By making such a statement, Rahul Gandhi has made public the differences between the UPA government and Congress
Embarrassing the Congress-led United Progressive Alliance (UPA) government, Rahul Gandhi has said the Ordinance on convicted lawmakers should be torn away.
Making a surprise entry into a press conference of Ajan Maken at Press Club in Delhi, the Congress vice president said, "It's complete nonsense. It should be torn up and thrown away."
Interestingly, Congress chief spokesperson Maken had defended the Ordinance minutes before Rahul Gandhi opposed it.
Gandhi said the government's argument is that it needs to do this for political considerations. "It's time to stop this. We cannot continue to make compromises," he said and added: "I personally feel that what the Government is doing is wrong."
The move is definitely an embarrassment to the Government, which was fiercely defending the Ordinance till the other day. The President himself was unhappy with the Ordinance.
Several Congress leaders, including Digvijay Singh, had opposed the Ordinance. By making such a statement, Rahul Gandhi made public the differences between the government and the Party.
Meanwhile, the Supreme Court has made it clear that it may hear the plea against the proposed Ordinance to protect convicted lawmakers from disqualification only after the law gets the nod from the President.
In response to the submission that the Presidential nod to the ordinance was merely a formality, a bench of Justices AK Patnaik and JS Kehar said, “Suppose the Ordinance is passed, we can still pass the stay order. You mention the matter on Monday, if it is cleared.”
In yet another example of burdening bank customers, RBI has asked banks to deploy infrastructure at own cost for using UIDAI’s Aadhaar biometric authentication for KYC
Although the Supreme Court has ruled that Aadhaar number from Unique Identification Authority of India (UIDAI) is not necessary for essential services, several government agencies are enforcing it on helpless citizens. Going a step further the Reserve Bank of India (RBI) is asking banks to bear the cost for deploying electronic-know your customer (e-KYC) launched by UIDAI.
In a circular issued on 2 September 2013, the central bank has asked banks to accept on-line Aadhaar authentication as an ‘Officially Valid Document’ under Prevention of Money Laundering Act (PMLA), 2002.
"In this connection, it is advised that while using e-KYC service of UIDAI, the individual user has to authorize the UIDAI, by explicit consent, to release her or his identity/address through biometric authentication to the bank branches/business correspondents (BCs). The UIDAI then transfers the data of the individual comprising name, age, gender, and photograph of the individual, electronically to the bank/BCs, which may be accepted as valid process for KYC verification," the notification says.
RBI has also 'directed' banks to have proper infrastructure in place to enable biometric authentication for e-KYC.
Here is the operational procedure that banks are required to follow for e-KYC exercise...
The e-KYC service of the UIDAI is to be leveraged by banks through a secured network. Any bank willing to use the UIDAI e-KYC service is required to sign an agreement with the UIDAI. The process flow to be followed is as follows:
1. Sign KYC User Agency (KUA) agreement with UIDAI to enable the bank to specifically access e-KYC service.
2. Banks to deploy hardware and software for deployment of e-KYC service across various delivery channels. These should be Standardisation Testing and Quality Certification (STQC) Institute, Department of Electronics & Information Technology, Government of India certified biometric scanners at bank branches/ micro ATMs/ BC points as per UIDAI standards. The current list of certified biometric scanners is given in the link below:
3. Develop a software application to enable use of e-KYC across various Customer Service Points (CSP) (including bank branch, BCs etc.) as per UIDAI defined Application Programming Interface (API) protocols. For this purpose banks will have to develop their own software under the broad guidelines of UIDAI. Therefore, the software may differ from bank to bank.
4. Define a procedure for obtaining customer authorization to UIDAI for sharing e-KYC data with the bank. This authorization can be in physical (by way of a written explicit consent authorising UIDAI to share his/her Aadhaar data with the bank/BC for the purpose of opening bank account) /electronic form as defined by UIDAI from time to time.
5. Sample process flow would be as follows:
i The customer can open bank account subject to satisfying other account opening
The Supreme Court upheld the Bombay High Court’s verdict that asked builders to pay 5% value added tax -VAT for under construction flats sold during 20 June 2006 to 31 March 2010.
The Supreme Court had ruled that value added tax (VAT) cannot be imposed on buyers and builders, developers have to pay the tax (5%) for under construction flats sold during 20 June 2006 to 31 March 2010. The apex court also clarified that VAT is not payable, if a fully constructed flat is sold to the buyer and builders will be liable to pay tax only on cost of construction.
However, there are chances that builder will recover these charges from buyers by adding it in costs and it will only create litigations between builders and buyers.
Earlier, citing a circular issued by the Maharashtra Sales Tax Department, builders were asking flat buyers to pay the additional money before 31 October 2012 for their homes bought between 2006 and 2010. However, several consumer organizations like the Grahak Panchayat had maintained that it is the builder, developer who will have to pay VAT and not flat buyers.
The Supreme Court order will have a direct impact on realtors from Karnataka, Maharashtra and Uttar Pradesh. The order also empowers all state government to issue circulars to levy VAT. Maharashtra government had issued a circular in 2006, and subsequently in 2007 levied a VAT of 5% on sale of flats.
The Supreme Court had clubbed 14 appeals from Karnataka and 12 from Maharashtra. Verdict means that developers in states such as Maharashtra, Uttar Pradesh and Karnataka, where VAT has been levied on such transactions will have to pay the charges. Builders were trying to recover this amount from the buyers.
Although, the state governments and even High Court has said that developers have to pay VAT, several were reluctant to pay the tax.
Advocate General for Maharashtra clearly stated, “Implementation of Rule 58(1-A ) of Maharashtra VAT shall not result in double taxation and in any case all claims of alleged double taxation will be determined in the process of assessment of each individual case." As builders have already paid taxes for raw materials and this may create issues of double taxation. However MVAT rule 58 (1-A) provides deduction of expenses on labour and service charges for the execution of the work related to the goods that has already been transferred.
Earlier, builders’ association CREDAI had approached the apex court after the Bombay High Court rejected their plea to impose only 1% VAT. In 2006, the state government imposed a VAT of 5% on constructions made between 2006 and 2010. The move resulted in an additional tax liability on flats, shops and bungalows sold by developers between 20 June 2006, and 31 March 2010.
To know more about VAT read, VAT on sale of under-construction flats in Maharashtra: All you need to know