General Affairs
PM Narendra Modi Bans Rs. 500, Rs. 1,000 Notes In War On Black Money
-
NEW DELHI: In a sudden address to the nation, Prime Minister Narendra Modi has announced that starting midnight, existing Rs. 500 and Rs. 1,000 notes can no longer be used for any transactions.
They must be deposited, starting Thursday and through December 30, at post offices and banks, he said, describing the move as essential to fight "the disease of black money."
New Rs. 500 and Rs. 2,000 notes, cleared by the Reserve Bank of India, will be introduced on Thursday.
The new Rs. 500 and 2000 notes will be issued on November 10
"Your money will remain yours...you need have no worry on this account," PM Modi said, stressing that the new notes will be in limited supply at first and will then be increased.
He spoke first in Hindi and then in English to share the details of the new policy.
For now, notes currently in use can be traded for upto Rs. 4,000 till November 24 and for larger amounts thereafter. Against notes that are deposited, withdrawals of upto Rs. 10,000 a day or 20,000 a week will be permitted for now.
PM Modi, urging the country to bear with "temporary hardships" in the implementation of the new rule, said that banks will be closed to the public tomorrow and ATMs will not work in some places for the next 48 hours and withdrawals will be limited till Friday to Rs. 2,000.
The PM said that though India is now "a global bright spot" with its fast-growing economy, corruption and black or undeclared money "are the biggest obstacles to our success."
"We are No 1 in rate of economic growth," he said, while adding that despite some progress, India still ranks at No 76 in world rankings for perception of corruption.
PM Modi said that since his government was elected, 1.25 lakh crores of black money "belonging to the corrupt" has been uncovered, through a series of measures including a voluntary disclosure scheme which has seen a good response.
The PM said that fake Rs. 500 notes are employed "by the enemy across the border" to sponsor deadly attacks.
They must be deposited, starting Thursday and through December 30, at post offices and banks, he said, describing the move as essential to fight "the disease of black money."
New Rs. 500 and Rs. 2,000 notes, cleared by the Reserve Bank of India, will be introduced on Thursday.
The new Rs. 500 and 2000 notes will be issued on November 10
He spoke first in Hindi and then in English to share the details of the new policy.
For now, notes currently in use can be traded for upto Rs. 4,000 till November 24 and for larger amounts thereafter. Against notes that are deposited, withdrawals of upto Rs. 10,000 a day or 20,000 a week will be permitted for now.
PM Modi, urging the country to bear with "temporary hardships" in the implementation of the new rule, said that banks will be closed to the public tomorrow and ATMs will not work in some places for the next 48 hours and withdrawals will be limited till Friday to Rs. 2,000.
The PM said that though India is now "a global bright spot" with its fast-growing economy, corruption and black or undeclared money "are the biggest obstacles to our success."
"We are No 1 in rate of economic growth," he said, while adding that despite some progress, India still ranks at No 76 in world rankings for perception of corruption.
PM Modi said that since his government was elected, 1.25 lakh crores of black money "belonging to the corrupt" has been uncovered, through a series of measures including a voluntary disclosure scheme which has seen a good response.
The PM said that fake Rs. 500 notes are employed "by the enemy across the border" to sponsor deadly attacks.
Scrapping Rs. 500, Rs. 1,000 Notes A Bold Decision: Black Money Investigation Team
-
NEW DELHI: The Special Investigation Team (SIT) on black money on Tuesday called Prime Minister Narendra Modi's announcement of demonetisation of Rs. 1,000 and Rs. 500 notes with effect from midnight a "bold" step, saying this would help in curbing the menace of stash funds.
"This is a very good decision. It is a bold step and will help to curb the menace of black money," SIT Chairman Justice (retd) MB Shah told PTI.
He said those people "holding untaxed assets and income" and who did not declare it under the two black money declaration windows announced by the government in the last two years "will suffer".
"Those people who have accumulated black money through corrupt means ... such money was in a few hands ... they will be affected and that is a good thing. At this time, this is a very good step taken by the government," he said.
"Such a step was necessary," Mr Shah said.
The SIT on black money was notified by the government, on the directions of the Supreme Court, in 2014.
In the biggest ever black money disclosure, at least Rs. 65,250 crore of undisclosed assets were declared under the one-time compliance window, also called the Income Declaration Scheme (IDS) that ended on September 30.
Last year, under a similar scheme for foreign black money holders, 644 declarations of undisclosed foreign income and assets were received, and just Rs. 2,428 crore was collected in taxes.
However, senior Income Tax department officials have said that despite these two windows being operationalised the taxman was encountering black funds during their search and survey operations including a recent search in Kolkata where a businessman who declared Rs. 3 crore under IDS was caught with possessing another Rs. 30 crore untaxed assets.
"This is a very good decision. It is a bold step and will help to curb the menace of black money," SIT Chairman Justice (retd) MB Shah told PTI.
"Those people who have accumulated black money through corrupt means ... such money was in a few hands ... they will be affected and that is a good thing. At this time, this is a very good step taken by the government," he said.
"Such a step was necessary," Mr Shah said.
In the biggest ever black money disclosure, at least Rs. 65,250 crore of undisclosed assets were declared under the one-time compliance window, also called the Income Declaration Scheme (IDS) that ended on September 30.
Last year, under a similar scheme for foreign black money holders, 644 declarations of undisclosed foreign income and assets were received, and just Rs. 2,428 crore was collected in taxes.
However, senior Income Tax department officials have said that despite these two windows being operationalised the taxman was encountering black funds during their search and survey operations including a recent search in Kolkata where a businessman who declared Rs. 3 crore under IDS was caught with possessing another Rs. 30 crore untaxed assets.
President Pranab Mukherjee Welcomes Demonetisation Of Rs. 1,000, Rs. 500 Notes
-
NEW DELHI: President Pranab Mukherjee has welcomed Prime Minister Narendra Modi's announcement of demonetisation of Rs. 1,000 and Rs. 500 notes.
He said Prime Minister Modi called on him on Tuesday evening and briefed about the government's decision to declare that all Rs. 1000 and 500 currency notes will cease to be legal tender from midnight on Tuesday.
President Mukherjee welcomed the bold step taken by the government which will help unearth unaccounted money as well as counterfeit currency, a Rashtrapati Bhavan statement said.
President Mukherjee called upon people not to panic and to follow the government's guidelines for exchanging currency notes of Rs. 1000 and Rs. 500 denomination available with them.
He reminded that all currency notes below Rs. 500 will continue as legal tender.
The President called upon all people to avail upon the opportunity provided by the government to exchange currency notes of Rs. 1000 and 500 denomination for new legal tender.
PM Modi also informed the President that these notes can be used for certain purpose for a limited period.
He said Prime Minister Modi called on him on Tuesday evening and briefed about the government's decision to declare that all Rs. 1000 and 500 currency notes will cease to be legal tender from midnight on Tuesday.
President Mukherjee called upon people not to panic and to follow the government's guidelines for exchanging currency notes of Rs. 1000 and Rs. 500 denomination available with them.
The President called upon all people to avail upon the opportunity provided by the government to exchange currency notes of Rs. 1000 and 500 denomination for new legal tender.
PM Modi also informed the President that these notes can be used for certain purpose for a limited period.
PM Narendra Modi Meets Military Chiefs To Review Security After Surgical Strikes
-
NEW DELHI: Prime Minister Narendra Modi was briefed today by the military chiefs on the situation along the border and the preparedness of the armed forces amid ceasefire violations after the surgical strikes in September.
Sources in the Prime Minister's Office say it is a routine meeting and takes place in regular intervals. The chiefs, they said, briefed the Prime Minister on the situation along the western border.
In the surgical strikes on September 29, the army targeted staging camps in Pakistan Occupied Kashmir for terrorists planning attacks on cities in India.
The strikes were seen as retaliation after Pakistani terrorists attacked an army base in Kashmir's Uri, killing 19 soldiers.
In the weeks following the strikes, there have been more that 60 ceasefire violations by Pakistani troops along the Line of Control and the International Border. Some 15 people have been killed and over 40 have been injured.
Pakistan has been relentlessly trying to push heavily-armed terrorists into India and there have been many infiltration bids aided by cover fire by Pakistani soldiers.
Indian forces have said they have responded to the firing with appropriate force.
The government has ordered nearly 175 schools to shut down because of the attacks. Thousands of villages along the de-facto border have been evacuated in recent weeks with residents moved to government-run shelters.
Reports suggest the Prime Minister will take stock of the situation at the border and also address concerns of the military.
Sources in the Prime Minister's Office say it is a routine meeting and takes place in regular intervals. The chiefs, they said, briefed the Prime Minister on the situation along the western border.
The strikes were seen as retaliation after Pakistani terrorists attacked an army base in Kashmir's Uri, killing 19 soldiers.
In the weeks following the strikes, there have been more that 60 ceasefire violations by Pakistani troops along the Line of Control and the International Border. Some 15 people have been killed and over 40 have been injured.
Pakistan has been relentlessly trying to push heavily-armed terrorists into India and there have been many infiltration bids aided by cover fire by Pakistani soldiers.
Indian forces have said they have responded to the firing with appropriate force.
The government has ordered nearly 175 schools to shut down because of the attacks. Thousands of villages along the de-facto border have been evacuated in recent weeks with residents moved to government-run shelters.
Reports suggest the Prime Minister will take stock of the situation at the border and also address concerns of the military.
2G Case: Court To Hear CBI's Rebuttal Arguments On December 2
-
NEW DELHI: A special court today said it would hear next month rebuttal arguments by CBI in the 2G spectrum allocation scam case in which former Telecom Minister A Raja, DMK MP Kanimozhi and 15 others were facing trial.
Special Judge O P Saini fixed the case for December 2 as the court was busy hearing arguments on framing of charges in the Aircel-Maxis case.
The CBI and all the 17 accused had earlier concluded their final arguments in the case and the court had fixed today for hearing on rebuttal arguments for prosecution.
Besides Raja and Kanimozhi, former Telecom Secretary Siddharth Behura, Raja's erstwhile private secretary R K Chandolia, Unitech Ltd Managing Director Sanjay Chandra, Swan Telecom Pvt Ltd promoters Shahid Balwa and Vinod Goenka and three executives of Reliance ADAG - Gautam Doshi, Surendra Pipara and Hari Nair - are facing trial in the case.
Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV Director Sharad Kumar and Bollywood producer Karim Morani are also facing trial in the case, besides three telecom companies - Reliance Telecom Ltd, STPL and Unitech Wireless (Tamil Nadu) Ltd.
In its charge sheet, CBI had alleged a loss of Rs. 30,984 crore to the exchequer in allocation of 122 licences for 2G spectrum, which was scrapped by the Supreme Court on February 2, 2012. All these accused, who are out on bail, have denied the allegations levelled against them by CBI.
Special Judge O P Saini fixed the case for December 2 as the court was busy hearing arguments on framing of charges in the Aircel-Maxis case.
The CBI and all the 17 accused had earlier concluded their final arguments in the case and the court had fixed today for hearing on rebuttal arguments for prosecution.
Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV Director Sharad Kumar and Bollywood producer Karim Morani are also facing trial in the case, besides three telecom companies - Reliance Telecom Ltd, STPL and Unitech Wireless (Tamil Nadu) Ltd.
In its charge sheet, CBI had alleged a loss of Rs. 30,984 crore to the exchequer in allocation of 122 licences for 2G spectrum, which was scrapped by the Supreme Court on February 2, 2012. All these accused, who are out on bail, have denied the allegations levelled against them by CBI.
Business Affairs
Five key impacts of currency announcement
-
Prime Minister Narendra Modi's decision to scrap Rs 500 and Rs 1,000 notes for fighting black money and corruption is a bold move. But this sudden move would have implications for the people as well as economy.
- A jolt to unorganised economy - The Indian economy has the unique characteristics of a parallel unorganised economy which also contributes to employment , consumption and growth. This economy will receive a big jolt from scrapping of high value notes like Rs 1,000 and Rs 500.
- Fight against counterfeiting - Of late , the large value notes like Rs 500 and Rs 1,000 gave a big push to counterfeiting. The RBI has issued many advisories in the past against fake notes in the market. The current decision would act against counterfeiting.
- Cost of replacement - There is a cost of replacement of such notes as they comprised a big chunk of the total volume of currency in the market.
- Banks' logistical issue - People are going to flood the banks for tendering their notes for replacement. This is going to be a huge task as the banks' limited staff would have to handle huge sepentine queues with proper documentation check.
- Panic in the market - The sudden decision is all set to create panic in the market as many shopkeepers and traders would stop taking notes from public.
- Push digital currency - There is already a gradual shift from cash to cards and digital currency. The people holding genuine or ligitimate currency will be the biggest suffers from this move of the government. There is surely going to be a realisation for many to use digital currency as such replacement of high notes would become a regular phenomenon for fighting against black money and counterfeiting.
Prime Minister Narendra Modi's decision to scrap Rs 500 and Rs 1,000 notes for fighting black money and corruption is a bold move. But this sudden move would have implications for the people as well as economy.
- A jolt to unorganised economy - The Indian economy has the unique characteristics of a parallel unorganised economy which also contributes to employment , consumption and growth. This economy will receive a big jolt from scrapping of high value notes like Rs 1,000 and Rs 500.
- Fight against counterfeiting - Of late , the large value notes like Rs 500 and Rs 1,000 gave a big push to counterfeiting. The RBI has issued many advisories in the past against fake notes in the market. The current decision would act against counterfeiting.
- Cost of replacement - There is a cost of replacement of such notes as they comprised a big chunk of the total volume of currency in the market.
- Banks' logistical issue - People are going to flood the banks for tendering their notes for replacement. This is going to be a huge task as the banks' limited staff would have to handle huge sepentine queues with proper documentation check.
- Panic in the market - The sudden decision is all set to create panic in the market as many shopkeepers and traders would stop taking notes from public.
- Push digital currency - There is already a gradual shift from cash to cards and digital currency. The people holding genuine or ligitimate currency will be the biggest suffers from this move of the government. There is surely going to be a realisation for many to use digital currency as such replacement of high notes would become a regular phenomenon for fighting against black money and counterfeiting.
Banks to open more counters, work extra hours to exchange notes
-
Banks will open additional counters and work extra hours beginning Thursday to help people exchange Rs 500 and Rs 1000 notes that have been declared invalid from midnight tonight.
Anticipating panic and rush at bank counters, RBI as well as government has set up control rooms in Mumbai and the national capital to avoid any crisis, Department of Economic Affairs Secretary Shaktikanta Das said.
Banks will remain shut tomorrow to allow stocking of smaller currency notes and public will be allowed to tender their now invalid Rs 500 and Rs 1000 from November 10.
They can deposit any amount of the invalid currency in their bank account till December 30 and also exchange them for lower banknotes at special counters at banks and post offices till November 24 but with limit of Rs 4,000 in a day.
Bank will however report any unusual transaction to Financial Intelligence Unit and tax authorities for scrutiny.
RBI Governor Urjit Patel said the central bank had ramped up production of the new higher security currency notes of Rs 500 and Rs 2,000 that will replace the notes being taken out of circulation.
The new notes will come into circulation from November 10, he said.
He linked the government decision to use high denomination currency notes for terrorism financing and also for holding black money.
While overall currency circulation had increased by 40 per cent during 2011 to 2016, Rs 500 banknotes in circulation had gone up by 76 per cent and that of Rs 1000 by 109 per cent.
As many as 16.5 billion notes of Rs 500 denomination are in circulation currently while 6.7 billion Rs 1,000 notes are in market.
While the government imposed strict cash withdrawal limits - Rs 2000 from ATM and Rs 10,000 from bank account in a day and Rs 20,000 in a week, Patel said there will be no impact on liquidity in the markets including financial markets.
The cash withdrawal limits will be relaxed gradually as small currency denomination notes are adequately stocked with banks and ATMs and new currency notes come into wide circulation.
A high-security Rs 1000 currency note will be re-introduced at a later date, Das said.
Das said infusion of Rs 2000 note will be closely monitored and regulated by RBI.
Banks will open additional counters and work extra hours beginning Thursday to help people exchange Rs 500 and Rs 1000 notes that have been declared invalid from midnight tonight.
Anticipating panic and rush at bank counters, RBI as well as government has set up control rooms in Mumbai and the national capital to avoid any crisis, Department of Economic Affairs Secretary Shaktikanta Das said.
Banks will remain shut tomorrow to allow stocking of smaller currency notes and public will be allowed to tender their now invalid Rs 500 and Rs 1000 from November 10.
They can deposit any amount of the invalid currency in their bank account till December 30 and also exchange them for lower banknotes at special counters at banks and post offices till November 24 but with limit of Rs 4,000 in a day.
Bank will however report any unusual transaction to Financial Intelligence Unit and tax authorities for scrutiny.
RBI Governor Urjit Patel said the central bank had ramped up production of the new higher security currency notes of Rs 500 and Rs 2,000 that will replace the notes being taken out of circulation.
The new notes will come into circulation from November 10, he said.
He linked the government decision to use high denomination currency notes for terrorism financing and also for holding black money.
While overall currency circulation had increased by 40 per cent during 2011 to 2016, Rs 500 banknotes in circulation had gone up by 76 per cent and that of Rs 1000 by 109 per cent.
As many as 16.5 billion notes of Rs 500 denomination are in circulation currently while 6.7 billion Rs 1,000 notes are in market.
While the government imposed strict cash withdrawal limits - Rs 2000 from ATM and Rs 10,000 from bank account in a day and Rs 20,000 in a week, Patel said there will be no impact on liquidity in the markets including financial markets.
The cash withdrawal limits will be relaxed gradually as small currency denomination notes are adequately stocked with banks and ATMs and new currency notes come into wide circulation.
A high-security Rs 1000 currency note will be re-introduced at a later date, Das said.
Das said infusion of Rs 2000 note will be closely monitored and regulated by RBI.
Ford to invest $195 million in new technology center in India
-
Ford Motor Co is investing Rs 13 billion ($195 million) over the next five years in a technology and business centre in Chennai to develop new products, design mobility solutions and provide business services.
Dearborn, Michigan-based Ford, which has already invested over $2 billion in India till date, will hire 3,000 people and bring in 9,000 from other centres in the southern Indian city to staff the facility which will be operational by early 2019, the company said in a statement on Tuesday.
Ford is focusing on emerging markets like India where small, inexpensive yet powerful cars are popular and which is dominated by brands from Maruti Suzuki India Ltd and Hyundai Motor Co.
The centre will be the car maker's second-largest technology setup outside its global headquarters, and will include laboratories and testing facilities for vehicles and components, to enable Ford to test future products in India.
With India expected to become the world's third-largest market by 2020, according to IHS Automotive, global car makers want a bigger share of the pie.
"India is not only a vibrant market for cars and new mobility ideas, it also is rich with talent, technical expertise and ingenuity," Bill Ford, executive chairman of Ford, said in the statement.
The new centre will also include teams working on advanced financial analysis and future data analytics, the company said.
Ford Motor Co is investing Rs 13 billion ($195 million) over the next five years in a technology and business centre in Chennai to develop new products, design mobility solutions and provide business services.
Dearborn, Michigan-based Ford, which has already invested over $2 billion in India till date, will hire 3,000 people and bring in 9,000 from other centres in the southern Indian city to staff the facility which will be operational by early 2019, the company said in a statement on Tuesday.
Ford is focusing on emerging markets like India where small, inexpensive yet powerful cars are popular and which is dominated by brands from Maruti Suzuki India Ltd and Hyundai Motor Co.
The centre will be the car maker's second-largest technology setup outside its global headquarters, and will include laboratories and testing facilities for vehicles and components, to enable Ford to test future products in India.
With India expected to become the world's third-largest market by 2020, according to IHS Automotive, global car makers want a bigger share of the pie.
"India is not only a vibrant market for cars and new mobility ideas, it also is rich with talent, technical expertise and ingenuity," Bill Ford, executive chairman of Ford, said in the statement.
The new centre will also include teams working on advanced financial analysis and future data analytics, the company said.
'GST portal goes live, GSTN software almost ready'
-
A new and simpler portal for the incoming Goods and Services Tax regime went live today that will enable easy filing of returns and tax payments through credit/debit cards and other modes.
As much as 60 per cent of the software needed to run GST is ready and GSTN - the company building the gigantic infrastructure and IT backbone for it, made the www.gst.gov.in portal live for migrating existing tax payers.
It will test the software for integrating a welter of state and central levies before the 'one market, one rate' tax model comes into being from April next year.
GSTN Chairman Navin Kumar said migrating more than 65 lakh VAT payers, about 20 lakh service tax payers and about 3-4 lakh central excise duty payers to a new portal has started.
A provisional identification number, called GSTIN for the assesses who have moved to the new portal is being generated, Kumar told PTI.
New registrations under GST will start from April 2017.
On the new portal, businessmen and traders who currently have to file separate returns for array of indirect taxes like excise duty, service tax and VAT, will file a single monthly return and pay tax online through various payment cards, including credit and debit, he said.
GSTN is building a network that will not just integrate the assessees paying service tax, excise and other local levies, but will also help in building the IT backbone for online registration, refund, return filing and tax payment.
"Because we started work in November 2015, today we are in a happy position that 60 per cent of the software development has been completed; 40 per cent is balance and that work is going on," Kumar said.
The GSTN is building four data centres spread across Delhi and Bengaluru to ensure that the data is safe, secure and to ensure data recovery, whenever required.
Kumar said GSTN has started importing hardware and by December all equipment would be ready and testing would start.
"About 80 lakh tax payers will be migrated from the existing to GST regime. That migration we are starting now. We will generate a PAN-based provisional ID for each tax payer.
By December, all the hardware equipment will be ready. Then, the software will be put on the data centre and then the testing will start," he said.
Under the GST regime, taxes can be paid using debit, credit cards as well as through NEFT/RTGS transfers.
Explaining how the Central Board of Excise and Customs (CBEC) has been preparing itself for GST, Kumar said CBEC started a project in 2012 to ensure that all dealers in the state have their PANs validated.
Since 90 per cent of the dealers now have a validated PAN, it will be easy to generate GSTIN.
"We are sending GSTIN to the state governments and central government so that they can be passed on to existing tax payers. The tax payers will have to log in to the portal using the GSTIN and password and fill in the basic information about the firm," Kumar said.
Traders will have six months time after the roll out of GST to submit their information. "But we are trying to persuade tax payers to do it as soon as possible. The existing tax payer data will start migrating in November. We want to migrate it within 3 months but law says it will remain open for 6 months," he said.
Registration with the GSTN portal will help traders to claim input tax credit and file returns and claim refunds.
While normal dealers will have to file monthly returns under the GST regime, those traders with a turnover of up to Rs 50 lakh and availing compounding/composite scheme will have to file tax returns quarterly.
A new and simpler portal for the incoming Goods and Services Tax regime went live today that will enable easy filing of returns and tax payments through credit/debit cards and other modes.
As much as 60 per cent of the software needed to run GST is ready and GSTN - the company building the gigantic infrastructure and IT backbone for it, made the www.gst.gov.in portal live for migrating existing tax payers.
It will test the software for integrating a welter of state and central levies before the 'one market, one rate' tax model comes into being from April next year.
GSTN Chairman Navin Kumar said migrating more than 65 lakh VAT payers, about 20 lakh service tax payers and about 3-4 lakh central excise duty payers to a new portal has started.
A provisional identification number, called GSTIN for the assesses who have moved to the new portal is being generated, Kumar told PTI.
New registrations under GST will start from April 2017.
On the new portal, businessmen and traders who currently have to file separate returns for array of indirect taxes like excise duty, service tax and VAT, will file a single monthly return and pay tax online through various payment cards, including credit and debit, he said.
GSTN is building a network that will not just integrate the assessees paying service tax, excise and other local levies, but will also help in building the IT backbone for online registration, refund, return filing and tax payment.
"Because we started work in November 2015, today we are in a happy position that 60 per cent of the software development has been completed; 40 per cent is balance and that work is going on," Kumar said.
The GSTN is building four data centres spread across Delhi and Bengaluru to ensure that the data is safe, secure and to ensure data recovery, whenever required.
Kumar said GSTN has started importing hardware and by December all equipment would be ready and testing would start.
"About 80 lakh tax payers will be migrated from the existing to GST regime. That migration we are starting now. We will generate a PAN-based provisional ID for each tax payer.
By December, all the hardware equipment will be ready. Then, the software will be put on the data centre and then the testing will start," he said.
Under the GST regime, taxes can be paid using debit, credit cards as well as through NEFT/RTGS transfers.
Explaining how the Central Board of Excise and Customs (CBEC) has been preparing itself for GST, Kumar said CBEC started a project in 2012 to ensure that all dealers in the state have their PANs validated.
Since 90 per cent of the dealers now have a validated PAN, it will be easy to generate GSTIN.
"We are sending GSTIN to the state governments and central government so that they can be passed on to existing tax payers. The tax payers will have to log in to the portal using the GSTIN and password and fill in the basic information about the firm," Kumar said.
Traders will have six months time after the roll out of GST to submit their information. "But we are trying to persuade tax payers to do it as soon as possible. The existing tax payer data will start migrating in November. We want to migrate it within 3 months but law says it will remain open for 6 months," he said.
Registration with the GSTN portal will help traders to claim input tax credit and file returns and claim refunds.
While normal dealers will have to file monthly returns under the GST regime, those traders with a turnover of up to Rs 50 lakh and availing compounding/composite scheme will have to file tax returns quarterly.
Ashok Leyland stock rises as firm posts 70.84% rise in Q2 profit
-
The Ashok Leyland stock rose on Tuesday after the firm posted net profit of Rs 294 crore for the quarter ended September 30, 2016 compared with Rs 172.2 crore for the quarter ended September 30, 2015.
However, its total income fell to Rs 4,943.23 crore for the quarter ended September 30, 2016, compared with Rs 5,319.80 crore in the corresponding quarter of last fiscal.
Other income fell to Rs 3161 lakh in the reporting quarter against Rs 4544 lakh in the corresponding quarter of the preceding fiscal.
The stock closed 2.34 per cent higher at Rs 91.75 level on the BSE.
The Ashok Leyland stock rose on Tuesday after the firm posted net profit of Rs 294 crore for the quarter ended September 30, 2016 compared with Rs 172.2 crore for the quarter ended September 30, 2015.
However, its total income fell to Rs 4,943.23 crore for the quarter ended September 30, 2016, compared with Rs 5,319.80 crore in the corresponding quarter of last fiscal.
Other income fell to Rs 3161 lakh in the reporting quarter against Rs 4544 lakh in the corresponding quarter of the preceding fiscal.
The stock closed 2.34 per cent higher at Rs 91.75 level on the BSE.
General Awareness
RBI issued Clarifications on Hedging for External Commercial Borrowings
-
The Reserve Bank of India (RBI) issued clarifications on hedging of currency for external commercial borrowings (ECBs) in a notification on its website.
About ECB,
An external commercial borrowing (ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs (public sector undertakings).
- ECBs include commercial bank loans, buyers’ credit, suppliers’ credit, securitised instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from theprivate sector window of multilateral financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.
- ECBs cannot be used for investment instock market or speculation in real estate.
- The DEA (Department of Economic Affairs), Ministry of Finance,Government of Indiaalong with Reserve Bank of India, monitors and regulates ECB guidelines and policies. For infrastructure and greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed.
- Recently Government of India allowed borrowings in Chinese currency yuan.Corporate sectors can mobilize USD 750 million via automatic route, whereas service sectors and NGO’s for microfinance can mobilize USD 200 million and 10 million respectively.
- Borrowers can use 25 per cent of the ECB to repay rupee debt and the remaining 75 per cent should be used for new projects.
- A borrower cannot refinance its entire existing rupee loan through ECB. The money raised through ECB is cheaper given near-zero interest rates in the US and Europe, Indian companies can repay part of their existing expensive loans from that.
About the Hedging to Currency,
The ECB borrower will be required to cover both principal as well as coupon payments through the hedges done, starting from the day of borrowing.
- The hedging period will be for the entire life of the liability with a minimum one-year rollover option, ensuring that the total exposure is not unhedged at any point of time.
- The borrower has to hedge in such a manner that the projected cash flows match the expectation of the borrowers irrespective of the fluctuations in the foreign currency.
- With a view to provide clarity on the aforesaid directions and bring uniformity in hedging practices in the market so as to effectively address currency risk at a systemic level, the following clarifications are issued:
- Coverage:Wherever hedging has been mandated by the RBI, the ECB borrower will be required to cover principal as well as coupon through financial hedges. The financial hedge for all exposures on account of ECB should start from the time of each such exposure (i.e. the day liability is created in the books of the borrower).
- Tenor and rollover:A minimum tenor of one year of financial hedge would be required with periodic rollover duly ensuring that the exposure on account of ECB is not unhedged at any point during the currency of ECB.
- Natural Hedge:Natural hedge, in lieu of financial hedge, will be considered only to the extent of offsetting projected cash flows / revenues in matching currency, net of all other projected outflows. For this purpose, an ECB may be considered naturally hedged if the offsetting exposure has the maturity/cash flow within the same accounting year. Any other arrangements/ structures, where revenues are indexed to foreign currency will not be considered as natural hedge.
- The designated AD Category-I bank will have the responsibility of verifying that 100 per cent hedging requirement is complied with. All other aspects of the ECB policy shall remain unchanged.
- AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
- The designated banks will have the responsibility of verifying that 100% hedging requirement is complied with.
The Reserve Bank of India (RBI) issued clarifications on hedging of currency for external commercial borrowings (ECBs) in a notification on its website.
About ECB,
An external commercial borrowing (ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs (public sector undertakings).
- ECBs include commercial bank loans, buyers’ credit, suppliers’ credit, securitised instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from theprivate sector window of multilateral financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.
- ECBs cannot be used for investment instock market or speculation in real estate.
- The DEA (Department of Economic Affairs), Ministry of Finance,Government of Indiaalong with Reserve Bank of India, monitors and regulates ECB guidelines and policies. For infrastructure and greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed.
- Recently Government of India allowed borrowings in Chinese currency yuan.Corporate sectors can mobilize USD 750 million via automatic route, whereas service sectors and NGO’s for microfinance can mobilize USD 200 million and 10 million respectively.
- Borrowers can use 25 per cent of the ECB to repay rupee debt and the remaining 75 per cent should be used for new projects.
- A borrower cannot refinance its entire existing rupee loan through ECB. The money raised through ECB is cheaper given near-zero interest rates in the US and Europe, Indian companies can repay part of their existing expensive loans from that.
About the Hedging to Currency,
The ECB borrower will be required to cover both principal as well as coupon payments through the hedges done, starting from the day of borrowing.
- The hedging period will be for the entire life of the liability with a minimum one-year rollover option, ensuring that the total exposure is not unhedged at any point of time.
- The borrower has to hedge in such a manner that the projected cash flows match the expectation of the borrowers irrespective of the fluctuations in the foreign currency.
- With a view to provide clarity on the aforesaid directions and bring uniformity in hedging practices in the market so as to effectively address currency risk at a systemic level, the following clarifications are issued:
- Coverage:Wherever hedging has been mandated by the RBI, the ECB borrower will be required to cover principal as well as coupon through financial hedges. The financial hedge for all exposures on account of ECB should start from the time of each such exposure (i.e. the day liability is created in the books of the borrower).
- Tenor and rollover:A minimum tenor of one year of financial hedge would be required with periodic rollover duly ensuring that the exposure on account of ECB is not unhedged at any point during the currency of ECB.
- Natural Hedge:Natural hedge, in lieu of financial hedge, will be considered only to the extent of offsetting projected cash flows / revenues in matching currency, net of all other projected outflows. For this purpose, an ECB may be considered naturally hedged if the offsetting exposure has the maturity/cash flow within the same accounting year. Any other arrangements/ structures, where revenues are indexed to foreign currency will not be considered as natural hedge.
- The designated AD Category-I bank will have the responsibility of verifying that 100 per cent hedging requirement is complied with. All other aspects of the ECB policy shall remain unchanged.
- AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
- The designated banks will have the responsibility of verifying that 100% hedging requirement is complied with.
No comments:
Post a Comment