into skeptical lawmakers who questioned the need for a stand-alone military wing. Trump has insisted that a separate branch of military is needed to focus on protecting satellites, tackling vulnerabilities in space, and asserting US dominance in orbit. Under a Pentagon proposal, the Space Force would be established as its own branch of the military but would fall under the Air Force, similar to how the Navy oversees the Marine Corps. Both China and Russia have weaponised space with the intent to hold American capabilities at risk, Acting Defense Secretary Patrick Shanahan told the Senate Armed Services Committee, whose endorsement he sought for the new force. Not since the Air Force was stood up in 1947 has the Pentagon created a new military branch. A Space Force would join the Army, Navy and Marines as well as the Air Force. The bottom line is the next major conflict may be won or lost in space, Shanahan told the committee on Thursday. But lawmakers were less than clear on why setting up the force solely for space-related matters made sense. I don't understand how putting a new box in an organisational chart is going to help us to respond to the new challenge that we face. I'm genuinely undecided, although as you can tell, I'm skeptical, said independent Maine Senator Angus King. Republican Tom Cotton of Arkansas wondered about the need for a new military service, as opposed to placing space matters in an existing one. Can you explain why we need to put all space assets, space forces into a separate service as opposed to a combatant command? he asked. The Chairman of the Joint Chiefs of Staff, General Joseph Dunford, recalled that a space force was first suggested two years ago and then dismissed. At that time, Dunford said, he had his doubts but is now convinced about the need for a separate force. General John Hyten, who heads US Strategic Command, said creation of a Space Force is inevitable because every physical domain we have when it becomes contested, we create a military service to deal with that. What the committee must decide, he said, is when is that going to happen. The Space Force would comprise about 20,000 personnel, grouping all Pentagon military and civilians dealing with satellites, rockets, weapons and technology related to space. This doesn't make any sense to me. I'm sorry, said West Virginia Democrat Joe Manchin, who considered the Air Force's current handling of space matters satisfactory. Democrat Elizabeth Warren, a presidential hopeful from Massachusetts, said that all I see is how a new force will create one more organization to ask Congress for money. And there is no reason to believe that adding an entirely new Space Force bureaucracy and pouring buckets more money into it is going to reduce our overall vulnerability in space.
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PROSECUTORS TO QUIZ AMAZON CHIEF JEFF BEZOS ON SAUDI CLAIM

Federal prosecutors in New York are planning to meet with Amazon CEO Jeff Bezos about his allegations that the National Enquirer tried to blackmail him with help from Saudi Arabia, a person familiar with the plans said on Thursday. The billionaire will meet with prosecutors in the coming days as part of an inquiry into claims that the Saudi government hacked his phone and obtained private information that ended up in the tabloid's possession, the person told The Associated Press. The meeting comes after Bezos' longtime security consultant, Gavin de Becker, told that private investigators had concluded with high confidence that the Saudis had access to Bezos' phone and gained private information. The Enquirer's parent company, American Media Inc, has had business dealings with Saudi Arabia, but the kingdom has denied any role in hacking Bezos' phone or providing his private information to the Enquirer. Saudi Arabia's minister of state for foreign affairs said recently that the kingdom had absolutely nothing to do with the matter. This sounds to me like a soap opera, the minister, Adel Al-Jubeir, told CBS' Face the Nation. This is something between the two parties. Bezos, the world's richest man, has said the Enquirer threatened to publish explicit photographs of him unless he publicly declared that the tabloid's coverage of him was not politically motivated and stopped investigating how it obtained private texts between Bezos and his mistress, former TV anchor Lauren Sanchez.
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JAPAN COURT SAYS CARLOS GHOSN DETENTION EXTENDED UNTIL 22 APRIL

A Japanese court on Friday ruled that Carlos Ghosn will remain in detention until 22 April, as prosecutors grill the former Nissan boss over allegations of financial misconduct. His lawyers immediately appealed the decision but the Tokyo District Court rejected the appeal. They have already asked the Supreme Court to intervene in his detention. Unless the appeal to the Supreme Court succeeds, the 65-year-old will be held in custody at a detention centre in Tokyo until April 22, whereupon authorities will either have to press formal charges, release him or re-arrest him if they feel he has other accusations to answer. Prosecutors are looking into allegations that Ghosn siphoned off some $5 million from funds allegedly transferred from Nissan to a dealership in Oman, and spent the money on a luxury superyacht. Ghosn has not been formally charged over these allegations. But the tycoon does already face three separate charges. Two of these relate to millions of dollars in salary believed to have been concealed from shareholders. The third charge is that he sought to shift personal investment losses to company books.




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