Taxation
Taxation rate to be worked out by GST Council: Jaitley
Without delving into specifics on the taxation rate under the Goods and Services Tax (GST) regime, Finance Minister Arun Jaitley here on Monday said it will be worked out by the GST Council.
 
GST rate was earlier suggested at 18 per cent by Chief Economic Adviser Arvind Subramanian.
 
“The GST Council will work on the functional modalities. The rate of taxation will also be determined there,” Jaitley said initiating the discussion on the 122nd constitution amendment bill in the Lok Sabha.
 
The constitution amendment bill is an enabling measure which will pave the way for the GST regime.
 
After its passage in the Lower House, which is a given as the government enjoys a clear majority in the Lok Sabha, three laws will need to be prepared for GST.
 
“We will have to prepare three more laws. After ratification by states, the draft will have to be prepared by GST Council. The two laws on inter-state GST and central GST will have to come before the Parliament. The state GST will be passed by various state assemblies,” Jaitley said.
 
Since GST will be the responsibility of the Centre and states both, the government wanted to have a larger consensus on it, he said.
 
“There has been a wide consensus. A large number of political parties have come forward in its support,” Jaitley said.
 
The Rajya Sabha had last week unanimously passed the Constitution amendment bill to pave the way for the introduction of a pan-India Goods and Services Tax regime.
 
The upper house passed what is called the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, with 203 ayes in the final voting. The AIADMK staged a walk-out before the bill was passed in the upper house. 
 
The government had moved amendments to the bill earlier passed by the Lok Sabha to accommodate some concerns of opposition parties.
 
The government has removed the one per cent additional levy and agreed to compensate for any loss of revenue to the states for next five years.
 
"There was a delay, but most of the political parties came on one platform. After a long time, after efforts which continued for a number of years, finally a consensus was formed," he said. Initially, the GST was supposed to be applicable from April 1, 2010. 
 
The Finance Minister said that after the GST comes into place the tax base is likely to increase as it will improve ease of doing business and mitigate tax evasion and tax cascading effect. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Law for bad debts recovery good for Indian banks: Moody's
Moody's said on Monday the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions Bill, 2016, and the Insolvency and Bankruptcy Code, 2016 (bankruptcy), will lead to structural improvements in banks dealing with bad assets.
 
While the bankruptcy law has been enacted, the Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, has to be passed by the Rajya Sabha after it was cleared by the Lok Sabha.
 
The Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, is a credit positive for the Indian banks as it aims to expedite the recovery and resolution of bad debts, said a statement issued by Moody's Investors Services.
 
"Weakness in current processes for bad debt resolution has been a key structural credit challenge for Indian banks. There are currently about 70,000 cases pending in debts recovery tribunals (DRTs), and these cases have been pending for many years owing to various adjournments and prolonged hearings," Moody's said.
 
According to Moody's, the provisions relating to promotion of asset reconstruction companies for banks to off-load their non-performing assets (NPA) and prioritise debt due to secured creditors over all other debts and claims (including government claims) are credit positive features for the Indian banks.
 
The Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, proposed electronic filing of all proceedings, time limit for filing appeals against decisions of Debt Recovery Tribunals (DRTs) reduced to 30 days from 45 and debtors to deposit 50 per cent of the amount of debt payable before filing an appeal are positive for Indian banks, said the credit rating agency.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Delta flights grounded after global systems outage
American airline company Delta on Monday said all its flights were grounded because of a global computer system outage.
 
"Our systems are down everywhere," the airlines tweeted in response to disgruntled customers. 
 
"Hopefully, it won't be much longer," CNN quoted the airlines as saying.
 
Passengers on Twitter reported problems -- including the inability to check in or being stuck on the tarmac -- from airports around the world, including San Francisco and Athens.
 
Delta serves nearly 180 million customers a year, employing over 80,000 personnel, according to its website, the BBC said.
 
It has its headquarters at Atlanta, in Georgia state of the US, and began in the 1920s as a crop-dusting company.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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