General Affairs
Bengaluru: Rs 2000 notes worth over Rs 4 crore seized by I-T dept
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Officials from the Income Tax Department’s Karnataka and Goa region operations seized Rs 6 crore, including Rs 4.7 crore in new Rs 2000 denomination, along with huge bullion and jewellery from four persons – two government engineers and two contractors – following searches conducted on Wednesday and Thursday. In the search operations, apart from the cash in excess of Rs 6 crore, gold bullion weighing 7 kg approximately and jewellery in excess of 7 kg were also found, the I-T department said. Out of the total cash of Rs 6 crore found as much as Rs 4.7 crore is surprisingly in new currency of Rs 2000 notes. The I-T department has also seized several property documents and high-end luxury cars including a Lamborghini.
“Huge stacks of Rs 2000 notes have been recovered. The cash is amounts to over Rs 4 crore. The counting of the seized currency is still on. This is one the highest seizures of the new currency. Some entry operators and bankers are under the scanner,” a senior I-T department official told news agency PTI.
Identity cards belonging to several individuals were also found during the searches. I-T department suggested that these cards might have been used to exchange old currency notes at banks.
On Wednesday, the Enforcement Directorate raided several hawala operators across the country and seized Rs 1 crore in foreign exchange. The seized notes were Rs 50 lakh in old currency and Rs 20 lakh in new currency. The ED conducted searches at multiple locations in Delhi, Kolkata, Hyderabad, Bengaluru, Ahmedabad, Chennai, Mumbai and other cities.
In Chennai, Tamil Nadu Police seized Rs 20.55 lakh worth new currency notes from a BJP youth leader on Saturday. Arun, 26, is BJP’s youth wing secretary from Salem. He was actively campaigning for Prime Minister Narendra Modi’s demonetisation drive on social media. Tamil Nadu Police, in a joint operation with I-T department, also busted a currency exchange racket and seized Rs 1.3 crore in Rs 2000 notes.
Officials from the Income Tax Department’s Karnataka and Goa region operations seized Rs 6 crore, including Rs 4.7 crore in new Rs 2000 denomination, along with huge bullion and jewellery from four persons – two government engineers and two contractors – following searches conducted on Wednesday and Thursday. In the search operations, apart from the cash in excess of Rs 6 crore, gold bullion weighing 7 kg approximately and jewellery in excess of 7 kg were also found, the I-T department said. Out of the total cash of Rs 6 crore found as much as Rs 4.7 crore is surprisingly in new currency of Rs 2000 notes. The I-T department has also seized several property documents and high-end luxury cars including a Lamborghini.
“Huge stacks of Rs 2000 notes have been recovered. The cash is amounts to over Rs 4 crore. The counting of the seized currency is still on. This is one the highest seizures of the new currency. Some entry operators and bankers are under the scanner,” a senior I-T department official told news agency PTI.
Identity cards belonging to several individuals were also found during the searches. I-T department suggested that these cards might have been used to exchange old currency notes at banks.
On Wednesday, the Enforcement Directorate raided several hawala operators across the country and seized Rs 1 crore in foreign exchange. The seized notes were Rs 50 lakh in old currency and Rs 20 lakh in new currency. The ED conducted searches at multiple locations in Delhi, Kolkata, Hyderabad, Bengaluru, Ahmedabad, Chennai, Mumbai and other cities.
In Chennai, Tamil Nadu Police seized Rs 20.55 lakh worth new currency notes from a BJP youth leader on Saturday. Arun, 26, is BJP’s youth wing secretary from Salem. He was actively campaigning for Prime Minister Narendra Modi’s demonetisation drive on social media. Tamil Nadu Police, in a joint operation with I-T department, also busted a currency exchange racket and seized Rs 1.3 crore in Rs 2000 notes.
Jaitley attacks media on demonetisation reportage, says ‘country changing, journalists aren’t’
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Attacking the media for its reportage on demonetisation, Finance Minister Arun Jaitley on Thursday said that the “country is changing but journalists and politicians are not.” Speaking at the ‘Make in Odisha’ conclave, Jaitley said, “Our journalists just focus on the painful aspect of every situation ignoring its socio-economic background & handwork in implementing it.”
Rejecting apprehensions that the Indian economy would suffer due to demonetisation, Jaitley termed as “game changers” the pulling out of high-value old notes as well as Goods and Services Tax, which is proposed to be rolled out from April 1.
On the hue and cry over the demonetisation exercise, he said: “As far as currency changes are concerned, once the demonetisation process is completed and the economy gets back to full stream, the size of the GDP will significantly expand, tax base will expand.”
He added, “More money will come to the banks which will be used fruitfully for the betterment of the economy.”
Attacking the media for its reportage on demonetisation, Finance Minister Arun Jaitley on Thursday said that the “country is changing but journalists and politicians are not.” Speaking at the ‘Make in Odisha’ conclave, Jaitley said, “Our journalists just focus on the painful aspect of every situation ignoring its socio-economic background & handwork in implementing it.”
Rejecting apprehensions that the Indian economy would suffer due to demonetisation, Jaitley termed as “game changers” the pulling out of high-value old notes as well as Goods and Services Tax, which is proposed to be rolled out from April 1.
On the hue and cry over the demonetisation exercise, he said: “As far as currency changes are concerned, once the demonetisation process is completed and the economy gets back to full stream, the size of the GDP will significantly expand, tax base will expand.”
He added, “More money will come to the banks which will be used fruitfully for the betterment of the economy.”
Heart of Asia summit unlikely to reignite India-Pak talk process
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The Heart of Asia conference scheduled to be held in Amritsar on December 3-4 will be attended by Pakistan’s Sartaj Aziz. However, any formal dialogue between India and Pakistan seems unlikely as both countries have abstained from making any formal request for a bilateral dialogue during the summit. The maximum we may see at the summit are informal talks on the sidelines that are not likely to foster a substantial change in the situation which has strained in the recent past.
The sixth Heart of Asia conference is expected to see attendance of leaders from around 30 countries including US, Russia, China and Iran. The theme will be connectivity and increasing security in and around the Afghan region. The discussions will revolve primarily on peace, cooperation and economic growth in Afghanistan and neighbouring regions. India is the co-chair and host this time and Afghanistan is the permanent chair of the conference. Finance Minister Arun Jaitley will lead the Indian delegation in the summit.
India and Pakistan held a formal bilateral dialogue in the last Heart of Asia conference and decided to take the momentum forward in subsequent summits. However, tension has escalated between the two from the start of this year after the Pathankot attack and ceasefire violations in July. The Uri attack and hundreds of ceasefire violations along the Line of Control have left the two neighbours on the edge.
None of the parties have asked for a bilateral dialogue at the summit and with only two days to go, it is unlikely that one will be placed now. Pakistan has passed the buck to India with Sartaj Aziz, strategist and adviser to Pakistani Prime Minister Nawaz Sharif on foreign affairs, claiming that Pakistan is willing to talk but it doesn’t know whether India is willing or not.
After India’s retaliatory surgical strikes, regular terrorist attacks have been carried out in the country with army being the target. Trade has almost stopped. India has led a global isolation campaign against Pakistan.
Not since the Kargil war had tensions between the two neighbours escalated to such levels and it is incumbent upon the diplomatic machinery to find a breakthrough initiate a dialogue.
The ground was laid for a new beginning between the two countries. The establishment in Pakistan–an amalgam of civilian and military leadership with the military dictating security and foreign policy–has changed its texture with civilian government enjoying much more authority. After two decades, General Raheel Sharif has became the first Pakistani Army chief to call it a day on his retirement and hand over his position peacefully to the next General in line. The new Pakistani Army chief General Qamar Javed Bajwa is thought to be pro-democracy and has been carefully placed by Pakistani Prime Minister Nawaz Sharif.
However, General Sharif’s effect will take some time to wear off. It is also a fact that Sartaj Aziz is a key cog in the barrel of the establishment and his aggressive manipulations of the civilian Sharif have hurt the chances of a turnaround in relations between India-Pakistan on the diplomatic front for now.
The Heart of Asia conference scheduled to be held in Amritsar on December 3-4 will be attended by Pakistan’s Sartaj Aziz. However, any formal dialogue between India and Pakistan seems unlikely as both countries have abstained from making any formal request for a bilateral dialogue during the summit. The maximum we may see at the summit are informal talks on the sidelines that are not likely to foster a substantial change in the situation which has strained in the recent past.
The sixth Heart of Asia conference is expected to see attendance of leaders from around 30 countries including US, Russia, China and Iran. The theme will be connectivity and increasing security in and around the Afghan region. The discussions will revolve primarily on peace, cooperation and economic growth in Afghanistan and neighbouring regions. India is the co-chair and host this time and Afghanistan is the permanent chair of the conference. Finance Minister Arun Jaitley will lead the Indian delegation in the summit.
India and Pakistan held a formal bilateral dialogue in the last Heart of Asia conference and decided to take the momentum forward in subsequent summits. However, tension has escalated between the two from the start of this year after the Pathankot attack and ceasefire violations in July. The Uri attack and hundreds of ceasefire violations along the Line of Control have left the two neighbours on the edge.
None of the parties have asked for a bilateral dialogue at the summit and with only two days to go, it is unlikely that one will be placed now. Pakistan has passed the buck to India with Sartaj Aziz, strategist and adviser to Pakistani Prime Minister Nawaz Sharif on foreign affairs, claiming that Pakistan is willing to talk but it doesn’t know whether India is willing or not.
After India’s retaliatory surgical strikes, regular terrorist attacks have been carried out in the country with army being the target. Trade has almost stopped. India has led a global isolation campaign against Pakistan.
Not since the Kargil war had tensions between the two neighbours escalated to such levels and it is incumbent upon the diplomatic machinery to find a breakthrough initiate a dialogue.
The ground was laid for a new beginning between the two countries. The establishment in Pakistan–an amalgam of civilian and military leadership with the military dictating security and foreign policy–has changed its texture with civilian government enjoying much more authority. After two decades, General Raheel Sharif has became the first Pakistani Army chief to call it a day on his retirement and hand over his position peacefully to the next General in line. The new Pakistani Army chief General Qamar Javed Bajwa is thought to be pro-democracy and has been carefully placed by Pakistani Prime Minister Nawaz Sharif.
However, General Sharif’s effect will take some time to wear off. It is also a fact that Sartaj Aziz is a key cog in the barrel of the establishment and his aggressive manipulations of the civilian Sharif have hurt the chances of a turnaround in relations between India-Pakistan on the diplomatic front for now.
Opposition leaders object to Income Tax Amendment Bill, submit memorandum to President
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Condemning the manner in which the Income Tax Amendment Bill was passed in the Lok Sabha, sixteen opposition parties, including Congress on Thursday met President Pranab Mukherjee raising their objections over the matter. “We (opposition delegation) gave the President a memorandum. The Bill was passed without any discussion, this is not the way to run the Parliamentary business. Voice of the opposition was stifled in Parliament,” said Congress vice-president Rahul Gandhi.
Earlier in the day, the issue of Taxation Laws (2nd Amendment) Bill, 2016 being treated as Money Bill was raised by Naresh Agrawal of Samajwadi Party in the Rajya Sabha. He said the government was “undermining” the Rajya Sabha as it does not have majority in this House.
The government had introduced The Taxation Laws (Second Amendment) Bill, 2016, in the Lok Sabha, proposing to tax all unaccounted demonetised cash that is disclosed at 50 per cent and levy a steep up to 85 per cent tax and penalty on undisclosed wealth after the window closes on December 30. Under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY), black money declarants have to mandatorily park 25 per cent of that wealth in zero-interest, four-year-no-withdrawal scheme.
Terming proposed amendments to the Income Tax Act as a “win-win” proposition, experts said it will give one more opportunity to black money holders to come clean by paying tax and penalty of 50 per cent.
Condemning the manner in which the Income Tax Amendment Bill was passed in the Lok Sabha, sixteen opposition parties, including Congress on Thursday met President Pranab Mukherjee raising their objections over the matter. “We (opposition delegation) gave the President a memorandum. The Bill was passed without any discussion, this is not the way to run the Parliamentary business. Voice of the opposition was stifled in Parliament,” said Congress vice-president Rahul Gandhi.
Earlier in the day, the issue of Taxation Laws (2nd Amendment) Bill, 2016 being treated as Money Bill was raised by Naresh Agrawal of Samajwadi Party in the Rajya Sabha. He said the government was “undermining” the Rajya Sabha as it does not have majority in this House.
The government had introduced The Taxation Laws (Second Amendment) Bill, 2016, in the Lok Sabha, proposing to tax all unaccounted demonetised cash that is disclosed at 50 per cent and levy a steep up to 85 per cent tax and penalty on undisclosed wealth after the window closes on December 30. Under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY), black money declarants have to mandatorily park 25 per cent of that wealth in zero-interest, four-year-no-withdrawal scheme.
Terming proposed amendments to the Income Tax Act as a “win-win” proposition, experts said it will give one more opportunity to black money holders to come clean by paying tax and penalty of 50 per cent.
INC hacking: Govt’s focus should move from go digital, to go safely digital
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In October a massive number of bank account details were compromised due to hacking of servers. The security codes of as many as 3.2 million debit cards, in a major breach of financial data in India, were hacked into. India’s biggest banks from State Bank of India to ICICI Bank were affected, with an estimated Rs 1.3 crore already looted by the hackers. This not only revealed the inability of these major banks to keep their data secure from such cyber hacking, but also made their customers susceptible to losses.
The country, which in a knee-jerk reaction to demonetisation is preparing itself for a digital economy, needs to also realise that these challenges are for real. By pushing for Digital India the government’s focus should not be just to make India go digital, but to make it go safely digital. The cyber laws should ensure the customers using these transaction modes are safe and secure. As of now there are no defined rules as to who bears the losses in case accounts are compromised and nor are there defined rules for accountability. RBI put out a draft proposal in August, which would protect customers with limited liability in case of unauthorised e-transactions.
In the recently concluded US elections, a new phenomena came to the fore. It was that of cyber-espionage that targeted hundreds of key people from both the Republicans and Democrats over the period of a year. The hackers accessed and stole emails of key Capitol Hill members, political parties, campaigners and aides. The US administration blamed Russia for the cyber attack which they felt was done in an attempt to influence US politics. This became a topic of debate between the two candidates in the run up to the election.
However, in what perhaps is a new low in Indian politics and a serious cyber crime, the social media accounts of Indian National Congress and party vice-president Rahul Gandhi were hacked into and obscene content sent out from both the Twitter handles. Since these attacks come in the backdrop of India being engaged in a heated debate on demonetisation and terror attacks, questions need to be asked of this government as to how these accounts were hacked and about the audacity of the messages tweeted. One tweet from INC India handle also had the hackers claim they had an entire dump of emails accessed from email accounts of INC and they would make it public mid-December. If this isn’t a security breach of the highest order, especially since it involves those questioning the government’s recent policy decisions, then what is?
Since 2014 India has been seeing a consistent attack on institutions and people who have spoken against the government. It has become the norm for people to be tagged as anti-national to being arrested for their views. Repeatedly we see a government that refuses to engage with the opposition on policy issues including that of demonetisation, that is seeing an entire nation in upheaval. The attempts to bring changes such as the Land Acquisition Bill through an ordinance to trying to introducing GST as a Money bill to the recent passing of amendments to Income Tax Act without a discussion is some of the sinister attempts at thwarting India’s vibrant democracy. Why should this cyber attack on the accounts of India’s principal opposition party not be looked into in the same context?
What is surprising and in a way disappointing is that the BJP government instead of looking into this issue is actually defending the security breach. Doesn’t it become the responsibility of India’s Communication and IT Minister to look into this on priority and bring the so called ‘mischief makers’ to book so that in the longer run everyone using the medium feels safe?
In October a massive number of bank account details were compromised due to hacking of servers. The security codes of as many as 3.2 million debit cards, in a major breach of financial data in India, were hacked into. India’s biggest banks from State Bank of India to ICICI Bank were affected, with an estimated Rs 1.3 crore already looted by the hackers. This not only revealed the inability of these major banks to keep their data secure from such cyber hacking, but also made their customers susceptible to losses.
The country, which in a knee-jerk reaction to demonetisation is preparing itself for a digital economy, needs to also realise that these challenges are for real. By pushing for Digital India the government’s focus should not be just to make India go digital, but to make it go safely digital. The cyber laws should ensure the customers using these transaction modes are safe and secure. As of now there are no defined rules as to who bears the losses in case accounts are compromised and nor are there defined rules for accountability. RBI put out a draft proposal in August, which would protect customers with limited liability in case of unauthorised e-transactions.
In the recently concluded US elections, a new phenomena came to the fore. It was that of cyber-espionage that targeted hundreds of key people from both the Republicans and Democrats over the period of a year. The hackers accessed and stole emails of key Capitol Hill members, political parties, campaigners and aides. The US administration blamed Russia for the cyber attack which they felt was done in an attempt to influence US politics. This became a topic of debate between the two candidates in the run up to the election.
However, in what perhaps is a new low in Indian politics and a serious cyber crime, the social media accounts of Indian National Congress and party vice-president Rahul Gandhi were hacked into and obscene content sent out from both the Twitter handles. Since these attacks come in the backdrop of India being engaged in a heated debate on demonetisation and terror attacks, questions need to be asked of this government as to how these accounts were hacked and about the audacity of the messages tweeted. One tweet from INC India handle also had the hackers claim they had an entire dump of emails accessed from email accounts of INC and they would make it public mid-December. If this isn’t a security breach of the highest order, especially since it involves those questioning the government’s recent policy decisions, then what is?
Since 2014 India has been seeing a consistent attack on institutions and people who have spoken against the government. It has become the norm for people to be tagged as anti-national to being arrested for their views. Repeatedly we see a government that refuses to engage with the opposition on policy issues including that of demonetisation, that is seeing an entire nation in upheaval. The attempts to bring changes such as the Land Acquisition Bill through an ordinance to trying to introducing GST as a Money bill to the recent passing of amendments to Income Tax Act without a discussion is some of the sinister attempts at thwarting India’s vibrant democracy. Why should this cyber attack on the accounts of India’s principal opposition party not be looked into in the same context?
What is surprising and in a way disappointing is that the BJP government instead of looking into this issue is actually defending the security breach. Doesn’t it become the responsibility of India’s Communication and IT Minister to look into this on priority and bring the so called ‘mischief makers’ to book so that in the longer run everyone using the medium feels safe?
Business Affairs
GST Council to discuss model laws, tax jurisdiction tomorrow
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The all-powerful GST Council at its two-day meeting beginning on Friday will dwell on the issue of jurisdiction over assessees and draft model laws for implementation of the new GST regime from April next year. The GST Council, which has Union Finance Minister and state representatives as members, will finalise the model Goods and Services Tax (GST) law, Integrated GST (IGST) law and compensation law at their meeting on Friday.
The finalisation of these laws, on which the Centre had last week invited public comments, by the Council will pave the way for their introduction in the ongoing Winter Session of Parliament, which ends on December 16.
The Council is also likely to take up the vexed issue of cross empowerment of states and the Centre to avoid dual control — an issue which has remained a contentious one during the previous two GST Council meetings.
Finance Minister Arun Jaitley had called for an informal meeting with his state counterparts on November 20 to thrash out a political solution, but the meet failed to arrive at a common ground on how the Centre and states will control assessees under the new regime that will subsume an array of taxes such as excise duty and service tax as well as VAT.
With states unrelenting on their position of being given right to control all assessees with up to Rs 1.5 crore annual turnover, it was decided that officials will meet and work out a possible arithmetic for addressing the issue.
States like West Bengal, Kerala, Uttarakhand, Uttar Pradesh and Tamil Nadu have insisted on exclusive control over small taxpayers, who earn less than Rs 1.5 crore in annual revenue, for both goods and services.
The government hopes to implement GST from April 1 next year and for that to happen, the supporting legislations have to be ratified by Parliament in the ongoing session.
Jaitley had last month stated that the proposed GST needs to be rolled out by September 16, 2017 before the validity of the Constitutional Amendment brought in by Centre and ratified by states expires.
At its last meeting, the Council agreed on a four-slab structure – 5, 12, 18 and 28 per cent — along with a cess on luxury and ‘sin’ goods such as tobacco.
The GST compensation law provides that states will receive provisional compensation from the Centre for loss of revenue from implementation of GST every quarter, but the final annual number will be decided after an audit carried out by CAG.
The compensation will be met through levy of a cess called ‘GST Compensation Cess’ on luxury items and sin goods like tobacco for the first five years. A fund of Rs 50,000 crore ‘Compensation Fund’ will be created by levying cess on luxury and sin goods.
The all-powerful GST Council at its two-day meeting beginning on Friday will dwell on the issue of jurisdiction over assessees and draft model laws for implementation of the new GST regime from April next year. The GST Council, which has Union Finance Minister and state representatives as members, will finalise the model Goods and Services Tax (GST) law, Integrated GST (IGST) law and compensation law at their meeting on Friday.
The finalisation of these laws, on which the Centre had last week invited public comments, by the Council will pave the way for their introduction in the ongoing Winter Session of Parliament, which ends on December 16.
The Council is also likely to take up the vexed issue of cross empowerment of states and the Centre to avoid dual control — an issue which has remained a contentious one during the previous two GST Council meetings.
Finance Minister Arun Jaitley had called for an informal meeting with his state counterparts on November 20 to thrash out a political solution, but the meet failed to arrive at a common ground on how the Centre and states will control assessees under the new regime that will subsume an array of taxes such as excise duty and service tax as well as VAT.
With states unrelenting on their position of being given right to control all assessees with up to Rs 1.5 crore annual turnover, it was decided that officials will meet and work out a possible arithmetic for addressing the issue.
States like West Bengal, Kerala, Uttarakhand, Uttar Pradesh and Tamil Nadu have insisted on exclusive control over small taxpayers, who earn less than Rs 1.5 crore in annual revenue, for both goods and services.
The government hopes to implement GST from April 1 next year and for that to happen, the supporting legislations have to be ratified by Parliament in the ongoing session.
Jaitley had last month stated that the proposed GST needs to be rolled out by September 16, 2017 before the validity of the Constitutional Amendment brought in by Centre and ratified by states expires.
At its last meeting, the Council agreed on a four-slab structure – 5, 12, 18 and 28 per cent — along with a cess on luxury and ‘sin’ goods such as tobacco.
The GST compensation law provides that states will receive provisional compensation from the Centre for loss of revenue from implementation of GST every quarter, but the final annual number will be decided after an audit carried out by CAG.
The compensation will be met through levy of a cess called ‘GST Compensation Cess’ on luxury items and sin goods like tobacco for the first five years. A fund of Rs 50,000 crore ‘Compensation Fund’ will be created by levying cess on luxury and sin goods.
Black Money: Swiss start consultations on AEOI with India
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Moving ahead on automatic sharing of details on suspected black money, Switzerland on Thursday initiated its statutory consultation process for bringing into force Automatic Exchange of Information (AEOI) on tax matters with India and some other countries from January 1, 2018. The process will continue till March 15, 2017, Swiss Federal Department of Finance (FDF) said in a statement.
“The AEOI with these countries should enter into force on January 1, 2018 so that data can start to be exchanged in 2019,” it added. The launch of consultation process follows signing of a Joint Declaration between India and Switzerland on November 22 for implementation of AEOI, which provides that both countries will start collecting data in accordance with the global standards in 2018 and exchange it from 2019 onwards.
Switzerland also launched consultations on introducing AEOI with Andorra, Argentina, Barbados, Bermuda, Brazil, British Virgin Islands, Cayman Islands, Chile, Faroe Islands, Greenland, Israel, Mauritius, Mexico, Monaco, New Zealand, San Marino, Seychelles, South Africa, Turks and Caicos Islands and Uruguay on Thursday.
FDF said: “The introduction of the AEOI with these countries confirms Switzerland’s international commitment to implementing the AEOI standard. “Switzerland is thus extending its network of AEOI partner states. This will contribute to strengthening the competitiveness, the credibility and integrity of Switzerland’s financial centre.”
It added, “Important criteria for the acceptance of these countries were in particular the high demands in terms of adherence to the principle of speciality and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the AEOI.”
Switzerland said the automatic exchange of information with these countries will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA). The MCAA is based on the international standard for the exchange of information developed by the OECD.
Switzerland is already in the process of introducing AEOI in 2017 with all of the EU states including Gibraltar and with Australia. The same applies to Iceland, Norway, Japan, Canada, South Korea and the British crown dependencies of Jersey, Guernsey and the Isle of Man.
“The entry into force of the AEOI with these countries and territories is conditional on approval by Parliament in the 2016 winter session,” FDF said. Switzerland has been at the centre of the debate on black money allegedly stashed by Indians abroad and was known for very strong banking secrecy walls till a few years, before they began wilting under global pressure.
Moving ahead on automatic sharing of details on suspected black money, Switzerland on Thursday initiated its statutory consultation process for bringing into force Automatic Exchange of Information (AEOI) on tax matters with India and some other countries from January 1, 2018. The process will continue till March 15, 2017, Swiss Federal Department of Finance (FDF) said in a statement.
“The AEOI with these countries should enter into force on January 1, 2018 so that data can start to be exchanged in 2019,” it added. The launch of consultation process follows signing of a Joint Declaration between India and Switzerland on November 22 for implementation of AEOI, which provides that both countries will start collecting data in accordance with the global standards in 2018 and exchange it from 2019 onwards.
Switzerland also launched consultations on introducing AEOI with Andorra, Argentina, Barbados, Bermuda, Brazil, British Virgin Islands, Cayman Islands, Chile, Faroe Islands, Greenland, Israel, Mauritius, Mexico, Monaco, New Zealand, San Marino, Seychelles, South Africa, Turks and Caicos Islands and Uruguay on Thursday.
FDF said: “The introduction of the AEOI with these countries confirms Switzerland’s international commitment to implementing the AEOI standard. “Switzerland is thus extending its network of AEOI partner states. This will contribute to strengthening the competitiveness, the credibility and integrity of Switzerland’s financial centre.”
It added, “Important criteria for the acceptance of these countries were in particular the high demands in terms of adherence to the principle of speciality and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the AEOI.”
Switzerland said the automatic exchange of information with these countries will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA). The MCAA is based on the international standard for the exchange of information developed by the OECD.
Switzerland is already in the process of introducing AEOI in 2017 with all of the EU states including Gibraltar and with Australia. The same applies to Iceland, Norway, Japan, Canada, South Korea and the British crown dependencies of Jersey, Guernsey and the Isle of Man.
“The entry into force of the AEOI with these countries and territories is conditional on approval by Parliament in the 2016 winter session,” FDF said. Switzerland has been at the centre of the debate on black money allegedly stashed by Indians abroad and was known for very strong banking secrecy walls till a few years, before they began wilting under global pressure.
Indian staffing industry likely to grow 12 per cent this year
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India’s staffing sector, with estimated total revenue of Rs 27,000 crore, is expected to register 12 per cent this year, says a report. According to Indian Staffing Federation, an apex body of flexi staffing industry, the sector which comprises 15 leading firms that account for Rs 270 billion in revenues is projected to grow 12 per cent this year and 10 per cent the next year.
“In India, the staffing industry clearly does not have a challenge of addressable market and it is gratifying to witness the rapid growth being shown by each of the organised staffing firms to tap into this opportunity on one hand and enabling rapid job creation on the other,” ISF President Rituparna Chakraborty said.
The report noted that the top three firms including two home grown firms TeamLease and Quess along with Swiss headquartered Adecco together account for 20 per cent of the total market share in India.
The five largest staffing companies in India, based on 2015 revenue include TeamLease with a revenue of Rs 1,986.9 crore, Quess Rs 1,959.4 crore, Adecco Rs 1,500 crore, Randstad Rs 1,348.5 crore and Manpower Group Rs 799.1 crore.
Chakraborty further said “demonetisation and implementation of GST in recent times shall definitely be a force multiplier to the growth of staffing in India.”
The staffing industry provides a platform for recognised employment, work choice, even compensation, annual benefits and health benefits for temporary workforce that constitute a sizeable segment of India’s total workforce.
“In India, the staffing industry clearly does not have a challenge of addressable market and it is gratifying to witness the rapid growth being shown by each of the organised staffing firms to tap into this opportunity on one hand and enabling rapid job creation on the other,” ISF President Rituparna Chakraborty said.
The report noted that the top three firms including two home grown firms TeamLease and Quess along with Swiss headquartered Adecco together account for 20 per cent of the total market share in India.
The five largest staffing companies in India, based on 2015 revenue include TeamLease with a revenue of Rs 1,986.9 crore, Quess Rs 1,959.4 crore, Adecco Rs 1,500 crore, Randstad Rs 1,348.5 crore and Manpower Group Rs 799.1 crore.
Chakraborty further said “demonetisation and implementation of GST in recent times shall definitely be a force multiplier to the growth of staffing in India.”
The staffing industry provides a platform for recognised employment, work choice, even compensation, annual benefits and health benefits for temporary workforce that constitute a sizeable segment of India’s total workforce.
Manufacturing industries world wide had bumper November, but growth may have peaked
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Manufacturers around the globe performed strongly in November, but concerns about the protectionist leanings of US President-elect Donald Trump and an OPEC-induced oil price rally could curtail future growth. Factories across Asia and Europe ramped up activity and data due later on Thursday from the United States are expected to show manufacturers in the world’s largest economy also pushed harder on the accelerator.
But some analysts cautioned November might be as good as it gets as the effects of vast monetary stimulus from central banks wear off.
“The strength in PMI numbers is unlikely to be sustained as much of it can be explained by previous stimulus measures,” said Julian Evans-Pritchard at Capital Economics.
Policymakers at the European Central Bank are expected to announce an extension to their asset purchase programme when they meet next week even after euro zone manufacturers enjoyed their best month in November since the start of 2014 and inflationary pressures, while still mild, picked up.
IHS Markit’s final manufacturing Purchasing Managers’ Index for the euro zone chalked up its highest reading since January 2014 in November, registering 53.7, in line with an earlier flash estimate and ahead of October’s 53.5. Anything above 50 indicates growth.
But British manufacturing growth cooled unexpectedly as factories grappled with soaring costs caused by the slump in sterling after Britain voted to leave the European Union. The weaker pound also failed to boost export orders as much as in previous months.
The Markit/CIPS UK PMI fell to 53.4 from 54.2, confounding expectations for a rise to 54.5 in a Reuters poll of economists.
James Smith at ING noted the British PMI figure was still higher than the immediate post-Brexit dip, but forecast a tougher environment ahead.
“We expect domestic demand to slow quite considerably next year as consumer spending gets hit by falling real wages and investment slows in response to post-Brexit uncertainty,” he said.
Britain’s economy has performed much better than expected since the vote to quit the EU. But a bigger test will come next year when inflation is predicted to rise sharply, eating into households’ spending power that had just started to recover.
Also consuming cash will be more expensive oil. Crude prices bubbled to a six-week high on Thursday after the Organisation of Petroleum Exporting Countries agreed on Wednesday to cut output for the first time since 2008.
ASIAN TIGERS PURRING
There were stronger PMIs in China, Taiwan and Vietnam, and while activity in Japan’s factories was still growing in November, the pace was slower. However, an uncertain outlook for global trade is worrying for Asia’s export-driven economies.
“We are still waiting very much to see what the Trump presidency will mean for things like trade policies and trade restrictions,” Louis Kuijs, head of Asia economics at Oxford Economics, said.
Trump has declared his intention to withdraw from an Asia-Pacific free trade agreement once he is inaugurated on Jan. 20, and his protectionist comments while campaigning for the presidency could herald problems for Asia.
China’s official PMI rose to 51.7 in November from 51.2. The index was stronger than economists polled by Reuters had expected and matched a level last seen in July 2014.
But analysts noted a worrying lack of expansion in new export orders for Chinese factories, suggesting the stronger headline number was a consequence of demand coming from its frothy property sector, which authorities are trying to cool.
The unofficial Caixin survey showed a more modest increase in activity, perhaps because it focuses on smaller firms which benefit less from government support for the economy.
While growth in activity was slower in Japan, a sub-index for new orders, which measures both domestic and external demand, rose to a 10-month high.
Elsewhere in Asia, the pace of growth in India’s factory activity slowed, resulting in the biggest month-on-month decline in its PMI since March 2013.
Analysts said the slowdown was probably due to a slump in demand after Prime Minister Narendra Modi ordered 500 and 1,000 rupee banknotes to be removed from circulation.
South Korean factories showed a fourth consecutive month of slowdown underlying a fragile recovery for Asia’s fourth-biggest economy.
In Malaysia, where the ringgit currency has fallen sharply due to capital outflows, the PMI fell to a five month low, hurt by falls in production and new orders.
And in Australia, lower business investment has opened the possibility that the economy shrank last quarter for the first time in almost six years.
Manufacturers around the globe performed strongly in November, but concerns about the protectionist leanings of US President-elect Donald Trump and an OPEC-induced oil price rally could curtail future growth. Factories across Asia and Europe ramped up activity and data due later on Thursday from the United States are expected to show manufacturers in the world’s largest economy also pushed harder on the accelerator.
But some analysts cautioned November might be as good as it gets as the effects of vast monetary stimulus from central banks wear off.
“The strength in PMI numbers is unlikely to be sustained as much of it can be explained by previous stimulus measures,” said Julian Evans-Pritchard at Capital Economics.
Policymakers at the European Central Bank are expected to announce an extension to their asset purchase programme when they meet next week even after euro zone manufacturers enjoyed their best month in November since the start of 2014 and inflationary pressures, while still mild, picked up.
IHS Markit’s final manufacturing Purchasing Managers’ Index for the euro zone chalked up its highest reading since January 2014 in November, registering 53.7, in line with an earlier flash estimate and ahead of October’s 53.5. Anything above 50 indicates growth.
But British manufacturing growth cooled unexpectedly as factories grappled with soaring costs caused by the slump in sterling after Britain voted to leave the European Union. The weaker pound also failed to boost export orders as much as in previous months.
The Markit/CIPS UK PMI fell to 53.4 from 54.2, confounding expectations for a rise to 54.5 in a Reuters poll of economists.
James Smith at ING noted the British PMI figure was still higher than the immediate post-Brexit dip, but forecast a tougher environment ahead.
James Smith at ING noted the British PMI figure was still higher than the immediate post-Brexit dip, but forecast a tougher environment ahead.
“We expect domestic demand to slow quite considerably next year as consumer spending gets hit by falling real wages and investment slows in response to post-Brexit uncertainty,” he said.
Britain’s economy has performed much better than expected since the vote to quit the EU. But a bigger test will come next year when inflation is predicted to rise sharply, eating into households’ spending power that had just started to recover.
Britain’s economy has performed much better than expected since the vote to quit the EU. But a bigger test will come next year when inflation is predicted to rise sharply, eating into households’ spending power that had just started to recover.
Also consuming cash will be more expensive oil. Crude prices bubbled to a six-week high on Thursday after the Organisation of Petroleum Exporting Countries agreed on Wednesday to cut output for the first time since 2008.
ASIAN TIGERS PURRING
There were stronger PMIs in China, Taiwan and Vietnam, and while activity in Japan’s factories was still growing in November, the pace was slower. However, an uncertain outlook for global trade is worrying for Asia’s export-driven economies.
“We are still waiting very much to see what the Trump presidency will mean for things like trade policies and trade restrictions,” Louis Kuijs, head of Asia economics at Oxford Economics, said.
Trump has declared his intention to withdraw from an Asia-Pacific free trade agreement once he is inaugurated on Jan. 20, and his protectionist comments while campaigning for the presidency could herald problems for Asia.
China’s official PMI rose to 51.7 in November from 51.2. The index was stronger than economists polled by Reuters had expected and matched a level last seen in July 2014.
But analysts noted a worrying lack of expansion in new export orders for Chinese factories, suggesting the stronger headline number was a consequence of demand coming from its frothy property sector, which authorities are trying to cool.
But analysts noted a worrying lack of expansion in new export orders for Chinese factories, suggesting the stronger headline number was a consequence of demand coming from its frothy property sector, which authorities are trying to cool.
The unofficial Caixin survey showed a more modest increase in activity, perhaps because it focuses on smaller firms which benefit less from government support for the economy.
While growth in activity was slower in Japan, a sub-index for new orders, which measures both domestic and external demand, rose to a 10-month high.
Elsewhere in Asia, the pace of growth in India’s factory activity slowed, resulting in the biggest month-on-month decline in its PMI since March 2013.
Elsewhere in Asia, the pace of growth in India’s factory activity slowed, resulting in the biggest month-on-month decline in its PMI since March 2013.
Analysts said the slowdown was probably due to a slump in demand after Prime Minister Narendra Modi ordered 500 and 1,000 rupee banknotes to be removed from circulation.
South Korean factories showed a fourth consecutive month of slowdown underlying a fragile recovery for Asia’s fourth-biggest economy.
South Korean factories showed a fourth consecutive month of slowdown underlying a fragile recovery for Asia’s fourth-biggest economy.
In Malaysia, where the ringgit currency has fallen sharply due to capital outflows, the PMI fell to a five month low, hurt by falls in production and new orders.
And in Australia, lower business investment has opened the possibility that the economy shrank last quarter for the first time in almost six years.
And in Australia, lower business investment has opened the possibility that the economy shrank last quarter for the first time in almost six years.
Rupee softens 13 paise against dollar in early trade
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The rupee weakened 13 paise to 68.51 against the US dollar in early trade today, snapping its two-session gaining spree at the Interbank Foreign Exchange on fresh demand for the American currency from banks and importers. Dealers attributed the rupee’s fall to the dollar’s strength against some other currencies overseas on speculation that the Federal Reserve will raise interest rates in December but a higher opening of the domestic equity market and country’s GDP accelerating to 7.3 per cent in the September quarter, capped the fall.
Yesterday, the rupee had continued its strong recovery for the second day, surging by 27 paise to close at 68.38 against the US currency.
Meanwhile, the benchmark BSE Sensex rose by 116.51 points or 0.43 per cent to 26,769.32 in early trade.
The rupee weakened 13 paise to 68.51 against the US dollar in early trade today, snapping its two-session gaining spree at the Interbank Foreign Exchange on fresh demand for the American currency from banks and importers. Dealers attributed the rupee’s fall to the dollar’s strength against some other currencies overseas on speculation that the Federal Reserve will raise interest rates in December but a higher opening of the domestic equity market and country’s GDP accelerating to 7.3 per cent in the September quarter, capped the fall.
Yesterday, the rupee had continued its strong recovery for the second day, surging by 27 paise to close at 68.38 against the US currency.
Meanwhile, the benchmark BSE Sensex rose by 116.51 points or 0.43 per cent to 26,769.32 in early trade.
General Awareness
Singapore students are the World’s best in Mathematics and Science-TIMSS Report
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An international benchmarking study, Trends in International Mathematics and Science Study (TIMSS) released a report on November 29, 2016 that, Singapore students are the world’s best in Mathematics and Science.
- The test was administered by the International Association for the Evaluation of Educational Achievement, a non-profit research cooperative based in Amsterdam.
- This is the second time that students of Singapore performed best those from all other countries in TIMSS, which takes place every four years. The last time this country stood first was in 2003.
- The latest cycle of TIMSS was conducted in 2015 in Northern Hemisphere countries. About 6,500 Primary 4 students (Age 9-10) and 6,100 Secondary 2 students(Age 13-14) across all 179 schools in Singapore participated in the latest TIMSS 2015 test. They were among over 582,000 students from 64 education systems tested worldwide.
Result of TIMSS 2015 :
Singapore’s Primary 4 pupils had the highest mean score of 618 in Maths, with those in Hong Kong stood second with a score of 615.
- Again Primary 4 pupils of Singapore attained the best score of 590 in science, beating those in South Korea, which had 589.
- Singapore secondary 2 students were also ranked first with top scores of 621 and 597 for mathematics and science respectively, beating students in South Korea and Japan which came in second.
- The proportion of students with the lowest score of below 400 in Singapore was also much smaller than the international average. Just 1 per cent of Singapore students scored below 400 for Primary maths, for instance. The global average was 7 per cent.
- Singapore students are getting better in tackling non-routine questions and those requiring them to apply knowledge. Educators attributed these improvements to schools focusing more on inquiry-based teaching and learning over the last decade.
- The results revealed that England has improved in both science and maths, with the country’s maths results now at their highest point for 20 years in both age groups.
- From the first assessment in 1995 to the most recent in 2015, England’s score increased by 12.8 per cent (from 484 to 546) for nine to 10 year-olds, with a 4 per cent improvement (from 498 to 518) for 13 to 14 year-olds.
The difference between the top performing countries and the next highest performers is 23 points for the younger age group and 48 points for the older students.
List of Top 5 Countries:
Secondary Maths Secondary Science Primary Maths Primary Science 1. Singapore 1. Singapore 1. Singapore 1. Singapore 2. South Korea 2. Japan 2. Hong Kong 2. South Korea 3. Taiwan 3. Taiwan 3. South Korea 3. Japan 4. Hong Kong 4. South Korea 4. Taiwan 4. Russia 5. Japan 5. Slovenia 5. Japan 5. Hong Kong
The Trends in International Mathematics and Science Study (TIMSS)
The Trends in International Mathematics and Science Study (TIMSS) is an educational research study on student achievement in mathematics and science around the world.
- TIMSS is conducted under the auspices of the International Association for the Evaluation of Educational Achievement (IEA), which is an independent international co-operative of national research institutions and government agencies. The Ministry of Education’s Comparative Education Research Unit manages the implementation of the TIMSS studies in New Zealand.
- It is designed to measure and interpret differences in national educational systems in order to help improve the teaching and learning of mathematics and science worldwide. In 1994, TIMSS began the first study and thereafter it is held once every four year.
- TIMSS assesses achievement in mathematics and science of middle primary (Age 9-10) and lower secondary (Age 13-14) levels, and collects background information on student, classroom and school contexts through questionnaires.
An international benchmarking study, Trends in International Mathematics and Science Study (TIMSS) released a report on November 29, 2016 that, Singapore students are the world’s best in Mathematics and Science.
- The test was administered by the International Association for the Evaluation of Educational Achievement, a non-profit research cooperative based in Amsterdam.
- This is the second time that students of Singapore performed best those from all other countries in TIMSS, which takes place every four years. The last time this country stood first was in 2003.
- The latest cycle of TIMSS was conducted in 2015 in Northern Hemisphere countries. About 6,500 Primary 4 students (Age 9-10) and 6,100 Secondary 2 students(Age 13-14) across all 179 schools in Singapore participated in the latest TIMSS 2015 test. They were among over 582,000 students from 64 education systems tested worldwide.
Result of TIMSS 2015 :
Singapore’s Primary 4 pupils had the highest mean score of 618 in Maths, with those in Hong Kong stood second with a score of 615.
- Again Primary 4 pupils of Singapore attained the best score of 590 in science, beating those in South Korea, which had 589.
- Singapore secondary 2 students were also ranked first with top scores of 621 and 597 for mathematics and science respectively, beating students in South Korea and Japan which came in second.
- The proportion of students with the lowest score of below 400 in Singapore was also much smaller than the international average. Just 1 per cent of Singapore students scored below 400 for Primary maths, for instance. The global average was 7 per cent.
- Singapore students are getting better in tackling non-routine questions and those requiring them to apply knowledge. Educators attributed these improvements to schools focusing more on inquiry-based teaching and learning over the last decade.
- The results revealed that England has improved in both science and maths, with the country’s maths results now at their highest point for 20 years in both age groups.
- From the first assessment in 1995 to the most recent in 2015, England’s score increased by 12.8 per cent (from 484 to 546) for nine to 10 year-olds, with a 4 per cent improvement (from 498 to 518) for 13 to 14 year-olds.
The difference between the top performing countries and the next highest performers is 23 points for the younger age group and 48 points for the older students.
List of Top 5 Countries:
| Secondary Maths | Secondary Science | Primary Maths | Primary Science |
| 1. Singapore | 1. Singapore | 1. Singapore | 1. Singapore |
| 2. South Korea | 2. Japan | 2. Hong Kong | 2. South Korea |
| 3. Taiwan | 3. Taiwan | 3. South Korea | 3. Japan |
| 4. Hong Kong | 4. South Korea | 4. Taiwan | 4. Russia |
| 5. Japan | 5. Slovenia | 5. Japan | 5. Hong Kong |
The Trends in International Mathematics and Science Study (TIMSS)
The Trends in International Mathematics and Science Study (TIMSS) is an educational research study on student achievement in mathematics and science around the world.
- TIMSS is conducted under the auspices of the International Association for the Evaluation of Educational Achievement (IEA), which is an independent international co-operative of national research institutions and government agencies. The Ministry of Education’s Comparative Education Research Unit manages the implementation of the TIMSS studies in New Zealand.
- It is designed to measure and interpret differences in national educational systems in order to help improve the teaching and learning of mathematics and science worldwide. In 1994, TIMSS began the first study and thereafter it is held once every four year.
- TIMSS assesses achievement in mathematics and science of middle primary (Age 9-10) and lower secondary (Age 13-14) levels, and collects background information on student, classroom and school contexts through questionnaires.
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