GST REFUNDS FOR EXPORTERS CAN NOW COME IN 3-4 DAYS: CEPC’S
MAHAVIR PRATAP SHARMA
The initial hurdles of GST
refund for exporters are now showing some signs of ease. Mahavir Pratap Sharma,
looks back at the GST regime saying that the first nine months turned out to be
a rather trying time. I think it was the biggest challenge that we could have
and, quite honestly, we as exporters were up in arms because of GST being
deposited and exports hampered in the process. We took a beating because we had
to park our funds and they got stuck, he rues. However, brighter days are there
now with the process being seamless if all returns are duly filed. Now, for the
GST refund, if one is filing all returns in a perfect manner, if shipping bills
are filed, if the shipment is on board and exported, then I think the refunds
will take 3-4 days and I think everyone is getting their refunds very easily,
adds Sharma. There is a caveat though. For exports made under Letter of
Undertaking (LUT) which is against a custom bond, exporters can claim refunds
of input tax credit on goods and services that aren’t utilised. In such a
situation, the money may be stuck for 3, 4 or even 15 days. So the LUT bit is
still cumbersome with the paperwork to a certain extent required to be filed in
the local office of the GST or the customs, whichever area that your unit falls
under. That might take a few weeks to come by, highlights Sharma. There was
also buzz about an e-wallet system under the GST last year which would come in
handy for exporters facing working capital crunch with delayed GST refunds.
However, this is yet to come through. Sharma is of the view that it makes sense
for the government to create an online e-wallet which has been in the works
since some time. I think it is probably stuck somewhere in the legalities or
the technology behind it and pretty soon the new government that comes in
power, should implement it. That would be of great help to the MSMEs and small
businesses who face shortage of capital. It is very important that this working
capital blockage does not happen and I am sure pretty soon we will have this in
place, he asserts.
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BUSINESSES CAN USE IGST CREDIT TO SETTLE CENTRE, STATE TAX
DUES: CBIC
Businesses that have
accumulated Integrated GST (IGST) credit in their books can settle it against
central and state tax dues in any proportion, the revenue department has said.
Importers typically pay IGST on goods they bring into the country. Also IGST is
paid on inter-state movement of goods. This tax is supposed to be set-off
against the actual GST paid, or may be claimed as refund in certain cases. The
Central Board of Indirect Taxes and Customs (CBIC) in March had allowed
utilisation of input tax credit (ITC) of IGST towards the payment of Central
GST and State GST, in any order subject to the condition that the entire IGST
liability has been first discharged using the accumulated credit. However,
there were confusion among taxpayers regarding the quantum of utilisation of
IGST credit in paying CGST and SGST dues. The CBIC has now clarified that the
IGST credit can be used in payment of CGST or SGST in any order or proportion.
Under Goods and Services Tax (GST), the tax levied on consumption of goods or
rendering of service is split 50:50 between the centre (CGST) and the state
(SGST). On inter-state movement of goods as well as imports, an IGST is levied,
which accrues to the centre. Ideally, there should be 'nil' balance in the IGST
pool at the end of a fiscal since the amount should be used for payment of CGST
and SGST. As some businesses are ineligible to claim the benefits of input tax
credit (ITC), the balance gets accumulated in the IGST pool.
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BUSINESSES CAN APPLY FOR REVOKING OF GST CANCELLATION BY JULY
22: CBIC
The revenue department has
allowed businesses whose GST registration has been cancelled due to non-filing
of tax returns to apply for its revocation by July 22, provided they file their
pending returns and pay due taxes. In a letter to field offices, the Central
Board of Indirect Taxes and Customs (CBIC) said it is providing a one-time
opportunity to apply for revocation of cancellation of GST registration by July
22, 2019, for those entities for whom cancellation order has been passed up to
March 31, 2019. The CBIC said where the registration has been cancelled with
effect from the date of the order, all returns due till the date of such
cancellation are required to be furnished before the revocation application is
filed. In cases where the registration has been cancelled with retrospective
effect, the CBIC has allowed filing of revocation application, subject to the
condition that all returns relating to the period from the effective date of cancellation
till the date of revocation order will be filed within a period of 30 days from
the date of the revocation order. The CBIC officers have recently cancelled a
large number of registrations on account of non-compliance, including
non-filing of returns.
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MNCS IN INDIA ACCUSED OF NOT PASSING ON BENEFITS FROM TAX
CUTS: REPORT
Indian tax authorities
have alleged that a number of big multinational companies have not passed on
benefits from a tax cut to customers, a senior government official told. The
official said, for example, that the tax authorities have alleged that US
consumer goods maker Procter & Gamble did not pass on more than $35 million
in tax benefits which were meant to have gone to its customers. Separately, the
authorities are also investigating South Korea's Samsung Electronics and US
drug maker Johnson & Johnson among others, the senior government official,
said. P&G, Samsung and J&J all deny any wrongdoing. Samsung also said
it had acted in accordance with the rules. Samsung reduced its sales price
according to GST (Goods and Services Tax) reduction with effect from January 1,
2019. We are cooperating with DGAP (Directorate General of Anti Profiteering)
on this matter, the company said in a statement.
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TAX OFFICIALS TO POSE AS CUSTOMERS TO CHECK PROFITEERING BY
RETAILERS, MANUFACTURERS
Central and state tax
officials are gearing up for surprise checks at retail outlets posing as
customers to check whether businesses and merchants have actually passed on the
benefits of Goods and Services Tax (GST) reductions to consumers. The National
Anti-profiteering Authority (NAA) has asked field officers to use a provision
in the Central GST Act to make purchases from the market, get the transaction
revoked and use the cancelled invoice for investigation wherever profiteering
is detected, a person informed about the development said on the condition of
anonymity. The idea is to scale up the anti-profiteering oversight on industry
and trade as central and state governments have made several large tax cuts
since GST was rolled out in July 2017, sacrificing their revenue. NAA is now
holding workshops in different cities with field officers of central and state
tax administration to improve compliance according to the anti-profiteering
provision. The watchdog has already held such meetings in several cities
including in Indore, Bhubaneshwar, Kolkata and Bangalore. The message to field
officers is that they need not wait for a customer to come forward with a
complaint to examine if prices are revised in line with the tax rate
reductions. The CGST Act gives powers to commissioners to get an officer
purchase any product or service to check the invoice and then get the price
refunded on return of the item. The cancelled invoice is sufficient to initiate
action if any profiteering is noticed, said the person quoted above. Action
against profiteering need not be complaint driven, said the person. Profiteering
has a narrow definition in the context of GST-- the practice of not passing on
benefits of tax cuts or rebates for taxes paid on raw materials to consumers,
on every item sold. It is not sufficient for businesses to show they have not
retained any of the benefits to themselves as it could also mean prices have
been reduced more than the tax cut warranted on some items and less so on some
others. The idea of the anti-profiteering provision is to ensure every consumer
benefits. Businesses and merchants, therefore, have to make sure price of every
individual item impacted by the tax changes has been reduced immediately at the
right measure. This certainly poses some logistics and administrative
challenges to businesses that have diverse product portfolio and long supply
chains. Anti-profiteering is a new, evolving law, said a second person with
direct knowledge of how the anti-profiteering ecosystem works in India.
Officials concede that the law is not perfect but insist that businesses have
to install systems to communicate instantly to all their partners in the value
chain to ensure a quick transmission of the tax rate cut.
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AAR: AN ICE-CREAM SCOOP IS A SUPPLY OF ‘GOODS’, WITH 18% GST,
BUT TAX CREDIT REDUCES THE STING
In this sweltering heat,
who can resist a scoop of ice-cream? Interestingly, the issue of whether serving
a scoop of ice-cream would be a supply of services or goods or whether it would
be a composite supply was recently examined by the Authority of Advance Ruling
(AAR), Maharashtra bench. Based on the facts of the case, the AAR agreed that
even serving scoops of ice-cream did not contain any service element and was a
supply of goods. It would attract GST at 18% and the applicant would be able to
avail input tax credit (in simple terms it refers to credit that is available
for taxes paid on its own purchases or expenditure). Arihant Enterprises, under
a franchisee model, sold ice-creams in retail packs (party packs or tubs,
typically of 500 grams) and also by way of ice-cream scoops. Sale of retail
packs contributed 75% to the company’s turnover. The company explained that
even when it served scoops of ice-cream, the only activity was transfer of
goods (ice-cream) to a cone or a cup. The service element involved was minimal.
Only some of its outlets provided a few seats, but this was to benefit senior
citizens and mothers accompanied by toddlers. Customers were free to eat the
scoops outside the outlets. The AAR agreed that the company was a mere
re-seller of ice-cream and was engaged in the supply of goods (ice-cream,
whether by way of retail packs or scoops). Sunil Gabhawalla, states, For a
stand-alone restaurant the GST rate is 5% without any input tax credit. For
entities which are part of large franchisee chains or are in a prime area
having a huge rent outflow, the loss of input tax credit is a significant blow.
For them, a higher rate of tax with input tax credit could be more beneficial.
On the other hand, for mom-and-pop type of outlets with self-owned property and
brands, 5% GST without input tax credit could be more beneficial. At first
glance it would appear that stepping into an ice-cream parlour would then be
more beneficial from the customer point of view. After all, GST is passed on to
the customer. However, an industry watcher explained when input tax credit is
not available, the burden is passed on to the customer by jacking the prices.
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RAHUL GANDHI PROMISES SIMPLER ‘GST 2.0’ IF CONGRESS IS VOTED
TO POWER
In a bid to woo the trader
community, Rahul Gandhi has promised to bring a simpler version of the Goods
and Services Tax, which he has dubbed as GST 2.0. Gabbar Singh Tax and
Demonetisation destroyed crores of jobs causing tremendous pain and badly
damaging our economy. The Congress Party is committed to GST 2.0 - a single GST
with simple reporting, he tweeted. Gandhi has repeatedly attacked Prime
Minister Narendra Modi, and the BJP, for what he calls a shoddy implementation
of the GST regime and has promised to overhaul it and reduce the number of tax
slabs. Demonetisation and GST were just ways to rob poor, labourers, small
traders; NYAY scheme will benefit them, he said in Rajasthan on Thursday.
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GST CONFUSION FORCING COMPANIES TO CHARGE MORE ON ANNUAL
MAINTENANCE BILLS
Goods and services tax
(GST) on annual maintenance contracts (AMCs) is proving to be contentious issue
for some of the white goods and electronics companies, which have decided to
play it safe and charge higher rates, increasing the burden on consumers. A
leading electronics goods company, for instance, is levying 28% GST, applicable
on high-end gadgets, instead of 18% that applies to AMCs. There are others too
who have decided against taking any chances. Even though the intention behind
availing maintenance of such products is uninterrupted service, in view of
divergent rulings by AARs (Authority for Advance Rulings), some companies are
charging higher rate (28%) even on annual maintenance services (18%) provided
along with these products. This is resulting in unnecessary payment of higher
price by the common man, said Harpreet Singh. The confusion stems from the
classification as a ‘composite’ or a ‘mixed’ supply. A composite supply, such
as a charger bundled with a mobile phone, will ruesult in the tax on the
primary item, handset in this case, even if the rate on charger may be higher.
In contrast, in case of a mixed supply — such as a Diwali hamper containing fruits
(zero duty), mithai (5%) and soft drinks (28% plus cess) — the highest rate
will be applied on all items. In most cases, AARs have held a basic AMC as a
composite supply, which means 18% GST even if, say, a compressor that attracts
a higher levy is replaced. But in some cases, such as the one involving
multinational engineering group Sandvik’s equipment parts supply and services
agreement, which includes supply and replacement of spare parts, the Rajasthan
AAR and the Appellate Authority have classified it as a mixed supply, creating
confusion for some companies and tax practitioners. Another tax consultant with
a leading firm, however, said the issue has been sorted out as the principal
supply in case of an AMC is a service. It is more or less a settled issue, the
consultant said. The tax practitioner said there was some confusion in case of
solar equipment too but that arose from attempts to put all goods and services
in the concessional bracket of 5% GST.
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YOU MAY BE PAYING HIGHER TAX ON ANNUAL MAINTENANCE BILLS
Conflicting rulings from
tax authorities of advance rulings in different states on applicable goods and
services tax rate on annual maintenance contracts have caused considerable
confusion in the industry. The various Authorities of Advance Rulings (AARs)
have pegged GST on annual maintenance contracts (AMCs) that companies offer to
customers of various products and equipment at 12%, or 18%, or even 28%,
industry experts said. Latest one on Thursday from appellate authority for
Advance Rulings in Rajasthan has further added to confusion. It upheld AAR’s
decision that taxability of services provided on customer's equipment under
comprehensive maintenance services agreement and equipment parts supply and services
agreement which includes supply and replacement of spare parts to be taxed at
chargeable applicable rates of 12%, 18%, 28% which ever is higher. AMCs are
common practice for maintenance of all household consumer durables and in some
cases even automobiles. Also, companies across different industries take up
AMCs for maintenance of their large machinery. The situation is particularly
worrying companies that rely on AMCs for maintenance of their equipment,
experts said. They fear that tax authorities may question industry on treatment
of these contracts. Also, AMC service providers are unsure as to what is the
rate of tax they should collect from consumers. Authority for Advance Rulings
helps taxpayers ascertain their tax liability in advance. But AARs of different
states have given divergent rulings on applicable GST on AMCs with some
considering them as ‘composite supply’ and some as ‘works contract’. This has
prompted experts to seek clarity from the central government. With conflicting
AARs on taxability of AMC contracts, the need of the hour is for the government
to come out with a circular covering all varieties of maintenance contracts and
providing guidelines on taxability in each case, said Harpreet Singh. In a
ruling, Uttar Pradesh AAR had termed AMC as a ‘composite contract’ that
includes supply of services and goods both, and held it will face 18% GST.
Principal supply of service and goods is merely incidental to the maintenance
contract, it had said. Maharashtra AAR on a plea relating to taxability of an
AMC ruled that keeping customer's engines in good working condition was a
'composite supply' with provision of services being principal supply. It held
that since the contract involved supply of two or more goods or services
together in the normal course of business, it would constitute ‘composite
supply', implying a rate of 18%.
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AUTO PARTS MAKERS HOPE NEW GOVT WILL SLASH THEIR GST RATES
The auto parts
manufacturing industry — which is one of the city’s oldest and leading industry
— is facing many problems. Businessmen in this industry are hoping the next
union government, to be formed in about a month’s time, would pay heed to these
issues. According to the city’s businessmen, the major problem being faced by
the auto parts industry is the highest rate of 28% tax, due to which their
sales have taken a hit. In addition, the industry is facing several other
problems, which remain unsolved. According to Gurpargat Singh Kahlon, Export of
auto parts is on the decline for quite some time now, and it is because of the
fact that no new incentive schemes were introduced by the union government for
the industry, while the existing duty drawback — the only incentive available
for auto parts exporters — is not much to support us in any way. We are hoping
that when the new government is formed at the Centre, our demands will be
looked into, and hopefully the situation will change for the industry. Kahlon
added: Ever since GST was introduced, our investment in the business increased
manifold. We are hopeful the next government will reduce the rate of GST on the
industry to make it to 5%, so that it’s a win-win situation for both
manufacturers and customers. According to another auto parts manufacturer,
Jaswinder Thukral, president of Janta Nagar Small Scale Manufacturers
Association: Though there are several items in our industry on which 18% GST is
applicable, the biggest problem of our industry is the 28% GST, which has led
to the birth of other problems. Due to this high tax rate, the demand for auto
parts has certainly taken a hit. Lakhs of rupees of our capital now remain
blocked with the government in forms of GST refunds. Had it not been the case,
we would have used this money to increase our sales. Thukral added: I think the
present central government was not in a mood to give any relief to our
industry, and was deliberately doing so for unknown reasons. But now, the time
is about to change, and after a month, when a new government led by Congress
is, hopefully, formed at the Centre, our industry will definitely be given the
required relief.
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NO 'GIFTS' AT MUMBAI CUSTOMS, CHINESE E-TAILERS LOOK ELSEWHERE
Courier shipments to
Mumbai airport have halved since December following a government crackdown on
packages shipped as gifts by Chinese e-commerce companies to evade duties, a
top customs officer told. We've totally stopped these gifts and sample
consignments, and to a large extent, what used to come as 'documents of no
commercial value' too have come down dramatically, said the official, who did
not want to be named. General courier load in Mumbai terminal has come down by
40-50%. India exempts items valued up to 5,000 from all taxes as a way of
allowing non-resident Indians to send gifts to families back home. Customs
officers at the Mumbai air terminal were directed not to grant clearances to
such shipments, as per a letter dated December 28 from the Office of the
Commissioner of Customs for the Mumbai jurisdiction. This followed a government
crackdown on such Chinese imports. The Mumbai terminal was processing close to
2,00,000 packages monthly at the end of last year, but that has since dropped
to around 1,00,000 packages, the official said. Now, the Chinese e-tailers have
begun diverting shipments to other ports, multiple people with direct knowledge
of the issue said. The total volume of such shipments could not be
independently verified. Chinese e-tailers have long been criticised for evading
duties and taxes, causing a loss to the exchequer and giving them unfair
advantage over local counterparts. If the misuse of gift channel for
cross-border commercial shipments stops, an even-playing field will be created
for India-based e-commerce platforms, startups and SMEs, said Sachin Taparia,
founder and Chairman of LocalCircles, a social network that has about 30,000
startups as members. In September, Taparia wrote to the commerce ministry
urging the government to bar Chinese e-commerce players from misusing the
customs duty exemption.
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MONEY-LAUNDERING CASE: ED FILES SUPPLEMENTARY CHARGESHEET
AGAINST CHAUTALA, NAMES IMMOVABLE ASSETS
The Enforcement
Directorate (ED) filed a supplementary chargesheet against former Haryana chief
minister O P Chautala in connection with a money-laundering case on Thursday.
The agency mentioned in the chargesheet that immovable assets worth Rs 3.68
crore were attached by it on April 13 in relation to four properties in Delhi,
Panchkula and Sirsa. It said the investigation conducted so far under the
Prevention of Money Laundering Act (PMLA) had revealed that Chautala laundered
the disproportionate assets by depositing illegal cash in the bank accounts of
his and his family members. The ED said this was done to avoid the back trail
of money, merge the illegal cash with genuine income and show it as untainted.
This laundered money was further used to purchase new properties or carry out
construction on the already acquired properties. The chargesheet was filed
before special judge Kamini Lau, who posted the matter for consideration on May
16.
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8834 POLLING STATIONS IN PLACE FOR SMOOTH CONDUCT OF POLLS
Bihar will go to Polls in
fourth phase of General Elections 2019 on 29 April. Polls will be held in five
Parliamentary Constituencies (PC) namely Darbhanga, Ujiyarpur, Samastipur (SC),
Begusarai and Munger. 66 candidates including 20 Independents and 3 women will
be contesting for the 5 Lok Sabha seats. As per the data available, there are
87,02,313 voters in these 5 PCs, out of which 46,35,071 are males, 40,67,009
females and 233 third gender voters. 8,834 Polling stations have been set up in
place for smooth conduct of Polls in the state.
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IGNORE THOSE WHO SAY MODI HAS ALREADY WON & IT'S FINE NOT
TO VOTE, WARNS PM
Prime Minister Narendra
Modi on Friday exhorted voters not to fall into the trap of those who say that he
has already won the election, so it is fine not to vote. He asked people to
come out in large numbers to participate in the process. Some people are
creating an atmosphere that Modi ji has already won (the election) and it is
fine not to vote. Please don't fall into their trap. Voting is your right and
everyone must exercise it, Modi told reporters after filing his nomination from
Varanasi. The prime minister on Friday filed his nomination papers from the
Varanasi Lok Sabha seat, accompanied by top BJP and NDA leaders. The prime
minister offered prayers at a temple before he went to the Collectorate.
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ONLY 13 OUT OF THE TOTAL 173 CANDIDATES FIGHTING LS POLLS IN
DELHI ARE WOMEN
Only 13 out of the total
173 candidates fighting the Lok Sabha election in Delhi are women, putting
their share among the total number of contestants at a dismal seven per cent.
Each of the major political parties - Congress, BJP and Aam Aadmi Party - has
fielded only one woman candidate in Delhi, which goes to polls on May 12. Of
the 13, only one -- Meenakshi Lekhi of the BJP -- got elected. The Congress has
fielded its veteran leader and former Delhi Chief Minister Sheila Dikshit, the
BJP and the AAP have named lawyer-politician Lekhi and Atishi Marlena
respectively in the contest. Nominations of 173 candidates have been found
valid for the Lok Sabha polls in Delhi. As many as 349 candidates filed
nominations from April 16 till Tuesday, the last date to file the nomination
papers. In Delhi, there are over 1.43 crore voters, and of these, 64 lakh are
eligible women voters while there are 72 lakh male voters. Besides, there are
669 voters who belong to the third gender.
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IOC, BPCL, OIL MAY BE AT RISK AS GOVT SEEKS MORE SHAREHOLDER
RETURNS: FITCH
Financial profiles of
state-owned oil marketing companies such as Indian Oil Corp (IOC) may be at
risk in the near to medium term due to pressure from the government to increase
shareholder returns Fitch Ratings said Friday. Struggling to meet budget
targets, the government had in the just concluded fiscal (2018-19) asked
cash-rich PSUs to pay second interim dividend as well as undertake share
buyback. The share buybacks, wherein a company repurchases its shares and
extinguishes them, helped the government get money while maintaining its
control over them. The oil marketing companies (OMCs) IOC, Bharat Petroleum
Corporation Ltd (BPCL) and upstream entity Oil India Ltd (OIL) declared high
interim dividends of 67.5 per cent to 110 per cent of the face value of their
shares, and undertook share buybacks in the financial year ended March 31,
2019, Fitch said in a statement. These, it said, were likely to have been
driven by pressure from the Indian government to increase shareholder returns
to shore up the weak fiscal position and finance promises made ahead of
elections in April and May 2019. The higher shareholder returns will put more
pressure on the financial profiles of the companies, which have large
investment plans for the next two years, Fitch said. IOC and BPCL are in the
process of upgrading and expanding their refineries to meet the deadline for
producing ultra-clean Euro-VI grade fuel by April 2020, and improving
downstream integration in petrochemicals. OIL plans to augment its domestic
production and reserves. In addition, BPCL and OIL are likely to invest in an
upcoming Mozambique LNG project after a final investment decision on the
project, which is expected in the second half of 2019, it said. OIL has limited
headroom in its current standalone credit profile of 'bbb-', which may be
revised down if weakening of its financial profile results in net leverage
(adjusted net debt/operating EBITDAR) exceeding 2.5x. However, in such an
event, OIL will benefit from one notch of support from the state, resulting in
the final rating remaining unchanged at 'BBB-', the rating agency said. In
comparison, IOC and BPCL have more headroom in their 'bb+' standalone credit
profiles and are likely to remain resilient even in case of any modest
weakening in their financial profiles. The OMCs additionally face the risk of
government intervention in fuel prices during the elections. However, Fitch
does not foresee any significant impact on OMCs' financial profiles on account
of fuel price controls. We expect the OMCs to make up the losses in the
subsequent period during the year in such an event, the statement said.
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COMMERCE DEPARTMENT PLANS TO DEFER RAISING DUTY ON 29 US GOODS
The department of commerce
is likely to propose extending the deadline to impose higher duties on 29 goods
imported from the US by another month. India had set the extant deadline of May
2 after extending it multiple times despite announcing it in June last year in
the hope of resolving its trade issues with the US including the Generalised
System of Preferences (GSP), agriculture and dairy to medical devices and
telecom. We will propose an extension of the deadline, said an official in the
know of the development. These levies had been proposed in response to the US
raising duties on steel and aluminium imports from India and other countries
last year. The department had contemplated extending the deadline on a weekly
basis but the suggestion did not find favour with the finance ministry, said
another official aware of the intense discussions that took place on Thursday.
New Delhi had weighed the option of allowing the tariffs to kick in from April
1 after the US announced the withdrawal of special duty benefits available to
$5.6 billion of Indian exports on March 5. By statute, these changes may not
take effect until at least 60 days after the notifications to the US Congress
and the government of India. GSP removal will be enacted by a Presidential
Proclamation. As per the first official, India may consider imposing the
tariffs earlier if the US withdraws the GSP benefits earlier. The two sides
have had around eight rounds of talks to resolve their bilateral trade issues
after talks failed in March. The Indian Chamber of Commerce on Thursday urged
to the US government to take a long-term view on US-India business relationship
especially when the global economy is likely to get into recession during 2019
and the ongoing elections in India. ICC felt it would be a good idea to wait to
discuss these issues with the new government during June or July, the chamber
said in a statement.
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TRIBUNAL GIVES GOVT 3 WEEKS TO DECIDE ON BIMAL VERMA'S PLEA
A military tribunal on
Thursday gave three weeks to the Defence Ministry to decide on a petition by
Vice-Admiral Bimal Verma, challenging the appointment of Vice Admiral Karambir
Singh as the next Navy Chief overlooking his seniority. Vice Admiral Verma, on
Tuesday once again moved the Armed Forces Tribunal here challenging appointment
of Vice Admiral Singh to the top post after the defence ministry did not
respond to his statutory complaint. Verma, commander-in-chief of the Andaman
and Nicobar Command, approached the Armed Forces Tribunal (AFT) on April 8, but
withdrew his petition the next day after the tribunal asked him to first
explore internal remedies. The AFT has directed the government to dispose of
Vice Admiral Verma's petition by May 15 and fixed May 20 as the next date of
hearing in the case, Verma's lawyer Ankur Chhibber said. He said though the
government sought four weeks' time, the AFT granted only three weeks to it.
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NIRAV MODI, MEHUL CHOKSI'S 13 LUXURY CARS ON AUCTION
Thirteen luxury cars owned
by fugitive diamantaires Nirav Modi and his uncle Mehul Choksi went on online auction
by the Metals & Scrap Trading Corporation, on Thursday. The auction is
being carried out on behalf of the Enforcement Directorate (ED) which had
seized these vehicles from Nirav Modi and Mehul Choksi last year. The vehicles
include a silver Rolls Royce with a reserve price of ₹1,33,00,000,
a Porsche worth ₹54,60,000, a red Mercedes Benz ₹14,00,000, a white
Mercedes Benz ₹37,80,000 and a BMW ₹9,80,000. Besides, there
are two Honda Brio, Toyota Innova, Honda CRV, Toyota Fortuner, Skoda Superb
Elegance, Toyota Corolla Altis and Toyota Innova Crysta. Of these 13 vehicles,
the BMW and Toyota Innova Crysta belong to Choksi and the rest belong to Modi,
his family and his group companies.
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NIRAV MODI TO APPEAR FOR REMAND HEARING VIA VIDEOLINK FROM
JAIL ON FRIDAY
Nirav Modi, undergoing
extradition proceedings in the UK in the $1 billion Punjab National Bank (PNB)
fraud and money laundering case, is set to appear before a London court for a
remand hearing on Friday. The 48-year-old, who has been behind bars at
Wandsworth prison in south-west London since his arrest last month, is set to
be produced before a judge at Westminster Magistrates' Court via videolink from
the jail. The hearing follows his bail being rejected by Chief Magistrate Emma
Arbuthnot on March 29 on the grounds that there was a substantial risk he would
fail to surrender. This is a case of substantial fraud, with loss to a bank in
India of between $1-2 billion. I am not persuaded that the conditional bail
sought will meet the concerns of the government of India in this case, Judge
Arbuthnot had noted in her ruling. The hearing this week takes place as per the
28-day time frame for judicial remand in such cases. The hearing on Friday is
expected to be procedural unless some new factors are placed before the court
to consider. Modi can make a third bail application at Westminster Magistrates'
Court but only if the grounds for the bail plea are substantially different.
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MEHUL CHOKSI APPROACHES BOMBAY HC, SAYS NOT AVOIDING PROBE
Absconding jeweller Mehul
Choksi has approached the Bombay High Court stating that he had not
deliberately avoided joining the investigation against him in the alleged
Punjab National Bank (PNB) fraud case but was unable to return to India because
of a medical condition. Choksi has filed an appeal against the trial court’s
order, where he has stated that his inability to return cannot be seen as
refusal to return and hence, the provisions of the new legislature, Fugitive
Economic Offenders Act, cannot be invoked against him. Choksi, in his plea,
stated that the Enforcement Directorate (ED) has alleged that he left the
country under suspicious circumstances in January 2018 and is avoiding
investigation despite a summons. But when he left the country, the FIR in the
case had not been filed against him. Choski has again stated that his medical
records show that he has several blocked arteries and that he was advised a
bypass surgery, following which he had travelled abroad. He has further said he
is constrained from travelling as he needs continuous monitoring and medical
supervision. Choksi has filed another petition in an appeal against the trial
court’s order rejecting his plea seeking cross-examination of ED officials, who
submitted a report under the FEO Act against him. Choksi claims that while
seeking to declare him a fugitive economic offender under the Act, the ED has
considered statements of 19 people. He has sought for cross-examination of the
witnesses, based on which the provisions of the Act were invoked. The petitions
will be heard in June.
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MOVIE ON MODI GIVES HIM CULT STATUS, WILL TILT ELECTORAL
BALANCE: EC TO SC
The biopic on Prime
Minister Narendra Modi is a hagiography, which treats the subject with undue
reverence, and its public screening during poll campaign will tilt the
electoral balance, the Election Commission (EC) has told the Supreme Court
while opposing the release of the movie starring Vivek Oberoi before the polls end
on May 19 Chief Justice Ranjan Gogoi on the film titled 'PM Narendra Modi', the
poll panel said that the biopic produces a political environment where an
individual acquired cult status and its public screening during the period when
model code of conduct is in operation would favour a particular political
party. The EC said there are several scenes depicting a major opposition party
as corrupt and showing them in poor light. Their leaders have been depicted in
such a manner that their identification is clear and obvious to the viewers. It
said that the biopic was more than a biography and was a hagiography (which
treats the subject as saints and gives undue reverence) and the construct of
the movie was unabashedly uni-dimensional, which puts an individual on a higher
pedestal through use of specific symbols, slogans and scenes. The report was
submitted after the apex court had on April 15 directed the EC to re-examine
its earlier order and take an informed decision on banning pan-India the
release of the biopic after watching the full movie. The court had asked the
poll panel to provide its report to the producer of the movie. The committee is
of the considered view that the public screening of the movie 'PM Narendra
Modi' during the period of model code of conduct will tilt the electoral
balance of the particular political party, therefore, the public screening of
the movie 'PM Narendra Modi' should not be allowed till last date of poll on
May 19 in the ongoing elections. The report further said, Eulogising of the
character Narendra Modi is very clear right through the movie. More than
biography, it is hagiography. It also said that the biopic produces a political
environment where an individual acquired cult status. The construct of this
135-minute movie is unabashedly uni-dimensional, which puts an individual on a
higher pedestal through use of specific symbols, slogans and scenes. It ends up
eulogising an individual, giving him a saintly status.
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ARMY CONCERNED ABOUT HUMAN RIGHTS, BUT TIME HASN’T COME FOR
ANY RETHINK ON AFSPA: GENERAL BIPIN RAWAT
Bipin Rawat has dismissed
the contention that time has come to repeal the controversial Armed Forces
Special Powers Act (AFSPA), which gives the security forces special rights and
immunity in carrying out operations in disturbed areas like Jammu and Kashmir
and the northeast. I do not think time has come to even rethink on AFSPA at the
moment, Gen Rawat was quoted as saying by PTI. He, however, insisted that the
Army has been taking adequate precautions in protecting human rights while
operating in such areas. We have never been strong in applying the force the
way it could be applied (under AFSPA). We are very concerned about human
rights. We are absolutely concerned about collateral damage. So do not get too
much concerned because we are taking adequate measures and precautions, he
said. The AFSPA is an enabling provision which allows the Army in particular to
operate in such difficult areas and let me assure you that the Army has got quite
a good human rights record. The Army has been pursuing an aggressive
anti-terror policy in strife-torn Jammu and Kashmir and has given a befitting
reply to all ceasefire violations by Pakistani troops along the Line of
Control. A total of 860 incidents of ceasefire violations by Pakistan have been
reported in 2017 as against 221 the year before.
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BJP BANKS ON PM MODI CHARISMA TO WIN JHARKHAND SEATS
To retain Chatra, Palamau
and Lohardaga Lok Sabha seats in Jharkhand, going to the polls on April 29 in
the fourth phase of the seven-phased 2019 elections, the Bharatiya Janata Party
(BJP) is banking heavily on Prime Minister Narendra Modi's charisma. My
government works for every section of the society without taking into
consideration whether they go to temple, mosque, church or gurdawara, he said.
He also reminded voters that his government played a crucial role in the rescue
of 44 Kerela nurses and a priest from Afghanistan. We are hopeful that Modi and
Amit Shah's rally will have impact on voters and the party will win all the
three seats again. Voters want Modi to become the Prime Minister again, BJP
spokesperson Pradeep Sinha told. The Congress is hopeful of winning both
Lohardaga and Chatra seats. The alliance will win all the three Lok Sabha
seats. There is no impact of the Modi rally.
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COURT RESERVES ORDER ON CHRISTIAN MICHEL'S CHARGE SHEET LEAK
PLEA
A court here on Thursday reserved
order on the plea of British national and alleged AgustaWestland VVIP chopper
deal middleman Christian Michel's plea seeking a free and fair trial as the
fresh supplementary charge sheet filed in the case was accessed by some media
outlets. Special Judge Arvind Kumar said that he will deliver order on the plea
on May 3. The Enforcement Directorate has opposed Michel's plea, saying that it
is not maintainable.
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J&K: TWO TERRORISTS KILLED IN ENCOUNTER IN ANANTNAG
Two terrorists were killed
in an encounter with security forces in Bagender Mohalla of Bijbehara in South
Kashmir's Anantnag district on Thursday. The encounter broke out between
terrorists and security forces early this morning. A search operation is
underway. According to Jammu and Kashmir police, Incriminating material
including arms and ammunition was recovered from the site of encounter in
Bagender Mohalla of Bijbehara, Anantnag, where two terrorists were killed.
Police has registered a case.
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EC LETTING PM MODI VIOLATE MODEL CODE: MAYAWATI
Mayawati on Thursday
accused the Election Commission of ignoring the alleged model code violations
by Prime Minister Narendra Modi. PM Modi is moving about freely despite facing
numerous serious allegations of the model code of conduct violation, thanks to
the ECI. That's why he has started crossing the limit as far as respect for
women is concerned. Hasn't the BJP/RSS imposed a lajawab neta upon the country?
Mayawati asked. In another tweet, the former Uttar Pradesh chief minister hit
out at the Bharatiya Janata Party for asking who is the prime ministerial face
of the Opposition. Why is the BJP & co. repeatedly insulting masses by
claiming that the Opposition lacked leadership for the post of the Prime
Minister? Who after Nehru was the arrogant question asked earlier too. But
people gave a befitting reply to all this nonsense and will surely give another
one shortly, the BSP chief added.
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ILLEGAL MINING: ED ATTACHES PROPERTY OF FIRM OWNED BY
KARUNANIDHI’S GRANDSON
The Enforcement
Directorate has provisionally attached movable and immovable properties worth ₹40.34
crore in an illegal mining case involving Olympus Granites Pvt Ltd in which
Alagiri Dhayanidhi, son of MK Alagiri, former DMK strongman and son of party
patriarch M Karunanidhi, is a director. According to an ED press release, the
company, its shareholders/promoters/directors, including S Nagarajan and
Alagiri Dhayanidhi, criminally conspired and indulged in illegal mining
activities in adjacent TAMIN-leased land, thereby causing wrongful loss to the
government and corresponding wrongful gains to themselves. The ED had initiated
investigation under the Prevention of Money Laundering Act (PMLA) against
Olympus Granites to identify the crime proceeds on the basis of an FIR and
chargesheet filed by the Tamil Nadu police against the company, its promoters
and directors and other individuals. The chargesheet disclosed commission of
various offences, including under the Indian Penal Code, 1860, and the
Explosive Substances Act, 1908 by the accused consequent to the illegal granite
mining indulged by the company and other accused. Investigation revealed that
Olympus Granites and its promoters/shareholders/ directors derived proceeds of
illegal quarrying. The proceeds derived therefrom were further incubated,
resulting in further accrual of proceeds of crime, all of which were
camouflaged as business income/earnings, the ED said.
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DOVAL DEFAMATION CASE: DELHI COURT GRANTS EXEMPTION FROM
APPEARANCE TO JAIRAM RAMESH
A Delhi court granted
exemption to Congress leader Jairam Ramesh from personal appearance on Thursday
but directed him to be present before it on May 9 in a defamation case filed
against him by Vivek Doval, son NSA Ajit Doval. Accused no 1 Jairam Ramesh has
filed exemption application through his counsel Omar Hoda. Considering the
grounds mentioned in the application, the same is allowed only for today, the
court said. Samar Vishal also granted bail to The Caravan’s editor-in-chief and
its reporter, who appeared before the court after they were summoned as accused
in the case. Since the offence of defamation under section 500 IPC is bailable
in nature, both the accused are admitted on bail on furnishing personal bond
and surety bond in the sum of Rs 20,000 each. Bail bonds furnished and
accepted, the court said. The court then asked the lawyer appearing for Doval
and undertook to supply the copies of all the evidence under due acknowledgment
to the defence counsels itself.
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UP CM YOGI ADITYANATH ALLEGES SAMAJWADI PARTY HAS TURNED
AZAMGARH INTO ‘STRONGHOLD OF TERRORISM’
Yogi Adityanath Thursday
alleged that the Samajwadi Party had turned Azamgarh, which was once known in
the field of education and literature, into a stronghold of terrorism. The
Samajwadi Party (SP) and the Bahujan Samaj Party (BSP) have crime in their DNA
he said. Once Azamgarh was known in the field of education and literature but
the Samajwadi Party turned it into a stronghold of terrorism, he said. The SP
and the BSP through mischievous means made Azamgarh a fortress of terror and
crime to defame it and we have come to pull it out of it, the chief minister
said. They have crime in their DNA and that is why they support cases like the
Batla House (encounter case), he said We must link Azamgarh to art and culture
and not with terrorism and crime, said Adityanath, who was barred from
campaigning for 72 hours by the Election Commission for his ‘Ali-Bajrang Bali
remark. He said when he was attacked here, people stood by him.
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'TUM SE NA HO PAYEGA': CONGRESS AFTER BJP DENIES PM MODI
PRESSER REPORTS
The Congress on Wednesday
used BJP denial of media reports of Prime Minister Narendra Modi holding a
press conference in Varanasi to take a dig at him, and said,tum se na ho payega
(you will not be able to do it). After media reports claimed that Prime
Minister Modi would hold a press conference on April 26 in Varanasi, the BJP
clarified that there is no presser scheduled either on Thursday or Friday. Modi
is scheduled to visit Varanasi from April 25-26 to file his nomination. Seizing
on to the BJP clarification, the Congress tweeted: Tum se na ho payega. Rahul
Gandhi has repeatedly attacked Modi, saying that he is scared to face a press
conference. You ask me questions, but you are scared of him. Ask him 'Mr Prime
Minister why are you scared of the people of India, why are you scared of the
press'. We will defeat him in the polls, Gandhi had said.
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OPPOSITION WILL GET 'ZERO BATTEY SANNATA': PM MODI
Narendra Modi Thursday promised
to work in mission mode to rid Bundelhand of its water scarcity, while also
claiming that the opposition will be reduced to 'zero battey sannata' in the
Lok Sabha polls. Opposition leaders are going with long faces after half of the
polling is over as they know the outcome, he said. The opposition will get
'zero battey sannata', he added, playing on the name of a Hindi movie, 'Nil
Battey Sannata', which means zero divided by zero - a slang for nothing.
Stating that he understands well the problem of acute water scarcity in the
region, which is also responsible for its backwardness, the prime minister said
it will be handled in mission mode. I feel the struggle for water faced by my
sisters. This challenge also has been accepted by your chowkidar, said Modi. He
promised to start work to provide water to the parched region in mission mode
within a month after the announcement of the election result, if they return
the Modi government to the power again. He said he would get women rid of water
scarcity just like he freed them from smoke by providing LPG connections and
the personal humiliation by providing toilets. He also promised to establish a
'Jal Shakti Mantralaya' to deal with the country-wide problem of water scarcity
by reviving rivers. If voted to power, his next government would make an all
out effort to ensure that water reaches people though all available means just
like, he said, his government provided electricity to all villages in the last
five years.
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THEIR CHIEF RAM RAHIM IN JAIL, DERA FOLLOWERS YET TO DECIDE
WHO TO VOTE FOR
Since the self-styled
godman Gurmeet Ram Rahim was sentenced to life imprisonment in January for
killing a journalist, followers of his Dera Sacha Sauda have been lying low at
the sprawling 800-acre campus outside Sirsa in Haryana. The followers say they
are also unsure about who to support in this election. The Dera has been an important
vote bank for parties for over a decade. In 2007, it had formed a political
affairs wing which decided which political party or politician it will support.
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US DECISION TO END IRAN OIL WAIVERS GIVES AMMO TO PM MODI'S
OPPOSITION
US President Donald
Trump’s move to pressure Iranian oil importers is turning into a headache for
India’s government in the midst of a re-election battle. Indian Prime Minister
Narendra Modi, whose government is one of the world’s biggest importers of
Iranian crude, is now facing opposition attacks over his inability to win
concessions from Washington. Criticism that his diplomacy has failed to
guarantee continued access to cheaper Iranian oil comes in the middle of
India’s weeks-long general election, which began on April 11. The US ban on
exporting crude oil from Iran to India, is it not an attack on India’s
sovereignty? Randeep Singh Surjewalal, a Congress Party lawmaker and national
spokesman, said on Twitter this week. Why is Modiji, who falsely boasts of his
bravery, now silent?Another national opposition party, the Communist Party of
India (Marxist), also condemned the US decision for its negative impact on
India and said Modi must continue buying Iranian oil, which is close-by and
comparatively cheap. The party also urged foreign minister Sushma Swaraj -- who
has previously said India only recognized United Nations-imposed sanctions --
to reject Trump’s illegal move. Any step to stop importing oil from Iran will
harm India’s energy security and national interests, the communist party said.
Since the United States has unilaterally imposed these illegal sanctions, the
BJP-led government must reject these sanctions and continue to buy oil from
Iran which is in the country’s interests. Although Modi’s administration faced
political pressure over rising petrol prices when crude oil surged in October
-- forcing the government to cut taxes on petrol and diesel -- prices at the
pump haven’t gone up significantly since the election. But gasoline prices
could tick up after they begin to reflect the spike in crude oil following the
White House’s announcement that they would eliminate Iran oil waivers by May 2.
That’s unless Modi intervenes by ordering the oil companies to absorb the
difference, which they have done in the past.
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US MAY SOON IMPOSE ADMISSION BONDS TO KEEP OVER-STAYING
IMMIGRANTS IN CHECK
A memo issued on Monday by
US President Donald J. Trump has ordered the Department of State and the
Department of Homeland Security (DHS) to reduce overstays of business and tourist
visitors and of other non-immigrant visa holders. A development which may hit
Indians hard is the direction by Trump to impose admission bonds as a means of
improving compliance with the terms and conditions of 'non-immigrant visas'.
The Presidential Memo refers to 'all classes of non-immigrant visas, which is
all encompassing. It would cover visas given to students, workers and their
dependants. Looks like admission bonds, will be commonly used, in the future,
Mitchell Wexler, California based partner at Fragomen, a global firm
specialising in immigration laws, told. The memo does not contain many
specifics, nor does it impose any immediate restrictions, but it calls upon US
agencies to provide recommendations and/or status reports to President Trump within
120 days. As per the Open Doors Report released last November, there were 1.96
lakh Indian students in the US, constituting nearly 18% of the total
international students. The Entry-Exit Overstay Report (2018) issued by DHS
shows that nearly 1.27 lakh Indian students were expected to leave the US
during the fiscal 2017 (period October 1, 2016 up to September 30, 2017). Of
which 3.45% overstayed. The nitty-gritty will need to be studied once the
various agencies issue policies including introduction of admission bonds, says
an immigration expert attached to a technology company.
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US OFFICIAL INSISTS ON ZERO OIL IMPORTS FROM IRAN
Alice Wells, a senior US
official who met her counterparts from the Ministry of External Affairs (MEA)
and NITI Aayog this week, insisted that oil imports from Iran needed to be cut
to zero to avoid sanctions, but assured that Indian investments in the Chabahar
port could continue. Wells, who held meetings in New Delhi on April 23-24 following
the US government’s decision to withdraw the waiver to eight countries
including India for oil import from Iran, also discussed investments in the
defence sector, a government official told. On the Chabahar port being
developed by India in Iran, Wells assured that the sanctions would not affect
investments, the official added. Rajiv Kumar also participated in the
discussions with Wells, who is the US Principal Deputy Assistant Secretary for
South and Central Asia. Indian officials clarified that the country had
substantially cut down on its oil imports from Iran over the last few months,
but the US is insisting that it be brought down to zero, the official said.
Although India may not want to officially declare that it would stop sourcing
oil from Iran completely, the circumstances are such that it might not be
logistically possible to continue imports, another official explained. The
banks and financial institutions involved in the transactions in countries that
continue to do trade with India may refuse to stay involved as they risk being
blacklisted by the US. Shipping lines, too, would not want to be engaged in
trade with Iran fearing sanctions, the official said. Even a bank like the UCO
Bank, which operates the rupee-rial account for a barter-like trade between
India and Iran, could get into trouble with the US if it continues to fund
trade with Iran after the waiver expires on May 2, he pointed out.
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UNPROFITABLE WHATSAPP MAY HIT FACEBOOK'S PROFITABLE APPS: MARK
ZUCKERBERG
Facebook CEO Mark
Zuckerberg has admitted that WhatsApp, the popular but unprofitable messaging
application owned by his company, may be cannibalising the time Indians spend
on its other social media apps, posing a challenge to the American giant in its
largest market. Zuckerberg also reiterated his stand against data localisation
in countries with a weak rule of law, though he didn’t specifically name any.
You should expect that we won’t store sensitive data in countries where it
might be improperly accessed because of weak rule of law or governments that
can forcibly get access to your data, he said. Our stance on data localisation
is a risk. That is, if we get blocked in a major country, that will hurt our
community and our business. Zuckerberg said that he has been asked if the use
of private social platforms such as WhatsApp will replace the more public
platforms — Facebook and Instagram. As private platforms have grown, in some
cases we’ve seen some cannibalisation of the more public platforms in countries
like India, where WhatsApp is very popular, Zuckerberg said. But as the broader
pattern across the world shows that people want to use both private and public
platforms, I believe building out this private social platform is a much greater
opportunity than it is a risk, he said while discussing the social giant’s
financial results. WhatsApp remains unprofitable five years after it was
acquired by Facebook for $19 billion. While there is no official statement on
the reach of the messaging app in India, industry estimates peg its user base
at 400 million. WhatsApp’s usage and engagement are phenomenal, but I don’t
know how it can be monetised. Facebook isn’t as happening as it used to be, but
it is still the largest social media network, said Karthik Srinivasan, a
communications consultant and former national lead (social) at Ogilvy.
According to market research portal Statista, Facebook had about 300 million
users in India as of January this year, making it the company’s largest market.
The number of users stood at about 250 million at the end of 2017. Zuckerberg
said while so-called digital town squares such as Facebook and Instagram will
always be important, over time there’s an even bigger opportunity with the
digital living room to build a platform focused on privacy. I think we should
focus our efforts on building this privacy-focused platform, he told analysts.
Currently, Facebook’s News Feed brings in the bulk of the social network’s
revenue. Digital industry analysts are of the view that WhatsApp’s popularity
in India lies with people, who are coming online for the first time in smaller
towns as well as its usability even in regions with low internet bandwidth.
Indians have really taken to WhatsApp with free messaging, the ability to easily
share videos and photographs, and a lighter application that works in
low-bandwidth areas, said Sanchit Vir Gogia, founder of Greyhound Research.
Facebook, on the other hand, is a heavy application and has the nuisance of
advertisements, and you can’t even decide whose updates you want to see, Gogia
said. The California-based company has seen profit drop by more than half, to
$2.43 billion, in the first quarter of 2019 as the one-time reserve of $3
billion for an expected fine by US regulators wiped out most of its income. It
posted $15.08 billion in revenue, up 26% from $11.97 billion in the
year-earlier period.
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IMF CHIEF CALLS FOR OBOR 2.0, SAYS IT MUST GO ONLY WHERE
SUSTAINABLE
China's massive Belt and
Road infrastructure program should only go where it is needed and where the
debt it generates can be sustained, International Monetary Fund Managing
Director Christine Lagarde said on Friday. In brief remarks to nearly 40 world
leaders and other high-ranking officials at China's second Belt and Road summit
in Beijing, Lagarde said the program to build ports, railroads and other
trade-enhancing infrastructure was having a positive impact on growth in
certain countries but needed to be managed carefully. She called for a revamped
Belt and Road 2.0 to include increased transparency, an open procurement
process with competitive bidding and better risk assessment in project
selection. History has taught us that, if not managed carefully, infrastructure
investments can lead to a problematic increase in debt, Lagarde said in remarks
prepared for delivery at the conference. I have said before that, to be fully
successful, the Belt and Road should only go where it is needed. I would add
today that it should only go where it is sustainable, in all aspects. Lagarde
said that Chinese authorities were taking positive steps with a new debt
sustainability framework that will be utilized to evaluate projects. The
sustainability initiative was announced on Thursday as China seeks to allay
concerns that the Belt and Road plan to boost trade links was saddling poor
countries with debts they cannot repay. She also applauded the launch of a
green investment principle for Belt and Road projects at the Beijing
conference, emphasizing low-carbon and climate resilient investments. Debt
sustainability and green sustainability will strengthen BRI sustainability,
Lagarde said. The IMF chief said the Belt and Road initiative was helping to
stimulate infrastructure investment and developing new global supply chains.
She cited a new manufacturing zone in Kazakhstan linked to Belt and Road and
construction of a highway in Senegal linking three cities to the country's main
airport, which has helped underpin strong growth.
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WTO: FIVE COUNTRIES SEEK TO JOIN INDIA-EU TALKS ON IMPORT
DUTIES ON SELECT ICT PRODUCTS
India is likely to come
under more pressure at the World Trade Organization (WTO) to roll back import
duties on mobile phones, cameras and certain other products in the information
and communication technology (ICT) sector with five countries, including
Canada, the US, Thailand, Singapore and Chinese Taipei, seeking permission of
the dispute settlement body (DSB) to join the consultations the EU has
initiated with New Delhi on the matter. We are yet to arrive at a mutually
suitable date for consultations with the EU on the matter of duties imposed on
ICT products. The number of members who would want to be part of it may go up
further as there is a lot of interest in this case. However, we are very clear
that India has not violated any rule, a government official told. EU alleged
that India applied duties on a number of ICT products in excess of the rates it
has committed to at the WTO. The EU pointed out that as per India’s schedule of
commitments at the WTO (under the Information Technology Agreement of 1996),
New Delhi was supposed to apply zero per cent import duties on the identified
items. The levies affect EU exports worth €600 million per year, the EU said. India
levied customs duty on mobile phones and some other ICT items at 10 per cent
for the first time in July 2017 and later increased it to 15 per cent that
year. Despite protests from a number of WTO members, customs duties on mobiles
were further increased to 20 per cent in last year’s Budget. In October 2018,
India increased the basic customs duty on telecom equipment and imposed duties
on printed circuit boards used to make the equipment and several other telecom
products. New Delhi has so far argued that most of the items identified by the
EU and others were not covered under the ITA as these did not exist in 1996 and
the tariff lines were not included in the pact. The complainants , however, are
not satisfied with the argument. If the consultations between India and the EU
do not reach a conclusion, the EU may ask for a panel to settle the dispute. Canada,
too, pointed out that over 2016-18, it had exported the items identified by the
EU in its submission worth $40.2 million to India, the official said. Thailand
said from 2015 to 2017, it was India’s largest supplying market for digital
cameras accounting for 34.5 per cent of total imports. It said that in 2018,
India imported the identified products worth $318 million from Thailand.
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JAPAN SEEKS TO JOIN WTO DISPUTE CONSULTATIONS OVER INDIA’S
IMPORT DUTIES ON ICT GOODS
Japan has expressed
interest to join consultations in a dispute case filed by the EU in the WTO against
India’s import duties on some information and communications technology
products, including mobile phones, according to a communication of the World
Trade Organization. Japan is the sixth country which wants to join the consultations
sought by the European Union (EU) against India under the aegis of the WTO’s
dispute settlement mechanism. The other countries which have requested are
Canada, Thailand, the US, Singapore and Chinese Taipei. On April 9, the EU
dragged India into the World Trade Organization’s (WTO) dispute settlement
mechanism over Indian import duties on nine categories of information and
communications technology (ICT) products, including mobile phones and
components, base stations, integrated circuits and optical instruments. They have
alleged that imposition of duties infringes WTO norms as India has committed
zero per cent bound tariffs on these products. While bound tariffs or duties
refer to the ceiling over which a WTO member country cannot impose import duty,
the applied tariff is the duty which is currently in place. The EU has alleged
that despite India’s legally binding commitment in the WTO that it would not
charge any import duty on ICT products, India has been applying duties ranging
from 7.5 per cent to 20 per cent. These import duties are therefore in clear
breach by India of WTO rules. The levies affect EU exports worth 600 million
euros per year, the EU has said. According to WTO rules, seeking consultation
is the first step of dispute settlement process. If the bilateral consultations
requested by the EU with India do not result in a satisfactory solution, the EU
can request the WTO to set up a dispute panel to pass a ruling on the matter.
As per the WTO rules, these countries would have to seek approval from India
and the EU to join the consultation process. Japan in communication to the WTO
said it exports to India some of the products particularly cellular mobile
phones and their parts. A number of Japanese companies which export the
products at issue have continued to express their serious concerns on India’s
tariff increase on those products, it said. For these reasons, Japan has a
substantial trade interest in the consultations and wishes to join in the
consultation, it added. Japan looks forward to receiving confirmation of
acceptance of this request as well as being informed of the date and venue of
the consultations, the communication said.
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INDIAN INVESTMENT IN UK ON RISE DESPITE BREXIT: REPORT
The number of Indian
companies investing in the UK registered a jump over the previous year despite
the ongoing uncertainties around Brexit, according to a new report tracking
Indian investments in the UK. The annual 'India Meets Britain Tracker' released
in London on Wednesday finds that the number of Indian companies doing business
in Britain has increased from 800 in 2018 to 842 in 2019, with a combined
turnover of 48 billion pounds. The report, published by business advisory firm
Grant Thornton UK LLP and the Confederation of Indian Industry (CII), revealed
a more than doubling of the Corporation Tax paid by these companies to hit 684
million pounds, up from 360 million pounds in the previous year. The headline
figures in the Tracker are startling. They are testament to the strength and
entrepreneurialism of the Indian business community, with some companies
growing by more than 100 per cent year on year, UK minister for investment
Graham Stuart said. The minister pointed out that the figures are likely to see
a further jump from next year, when the UK's Corporation Tax, from the current
level of 19 per cent, will drop to 17 per cent. We will always welcome Indian
investments and we recognise India's importance as one of our most critical
bilateral investors, he said. Among some of the other highlight figures from
the Tracker, 24 per cent of Indian companies in the UK have at least one woman
on their board, up from 19 per cent last year, and they employ an estimated
104,783 people in the country. The report brings out in such graphic terms the
contribution that Indian businesses are making to the UK. We all wondered how
the Brexit process would have affected the investment sentiment from India and
now we have the answer – Indian business retains its positive outlook towards
the UK, said Ruchi Ghanashyam. Three companies in this year's Tracker reported
growth of more than 100 per cent, with the fastest growing of these being TMT
Metal Holdings Limited, with a growth rate of 649 per cent. This was followed
by Route Mobile (UK) Limited, which reported growth of 189 per cent, and BB
(UK) Ltd, which achieved turnover growth of almost 129 per cent. Tata Motors
Limited was named the Top Employer in the UK, employing over 43,000 people, and
Union Bank of India was named the Fastest Growing Financial Services Company.
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TALKED ABOUT STEPS WHICH CAN BE TAKEN TO IMPROVE SITUATION IN
KOREAN PENINSULA: PUTIN AFTER MEETING WITH KIM
Kim Jong Un and Russian
President Vladimir Putin met at a summit on Thursday intended to show
Washington is not the only power with enough clout to engage with Pyongyang on
its nuclear programme The first session, comprising one-on-one talks with just
a few aides present, lasted twice as long as the 50 minutes allocated in the schedule.
Putin said he and the North Korean leader had substantive discussions on issues
including the nuclear standoff. We talked, of course, about the situation on
the Korean peninsula, we exchanged views on how and what we can do so that
there are good prospects for an improvement in the situation, Putin said at the
start of the second phase of talks, involving larger delegations from each
side. Kim, said the situation on the Korean peninsula is an issue that the
world is very interested in. Sitting opposite Putin and the rest of the Russian
delegation, he said he had come to Russia to meet Putin personally and to
exchange views on the nuclear standoff. He said he wanted to to discuss issues
of strategic stability and joint management of the situation in the future, and
to develop our traditional relations to meet the demands of a new century. With
North Korea-U.S. talks stalled, the summit in Vladivostok provides Pyongyang
with an opportunity to seek support from a new quarter, Russia, and possible
relief from the sanctions hurting its economy.For the Kremlin, the summit is a
chance to show it is a global diplomatic player, despite efforts by the United
States and other Western states to isolate it. Russian officials have indicated
they will come out in support of a resumption of the six-way talks on
Pyongyang's nuclear programme, a long-standing format that had been sidelined
by the Trump-Kim diplomatic push. But with Moscow committed to upholding
international sanctions until North Korea dismantles its nuclear programme,
analysts said the summit was unlikely to produce any tangible help for
Pyongyang, beyond a show of camaraderie.
#For Source of Information copy and paste the heading in google.
Thanks & Regards,
CS Meetesh Shiroya
Thanks & Regards,
CS Meetesh Shiroya
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