Nasheman News : In a further relief to the micro, small and medium (MSME) sector, the threshhold limit for eligibility under the GST Composition Scheme was raised to Rs 1.5 crore, from Rs 1 crore, by the GST Council on Thursday and will apply from the 2019-20 fiscal beginning April 1.

“We had raised the Composition Scheme limit to Rs 1.5 crore. The decision will be applicable from April 1, 2019,” Finance Minister Arun Jaitley told reporters here after chairing the 32nd meeting of the GST Council.

Those opting for the Composition Scheme pay a minimal Goods and Services Tax (GST) of 1 per cent. 

In an easing of the compliance burden, the GST Council also decided that those opting for the scheme would need to file their returns only once a year, Jaitley said. The tax payment mode, however, would continue to be on a quarterly basis.

This facility will also be also applicable from April 1.

In a third decision, the GST Council also made small service providers, and those providing a mix of goods and services, with a turnover of up to 50 lakhs, eligible for the Composition Scheme. 

With Thursday’s decision, service and mixed goods and service providers will be entitled to avail the benefit on payment of GST at 6 per cent, Jaitley said. 

Nasheman News : Indian and Pakistani troops traded gunfire along the Line of Control (LoC) in Jammu and Kashmir’s Poonch and Rajouri districts on Wednesday.

The first clash took place in Poonch district.

Pakistan troopers resorted to unprovoked firing at Indian positions in Gulpur and Khari Karmara areas at around 8.15 a.m., Defence Ministry sources said.

“They used automatics and mortars. Our troops retaliated strongly. No casualty or damage was reported on our side,” an official said.

Later, the Pakistan Army used mortars to target Indian positions in Kalal area of Rajouri district.

“Our troops are retaliating strongly. Firing exchanges are going on,” the official said.

Panic has again gripped people living close to the LoC in Poonch and Rajouri districts amid deafening sounds of mortar shell explosions. The winding LoC divides Jammu and Kashmir between Pakistan and India.

 Nasheman News : Continuing its efforts to improve the safety of card transactions, the Reserve Bank of India (RBI) on Tuesday extended the use of tokenisation — hiding of actual card details with a unique token — in the wider payments ecosystem.

To date, the RBI had allowed card payment networks like Visa and MasterCard to use the tokenisation technology in card transactions. The technology is now allowed to be used by merchants holding the card credentials like online retailers.

“It has now been decided to permit authorised card payment networks to offer card tokenisation services to any token requestor (i.e., third party app provider),” the RBI said in a statement. For now, the facility will be offered through mobile phones and tablets only.

The permission extends to all use cases and channels like near field communication (NFC), magnetic secure transmission (MST)-based contactless transactions, in-app payments and QR (quick response) code-based payments, the bank said.

“The Reserve Bank has today (Tuesday) released guidelines on tokenisation for debit/ credit/ prepaid card transactions as a part of its continuous endeavour to enhance the safety and security of the payment systems in the country,” the statement said.

Tokenisation involves a process in which a unique token masks sensitive card details and thus, in lieu of actual card details, this token is used to perform card transactions. The token will be unique for a combination of card, token requestor and “identified device”. 

While all other instructions related to card transactions will be applicable for tokenised card transactions as well, the RBI stated: “The ultimate responsibility for the card tokenisation services rendered rests with the authorised card networks.”

Before providing card tokenisation services, card payment networks will have to put in place a mechanism for periodic system (including security) audit at frequent intervals, at least once a year, of all entities involved in providing card tokenisation services to customers.

“Tokenisation and de-tokenisation shall be performed only by the authorised card network, and recovery of original Primary Account Number (PAN) should be feasible for the authorised card network only. Adequate safeguards shall be put in place to ensure that PAN cannot be found out from the token and vice versa, by anyone except the card network,” the RBI said.

Registration of card on token requestor’s app will be done only with explicit customer consent and the customers will have the option to register/ de-register their card for a particular use cases like contactless and QR code-based.

“Card issuers shall ensure easy access to customers for reporting loss of ‘identified device’ or any other such event which may expose tokens to unauthorised usage. Card network, along with card issuers and token requestors, shall put in place a system to immediately de-activate such tokens and associated keys,” the bank added.

Nasheman News : Four women will dominate the global economic policy sphere with eminent academic Gita Gopinath becoming the International Monetary Fund’s (IMF) chief economist.

In a sign of growing women power, she along with her boss and IMF’s Managing Director Christine Lagarde, World Bank’s chief economist Pinelopi Koujianou Goldberg, and Kristalina Georgieva, the Bank’s CEO who will become its interim President next month, will have the leading role in guiding international financial policy as the world economy faces its severest stress in more than a decade.

They confront the confluence of a retreat from globalization, a trade war between China and the US, uncertainties in Europe over Brexit, weakening of several currencies against the dollar, shifts in foreign direct investments and the growing inequalities between nations and within countries.

Gopinath, who became the first woman to become the IMF’s chief economist, succeeded Maurice Obstfeld, who left the organization at the end of last year.

When Lagarde announced in October Gopinath’s appointment with the formal title of Economic Counsellor and Director of the Research Department, she called her “one of the world’s outstanding economists, with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience”.

“All this makes her exceptionally well-placed to lead our Research Department at this important juncture. I am delighted to name such a talented figure as our Chief Economist,” Lagarde said.

Before coming to the IMF, Gopinath was professor of International Studies and Economics at Harvard University.

She was concurrently appointed in 2016 as the economic adviser to the Kerala Chief Minister with the rank of principal secretary. She has also served as a member of the Eminent Persons Advisory Group on G-20 Matters for the Indian Ministry of Finance.

In addition to helping formulate policies for the IMF and set strategies and evaluate the performance of nations, Gopinath will oversee the World Economic Outlook Report that is considered a major survey of the global economy.

A significant aspect of her position will be helping set the conditions for countries seeking bailouts from the IMF. Often the terms call for stringent financial regulations and unpopular belt-tightening for the recipients.

A graduate of Lady Sri Ram College in New Delhi, Gopinath received her MA degree from the Delhi School of Economics.

She went on to Princeton University from where she got her Ph.D in economics in 2001 for her work on international macroeconomics and trade.

Gopinath was an assistant professor at the University of Chicago before moving to Harvard in 2005. She received the Bhagwati Prize for the best paper published in the Journal of International Economics in 2003 and 2004.

In 2014, she was named one of the top 25 economists under 45 by the IMF and was a World Economic Forum Young Global Leader in 2011.

Her extensive research and writings include a critique of Prime Minister Narendra Modi’s demonetization in 2016. Writing in the Project Syndicate within days of the demonetization, she presciently said the government “seems to be causing collateral damage to India’s economy”.

 Nasheman News : The Income-Tax (I-T) department will soon hold a meeting with the Kannada film industry fraternity on the need for paying taxes and filing returns, a top official said on Monday.

“We will soon hold a meeting with the Karnataka film industry to convey that they (fraternity) should pay taxes and file returns,” said Karnataka Director-General Income -Tax (Investigation) B.R. Balakrishnan told reporters here.

The department’s sleuths found recently that many in the film industry like cameramen, make-up personnel and crew were not filing tax returns.

“Through the meeting, we want to appeal to the film fraternity to pay their taxes,” said Balakrishnan a day after his office on Sunday revealed that searches on 4 Kannada super stars and 3 producers resulted in seizure of undisclosed assets valued at Rs 11 crore, including Rs 2.85 crore in cash and 25 kg gold jewellery.

Incriminating evidence found during the searches from January 3-5 also resulted in the defaulters admitting to Rs 109 crore unaccounted income.

“Rs 109 crore concealed income was found so far in all the searches on actors and film producers. The searches are going on,” the DG said.

The I-T office issued search warrants under section 132 of the Income-Tax Act 1961 on those who were searched a day or two ahead of conducting the raids. 

“The searches are an evidence gathering exercise. We will continue the searches and investigation. The evidence will be sent to a senior officer to assess the income earned and tax payable. In a few exceptional cases, we will file prosecution straight away as well,” Balakrishnan told IANS on the margins of an event.

The tax office will adjust the money found (seized) against the tax demand or penalty demand.

In a related development, the tax department celebrated “Investigation Day” and felicitated officers and staff of its investigation wing for detecting a whopping Rs 12,268 crore concealed income across the Karnataka and Goa region during the fiscal 2017-18.

“Of the concealed income, Rs 5,339 crore was confessed by the tax payers. Rs 78-crore unaccounted income was seized in the last fiscal,” said Balakrishnan on the occasion.

During this fiscal (2018-19) the Investigation Directorate conducted searches resulting in admission of undisclosed income of Rs 4,038 crore and detection of Rs 6,134 crore unaccounted income.

Searches were conducted on assessees spanning politicians, bureaucrats, breweries, multinationals, mining barons, diagnostic centres, trusts, educational institutions, medical colleges, real estate, fisheries and film industry.

“The searches have resulted in collecting evidence on tax evasion. In many cases, searches exposed complex web of overseas entities floated by assessees for laundering money abroad and investments made in foreign assets having ramifications under the Black Money Act,” recalled Balakrishnan.

The department has issued notice in many cases under the BMA to the assesses and initiated prosecution.

Under the new Benami Prohibition Units in Bengaluru and Panaji, 84 properties valued at Rs 563 crore were attached, while 91 benamidars and 19 beneficial owners were identified.

Nasheman News :  Assuring adequate liquidity measures whenever the need arises RBI Governor Shaktikanta Das on Monday noted that liquidity should not become “loose money” and the apex bank would excercise the measures with caution.

The Reserve Bank of India has “a sense” of the current liquidity situaiton and after his appointment as its Governor has announced additional infusion of liquidity via open market operations (OMOs) of Rs 60,000 crore, Das said here on Monday after meeting the representatives of Micro, Small and Medium Enterprises (MSMEs).

“While dealing with the issue of liquidity, I would also like to say that it is something which the RBI is constantlyy monitoring and will take steps whenever there is a need to deal with the liquidity deficit, if it is noticed.

“… At the same time I must also add the RBI would not like a situation where liquidity becomes a kind of a loose money. Any infusion of liqidity will have to be very carefully considered and has to be need-based. So, the caution and care has to be excercised by the RBI, that excess liquidity which sometimes has adverse consequences that is not created,” he added. 

Das further said that he will meet the representatives of Non-banking Financial Companies (NBFCs) on Tuesday in Mumbai.

New Delhi, A parliamentary panel has asked the Reserve Bank of India to address the problem of perpetually dysfunctional ATMs so as to avoid a situation of a forced cash crunch.

The Standing Committee on Finance has also asked banks to install an adequate number of ATMs. The panel tabled its report in Parliament last week.

As per RBI data, there were 2,21,492 Automated Teller Machines (ATMs) in the country as at September-end 2018.

These include 1,43,844 ATMs of public sector banks, 59,645 ATMs of private banks and 18,003 of foreign banks, payments banks, small finance banks and White Label ATMs (WLAs), which are owned and operated by non-bank entities.

“As digital transactions have not become anywhere near universal, the committee would urge upon RBI to pursue the lingering problem of dysfunctionality as well as shortage of ATMs vigorously with banks, while ensuring the economic viability of ATMs for all stakeholders, so that a forced cash crunch is not imposed on the public,” the report said.

The panel headed by senior Congress leader M Veerappa Moily also noted that the RBI’s remonetisation drive has not resolved the cash supply to ATMs in rural or semi-urban areas, forcing the shutdown of many ATMs.

The committee has expressed concern that “there are just not enough” ATMs being installed or added to cater to the rising demand for cash in an expanding economy, even as more and more debit cards are being issued and large number of Jan Dhan accounts opened by banks.

ATMs have become an important channel for withdrawing money even after the close of banking hours. Digital transactions are also catching up.

Besides ATMs, basic banking services are provided by business correspondents through their micro ATMs.

PTI

The Minister said alternative fuels, environment-friendly vehicles and notification on emission standards have been issued for different kinds of fuels in India to bring down air pollution.

 Union Minister of State for Road Transport and Highways Mansukh L Mandaviya on Thursday informed the Lok Sabha that 19,82,199 vehicles registered in Bengaluru were over 15 years old. 
His written reply was to a query from Bengaluru Central MP P C Mohan questioning if the Centre was aware that over 16 lakh old vehicles were plying in the city and if any proposal to tackle air pollution had been taken.   

The Minister said alternative fuels, environment-friendly vehicles and notification on emission standards have been issued for different kinds of fuels in India to bring down air pollution. “The government has mandated mass emission standards for BS-VI throughout the country from 1 April, 2020,” Mandaviya said. 

Asked about the old vehicles, a senior official in one of the Regional Transport Offices (RTOs) in the city said the Centre was yet to formulate a “weeding out” order (removal order) against older vehicles in the country. “Unless the government issues a weeding order, we cannot take action against such vehicles. A proposal to ease out such vehicles is pending with the Centre,” the official said. A top traffic cop said, “Unless the RTO issues seizure orders, we cannot take away old vehicles.”

A Karnataka State Pollution Control Board (KSPCB) official felt the government needs to ban older vehicles from other districts or states entering important cities, including Bengaluru. “The Centre also needs to provide some kind of incentive to owners of old vehicles to scrap them. If some subsidy is offered to help purchase new vehicles, then owners will voluntarily do it,” he said. 

Agencies

The Karnataka government on Friday raised the rate of sales tax on petrol and diesel to 32% and 21% respectively. Petrol will cost Rs 70.8 per litre while diesel will cost Rs 64.6 as the increase in the rates will come into immediate effect. The prices of petrol and diesel was Rs 69 and 62.8 on Friday.

The government cited revenue loss for the state due to the drop in crude oil prices in the international market as the reason for the increase in the rates. 

The CM office clarified in a note that despite the revision of prices, the price of petrol in the state remained lower than neighboring states The price of petrol is Rs 72.87 in Tamil Nadu, Rs 71.16 in Kerala, Rs 72.63 in Andhra Pradesh and Rs 74.06 in Maharashtra. 

The note also added that the union government had reduced central excise on petrol and diesel by Rs 1.50 on October 5, 2018 and also directed oil marketing companies to reduce their margins by Re 1.

The decision by the JD(S)-Congress coalition government is set to have an adverse effect as the Congress party continues its repeated attacks on the central government over rising fuel prices in the country.

This is the third time the coalition government is making a change in the sales tax on petrol and diesel. The government had previously increased sales tax on petrol and diesel from 30 to 32% and 19 to 21% respectively in July 2018, two months after it came into power. The tax was raised in part to help fund the ambitious farm loan waiver scheme laid out by the coalition government. 

However, on September 17, 2018, it reduced the price of petrol by Rs 2 per litre. The reduction came at a time the Congress was putting pressure on the central government over the rising fuel prices in the country.

Economic Affairs Secretary Subhash Chandra Garg said more than adequate notes of Rs 2,000 are in the system with over 35% of notes by value in circulation being of Rs 2,000.

A finance ministry official said there has been no decision regarding 2,000 rupee note production recently.

Denying reports that the Reserve Bank of India (RBI) had stopped the production of Rs 2,000 currency notes, the finance ministry today said printing was planned according to the projected requirement.

“Printing of notes is planned as per the projected requirement. We have more than adequate notes of Rs 2,000 in the system with over 35% of notes by value in circulation being of Rs 2,000,” Economic Affairs Secretary Subhash Chandra Garg said on Twitter. He also said that there had been no decision regarding Rs 2,000 note production recently.

A media report had yesterday claimed the government had stopped the printing of the high-value currency note as it was being used for “hoarding, tax evasion and money laundering”. Another report, by PTI, had said the printing of the Rs 2,000 banknote, introduced post-demonetisation in November 2016, had been brought down to a minimum.

Immediately after the sudden decision to ban old Rs 500 and Rs 1,000 currency notes by the government, the Reserve Bank of India had come out with the Rs 2,000 note along with a new look 500 rupee note as part of its remonetisation exercise.

According to RBI data, there were 3,285 million pieces of Rs 2,000 notes in circulation at the end of March 2017. A year later (on March 31, 2018), there was only a marginal increase in the number at 3,363 million pieces. Of the total currency in circulation amounting to Rs 18,037 billion at the end of March 2018, Rs 2000 notes accounted for 37.3 per cent, down from 50.2 per cent at the end of March 2017. The old Rs 500 and Rs 1000 bank notes that were scrapped in November 2016 accounted for around 86% of the total currency in circulation at the time.