Circulars

Dear Members,
Please find the details for the Annual General Meeting and Conference to be hosted by Calcutta Paper Traders’ Association, Kolkata from 18th to 20th August 2018.
This is for your information and necessary action.
Regards
For FPTA
Hiren Karia
Hon. Secretary ​

 

Respected Members

Please find the information on GST.

E-Waybill Functionality – Multi Vehicle Option for E-Way Bill

Government has launched a new functionality to mention details of multiple vehicles in E-waybill, wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to transshipment place.

 

For instance, an e-way bill is generated and goods needs to be moved from point A to point C. Here, the consignment moves from point A to point B via Rail or bigger vehicle. Now, it is not possible to move the consignment from point B to point C in the same mode of transportation due to unavailability of that mode or may be due to hilly region where big vehicles cannot be used. In such cases, the consignment needs to be moved in multiple smaller vehicles.

Detailed procedure to use the said functionality of E-waybill is given in link below.

Click here to see the GST Note on New Functionality in E-waybill.

 

 

GST Update | Explanatory Notes & Refund SOP

Classification of services: 

CBIC has released the explanatory notes for classification of services.  The Scheme of Classification of Services adopted for the purposes of GST is a modified version of the United Nations Central Product Classification. It is clarified that  these notes may be used by the assessee and the tax administration as a guiding tool for classification of services.

Accordingly, registered service providers may confirm the classification of their services.

Please click here to see the explanatory notes..

Refund SOP:

Government of Kerala has issued a standard operating procedure (SOP) w.r.t refunds under GST. It captures the legal provisions, procedures, FAQs and checklist of documents required for claiming refund under GST on account of various reasons.

Broadly, the same would be applicable for all the states across India. Accordingly, taxpayers may go through and use the same for claiming pending refunds.

Please click here to see procedure of Refunds.

Regards

For FPTA

Hiren Karia

Hon. Secretary

The information has been received from an external source; FPTA does not in any way assure the accuracy of the same. The information has been sent to members for their knowledge and for academic purpose only.​​​​​​​​​​​​

5/30/2018 Press Information Bureau

Special Refund Fortnight from 31.05.2018 to 14.06.2018 Posted On: 30 MAY 2018 2:57PM by PIB Delhi Refunds of GST have been a concern for both the Government and Trade for the past several months. Till now, the Government has sanctioned more than Rs 30,000 crore as GST Refund. This includes an amount of Rs 16,000 crore of IGST and Rs 14,000 crore of ITC. The figures of ITC include sanction by both the Central and State Governments. Contrary to the press reports that there has been a dip in refund sanction after the first Refund Fortnight in March 2018, the refund sanctioned during May 2018 is to the tune of Rs 8,000 crore. Refund claims to the tune of Rs 14,000 crore (Rs.7,000 crore on the IGST side and Rs 7,000 crore on account of ITC) are pending with the Government as on date, as against the figure of Rs 20,000 crore projected by FIEO in the press reports. In order to liquidate the pendency, Government is starting a second “Special drive Refund Fortnight” from 31 May 2018 to 14 June 2018. This time the “Special Drive Refund Fortnight” would facilitate all types of Refund claims in which Customs, Central and State GST officers will strive to clear all GST refund applications received on or before 30.04.2018. This will include refunds of IGST paid on exports, refunds of unutilized ITC and all other GST refunds submitted in FORM GST RFD01A. The Central Board of Indirect Taxes and Customs (CBIC) is implementing a solution whereby the refunds held in GSTN, in cases where the exporters have mistakenly declared their export supplies as domestic supplies, would now be transmitted to Customs EDI System. A Circular No 12/2018 dated 29-05-2018 has been issued in this regard. On receipt of the records from GSTN, the Customs System would automatically process the refunds for sanction, if no other errors are committed by exporters. Circular No 45/19/2018-GST has been issued on 30-05-2018 clarifying matters related to refund claims by an Input Service Distributor, composition dealer, exports of services and supplies made to SEZ. The circular also clarifies issues related to requirement of LUT in cases of export of exempted or non-GST goods and scope of restriction imposed under Rule 96(10). All claimants may note the refund application in FORM GST RFD-01A will not be processed unless a copy of the application, along with all supporting documents, is submitted to the jurisdictional tax office. Mere online submission is not sufficient.

All GST refund claimants are encouraged to approach their jurisdictional tax authority for disposal of any of their refund claims submitted on or before 30.04.2018, which are still pending. In case the jurisdiction (i.e. Centre or State) has not been defined for a particular claimant, he/she can approach either of the jurisdictional tax authorities. All IGST refund claimants may register on ICEGATE website, if not already done, to check their refund status. Customs field formations have been directed to gear up for anticipated response of the exporters by diverting additional manpower and infrastructural resources. Exporters are requested to come forward and avail of the opportunity to get the refunds sanctioned during this special drive.

THE PAPER TRADERS’ ASSOCAITION, Mumbai

April 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1

6/4/2018

Monthly Circulars

One Circular were circulated on 06/04/2018 regular Circular giving information along with Annual subscription for the year 2018-19, Advertisement through circular, Publications, D.A. for the month of April 2018, Two New Member, Information about GST & E way bill.

2

27/4/2018

7th MC Mtg.

During the Mtg. the Minutes of 6th MC Mtg approved by MC members. Two new membership applications approved by committee. There was a small discussion about E way bill & Discontinue & Defaulter in the year 2017-18, Bombay Packaging has been declaring as the defaulter.

3

4/4/2018

Board Dealers Meeting

In the discussion in the board meeting it was discuss that the amount which is locked between the parties should be resolved at the earliest.

4

12/4/2018

Sp Mtg

Every Friday office bearers meet for solve PTA office problems & discuss some points.

HELP AND SUPPORT EXPECTED FROM FPTA:

No.

Date

Title

Description

1)

Non-Supplies to Defaulter

FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter

2)

Non-Supplies to Defaulter by the Mills

FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly

3)

Promotion of Paper as Green and Environment Friendly

FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore

Activities-Achievements-Updates during this Period by the Association

MAR 2018

No.

Date

Name of the Activity

Description

1

Mails received from FPTA and FKCCI were sent to all members

APR 2018

No.

Date

Name of the Activity

Description

1

25.04.2018

Managing Committee meeting

Monthly 7nd MC meeting held to discuss regular work and trade scenario. Members also discussed about to keep social activities like free distribution of curd milk water books and helping pay education fee for needy. member also discuss on points on Arbitration and one complain received from our member was also attended.

All e mails received from FPTA and FKCCI were forwarded to all our kpmsa members.

2

25.04.2018

New members

three new KPMSA LIFE members added

________________________________________________________________

TELANGANA PAPER MERCHANTS’ ASSOCIATION

APR 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1.

04.04.2018

4th Meeting of Kagaz Bhavan Committee

Status and discussions on various works completed and pending of Kagaz Bhavan were held

2.

04.04.2018

Arbitration Board

Welcome address was given by the chairman. A review of the pending cases was held

3.

30.04.2018

3rd Joint Meeting of Managing Committee & Kagaz Bhavan Committee

3rd Joint Meeting of Managing committee and Kagaz Bhavan Committee meeting held on 30.04.2018. Discussions pertaining to our Association matters were held.

All the Circulars sent by you have been Circulated to all the Members.

The Paper Merchants’ Welfare Association, Vijayawada

MAR 2018

Activities-Achievements-Updates during this Period by the Association

AT

Date

Name of the Activity

Description

1

16-3-2018

3rd MC MEETING

1. Accepted and Approved last MC meeting minutes.

2.Accepted and Approved Financial Accounts for the year 2017-2018 upto the period 10-03-2018 submitted by the Treasurer

3.Discussed about Deletion of members’ firms already shutdown.

4.Reviewed the International Tour programme of Vietnam organized by FPTA from 4th February to 11th February 2018.

5.Discussed to install the drinking water cooling machines at suitable places to quench thirst of floating public in the intense summer and to collect charitable donations to get water supply.

6.Discussed and selected full strength of PMWA Delegates (20) and two life members to represent FPTA 57th AGM at Kolkata. 7.Discussed about conducting of PMWA 35th AGM in the month of August 5th. 8.Decided to issue circulars to the member firms whose names were changed regarding collection of membership subscription on concessional basis before 30th April.

APR 2018

Activities-Achievements-Updates during this Period by the Association

AT

Date

Name of the Activity

Description

1

02-04-2018

SOCIAL ACTIVITY

Four water cooling machines are installed on 2-4-2018 to supply drinking mineral cooling water upto the ending of June 2018 to the floating public in intense summer to quench their thirst. Located at

1) M/s. Kamalasri Paper Premises, Arundalpeta, Congress Office Road, Vijayawada -2.

2) M/s. Mahadev Paper Products Premises, Swami Street, Gandhi Nagar, Vijayawada -3.

3) M/s. Sri Swastick Agency Premises, Kandulavari Street, Vijayawada -1.

4) M/s. Yash Paper Products Premises, Chowthra, Near Ramalayam, Guntur -3.

All are being maintained by the proprietors of the firms with their own expenses except

M/s. Kamalsri Papers, Vijayawada-2.

FPTA Vice-President Mr. Madhu Sudan Bang, M/s. Ramchandar Shivnarayan Sons, Vijayawada -2. donated Rs.1000/- for this activity.

Paper and Allied Merchant Association

The Report of Monthly activities of Paper and Allied Merchants Association Coimbatore for the Month of Apr – 18.

07-04-2018 Chamber of Commerce – Brand Ambassador, awards Hotel Residency Towers Attended by Mr. R. Ravi and Mr. C. Balasubramanian

08-04-2018 10 AM, Conference call with FPTA President and FPTA Office Bearers, Vice – Presidents and conveners of Sub- Committee subject discussed letter from PMA Delhi.

2. Feedback on letter sent to minister Dr. Harshvardhan

3. PAPER DAY Celebrations.

09-04-2018 Chamber of Commerce, Governing Council Meeting 6.30 PM Attended by Mr. R. Ravi and Mr. C. Balasubramanian.

11-04-2018 PAMA Subscription 2018-19 sent to FPTA, FTAC and Chamber of Commerce.

12-04-2018 Compliance calendar of payments (GST, TDS, PF, ESI, PT, etc.)., Filing of returns (GST, IT, ESI etc.), sent to all members.

16-04-2018 FPTA President Mr. Venkat visited Coimbatore, Discussed about paper Day celebrations and issue of postal department’s special cover and my stamp with Mr. C. Balasubramanian and Mr. B. Deepak.

24-04-2018 Article on Paper, its price change after GST implantation covered in local newspaper ‘DINAMALAR’ contents provided by Mr. C. Balasubramanian

26-04-2018 Chamber of Commerce – 10 A.M. – 4 P.M. programme on “Managing Contract Labour” Attended by Mr. C. Balasubramanian.

Dinner at Residency Towers. Hosted by PSG Institutions covered in Honor of Mr. Robert G Burgess, US Consul General Chennai attended by Mr. C. Balasubramanian.

26-04-2018 PAMA Members felicitated Mr. Ravi our Secretary on bagging 3 Awards for outstanding performance in the WCPM Dealers Conference at Moscow, Russia

TRICHY DISTRICT KAGITHA VANIGARKAL NALA SANGAM:

DEC 2017 – MAY 2018:

1. DECEMBER:   12-12-2018 WE HAD MANAGEMEN COMMITTEE MEETING @ OUR OFFICE: DISCUSSED ABOUT ARISING BADDEBTS AND GAVE AWARENESS TO OUR MEMBERS

2.JANUARY -18: 7-1-2018 WE HAD MANAGEMENT COMMITTEE MEETING @ OUR OFFICE:

Discussed about GST RETURN AND WISHED OUR MEMBERS FOR PONGAL 

3. FEBRUARY -18: 15-2-2018 WE HAD MANAGEMEN COMMITTEE MEETING @ OUR OFFICE:

DISCUSSED about Market conditions and GST RETURNS, WAY BILL

4. MARCH -18: 8-3-2018   WE HAD MANAGEMEN COMMITTEE MEETING @ OUR OFFICE: DISCUSSED ABOUT: MILLS POLICY IN DELAYED PAYMENTS AND WORRIED ABOUT HIGHER RATE OF INTEREST FROM THE DATE OF INVOICE FOR  1 OR 2 DAYS DELAY

5. APRIL -18: 12-3-2018 WE HAD MANAGEMEN COMMITTEE MEETING @ OUR OFFICE:

DISCUSSED ABOUT: BOOK CLOSURE & STOCK MAINTENANCE   

6. MAY -18: 15-5-2018 WE HAD MANAGEMEN COMMITTEE MEETING @ OUR OFFICE:

DISCUSSED ABOUT: GENERAL MARKET CONDITIONS AND AGM @ CALCUTTA

Contents

  1. Income Tax

  1. Goods & Service Tax (GST)

3. International Taxation

4. FEMA

5. Company Law

Income Tax

After rap by President Kovind, CBDT warns Senior Officers against harassment, misconduct & high-handedness of hapless taxpayers.

The CBDT has issued a sternly worded directive dated 16th April 2018 stating that a number of complaints are being received in the Tax Payer Services Directorate regarding harassment, misconduct and high handedness of Officers and staff. It is stated that such incidents damage the image and reputation of the Income Tax Department and dent the efforts of the Department to position itself as a service-oriented organization.

All officers and staff have been instructed to deal with the public not only with administrative efficiency but also with the requisite so skills. It is stated that the behaviour needs to be impeccable not only in the performance of their official dues but also decorous outside the office.

The provocation for the directive appears to be the reprimand issued by Hon’ble President Kovind that the income-tax department is a “service provider” which should be “sensitive to the demands and dignity of the person”.

“Tax payer is your partner, not your adversary,” the Hon’ble President reminded the income-tax department.

(Source:http://itatonline.org)

High Court Fumes at I. Tax Department Advocates.

In the case of Pr CIT vs. Grasim Industries Ltd, Mumbai High Court came down heavily on the CBDT and observed that:

We have for a long me, taken into account that many of these are fresh entrants to the bar and in due course, would learn the standard expected of an Advocate. However, to our disappointment, many of them are refusing to learn.

The CBDT should reconsider the practice of appointing retired revenue officers as panel counsel. While the retired officials have domain expertise and do render assistance, they lack the skill and conduct required to appear as an Advocate. They also lack the objectivity expected from officers of the court.

Therefore, the CBDT could consider holding of a training programme, where leading Advocates could address the domain expert on the ethics, obligation and standard expected of Advocates before they start representing the State.

This is only a suggestion and it is entirely for the CBDT to take appropriate steps to ensure that the Revenue is properly represented to serve the greater cause of justice and fair play.

In any case, we would expect the CBDT to lay down a standard procedure in respect of manner in which the Departmental Officer/ Assessing Officer assist the Counsel for the Revenue while promoting/ protecting Revenue’s cause. We find in most cases, at least during the final hearing, Revenue’s Counsel are le to fend for themselves and that even papers at times are borrowed from the other side or taken from the Court Records. If the mindset of the Revenue Officer changes and they attend to the case diligently till it is disposed of, only then would it be ensured that the State is properly represented.

(Source:http://itatonline.org)

Dept. saves Rs 977 crore in 5 years on postage cost after rise in online communication

A rise in online communications or e-mails in the last five years has enabled the Income Tax Department to save a whopping Rs 977.54 crore on postage cost. Online communication with the department has more than doubled since 2013-14. According to data released by the Finance Ministry, the IT department saved Rs 212.27 crore in 2017-18, a remarkable growth from Rs 177.36 crore in 2016-17.

(Source:https://www.businesstoday.in/current/economy-politics/it-dept-saves-rs-977-crore-5-years-postagecost-after-rise-online-communication/story / 275423. html)

CBDT directs dedication of fortnight for Appeal effect and redressing public grievances

The CBDT has issued a directive dated 7th May 2018 stating that the delay in giving appeal effect and passing rectification orders is the biggest source of grievance against the Department. It is pointed out that such delays also adversely affect the performance of the Department as the infructuous demand remains stuck in appeal orders and rectification peons till these are disposed of by the assessing officer. With a view to expeditiously dispose off the appeal effect and rectification claims of the taxpayers, the CBDT has directed that the first fortnight of June, 2018 should be dedicated for attending to the pending claims in these areas.

(Source:http://itatonline.org/info/cbdt-directs-dedication-of-fortnight-for-appeal-effect-and-redressingpublic-grievances)

Rs 110 crore tax demand: Income Tax tribunal rules in favour of Flipkart

In a relief to e-commerce firms, the Income Tax Appellate Tribunal (ITAT) in Bengaluru invalidated the revenue department’s treatment of their marketing expenditure as well discounts offered to retain market share as asset creating capital expenditure that are “not deductible” from income. The ITAT decision came in the case of Flipkart, which was asked last year to pay Rs 110 crore as tax for FY16, while the company claimed nil tax liability as it had posted a loss of close to Rs 800 crore.

(Source:https://www.financialexpress.com/industry/rs-110-crore-tax-demand-income-tax-tribunal-rules-infavour-of-flipkart/1146054/)

Unreasonable delay by ITAT between hearing of arguments and delivery of a judgment

In the case of Cromption Greaves Limited vs. CIT, it has been held that excessive delay by the Tribunal in passing judgement shakes the confidence of the litigants. Under Rule 34(5) of the Tribunal Rules read with Shivsagar Veg. Restaurant 317 ITR 433 (Bom) & Otters Club (Bom), orders have to be passed invariably within three months of the completion of hearing of the case. The delay is incurable. Even administrative clearance cannot cure the delay. Such decisions rendered after 3 months reflect a mistake apparent from the record and have to be recalled and the appeals heard afresh.

(Source:www.itatonline.org)

GST (Goods & Service Tax)

Procedure for interception of conveyances for inspection of goods in movement and detention, release and confiscation of such goods and conveyances

In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the CBEC has issued detailed instructions in respect of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances.

(Circular No. 41/15/2018 dated April 13, 2018)

Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit

In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the CBEC has prescribed a detailed procedure for recovery of arrears of central Excise Duty, Service Tax or wrongly availed CENVAT credit under existing law and inadmissible transitional credits.

(Circular No. 42/16/2018 dated April 13, 2018)

Highlights of the 27th GST council meeting held on 4th May 2018

GST Return Simplification:

All taxpayers (excluding exceptions like composition dealers) shall file one monthly return with due dates being staggered based on the taxpayer’s turnover. Composition dealers and dealers having nil transaction will have facility to file returns on a quarterly basis.

On the matching principle of GST, the supplier will continue to be required to upload the invoices in the system. For all B2B supplies, HSN at four-digit level will need to be used. The invoices can be uploaded any me. The system will automatically calculate tax liability, based on the details of invoices uploaded. The input tax credit (ITC) will also be calculated automatically by the system based on invoices uploaded by suppliers and the buyer will not be required to upload any invoices for claiming credits.

There will not be any automatic reversal of ITC in the buyer’s hands upon non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery will be made from the seller. However, reversal of credit from the buyer will also be an option available with the revenue authorities to address exceptional situations such as missing dealer, closure of business of supplier or supplier not having adequate assets etc. Uploading of invoices by the seller who has defaulted in payment of tax above a threshold amount will be blocked to control misuse of ITC facility. Similar safeguards would be built with regard to newly registered dealers also.

There will be a three-stage transition into the new system

In stage 1, while the new return software is developed, the present system of filing of return GSTR 3B and GSTR 1 will continue. Returns in form GSTR 2 and GSTR 3 shall continue to remain suspended. Stage 1 will continue for a period not exceeding six months. There will be a three-stage transition into the new system

• In stage 2, the new return will have facility for invoice-wise data uploads by the supplier and also facility for claiming ITC on self-declaration basis, as in case of GSTR 3B now. During this stage, the recipient will be provided information about gap between credit available as per invoices uploaded by suppliers and the credit being claimed by him.

• In stage 3 (after six months from stage 2), the facility of provisional credit will be withdrawn and ITC will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.

Imposition of Sugar Cess and reduction of GST rate on Ethanol

The Council discussed the imposition of sugar cess and reduction in GST rate on ethanol and recommended to set up a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks.

Incentive to promote digital transactions

The Council discussed proposal of a 2% concession in GST rate on B2C supplies, if payment made through cheque or digital mode, subject to a ceiling of INR 100 per transaction, to incentivise digital payments. The Council recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations.

International Taxation

Services provided by the seconded employees of a foreign company to its subsidiary in India do not result in permanent establishment.

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Samsung Electronics Company Ltd. held that the services provided by the seconded employees of a foreign company to its subsidiary in India do not result in a Permanent Establishment (PE) in India. The Tribunal held that the expatriate employees are only discharging functions of subsidiary towards the holding company for the benefit of the business of the subsidiary. It is to make the Global Business Management (GBM) understand the priories and preferences of the Indian customers by providing India-specific information to GBM which in turn then carries out research and development to develop India-specific products.

(Samsung Electronics Company Ltd. v. DCIT (2018-TII-91-ITAL-DEL-INTL))

Reimbursement of lease line charges having no income element is not taxable in India. Amendment in the Income-tax Act does not apply to the provisions of India U.S. tax treaty

Based on the facts and in the circumstances of the case, recently, the Pune Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of T3 Energy Services India Pvt. Ltd (the taxpayer) held that reimbursement of expenditure (i.e., lease line charges) by the taxpayer to its US parent company do not include any income element and therefore the same is not subject to tax in India. The expenditure allocated by a U.S. company to the taxpayer was charged on the cost to cost basis. Hence, it cannot be said that there was any income element which has arisen and consequently, there was no requirement to deduct any tax on such payments.

The Tribunal held that though the definition of ‘royalty’ under the Income-tax Act, 1961 (the Act) had been amended, the term ‘royalty’ under the India-U.S. tax treaty (tax treaty) is not amended. In the absence of the same, the Tribunal held that in view of the definition of ‘royalty’ under the tax treaty, the taxpayer is not liable to deduct tax on the payments made to its parent company on account of lease line charges. The Tribunal held that the unilateral amendment in Section 9(1)(vi) of the Act to the term ‘royalty’ cannot be extended to the meaning of the term defined under the tax treaty. Where the provisions of tax treaty override the provisions of the Act and the definition of ‘royalty’ not having undergone any amendment in the tax treaty, the taxpayer was not liable to deduct tax on the payment of lease line charges.

(T3 Energy Services India Pvt. Ltd. v. JCIT (ITA No. 826/Pun/2015) – Taxsutra.com)

Payment for intellectual property rights is taxable as royalty in India

Based on the facts and in the circumstances of the case, recently, the Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Dorf Ketal Chemicals LLC (the taxpayer) held that payment of royalty for Intellectual Property Rights (IPR) by the taxpayer to the U.S. entity is taxable in India. The Tribunal observed that although the taxpayer is incorporated in the U.S.A., it is also a tax resident in India and has entered into an agreement with the U.S. entity for purchasing, utilizing patent, IPR, etc. The said patent/copyrights were used by the taxpayer’s holding company in India for the manufacture of products which were sold in the U.S.A.

(Dorf Ketal Chemicals LLC v. DCIT (ITA No. 4819/Mum/2016) – Taxsutra.com)

Acceptance of arm’s length price in case of one party cannot prevent the Revenue to determine the arm’s length price of the same transaction in the hands of the other party

Based on the facts and in the circumstances of the case, recently, the Bangalore Bench of Income-tax Appellate Tribunal (the Tribunal) in the case of Filtrex Technologies Pvt. Ltd. held that acceptance of Arm’s Length Price (ALP) declared by one party cannot preclude Revenue from examining ALP in the hands of the other party to the same transaction. Relying on the second proviso to Section 92C(4) of the Income-tax Act, 1961 (the Act) and Circular No. 14/2001, dated 9 November 2001, the Tribunal held that the income of one Associated Enterprise is not required to be recomputed by reason of determination of ALP in the case of the other enterprise. Also, by applying the provisions of Section 92(3) of the Act, held that in case of an adjustment to the payment, corresponding adjustment leading to reduction in income cannot be made.

Further, the Tribunal opined that in case a transaction which could result in tax base erosion, the tax department is free to examine the ALP, irrespective of the fact that the income declared by one party was accepted to be at ALP .

(Filtrex Technologies Pvt. Ltd. v. ACIT Circle 3(1) (IT(TP)A No. 469/Bang/2017))

FEMA

AD Banks to report Liberalized Remittance Scheme (LRS) transactions to RBI on daily basis

Currently, transactions under Liberalized Remittance Scheme (LRS) are being permitted by AD banks based on the declaration made by the remitter. The monitoring of adherence to the limit is confined to obtaining such a declaration without independent verification, in the absence of a reliable source of information.

In order to improve monitoring and also to ensure compliance with the LRS limits, RBI has been decided to put in place a daily reporting system by AD banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs. In case no data is to be furnished, AD banks shall upload a ‘Nil’ report.

(RBI/2017-18/161 A.P. (DIR Series) Circular No. 23 dated April 12, 2018)

External Commercial Borrowings (ECB) Policy – Rationalization and Liberalization

Corporates and other entities planning to avail ECB to meet their capital needs have been approaching RBI for relaxations in the existing ECB framework. In light of the requests received and experience gained in administering the ECB regime, RBI has decided, in consultation with the Government of India, to further rationalize and liberalize the ECB guidelines as under:

(i) Rationalization of all-in-cost for ECB under all tracks and Rupee denominated bonds (RDBs):

With a view to harmonizing the existing provisions of Foreign Currency and Rupee ECBs and RDBs, it has been decided to stipulate a uniform all-in-cost ceiling of 450 basis points over the benchmark rate. The benchmark rate will be 6-month USD LIBOR (or applicable benchmark for respective currency) for Track I and Track II, while it will be prevailing yield of the Government of India securities of corresponding maturity for Track III (Rupee ECBs) and RDBs

(ii) Revising ECB Liability to Equity Rao provisions:

It has been decided to increase the ECB Liability to Equity Rao for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent.

(iii) Expansion of Eligible Borrowers’ list for the purpose of ECB:

It has been decided to permit:

• Housing Finance Companies, regulated by the National Housing Bank, as eligible borrowers to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

• Port Trusts constituted under the Major Port Trusts Act, 1963 or Indian Ports Act, 1908 to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

• Companies engaged in the business of Maintenance, Repair and Overhaul and freight forwarding to raise ECBs denominated in INR only.

(iv) Rationalization of end-use provisions for ECBs:

Currently, a positive end-use list is prescribed for Track I and specified category of borrowers, while negative end-use list is prescribed for Track II and III. It has now been decided to have only a negative list for all tracks. The negative list for all Tracks would include the following:

• Investment in real estate or purchase of land except when used for affordable housing as defined in Harmonized Master List of Infrastructure Sub-sectors notified by Government of India, construction and development of SEZ and industrial parks/integrated townships.

• Investment in capital market.

• Equity investment.

Additionally, for Tracks I and III, the following negative end uses will also apply except when raised from Direct and Indirect equity holders or from a Group company, and provided the loan is for a minimum average maturity of five years:

• Working capital purposes.

• General corporate purposes.

• Repayment of Rupee loans.

Finally, for all Tracks, the following negative end use will also apply:

• On-lending to entities for the above activities from (a) to (f).

All other provisions of the ECB policy shall remain unchanged.

(RBI/2017-18/169 A.P. (DIR Series) Circular No. 25 dated April 27, 2018)

Company Law

Amendment to Companies (Audit and Auditors) Rules

In exercise of the powers conferred by sections 139, 143, 147 and 148 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014, namely:

• These rules may be called the Companies (Audit and Auditors) Amendment Rules, 2018.

• They shall come into force on the date of their publication in the Official Gazette.

Detailed rules can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/AuditAuditorsRules_07052018.pdf

Amendment to companies (Meetings of Board and its powers) Rules

In exercise of the powers conferred by sections 173,177, 178 and 186 read with sections 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Boards and its Powers) Rules, 2014, namely:

• These rules may be called the Companies (Meetings of Boards and its Powers) Amendment Rules, 2018.

• They shall come into force on the date of their publication in the Official Gazette.

Detailed rules can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/CompaniesBoardsPowersRules_07052018.pdf

Amendment to the Companies (Appointment and qualification of Directors) Rules

In exercise of the powers conferred by sections 149 and 168 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and qualification of Directors) Rules, 2014, namely:

• These rules may be called the Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2018.

• They shall come into force on the date of their publication in the official Gazette.

Detailed rules can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/AppointmentDirectorsRules_07052018.pdf

Extension of last date for filling of AOC-4 XBRL E-Forms using Ind AS

In continuation of MCA’s general Circular No. 13/2017dated 26.10.2017, General Circular No. 01/2018 dated 28.03.2018 and upon consideration of requests received from various stakeholders for extending the last date of filing of AOC XBRL E-Forms using Ind AS under the Companies Act, 2013, it has been decided to extend the last date for filing of AOC-4 XBRL for all eligible companies required to prepare or voluntarily prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 for the financial year 2016- 17, without additional fee till 31st May, 2018.

The circular can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/Circular042704_27042018.pdf

Sections made applicable from May 07, 2018

In exercise of the powers conferred by sub section (2) of section 1 of the Companies (Amendment) Act, 2017 (1of 2018), the Central Government hereby appoints the 07 May, 2018 as the date on which the few provisions of the said Act shall come into force.

List of the second can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/CompaniesAmendmentNo_07052018.pdf

Respected Members,
We like inform you that the 57th Annual General Meeting and Conference to be hosted by Calcutta Paper Traders Association, Kolkata on 18th, 19th and 20th August 2018.
The Advisory Board meeting is schedule on 17th August 2018.

The other details will follow in due course.

This is for your information.

Regards
For FPTA
Hiren Karia
Hon. Secretary

DELEGATE REGISTRATION FORM

ASSOCHAM 
National Seminar on
Goods and Service Tax (GST)
24th May 2018            The Orchid Hotel, Mumbai

DAY & DATE

TIME

VENUE

Thursday,

 24th May, 2018

10.00 am – 5.30 pm

The Orchid Hotel

70-C, Nehru Road, Near Mumbai Domestic Airport, Vile Parle (E)

Mumbai

I / we would like to attend / nominate the following:

S. N.

Name

Designation

Mobile

Email

1.

2.

3.

4.

5.

PARTICIPATION FEE: Rs. 4,000/- per participant (10% discount for two & 20% for three or more persons from the same organization). The fee is inclusive of taxes, refreshment and lunch.

Cheque of Rs. ……………. Dated ………………….. drawn on …………………….. being participation fee in favour of “ASSOCHAM” payable at New Delhi, is enclosed.

ORGANISATION DETAILS

Company: …………………………………………………………………………………………………………………………………………..

Address: …………………………………………………………………………………………………………………………………………….

Telephone …………………………………………………. Fax ………………………………………………………….

GSTIN No. ………………………………………………………….

ONLINE PAYMENT DETAIL (If required)

Bank Name: HDFC Bank

Address- B-6/3 Safdarjung Enclave,

Opp. Deer park , New Delhi-110029

Beneficiary Name: ASSOCHAM

PAN No: AAATT4704C

Bank Account Number- 05031110000062

IFSC Code- HDFC0000503

MICR Code- 110240021

Note: Prior Registration is essential. Please email/ fax/ courier the registration form at the earliest.

REGISTRATION OPTIONS

By Post:

Tel No:

By Fax:

By Email:

Mr. Krishan Sharma

Taxation Department

ASSOCHAM

5, Sardar Patel Marg, Chanakyapuri,

New Delhi – 110 021

011-46550587/598

M: +91 8512072265

011-23017008/9

krishan.sharma@assocham.com

finance@assocham.com

taxation.assocham@gmail.com

RECOMMENDATIONS OF 27 TH GST COUNCIL MEETING 4 TH MAY, 2018

APPROVAL OF NEW RETURN DESIGN

GST Council today in its 27th meeting approved new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows –

i. One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.

ii. Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month. There shall not be any need to upload the purchase invoices also. Invoices for B2B transaction shall need to use HSN at four-digit level or more to achieve uniformity in the reporting system.

iii. Simple Return design and easy IT interface: The B2B dealers will have to fill invoice wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.

iv. No automatic reversal of credit: There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.

v. Due process for recovery and reversal: Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface. vi. Supplier side control: Unloading of invoices by the seller to pass input tax credit who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of input tax credit facility. Similar safeguards would be built with regard to newly registered dealers also. Analytical tools would be used to identify such transactions at the earliest and prevent loss of revenue.

vii. Transition: There will be a three-stage transition to the new system. Stage I shall be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. Stage I will continue for a period not exceeding 6 months by which time new return software would be ready. In stage 2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now.

During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.

Content of the return and implementation: Return shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by the law committee based on these principles. Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business.

INCENTIVE TO PROMOTE DIGITAL TRANSACTIONS

a. Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.

b. The council has recommended for setting up of a Group of Ministers from State

Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.

IMPOSITION OF SUGAR CESS OVER AND ABOVE 5% GST AND REDUCTION IN GST RATE ON ETHANOL:

a. Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail.

b. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

Ecomm Cos may Need to Prepare for Withholding Tax in 2 Months

India Inc, in particular ecommerce platforms such as Amazon and Flipkart, may need to prepare for withholding tax provisions in two months under the goods and services tax (GST).
The tax deducted at source (TDS) and tax collected at source (TCS) provisions had been put on hold following petitions by industry that this would increase the compliance burden.
But with the GST regime stabilising, these provisions may be imposed from July 1, said a senior government official.

The TDS provision mandates that notified entities have to deduct up to 1% state GST and 1% central GST on intrastate supplies of over Rs. 2.5 lakh.

GST Council to take up sugar Cess

The GST Council will at its meeting today consider a proposal to impose a sugar cess to compensate cane farmers. The proposal by the ministry of consumer affairs, food and public distribution for a 5 per cent sugar cess will be outside the purview of the compensation cess under the goods and services tax, and hence will need a separate law. “The sugar cess proposal will be taken up by the council. It will be a different cess from the compensation cess and will need a separate act of Parliament or by way of a provision in the Finance Act,” said a government official. The government may choose to go ahead with this by way of an ordinance, he added. Currently, only the compensation cess is within the purview of the GST law, and is levied on a handful of luxury and demerit items in the 28 per cent GST slab to compensate states for the revenue shortfall due to GST implementation for the first five years.

After NRI investments in domestic market, foreign funds on Sebi radar

A fortnight after the market regulator tightened rules around non-resident Indian (NRI) investments in the domestic market, several foreign funds have come under the scrutiny of the Securities and Exchange Board of India (Sebi). According to sources, the regulator has sought investment and end-beneficiary-related information of foreign portfolio investors (FPIs) from their custodians. Sebi wants to crack down on those NRI-managed funds that are also used to channel money belonging to persons of Indian origin (PIO). Sebi’s FPI regulations prohibit any foreign fund from being controlled by a PIO or NRI. Such entities are allowed to obtain an FPI licence on condition that they act only as investment advisors and do not invest their money. However, global funds typically ask fund managers to put up some seed capital, called skin-in-the-game in industry parlance. In order to meet this obligation and to avoid regulatory scrutiny, several NRI fund managers have infused seed capital through innovative structures like limited liability partnerships (LLPs).

LTCG tax: No STT likely on employee stock options plans, inherited shares

The income-tax (IT) department has proposed to exempt employee stock options plans (ESOPs) given till January 31, 2018, from the securities transaction tax (STT), while availing the benefits of grandfathering and threshold exemption in long-term capital gains (LTCG) tax at 10 per cent.

Also, listed shares received through family succession or will of the deceased and acquired till January 31 will not attract STT. The department has sought comments on these proposals by April 30.

The new tax is imposed under Section 112 (A) if listed securities are sold in the current financial year subject to exemption of Rs 100,000 of capital gains. Besides, there is grandfathering of capital gains made till January 31, 2018, or in other words, there is no LTCG tax on these gains.

However, if STT is not paid on these shares at the time of purchase, LTCG tax is imposed under Section 112 — 10 per cent without indexation and 20 per cent with indexation. Here the Rs 100,000 concession and grandfathering benefit are not available.

Subscribers can use NPS fund for setting up business

The Pension Fund and Regulatory Development Authority (PFRDA) on Thursday said NPS subscribers will now have the option to partially withdraw funds from their accounts for pursuing higher education or setting up new businesses.

The decision was taken at the board meeting of the PFRDA last week.

THE PAPER TRADERS’ ASSOCAITION, Mumbai

JAN 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1

11/01/18

Monthly Circulars

One Circular were circulated on 11/01/2018 regular Circular giving information along with Annual subscription for the year 2017-18, Advertisement through circular, Publications, D.A. for the month of January 2018, Change of Address, all information n Form of Paper Conducted Course (Erode).

2

12/1/2018

4th MC Mtg.

During the Mtg. the Minutes of 3rd MC Mtg. & List of Holidays approved by MC members. There was a small discussion about paper mill visit, trip, importer & domestic paper dealers, FPTA 2nd meeting & GST doubts clarify with the GST Convener.

3

Sp Mtg

Every Friday office bearers meet for solve PTA office problems & discuss main some points.

HELP AND SUPPORT EXPECTED FROM FPTA:

No.

Date

Title

Description

1)

Non-Supplies to Defaulter

FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter

2)

Non-Supplies to Defaulter by the Mills

FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly

3)

Promotion of Paper as Green and Environment Friendly

FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

FEB 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1

10/2/2018

Monthly Circulars

One Circular were circulated on 10/02/2018 regular Circular giving information along with Annual subscription for the year 2017-18, Advertisement through circular, Publications, D.A. for the month of February 2018, Change of Address, Information about Maharashtra Goods and Services Tax Act ,2017. (State Tax) & Circulate the Union Budget 2018-19 Book.

2

16/2/2018

5th MC Mtg.

During the Mtg. the Minutes of 4th MC Mtg approved by MC members. One new membership application approved by committee. There was a small discussion about IGST, CGST, SGST & about paper day. Shri. Bhavesh Gala shared his experience of FPTA Vietnam trip. Shri. Mehul Mehta said that a seminar should be held for E Way bill in order to solve the queries.

3

14/2/2018

Board Dealers Meeting

The meeting held with Natasha Print & Pack. There was a discussion about recovery of payment.

4

2/2/2018

Sp Mtg

Every Friday office bearers meet for solve PTA office problems & discuss main some points.

HELP AND SUPPORT EXPECTED FROM FPTA:

No.

Date

Title

Description

1)

Non-Supplies to Defaulter

FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter

2)

Non-Supplies to Defaulter by the Mills

FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly

3)

Promotion of Paper as Green and Environment Friendly

FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

MAR 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1

10/3/2018

Monthly Circulars

One Circular were circulated on 10/03/2018 regular Circular giving information along with Information about Seminar on E way bill, Annual subscription for the year 2017-18, Advertisement through circular, Publications, D.A. for the month of March 2018, Change of Contact, One New Member, deadlines for Various returns/Forms/Payments to be observed under different statutes during March, 2018.

2

23/3/2018

6th MC Mtg.

During the Mtg. the Minutes of 5th MC Mtg approved by MC members. Discussion on unaudited balance sheet. Two new membership applications approved by committee. There was a small discussion about TDS, Funds & E way bill seminar. In meeting announced that a new fund will be allocated to provide scholarship to the owners & employees’ children. PK Traders has been declaring as the defaulter.

3

16/3/2018

Board Dealers Meeting

In the discussion in the board meeting it was discuss that the amount which is locked between the parties should be resolved at the earliest.

4

23/3/2018

Seminar

A seminar was conducted on the recent topic “E-way Bill”.

5

30/3/2018

Sp Mtg

Every Friday office bearers meet for solve PTA office problems & discuss some points.

HELP AND SUPPORT EXPECTED FROM FPTA:

No.

Date

Title

Description

1)

Non-Supplies to Defaulter

FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter

2)

Non-Supplies to Defaulter by the Mills

FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly

3)

Promotion of Paper as Green and Environment Friendly

FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore

Activities-Achievements-Updates during this Period by the Association

JAN 2018

No.

Date

Name of the Activity

Description

1

6.01.2018

2nd FPTA MC

2nd FPTA MC was on 06.01.2018

FEB 2018

No.

Date

Name of the Activity

Description

1

12.02.2018

6th KPMSA MC

Meeting was held at LONDON CURRY Discussion was done on various subject and dinner was hosted by our President Deepak Mittal for hosting 2nd FPTA MC successfully.

________________________________________________________________

TELANGANA PAPER MERCHANTS’ ASSOCIATION

JAN 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1.

19.01.2018

3RD ARBITRATION BOARD MEETING

We had 3rd meeting of Arbitration Board for the period 2017-19.

Shri Prasad R.G. Chairman of Arbitration Board presided the meeting and a review of pending cases was held.

2.

26.01.2018

REPUBLIC DAY CELEBRATION

Our Association celebrated the 69th Republic day of our country.

Ramgopalpet Division Corporator Smt. Athelli Aruna Srinivas Goud garu was our Chief Guest. Shri B.R. Rao Chairman Kagaz Bhavan Committee of our Association hoisted National Flag at Kagaz Bhavan which was attended by members of TPMA.  

3.

29.01.2018

4TH MEETING OF MANAGING COMMITTEE

1. 4th managing committee meeting was held on 29.01.2018 to discuss and implement various matters of the association.

2. As the Agenda of the meeting could not be completed this meeting was adjourned to be reconvened on 01.02.2018.

All the Circulars sent by you have been Circulated to all the Members.

 

FEB 2018

Activities-Achievements-Updates during this Period by the Association

No.

Date

Name of the Activity

Description

1

01.02.2018

4TH MEETING OF MANAGING COMMITTEE

4th managing committee meeting held on 29.01.2018. Was adjourned and reconvened on 01.02.2018. Important discussion pertaining to Arbitration Board, Kagaz Bhavan work and our Association matters were discussed.

2

26.02.2018

Disciplinary Action Committee Meeting

A meeting of Disciplinary action committee was held in Kagaz Bhavan on 26.02.2018 which was attended by senior members of our Association.

All the Circulars sent by you have been Circulated to all the Members.

The Paper Merchants’ Welfare Association, Vijayawada

FEB 2018

Activities-Achievements-Updates during this Period by the Association

AT

Date

Name of the Activity

Description

1

1-2-2018

SOCIAL ACTIVITY

1. Distribution of Association Calendars with Arrivals and Departures of Railway timings at Vijayawada and Labour Holiday list for the year 2018.

2.Distributed Digital Membership Profile to print new directory of PMWA.

2.

4-2-2018

INTERNATIONAL TOUR

1. FPTA organized International Tour programme to the members of affiliated Paper Merchants Association from 4th to 11th February 2018 to visit paper mills in Vietnam. From our Association the following members participated 1) Mr. Madhusudan Bang, M/s. Ramchandar Shivanarayan Sons, Vijayawada -2.

2) Mr. K. Srinivas Kumar, M/s. Sri Durga Enterprises, Vijayawada -3.

3) Mr. Anil Kumar, M/s. Oswal Paper, Vijayawada-1.

4) Mr. Addaikappan aka Vivek, M/s. Arasu Papers, Vijayawada -1.

2) Totally 45 members participated.

3) They reached on Hanoi Capital City of Vietnam.

4) One day stayed in cruise.

5) They visited Anhoa Paper Mills and Saigon Paper Mills.

6)Visited Vina Kraft paper company limited. 7)Spent off day for sightseeing. Returned on 11th February 2018.

3.

22-2-2018

SHORT TIME COURSE AT SESHASAI PAPER MILLS ERODE

1. Only person Mr. Jitendra Jain, M/s. Sri Ambica Paper Agency, Vijayawada – 1 represented from our Association from 22nd to 24th February 2018 to attended short time course conducted by M/s. Seshasai Mills, Erode, Tamilnadu. 38 members participated. Spoken about its quality of paper and product. Advised them any remarks noticed from customers may be informed to the firm.

Paper and Allied Merchant Association

The Report of Monthly activities of Paper and Allied Merchants Association Coimbatore for the Month of Jan – 18.

01-01-2018 PAMA Breakfast – Meeting at Cream Centre, Race Course Coimbatore – 18. More than

40 members participated. New year sweets distributed to all members.

02-01-2018 Revised loading charges list for our load man circulated to all our members.

06-01-2018 FPTA Advisory Board Meeting at 10.30am at Hotel SGANGRILA, Bangalore. Mr. C. Balasubramanian attended.

FPTA 2nd MC Meeting (2017-2018). Inaugural session, 2 Business session attended by Mr. R. Ravi, Mr. N. Appadurai and Mr. KM. Narayansamy from PAMA.

07-01-2018 FPTA 2nd MC Meeting – 3rd Business session Attended by all M.C Members from PAMA.

08-01-2018 Chamber of Commerce, Governing Council Meeting 6.30 PM Attended by Mr. R. Ravi and Mr. C. Balasubramanian

10-01-2018 Commercial Taxes Department 11AM- 1PM. Programme on E Way Bill. Attended by Mr. R. Ravi.

12-01-2018 Commercial Taxes Department 10.30 am – 12.30 pm at Ayyappan Pooja sangam – E way bill session. Attended by many PAMA Members.

14-01-2018 Conference call with FPTA President and FPTA Vice – President and conveners of Sub- Committee Mr. C. Balasubramanian Participated.

18-01-2018 Chamber of commerce E-way bill Programmee 2.30 – 4.30 PM addressed by Deputy Commissioners (CT) Mr. S. Karthik and Mr. A. Arunachalam. Many PAMA Members Attended.

24-01-2018 Chamber of commerce E-way bill Programmee 3 Pm at Sugana Kalayanamandam, Avinashi Road, Cbe addressed by and Mr. A. Arunachalam by comm. CT. Many PAMA Members.

26-01-2018 Chamber of commerce – Republic Day Flag Hoisting Mr. C. Balasubramanian Attended.

26-01-2018 PAMA EC Meeting: Subject discussed.

  1. FPTA 2nd MC Meeting at Bangalore.

  2. FPTA Vietnam Tour

  3. FPTA 57th AGM Conference at Kolkata

  4. MPMA – FPTA SPB Education Course.

  5. PAMA Dec 2017 Monthly Report.

  6. PAMA Family Tour to Kodaikanal

  7. PAMA Subscription Arrears

  8. Chambers of Commerce E-Way Bill Programmes

  9. Initiation of Anti-Dumping Investigation on imports from China, US and EU.

31.01.2018 GST Help Desk at Chamber of Commerce 4 PM Federation of Trade Association of Coimbatore (FTAC), FPTA Vice – President and President FPTA.

Monthly Report of activities of Paper and Allied Merchants Association, Coimbatore for the month of Feb – 18.

01-02-2018 Presentation of Union Budget by the Finance Minister Mr. Arun Jaitley. Live Telecast of Budget Presentation at chamber of Commerce from 10.30 am Attended by Mr. C. Balasubramanian.

05-02-2018 Chamber of Commerce – 6. Pm Analysis of Union Budget 2018 by Mr. K Vaitheeswaran Advocate, High Court Chennai. Attended by Mr. R. Ravi.

08-02-2018 Meeting with Mr. Debashishpal, Additional Director, Economic Affairs and Research FICCI New Delhi at chamber of commerce, Attended by Mr. C. Balasubramanian.

11-02-2018 Conference call with FPTA President Mr. Annamalai (Venkat) along with FPTA Vice President and FPTA Committee Conveners Subject discussed safeguard duty on coated Paper and Topics for Paper Day Celebrations for Drawing, Essay Writing and Elocution competitions for School Children.

12-02-2018 Chamber of Commerce: Governing Council Meeting at 6.30 pm at Gujrati Samaj Attended Mr. R. Ravi and Mr. C. Balasubramanian.

16-02-2018 Chamber of Commerce Meeting 5 Pm “Aligning Organizations the Japanese way” Addressed by Shri Gopalan Ramaiya, Kirloskar Group. Attended by Mr. R. Ravi and Mr. C. Balasubramanian.

28-02-2018 4 PM Chamber of Commerce – Monthly session for clarifications on GST by the Commissionerate of GST and Central Excise Cbe. Addressed by Mr. N. Subramanian Asst. Commissioner. Meeting attended by Mr. R. Ravi and Mr. C. Balasubramanian.

28-02-2018 7.30 Pm E.C. Meeting of PAMA.

  1. SPB Education Course by FPTA / MPMA

  2. FPTA Guide lines for Associations / Awards

  3. Paper Day Celebrations

  4. PAMA Family Tour to Kodailanal

  5. PAMA Coolie List for Load men

  6. Fixed Deposit in Federal Bank

  7. Letter for Jt. Commissioner (Income Tax)

  8. PAMA – Subscription Arrears

  9. Anti-Dumping Notification dt 23.01.2018

Monthly Report of activities of Paper and Allied Merchants Association, Coimbatore for the month March – 18.

12-03-2018 Chamber of Commerce Governing Council Meeting at 6.30 Pm. Meeting attend by Mr. R. Ravi and Mr. C. Balasubramanian.

15-03-2018 Presentation of Tamilnadu State Budget 2018 by the Finance Minister Mr. O. Panner Selvam

22-03-2018 FPTA President Mr. Annamalai (Venkat) visit to Kerala Paper Traders Association along with Mr. C. Balasubramanian Former President FPTA for Revival of activities of FPTA.

28-03-2018 PAMA EC Meeting

Subject discussed:

  1. FPTA AGM at Kolkata – Venue

  2. Fpta 3rd Meeting at MC – Dates

  3. E Way bill

  4. Paper Day Celebrations.

31-03-2018 Monthly Report of activities of PAMA for Feb 2018 and March 2018 sent to FPTA, FPTA President and FPTA Vice – President.

Contents

  1. Income Tax

  1. Goods & Service Tax (GST)

3. International Taxation

4. FEMA

5. Company Law

Income Tax

CBDT extends me limit for linking Aadhaar with PAN

Under the provisions of section 139AA of the Income-tax Act, 1961 (’Act’), with effect from July 1, 2017, all taxpayers having Aadhaar Number or Enrolment ID (in case a number is not allotted) are required to link it with PAN for filing income tax return. The said provision was relaxed by the Central Board of Direct Taxes (’CBDT’) vide its order(s) dated July 31, 2017, August 31, 2017 and Dec 8, 2017. The last order extended the date for linking Aadhaar Number with PAN till March 31, 2018. By its latest order u/s 119 dated March 27, 2018, CBDT has now extended the me for linking Aadhaar with PAN till June 30, 2018.

(Source: https://www.incometaxindiaefiling.gov.in)

Finish issuing all DeMO notices by May; CBDT to Income Tax Dept.

The CBDT has directed the Income Tax Department to finish in two months, the exercise of issuing notices, as part of the & ’Operation Clean Money’, to those who deposited huge funds post demonetisation.

Officials said the policy-making body of the department wants to fasten the process of raising tax demands on those who either concealed or generated black money in the wake of the notes ban of November 8, 2016.

(Source: https://economicmes.indiames.com/news/economy/policy/finish-issuing- all-demo- notices-by-may- cbdt-to-i-t-dept/articleshow/63597799.cms)

Requirement for obtaining PAN card u/s 139A of IT Act, 1961 eased for Corporate Assesses

In case of a company, an application for incorporation, allotment of Permanent Account Number (PAN) and allotment of Tax Deduction and Collection Account Number (TAN) may be made through a Common Application Form submitted to the Ministry of Corporate Affairs (MCA). In these cases, the Certificate of Incorporation (COI) issued by MCA contains a mention of both PAN and TAN.

Finance Act, 2018 amended section 139A of the Income-tax Act, 1961 and removed the requirement of issuing PAN in the form of a laminated card. Hence, it is clarified that PAN and TAN mentioned in the COI issued by MCA shall also be treated as sufficient proof of PAN and TAN for the said company assesses.

(Source: www.incometaxindia.gov.in)

E-Assessment: CBDT Directives for E-assessments

The CBDT has issued a directive dated 19th March 2018 by which it has revised the format in which notices under section 142(1) should be issued to assesses. The CBDT has stated that the concept of electronic assessment proceeding was introduced last year and its scope was gradually enlarged. The e- assessment proceeding is now facilitated through e-filing portal.

The CBDT Instruction No. 01/2018, dated 12-02- 2018 has mandated that except for search related assessments and exceptional circumstance mentioned therein all other pending scrutiny assessment cases shall be conducted only through the ‘E-Proceedings’ functionality in ITBA/E-filing.

(Source: www.itatonline.org)

With 99.49 lakh new tax filers, income tax returns surge 26% in 2017-18

The number of new income-tax filers increased nearly a crore in 2017-18, taking the total income tax returns filed to 6.84 crore, up 26% from 5.43 crore in the previous year. The higher filings allowed the government to meet the direct tax collections target for the financial year and almost reach the slightly higher revised numbers for the year.

The increase in total returns filed and new returns filed during FY 2017-18 is a result of sustained efforts made by the Income Tax Department in following up with potential non-filers through email, SMS, statutory notices, outreach programs, etc.

(Source: https://economicmes.indiames.com/news/economy/finance/with-99- 49-lakh- new-tax-filers-income- tax-returns- surge-26- in-2017- 18/articleshow/63586783.cms)

CBDT Directive Regarding Processing of Returns Under Section 143(1) Of the Income-tax Act

The CBDT has issued an important directive dated 28th March 2018 on the subject of processing of returns under section 143(1) of the Income-tax Act.0

The CBDT has pointed out that from Assessment Year 2017-18, discretion of Assessing Officer in processing returns under scrutiny has been completely removed and therefore, all returns have to be processed as per provisions of section 143(1) of the Act.

This is irrespective of the fact whether in cases under scrutiny, the Assessing Officer is contemplating taking recourse under section 241A of the Act to withhold the refund so arising on ground of concern for recovery of revenue.0

The CBDT has specified the methodology to be followed by AOs for such processing.

(Source: www.itatonline.org)

Principle of Mutuality

In the case of ITO vs. Venkatesh Premises Co-op Society Ltd, hon’ble Supreme Court has held that:

Receipts by housing co-operative societies such as non-occupancy charges, transfer charges, common amenity fund charges and certain other charges from their members are exempt from income-tax based on the doctrine of mutuality. The fact that the receipts are in excess of the limits prescribed by the State Government does not mean that the Societies have rendered services for profit attracting an element of commerciality and thus was taxable.

Bombay High Court in the case of The Shri Saibaba Sansthan Trust (Shirdi) vs. UOI (Bombay High Court) has passed strictures against Assessing Officers & Commissioners:

CBDT should investigate arm twisting measures, dehors application of the law, adopted by the Revenue for recovery of tax and take corrective measures to ensure AOs are not overzealous in recovering maximum revenue before 31st March. Once the CIT(A) concludes hearing the appeal, the stay application becomes infructuous. The exercise by CIT(A) of taking up the stay application, after the appeal was heard, was only done so as to collect some revenue before 31st March, 2018.

This is certainly not expected of an Appellate Authority who adjudicates disputes between the Revenue and the Assessee on a regular basis. The CIT(A) must not only be fair but appear to be so, in a country governed by Rule of law.

(http://itatonline.org)

CBDT to plug loopholes in Taxation of Non-Resident High Net Worth Individuals – Working group of High Ranking Officials set up to recommend taxation policy:

The CBDT has issued an office order dated 3rd April 2018 in which it is noted that there is a trend of High Net Worth Individuals (HNWIs) migrating from their country of residence to other jurisdictions. It is stated that such HNWIs pose a substantial tax risk since they may treat themselves as non-residents for taxation purposes in the first jurisdiction even though they may have strong personal and economic ties with that jurisdiction.

For examining the taxation aspects of such High Net Worth Individuals (HNWI), the CBDT has constituted a Working Group of high-ranking officials. The Working Group has to make recommendations for policy decision in respect of tax risks of the migrating HNWI population.

(http://itatonline.org)

Tax Refund scam by bogus CA – CBDT warns salaried taxpayers not to claim fraudulent exemptions & under-report income:

The recent Tax Refund Scam involving a bogus Chartered Accountant and several employees of reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters has spooked the CBDT.

The employees had, on the advice of the bogus CA, filed nearly 1000 returns and made fraudulent claims of refunds aggregating Rs. 18 crore.

At that me, the CBDT had warned taxpayers against indulging in such nefarious activities.

The making of claim of refunds by the taxpayer from the department is based on “trust” between the two sides and this should not be breached,” the CBDT had then said.

The CPC has now issued an advisory stating that the Income Tax Department has an extensive risk analysis system aimed at identifying persons who are non-compliant and aim to subvert the trust-based system envisioned while processing of ITRs at CPC Bangalore. In all such cases of high risk, the Department may examine and verify the details submitted by taxpayers in their ITR, subsequent to processing of returns in CPC.

It is warned in clear terms that if the Department notices any fraudulent claims in the returns, such tax payers may be punishable under various provisions of the Income Tax Act. This may also delay issuance of refunds in such cases.

(http://itatonline.org)

I-T officers restive over collection process:

A silent revolt is brewing among tax officers against the process followed to achieve the direct tax collection target for FY18. According to sources, I-T officials are not happy with the directives and procedures set to meet the revised revenue target of Rs 10.05 trillion.

Indian revenue officers took up the matter at a recent meeting held last week. Sources said they were considering issuing a resolution, besides seeking intervention of the Central Board of Direct Taxes (CBDT) and the finance ministry to address their concerns.0

(http://www.business-standard.com/arcle/economy- policy/i-t- officers-restive- over-collection- process118041100073_1.html)

GST (Goods & Service Tax)

E-way Bill for interstate movement of goods

E-waybill for interstate movement of goods has been made effective from April 1st 2018.

(Notification No.15 /2018 – Central Tax dated March 23, 2018)

Due dates for e-filing of GSTR-3B and GSTR-1

The due dates for filing of GSTR-3B (summary return including payment of tax) and GSTR-1 (details of outward supplies) for the period April 2018 to June 2018 have been notified as under:

Months

Due date for Form GSTR-3B

Due date for Form GSTR-1

April, 2018

May 20, 2018

May 31, 2018

May, 2018

June 20, 2018

June 10, 2018

June, 2018

July 20, 2018

July 10, 2018

Please note that for the month of May 2018 and June 2018, GSTR-1 will have to be filed before GSTR-3B. It appears that the Government intends to align the due date of filing GSTR-1 by the 10th of the next month, as it was originally proposed.

(Notification No. 16 /2018 – Central Tax dated March 23, 2018 and Notification No. 18 /2018 – Central Tax dated March 28, 2018)

Due dates for e-filing of GSTR-1 for persons required to file return on quarterly basis

The registered person having aggregate turnover of up to Rs 1.5 crore in preceding year or in current year is required to file the details of outward supply for the quarter April 2018 to June 2018 in Form GSTR 1 by July 31, 2018.

(Notification No 17/2018 – Central Tax dated March 28 2018)

Extension of exemption in relation to GST liability under reverse charge on supplies received from unregistered person

The exemption in relation to the liability of registered person to discharge GST on procurements made from the unregistered person, under reverse charge mechanism, has been extended till June 30th, 2018.

(Notification No 10/2018 – Central Tax (Rate) & Notification No 11/2018 – Integrated Tax (Rate) dated March 23, 2018)

Extension of date for filing the return in FORM GSTR-6

The time limit for furnishing the return by an Input Service Distributor in Form GSTR-6 for the months of July, 2017 to April, 2018 is extended till May 31st, 2018.

(Notification No 19/2018 – Central Tax dated March 28 2018)

Clarification on issues related to furnishing of Leer of Undertaking (LUT) for exports without payment of GST

A circular clarifying, following issues related to acceptance of Leer of Undertaking (LUT) being submitted online has been issued by Central Board of Indirect Taxes and Customs:

Form for LUT: The registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal. An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online.

Documents for LUT: No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.

Acceptance of LUT: An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017Central Tax, then the exporter’s LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected abinitio.

(Circular No. 40/14/2018 dated April 6, 2018)

International Taxation

Marketing and business development services are not in the nature of FTS and in the absence of a PE under the India-Singapore tax treaty, such services are not taxable in India.

Based on the facts and in the circumstances of the case, recently, the Mumbai Bench of the Income-tax Appellate Tribunal in the case of Fractal Analytics Pvt. Ltd. held that marketing and business development services are not in the nature of Fees for Technical services (FTS). The payment for such services is in the nature of business income. Since the foreign entity does not have a Permanent Establishment (PE) in India, such business income is not taxable under the India-Singapore tax treaty.

(Fractal Analytics Pvt. Ltd. v. DCIT (2018-TII- 81-ITAT- MUM-INTL)

India signs Double Tax Avoidance Agreement with Hong Kong

India and the Hong Kong Special Administrative Region (HKSAR) of China signed a double tax avoidance agreement (DTAA) on March 19, 2018, after agreeing to a framework in November, last year. The DTAA, titled the ‘Avoidance of Double Taxation and the Prevention of Fiscal Evasion ‘, comes after years of negotiation, and was signed into effect by India’s ambassador to China, Gautam Bambawale, on behalf of the Indian government and Hong Kong’s Financial Secretary, Paul Chan Mo-po.

The India-Hong Kong DTAA holds important tax implications for international businesses operating in both countries. It will also benefit trading companies that do not have a permanent presence in India but service to an India-based entity.

(CBDT Press Release, dated March 19, 2018)

FEMA

Discontinuance of Leers of Undertaking (LoUs) and Letters of Comfort (LoCs) for Trade Credits

On a review of the existing guidelines on the issuance of LoUs/ LoCs/ guarantees for Trade Credits for imports into India, it has been decided to discontinue the practice of issuance of such LoUs/ LoCs by AD Category –I banks with immediate effect.

Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued subject to required compliance.

(RBI/2017-18/139 A.P. (DIR Series) Circular No. 20 dated March 31, 2018)

Company Law

Manner of Appointment of NFRA

In exercise of powers conferred by sub – section (3) of section 132 of the Companies Act, 2013, the Central Government has made The National Financial Reporting Authority (Manner of Appointment and Other Terms and Conditions of Service of Chairperson and Members) Rules, 2018.

These rules shall come into force on the date of their publication in the Official Gazette

Detailed rules can be referred in below link:

http://www.mca.gov.in/Ministry/pdf/ReporngAuthorityRule2103_21032018.pdf

Amendment to Various Ind AS

Short title and commencement. -(1) These rules may be called the Companies (Indian Accounting Standards) Amendment Rules, 2018. (2) These rules shall come into force from the 1st day of April, 2018.

Detailed rules can be referred in below link:

http://www.mca.gov.in/Ministry/pdf/INDAsEngRule2018_29032018.pdf

Extension of Condonation of Delay Scheme, 2018

In continuation to the Ministry’s General Circular No. 16 / 2017 dated 29/12/2017 on the subject cited above, this Ministry has, on consideration of requests received from various stakeholders, has decided to extend the Condonation of Delay Scheme, 2018 up to 30th April, 2018.

Dear Members, 

The Central Board of Indirect Taxes and Customs, inter-alia, lays down procedure for recovery of central excise duty / service tax and CENVAT credit thereof arising out of proceedings under existing law, unless recovered thereunder, and that of inadmissible transitional credit, as “arrears of tax” under CGST Act. 

Circular No. 42/16/2018-GST

CBEC-20/16/03/2017-GST

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

****

New Delhi, Dated the 13th April, 2018

 

Sub: Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit-reg.

 

Kind attention is invited to the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) relating to the recovery of arrears of central excise duty /service tax and CENVAT credit thereof, CENVAT credit carried forward erroneously and related interest, penalty or late fee payable arising as a result of the proceedings of assessment, adjudication, appeal etc. initiated before, on or after the appointed date under the provisions of the existing law. In this regard, representations have been received seeking clarification on the procedure for recovery of such arrears in the GST regime.

The issues have been examined and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, (hereinafter referred to as the “CGST Act”) hereby specifies the procedure to be followed for recovery of arrears arising out of proceedings under the existing law.

Legal provisions relating to the recovery of arrears of central excise duty and service tax and CENVAT credit thereof arising out of proceedings under the existing law (Central Excise Act, 1944 and Chapter V of the Finance Act,1994)

  • Recovery of arrears of wrongly availed CENVAT Credit:

In case where any proceeding of appeal, review or reference relating to a claim for CENVAT credit had been initiated, whether before, on or after the appointed day, under the existing law, any amount of such credit becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [Section 142(6)(b) of the CGST Act refers].

  • Recovery of CENVAT Credit carried forward wrongly:

CENVAT credit of central excise duty/service tax availed under the existing law may be carried forward in terms of transitional provisions as per section 140 of the CGST Act subject to the conditions prescribed therein. Any credit which is not admissible in terms of section 140 of the CGST Act shall not be allowed to be transitioned or carried forward and the same shall be recovered as an arrear of tax under section 79 of the CGST Act.

  • Recovery of arrears of central excise duty and service tax:
  1. Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [Section 142(8)(a)of the CGST Act refers].
  2. If due to any proceedings of appeal, review or reference relating to output duty or tax liability initiated, whether before, on or after the appointed day, under the existing law, any amount of output duty or tax becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [Section 142(7)(a)of the CGST Act refers].
  • ​​Recovery of  arrears  due  to  revision  of  return  under  the  existing  law:
​Where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act[Section 142(9)(a)of the CGST Act refers].

In view of the above legal provisions, recovery of central excise duty/ service tax and CENVAT credit thereof arising out of the proceedings under the existing law, unless recovered under the existing law, and that of inadmissible transitional credit, is required to be made as an arrear of tax under the CGST Act. The following procedure is hereby prescribed for the recovery of arrears:

  • Recovery of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law and inadmissible transitional credit:
    • ​The CENVAT credit of central excise duty or service tax wrongly carried forward as transitional credit shall be recovered as central tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GSTPMT-01).
    • The arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as central tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GSTPMT-01).
  • Recovery of interest, penalty and late fee payable:
    • The arrears of interest, penalty and late fee in relation to CENVAT credit wrongly carried forward, arising out of any of the situations discussed in para 3 above, shall be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in electronic cash ledger of the registered person and the same shall be recorded in Part II of the Electronic Liability Register (FORM GSTPMT-01).
    • The arrears of interest, penalty and late fee in relation to arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in the electronic cash ledger of the registered person and the same shall be recorded in Part II of the Electronic Liability Register (FORM GSTPMT-01).

 

Experts Comments: There were different rates of interest, penalty, etc. under the Existing Law for the purposes of Excise Duty & Service tax. Hence, it needs clarifications whether the assessee is required to pay lower rate of interest as per existing law like Table reproduced below for the Service tax purposes or interest @ 18%/ 24% as applicable under the CGST Act, 2017.

 

Notification No. 13/2016-ST, Dated 1-3-2016  w.e.f. 14.5.2016

Serial Number Situation Rate of simple interest
(1) (2) (3)
1. Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due. 24 per cent.
2. Other than in situations covered under serial number 1 above. 15 per cent.

3% relaxation in interest rate for small service provider, having turnover upto60 lakhs is available.

 

  • Payment of central excise duty & service tax on account of returns filed for the past period:

The registered person may file Central Excise / Service Tax return for the period prior to 1stJuly, 2017 by logging onto www.aces.gov.in and make payment relating to the same through EASIEST portal (cbec-easiest.gov.in), as per the practice prevalent for the period prior to the introduction of GST. However, with effect from 1stof April, 2018, the return filing shall continue on www.aces.gov.inbut the payment shall be made through the ICEGATE portal. As the registered person shall be automatically taken to the payment portal on filing of the return, the user interface remains the same for him.

  • Recovery of arrears from assessees under the existing law in cases where such assessees are not registered under the CGST Act,2017:

Such arrears shall be recovered in cash, under the provisions of the existing law and the payment of the same shall be made as per the procedure mentioned in para 4.3 supra.

Regards
For FPTA
Hiren Karia
Hon. Secretary
The information has been received from an external source; FPTA does not in any way assure the accuracy of the same. The information has been sent to members for their knowledge and for academic purpose only.​​​​​​​​​​​​

Dear Members,

Recently, the CBIC has issued the below mentioned Circular, clarifying the various procedures for interception of conveyances, etc. in the light on compulsory introduction of e-way for inter-state movement of goods w.e.f April 1, 2018 and intra-state movement of goods for Karnataka (April 1,2018), AP, Telangana, Kerala, Gujarat (Applicable for 19 specified Goods), UP w.e.f April 15, 2018, which would be important for our digests for e-way bill procedural compliances.

Circular No. 41/15/2018-GST

CBEC-20/16/03/2017-GST

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

****

New Delhi, Dated the 13th April, 2018

Subject: Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances–Reg.

 

Sub-section (1) of section 68 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) stipulates that the person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount shall carry with him the documents and devices prescribed in this behalf. Sub-section (2) of the said section states that the details of documents required to be carried by the person in charge of the conveyance shall be validated in such manner as may be prescribed. Sub-section (3) of the said section provides that where any conveyance referred to in sub-section (1) of the said section is intercepted by the proper officer at any place, he may require the person in charge of the conveyance to produce the documents for verification, and the said person shall be liable to produce the documents and also allow the inspection of goods.

  • Rules 138 to 138D of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) lay down, in detail, the provisions relating to e-way bills. As per the said provisions, in case of transportation of goods by road, an e-way bill is required to be generated before the commencement of movement of the consignment. Rule 138A of the CGST rules prescribes that the person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, as the case may be; and in case of transportation of goods by road, he shall also carry a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Expert Comments: It needs clarification about mode of carrying the e-way bill number in electronic form

 

Section 129 of the CGST Act provides for detention, seizure and release of goods and conveyances in transit while section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.

In this regard, various references have been received regarding the procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the Board, in exercise of the powers conferred under section 168 (1) of the CGST Act, hereby issues the following instructions:

  • The jurisdictional Commissioner or an officer authorized by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order.
  • The proper officer, empowered to intercept and inspect a conveyance, may intercept any conveyance for verification of documents and/or inspection of goods. On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance. The proper officer shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further. An e-way bill number may be available with the person in charge of the conveyance or in the form of a printout; sms or it may be written on an invoice. All these forms of having an e-way bill are valid. Wherever a facility exists to verify the e-way bill electronically, the same shall be so verified, either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER <EWB_NO>to the mobile number 77382 99899 (For e.g. EWBVER120100231897).
  • For the purposes of verification of the e-way bill, interception and inspection of the conveyance and/or goods, the proper officer under rule 138B of the CGST Rules shall be the officer who has been assigned the functions under sub-section (3) of section 68 of the CGST Act vide Circular No. 3/3/2017 – GST, dated05.07.2017.
  • Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, he shall record a statement of the person in charge of the conveyance in FORM GSTMOV-01. In addition, the proper officer shall issue an order for physical verification/inspection of the conveyance, goods and documents in FORM GST MOV-02, requiring the person in charge of the conveyance to station the conveyance at the place mentioned in such order and allow the inspection of the goods. The proper officer shall, within twenty-four hours of the aforementioned issuance of FORM GST MOV-02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.
  • Within a period of three working days from the date of issue of the order in FORM GST MOV-02, the proper officer shall conclude the inspection proceedings, either by himself or through any other proper officer authorized in this behalf. Where circumstances warrant such time to be extended, he shall obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance.
  • On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance. The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.
  • Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further. Where the proper officer is of the opinion that the goods and conveyance need to be detained under section 129 of the CGST Act, he shall issue an order of detention in FORM GST MOV-06 and a notice in FORM GST MOV-07 in accordance with the provisions of sub-section (3) of section 129 of the CGST Act, specifying the tax and penalty payable. The said notice shall be served on the person in charge of the conveyance.
  • Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty as applicable under clause (a) of sub-section (1) of section 129 of the CGST Act, or where the owner of the goods does not come forward to make the payment of tax and penalty as applicable under clause (b) of sub-section (1) of the said section, the proper officer shall, after the amount of tax and penalty has been paid in accordance with the provisions of the CGST Act and the CGST Rules, release the goods and conveyance by an order in FORM GST MOV-05. Further, the order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the proceedings shall be added in the electronic liability register and the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
  • ​Where the owner of the goods, or the person authorized by him, or any person other than the owner of the goods comes forward to get the goods and the conveyance released by furnishing a security under clause (c) of sub-section (1) of section 129 of the CGST Act, the goods and the conveyance shall be released, by an order in FORM GST MOV-05, after obtaining a bond in FORM GST MOV-08 along with a security in the form of bank guarantee equal to the  amount payable under clause (a) or clause (b) of sub-section (1) of section 129 of the CGST Act. The finalization of the proceedings under section 129 of the CGST Act shall be taken up on priority by the officer concerned and the security provided may be adjusted against the demand arising from such proceedings.
  • Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05. The order in FORM GST MOV- 09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.

Expert Comments: Wherever objections are filed against the proposed amount of tax and penalty payable, then, payment of the tax and penalty should not be necessitated on submission of bank guarantee or bond, as the case may be, invoked only after finality is being achieved in this regard after following an Appellate Mechanism, open to the tax payers.

 

  • In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV- 10, proposing confiscation of the goods and conveyance and imposition of penalty.
  • Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax, he may directly invoke section 130 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10. In the said notice, the quantum of tax and penalty leviable under section 130 of the CGST Act read with section 122 of the CGST Act, and the fine in lieu of confiscation leviable under sub-section (2) of section 130 of the CGST Act shall be specified. Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of section 130 of the CGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance.
  • No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.

Expert Comments: Hopefully, this is properly adhered to by the concerned officer.

 

  • An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government. In the said order, a suitable time not exceeding three months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act. Once an order of confiscation of goods is passed in FORM GST MOV-11, the order in FORM GST MOV-09 passed earlier with respect to the said goods shall be withdrawn.
  • An order of confiscation of conveyance shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the conveyance and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such conveyance shall stand transferred to the Central Government. In the order passed above, a suitable time not exceeding three months shall be offered to make the payment of penalty and fines imposed in lieu of confiscation and get the conveyance released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
  • The order referred to in clauses (n) and (o) above may be passed as a common order in the said FORM GSTMOV-11.
  • In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in FORM GST MOV- 11, the proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.
  • Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.
  • Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further, sub-sections (3) and (4) of section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of central tax/State tax/Union territory tax.
  • The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.
  • Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.
  • A summary of every order in FORM GST MOV-09 and FORM GSTMOV-1
Regards
For FPTA
Hiren Karia
Hon. Secretary
The information has been received from an external source; FPTA does not in any way assure the accuracy of the same. The information has been sent to members for their knowledge and for academic purpose only.​​​​​​​​​​​​
Dear Members.
 

Please find Key outcomes of 26th GST Council meeting – Continuation of GSTR-3B, tax exemptions for exporters; applicability of E-way bill for your information

The all-powerful GST Council meeting headed by the Hon’ble Finance Minister, Mr. Arun Jaitley held for the 26th time with an agenda inter-alia, to take up issues pertaining to simplification of return filing under GST, implementation of E-way bill, disbursal of refund to exporters & defer Reverse Charge Mechanism. With the conclusion of the 26th GST Council meet on March 10, 2018, the gist of the key takeaways from the meeting are as under:
  1. Return filing System
There has been no conclusive decision on the simplification of the return filing process even after deliberating over the new model. Finance minister Arun Jaitley has said that there is a need to make sure that no evasion of tax is taking place in the new system. Hence the Group of ministers on IT have been tasked to finalise it. Till the new return filing system is in place, current system of filing GSTR 3B and GSTR-1 will be applicable for the another 3 months i.e. April to June, 2018.
  1. Reverse charge mechanism 
The liability to pay tax on reverse charge has been further postponed by three months i.e. till 30.06.2018. In the meanwhile, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade and industry.
  1. TDS/TCS
The TDS/TCS mechanism has also been postponed till 30.06.2018. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.
  1. Grievance Redressal Mechanism
GST implementation Committee (GIC) has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.
  1. Extension of Tax Exemption for Exporters for 6 months
Extension of the continuation of the exemptions under the export promotion schemes will be continued on the imports of the exporters till 1 October 2018, and it is expected that in such time e-wallet scheme is expected to be in place to continue the benefit in the future.
The Council directed GSTN to swiftly forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursement.
An interim solution was found by re-introducing the pre-GST tax exemptions on such imports. Additionally, for merchant exporters a special scheme of payment of GST @ 0.1% on their procured goods was introduced. Also, domestic procurement made under Advance Authorization, EPCG and EOU schemes were recognized as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST / IGST paid thereon. The scheme was made available upto March 31 2018.
The permanent solution agreed to by the Council was to introduce an e-Wallet scheme w.e.f. April 01, 2018. The e-Wallet scheme is basically the creation of electronic e-Wallets, which would be credited with notional or virtual currency by the DGFT. This notional / virtual currency would be used by the exporters to make the payment of GST / IGST on the goods imported / procured by them, so their funds are not blocked.
  1. Recommendations on E-way Bill
E-way bill shall be introduced for all Inter-State movement of goods, consignment value exceeding Rupees fifty thousand, across the country from April 01, 2018. For intra-State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than June 01, 2018.
  1. Recommendations regarding Data Analytics
GST Council has been apprised of the fact that CBEC and GSTN have started detailed data analytics across a number of data sets available with them. The outcome of preliminary data analysis has revealed the variances between:
  • amount of IGST & Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR-3B; and
  • amount of self-declared liability in FORM GSTR-1 and FORM GSTR-3B
It was deliberated that this information may be further analysed, and adequate action may be initiated accordingly.
Regards
For FPTA
Hiren Karia
Hon. Secretary

DRAFT MINUTES OF THE SECOND MEETING OF THE FPTA’s MANAGING COMMITTEE (2017-2018) HELD AT HOTEL SHANGRI LA, BENGALURU ON

SATURDAY 06TH AND SUNDAY 07TH JANUARY 2018.

 

The second meeting of the Federation of Paper Traders’ Associations of India for the year 2017-18 was held at Hotel Shangri La, Bengaluru on 06th & 07th January 2018 hosted by the Karnataka Paper Merchants’ & Stationers’ Association, Bengaluru.

 

Opening Ceremony:

The inaugural ceremony began at 12.00 p.m. Shri. Deepak Mittal President KPM&SA Bengaluru invited and welcomed President of FPTA, Shri A. Annamalai (Venkat), Chief Guest, Shri. Vijay Gupta, Founder and Mentor Agranta Group, Shri. Shamji Karia, Immediate Past President, Shri. Hiren Karia, FPTA Hon. Secretary, Shri. Dinesh Jain KPM&SA Bengaluru, Hon. Secretary other dignitaries to the dais.

 

Shri Deepak Mittal, President KPM&SA, welcomed the managing committee members and dignitaries. He thanked FPTA for giving them an opportunity for hosting the meeting at Ahmedabad and highlighted associations history and activities.

 

FPTA President, Shri A. Annamalai (Venkat) welcomed the Chief Guest, other dignitaries and the members present. He also thanked KPM&SA Bengaluru for inviting and hosting the 2nd Managing Committee Meeting. He said remove the barriers from the trade on the margins. Create platform for next generation to join the trade just like our father did for me and my brother. FPTA Website Committee has developed Mobile APP members are requested them to download and spare 15 minutes for it, members will definitely benefitted for trade.  He emphasized members with Paperex held in Delhi and thanked PMA Delhi members for the successful hosting the PAPER DAY event and wonderful arrangement especially by Shri. Satyapal Gupta. He said FPTA has organized international tour to Vietnam thanked members for overwhelmed response. MPMA Chennai has organized 10th Short Term Course on Paper and Pulp Erode and requested member to participate for essential guidance free of cost, only accommodation is nominally charged. GST team is doing exceptionally good job to educate members on GST matter and requested affiliated associations to submit memorandum on Chapter 48 ONE SLAB ONE TAX to respective local authorities to ensure that at least 6 state ministers highlight our trade problem during GST Council meet at Delhi. Thank you

 

Chief Guest, Shri. Vijay Gupta members for inviting him for sharing his experiences with the august audience; he shared his views on topic Global Benchmark on Import a Challenging Opportunity and Investment. The Risk factor and efforts on business –Tissue, Coated – Un coated Paper, News Print, Specialty and Bleached Boards, Corrugating Grades  Sack and Ors materials. Members satisfied in Q&A session.

 

Shri. Dinesh Jain, KPM&SA Bengaluru, Hon. Secretary delivered the vote of thanks.

 

Business Session

 

Business Session of the meeting was presided by Shri A Annamalai (Venkat), President, FPTA. It commenced at 2.00 p.m. A list of members who attended the meeting is given in Annexure.

 

Shri. Dhiraj Karia, Mumbai, Shri. Subhrajit Kundu, Kolkata, Shri. P. K. Jain, Delhi, Shri. Madhusudhan Bang, Vijayawada, Shri Bhupendra Gandhi, Ahmedabad, Shri. R. Sunder, Sivakasi along with Shri Hiren Karia, Hon. Secretary and Shri Parish Parekh, Hon. Treasurer were on the dais.

 

Shri Hiren Karia, Hon. Secretary was requested by President to proceed with the Agenda of the Meeting.

 

  1. To confirm the draft minutes of the fourth meeting of the Managing Committee (2016-17) held on 12th August 2017 at Chennai.

Minutes were passed unanimously

Proposed by: Shri Gopal Saha, Kolkata

Seconded by: Shri B. Uttamchand Jain, Bengaluru

 

1a. To confirm the draft minutes of the first meeting of the present Managing Committee (2017-18) held on 14th August 2017 at Chennai.

Minutes were passed unanimously.

Proposed by: Shri Krishan Mohan Gupta, Delhi

Seconded by: Shri Ramesh Salecha, Bengaluru

 

  1. To consider applications for membership for Life Associate, Patron and Ordinary Member, if any.

One Application was received for Ordinary Associate, and Two for Life Associate Membership as mentioned below.

The house passed the Life Member Associate Membership unanimously.

 

Life Associate Member:

M/s. Shree Jayanti Corporation, Mumbai

M/s. Salecha Paper, Bengaluru

 

Ordinary Associate Member:

M/s. Dindigul District Paper Merchants Welfare Association, Dindigul

As per FPTA Article 3A (e) Admission of member association application submitted was duly checked and approved and forwarded to AGM by this managing Committee.

 

  1. Report of Shri A. Natesan Convener of Advisory Board.

Advisory Committee thanked all the members who had made the event of Paper Day at Paperex Delhi held on 01st November 2017. It was dream come through that because hard work and dedication towards the trade stalwarts from Mills Associations shared dais. A more ground level work has to be done for the future occasion’s funds to be allocated and approved particularly for this event as house permits. At associations level prize distributions, slogans to be prepared before 15th February 2018 for this event educate to use more paper, while doing this FPTA should award best association presenter for this event.

Re-structuring of FPTA Awards. Shri. C. Balasubramanian highlighted category for nominations of the awards, which will be send to all associations for their feedback and will be incorporated in coming AGM. Regarding some of the awards for increase of corpus amount i.e. Late Shri. K C. Daga Award the sponsor has deposited Rs. 50,000/- (which reviewed by 5 years) with secretariat, for Late Shri. Badluram Gupta Award, Shri. Satyapal Gupta has taken initiative to follow up. Shri. A. Annamalai FPTA President desired to institute Award in the memory of his father Late Annmalai for Rs. 5 lakh (for 10 years period and will be further reviewed). The Board felt it should be replaced with Late Jayantilal Award with permission of the house.

FPTA Mobile APP & Social Media is exceptionally doing well, but members response towards download is less, Members has to take the initiative to download it for their trade benefits. The Mobile App should be strictly to Members only.

Safe Guard Duty on Copier filed by Domestic Mills – FPTA Stand will be neutral.

Hon. Secretary briefed functioning of most the Affiliated Associations is good but some of to be taken care of. Vice Presidents  & Sub Committee Members are working well.

Discussions for having a few co opted members of the choice of office bearers of FPTA to ensure that people who can contribute (and who could not become MC members) to participate in the MC meetings/act as conveners/sub committee members of various Sub Committees. The President on his capacity can invite approx 5 members during meetings, to avoid burden on host associations. Non M C Member can be member of the sub committee, cannot be a convener.

  1. To present received reports of Vice-Presidents and Conveners of the Sub-committees.

 

Hon. Secretary informed that the reports have been already circulated to members, if any member wants to ask any questions can ask to the Vice Presidents in context of the activity reports. Vice Presidents Shri. Dhiraj Karia, Mumbai, Shri. Subhrajit Kundu, Kolkata, Shri. P. K. Jain, Delhi, Shri. Madhusudhan Bang, Vijayawada, Shri Bhupendra Gandhi, Ahmedabad, Shri. R. Sunder, Sivakasi presented bullet points of their activities report. Shri. Vijay Bansal, Agra and Shri. Krishna Kumar Sharma, Jaipur had marked leave of Absence for the meeting.  There were no comments from members.

 

Shri Satyapal Gupta, Convener of Committee of Assocham & FICCI mentioned that he sends notification/suggestions from time to time received from the chambers and requested Affiliated Associations to send their suggestions to the Secretariat. He insisted associations to send memorandum to local authorities on Chapter 48 One Slab One Tax on GST.

 

Shri. Shekhar Chandak, Convener, Committee International Trade enlighten on Vietnam tour and current international trade.

 

Shri P. Rajesh Jain, Convener, Committee for Consumer Relations and Arbitration emphasized importance of arbitration, to form all India members arbitration committee to look into the problems faced by our members and try to solve them at their end amicably and decision to implement the KYC Form (Know your Customer) which is an very useful and important document for the benefit of members.

 

Shri. Nirmal Kuhad Convener, Committee for Website and Social Media updated house with present position about Mobile App download by members, Members response towards the same is low, he requested to download app for trade benefits.

 

Shri. Sandeep Bhargava brought to the notice of house regarding problems faced by them, mentioning that over the last few years, we have made valuable inputs to BIS to safeguard interest of Paper Traders and consumers but other than being lauded by the Technical people at the meeting, these recommendations could not be implemented because of the opposition. Most disheartening is that one amongst us Paper Traders – Mr. Narottam Vyas is also working without prior permission from our organization; the house is requested to take a final call toward the interest of the trade. The house summoned Shri. Narottam Vyas to make his stand on this matter he said as directed by the house I have not attending the meeting on behalf of our organization, but on individual capacity as invitee and giving valuable input as required. FPTA BIS committee has not represented any held three meetings. Shri. Sandeep Bhargava explain house that due busy schedule two meetings were not attended but we had all the intentions of attending the last meeting which was scheduled on 24th August 2017 and even submitted our inputs beforehand to Ms. Shrishti Dixit to be taken up during the meeting. We both myself and Shri. Abhishek Malani were to travel to Delhi on 23rd Aug night but unfortunately due to the train derailment near Achhalda, the train was cancelled. The email to this effect again (regarding our absence) was sent to Ms Shrishti Dixit and requested her to take up the points and suggestions proposed by us on behalf of FPTA for BIS 14490:1997 CHD 15.

 

The house warned Shri. Narrottam Vyas that he is not going to sign any document or to attend any BIS meeting on behalf of the FPTA, if done so strict action will be taken by the house. The house nominated Shri. Alok Gupta, Delhi to represent as one of the BIS Committee Member on FPTA behalf so that the non presence issue could not be raised. The BIS Committee will be comprised as Shri. Sandeep Bhargava, Principle Nominee, Shri. Abhishek Malani, Alternate Nominee, Shri. Vineet Bijoria and Shri. Alok Gupta as Members.

 

Shri. Krishan Mohan Convener, GST Committee requested members to send their GST related issues, especially on Chapter 48to the committee, so that it will be incorporated in Memorandum will be presented before Finance Minister before GST Council Meeting.

 

 

 

 

  1. To consider report of review committee Convener on guidelines of various awards

Shri. C. Balasubramanian, Chairman Awards Review Committee prepared categories of awards which will be circulated to all affiliated association for feedback and same will be incorporated during forth coming 57th AGM. 

 

 

  1. Discussion on Market Scenario/Grievance Committee for PAN India or Zonal.

President had informed members to discuss views/suggestions on effect to trade on recent GST implementation. Members discussed on issues like less Margins, Competitions, Hidden discounts are passed to the dealers issues, GST Interstate- Intrastate transactions issues, It was house felt that Banks operation cost is also one of the factor for the less margins and traders have to take note of it. Mills has to consider the Order Confirmation placed before the price raise and same concern to be brought before the Paper Mills Associations. KYC of customers list should be prepared by traders. Defaulters list (named Red Wrapper) should be send to all associations by all associations; all India internal grievances committee will be formed under Shri. Rajesh Jain, Consumer Relations and Arbitration. The speakers participated in discussions were Shri. Satya Pal Gupta, Shri. Alok Gupta, Shri. Krishan Mohan Gupta, Shri. Shanti Kumar Jain from Delhi, Shri. Ashok Gupta, Bengaluru, Shri. Dinesh Khandelwal, Nagpur, Shri. Mehul Mehta, Mumbai, Shri. Priyesh Desai, Mumbai, Shri. Saurabh JhunJhunwala, West Bengal. Shri. Yashaswi Sushesh Patel, Shri. C. Balasubramanian, Coimbatore and etc.

 

  1. Discussion on 3rd Managing Committee Meeting to be hosted by

Rajasthan Paper Merchants’ Association, Jaipur. 

As matter was not discussed because of No representation was made from Jaipur Association in the meeting but Hon. Secretary informed that the Shri. Ashok Ranka is in his touch and they desired to fix it in the month of June 2017 first week for the 3rd Managing Committee Meeting.

 

  1. Any other matter with the permission of the chair.

Awards: The House endorsed the request of Shri. A. Annamalai FPTA President to institute Award in the memory of his father Late Annmalai for Rs. 5 lakh (for 10 years period and will be further reviewed), it will be replaced with Late Jayantilal Award from forth coming AGM.

The House thanked sponsors  of Late Shri. K C Daga Award for enhance corpus amount from Rs. 51,000/- to Rs. 1,01,000/- (reviewed after 5 years).

On Celebrating Paper Day by Affiliated Associations.

The house appreciated work done by the Convener Shri. Satyapal Gupta and Co- Convener Shri. Ramesh Chand Gupta for preparation for celebrating the PAPER DAY at PAPEREX 2017 on 01st November 2017. With regards to the paper day celebrations house felt that the organization should organize contest like Essay Writing, Poems etc at the school level through respective associations and winners should be awarded, slogans, need to educate various People, students, Corporate, Financial Institutions like Banks, municipal bodies and other organizations – about Paper being green. There is a misconception about Paper – which Paper is made by cutting trees.

PTA Mumbai Members appreciated and facilitated with token of appreciation PMA Delhi Members on PAPER DAY at PAPEREX.

Hon. Secretary Shri. Hiren Karia thanked all involved. He announced the name contributed for this event M/s. Fatehchand Narsingdass Trust, M/s. Sarthak Enterprises, M/s. Aman Paper Co, M/s. Sumat Prashad & Sons, M/s. Juneja Tradelinks, M/s. Shree Paper Company, M/s. Jain Enterprises, M/s. Khurana Paper House, from Delhi, M/s. Ajanta Paper Centre, Mumbai, Shri. Dipesh Laddha for contributing table chair made from paper, PTA Mumbai for paper badges and pen PMA Delhi for overall management and Members Association for making event successful. Madras Paper Merchants announce and handed over cheque of Rs. 1 lakh contribution.

 

Initiation of Anti – Dumping Duty investigation concerning imports of Un-Coated Copier Paper originating in or exported from Indonesia, Thailand and Singapore.

Members deliberated on this issue and decided to take neutral stand and requested to write mills associations over price hike without any need.

 

President Shri. A. Annamalai (Venkat) expressed that news and views should be published at least half yearly. To activate associations the task were handed to Shri. P K Jain, Vice President, Delhi who assured to co-ordinate with Dehradun Association, Shri. Alok Gupta, Delhi with Varanasi and Shri. C. Balasubramanian, Past President with Kochi. Shri. Subhrajit Kundu, Kolkata informed the house he will be in touched with his association under his jurisdiction.

 

  1. Vote of thanks and conclusion of the meeting.

Since there was no other matter to be discussed, the meeting concluded with a vote of thanks to the host Association followed by the recital of National Anthem.

____________________________________________________________________________________

 

 

 

 

                                                                                                                                 

 

 

Conclave

 

                                                                                                                                                                                                                                                                                                                                                                      

“Paper, Pulp & Allied Industries”

 

– Towards a Sustainable Tomorrow –

 

[

 

 

10.00 AM- April 11, 2018 – Mumbai

 

 

Programme

 

 

 

 

 

 

 

9.00 – 10.00 AM

 

 

:

 

 

Registration

 

 

 

 

10.00 – 11.30 AM

 

 

Inaugural Session  

 

 

 

Welcome Address

Shri B L Goenka, Senior Vice President, ASSOCHAM

 

 

Address

  Chief Executive, Paperboards, ITC Ltd.

 

Address

Shri Saurab Bangur , Vice Chairman , The West Coast Paper Mills Ltd

 

 

 

Address

Shri A. K. Jatia, Chairman, Pudumjee Paper

 

 

Address

Shri Siddhanta Das, Director General of Forest & Special Secretary, MoEF

 

 

Address

Shri Ramesh Abhishek, Secretary, DIPP

 

 

Address by the Chief Guest

Shri Suresh Prabhu, Hon’ble Union Minister of Commerce & Industry

 

 

Vote of Thanks

ASSOCHAM

 

 

 

 

11.30 – 11.45 AM

 

 

:

 

 

 

 

Tea / Coffee     

 

 

 

 

 

11.45 AM – 01.00 PM

 

 

Business Session I: Outlook of the Industry, Trends and Paper & Pulp making

 

§  Outlook of Paper and Pulp Industry  -CARE RATING

§  Indian Paper & Pulp Industry : Latest Trends & Future Prospects

§  Strategies to enhance per capita consummation of paper

§  Latest technologies for Enhancing Sustainability and Competitiveness of the Indian Paper Industry

 

 

01.00 : 2:15 PM

 

:

 

Business Session II: Challenges & Solutions

 

·         Securing Raw Material for the Industry

 

·         Technological Challenges and Solution for the Industry

·         Use of degraded forest for pulpwood cultivation

 

 

2:15 : 3:00 PM

 

:

 

Networking Lunch

 

 

3.00  5.00 PM

 

 

Business Session III: Energy, Water,  Waste & Environment Issues

 

§  Environment protection and management

§  Energy saving Technologies

§  Water Management Strategies

§  Waste to energy opportunities

 

5.00 PM :

 

Tea/Coffee

 

 

Contents

 

                                                                      

  • Key Highlights Budget Proposal 2018

 

  • Income Tax
  1. 3. Goods & Service Tax (GST)

 

 

  1. FEMA

 

  1. Company Law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Highlights

Budget Proposal

 

Tax Rates                                             • No Change in Non-Corporate Tax Rates.

  • Corporate Tax Rates: – In case of domestic company, the rate of income-tax shall be 25% of the total income if the total turnover or gross receipts of the previous year 2016-17 does not exceed Rs250 cores and in all other cases the rate of Income-tax shall be 30%.
  • Existing Education Cess and Secondary and Higher Secondary Education Cess at the rate of 2% and 1% respectively shall be replaced by Health and Education Cess at the rate 4% in case of all assesses – No Marginal Relief will be allowed for this new cess.

 

Salaried Employees:                      • Introduction of Flat Standard Deduction of Rs. 40,000

 

  • Earlier Exemption in respect of Transport Allowance (i.e. Rs 1600 per month * 12 months) and reimbursement of medical expenses (upto Rs 15,000/- p.a.)

 

For Senior Citizen                            • Section 80D for Senior Citizen – monetary limit of deduction from Rs 30,000/- to Rs 50,000/-

  • Section 80DDB – Ceiling Limit of Deduction for medical treatment of specified diseases raised to Rs 1,00,000/- for both senior citizens and very senior citizens. 0
  • Section 80TTB – (New Section Inserted) – a deduction upto Rs 50,000/- in respect of interest income from deposits held by senior citizens
  • Section 194A – raise the threshold for deduction of tax at source on interest income for senior citizens from Rs 10,000/- to Rs 50,000/-.

For Business and Profession       Income Computation and Disclosure Standards

  • A writ was filed challenging the constitutional validity of the ICDS notified and the court had struck down certain provisions of the ICDS treating the same to ultra-vires to the Act. Thus, amendments are proposed to clarify the doubts raised on the legitimacy of the notified ICDS as per the recent judicial pronouncement.
  • ICDS provisions provided in the notification are now proposed to be made part of the Statue by the following amendments in the act:
  • Insertion of new section 36(1)(xviii) – to provide the allowability of marked to market loss or other expected loss as per ICDS;
  • Insertion of new section 40A (13) – to provide the disallowance of marked to market loss or other expected loss covered in except 36(1)(xviii)
  • Insertion of a new section 43AA – to provide any gain or loss arising on account of effects of changes in foreign exchange rates in respect of specified foreign currency transactions shall be treated as income or loss, as per the ICDS.
  • Insertion of a new section 43CB – to provide that profits arising from a construction contract or a contract for providing services shall be determined on the basis of percentage of completion method except for certain service contracts, and that the contract revenue shall include retention money, and contract cost shall not be reduced by interest, dividend and capital gains.’
  • Further proposed to amend section 145A of the Act to provide that, for “Profits and gains of business or profession”: –

 

The valuation of inventory Lower of actual cost or net realizable value computed as per ICDS
The valuation of purchase and sale of goods or services and of inventory Shall be adjusted to include the amount of any tax, duty, cess or fee actually paid or incurred by the assessee to bring the goods or services to the place of its location and condition as on the date of valuation
Inventory being securities not listed, or listed but not quoted Shall be valued at actual cost as per ICDS
Inventory being listed securities Shall be valued at lower of actual cost or net realisable value on category wise basis

 

  • Insertion of a new section 145B, to propose –

Interest received by an assessee on compensation or on enhanced compensation, shall be taxable on receipt basis

 

The claim for escalation of price in a contract or export incentives shall be deemed to be the income of the previous year in which reasonable certainty of its realisation is achieved.

 

The subsidy or grant or cash assistant deemed to be the income of the previous year in which it is received, if not charged to income tax for any earlier previous year.

 

Section 44AE

  • Amended for large capacity / size Goods Carriage Vehicles
  • In the case of heavy goods vehicle (more than 12MT gross vehicle weight deemed income @ Rs 1,000 per ton of gross vehicle weight or unladen weight, as the case may be, per month or part of a month for each goods vehicle or the amount claimed to be actually earned by the assessee whichever is higher.

 

Conversion of Stock in Trade in Capital Assets

  • Earlier section 45(2) covers conversion of Capital Assets into Stock in Trade. Now the reverse scenario also brought under tax net i.e. conversion of Stock in Trade into Capital Assets. Sec. 28 amended so as to provide that any profit or gains arising from conversion of inventory into capital asset or its treatment as capital asset shall be charged to tax as business income.
  • The fair market value of the inventory on the date of conversion shall be deemed to be the full value of the consideration received.

 

Capital Gains     •New regime for taxation of long-term capital gains on sale of equity shares etc. Section 112A proposed to be inserted and a new proviso to Section 10(38) inserted. The existing exempt LTCG is proposed to withdraw the exemption under section 10(38) and to introduce a new section 112A in the Act to provide that long-term capital gains arising from transfer of a long-term capital asset being an equity share in a company or a unit of an equity-oriented fund or a unit of a business trust shall be taxed at 10 per cent. of such capital gains exceeding one lakh rupees concession rate of 10% will be subject to following conditions;

  • In case of equity shares, STT has been paid on both acquisition and transfer of such capital asset
  • In case of unit of equity oriented Mutual Fund, STT has been paid on transfer of such capital asset
  • Cost of acquisitions in respect of the long-term capital asset acquired by the assessee before the 01/02/2018 shall be the higher of – actual cost of acquisition or fair market value (i.e. Highest quoted market price on the 31/01/2018)
  • No benefit of deduction under chapter-VIA against such capital gain.

 

Taxation of long-term capital gains in the case of Foreign Institutional Investor

Consequent to the proposal for withdrawal of exemption under clause (38) of section 10 of the Act, such long-term capital gain will become taxable in the hands of FIIs also. Such Capital Gain in excess of Rs 1,00,000/- taxable u/s 115AD.

 

Rationalization of the provisions of Section 54EC

The scope of this section now proposed to restricted only to “long-term specified asset” being land or building appurtenant thereto; The period of holding (lock in) enhanced from present level of 3 year to proposed 5 years.

 

Income from Other Sources

  • Proposed to delete the Explanation to Chapter XII-D occurring after section 115Q of the Act. Now DDT chargeable u/s 115-O also include dividend u/s 2(22) (e) in the hands of company @ 30% (without gross up)
  • Proposed DDT structure –Dividend covered u/s 2(22) (a) to 2(22) (d) – DDT @ 15% (with gross up) Dividend covered u/s 2(22) (e). DDT @ 30% (without gross up)

 

Widening of scope of Accumulated profits for the purposes of Dividend

 

Proposed to insert a new Explanation 2A in section 2(22) of the Act to widen the scope of the term ‘accumulated profits’ so as to provide that in the case of an amalgamated company, accumulated profits, whether capitalized or not, or losses as the case may be, shall be increased by the accumulated profits of the amalgamating company, whether capitalized or not, on the date of amalgamation.

 

Dividend distribution tax on dividend payouts to unit holders in an equity-oriented fund

Under existing provision Section 115R – any income distributed to a unit holder of equity-oriented funds is not chargeable to tax under the said section. To providing a level playing field between growth-oriented funds and dividend paying funds, it is proposed to amend the said section to provide that where any income is distributed by a Mutual Fund being, an equity-oriented fund, the mutual fund shall be liable to pay additional income tax at the rate of ten percent on income so distributed.

 

Taxability of compensation in connection to business or employment

Proposed to amend section 28 & Section 56 of the Act that any compensation received or receivable, whether revenue or capital, in connection with the termination or the modification of the terms and conditions of any contract relating to its business shall be taxable as business income & relating to employment shall be income from other source.

 

Rationalization of section 43CA, section 50C and section 56.

It is proposed that No adjustment needs to be made to full value of consideration in based on stamp duty valuation if the variation is within the range of 5% of sales consideration.

 

Rationalization of the provisions of sectioned 115BBE

Income referred to in seton 68/69 /69A/69B/69C/69D at a higher rate of sixty percent. Under the existing provisions, allowability of expenditure or allowance or set off of any loss against such income which is not disclosed in the Return and added by the AO. Now it is proposed no such deductions shall be allowed against such incomes whether disclosed in return or added by AO in the assessment proceedings.

 

Procedural          Entities to apply for Permanent Account Number in certain cases

  • It is proposed to use a PAN as Unique Entity Number (UEN) for non-individual entities which enters into a financial transaction of an amount aggregating Rs 2.50 lakhs or more in FY
  • In order to link the financial transactions with the natural persons, it is also proposed that the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office of such entities shall also apply for PAN.

 

Tax deduction at source and manner of payment in respect of certain exempt entities

It is proposed to insert new explanation to the section 11 for the purposes of determining the application of income under the provisions of sub-section (1) of the said section, the provisions of 40 (ia), 40(a), 40(3) & 40(3A) shall, mutatis mutandis, apply.

 

Rationalization of prima-facie adjustments during processing of return of income

Sub-clause (vi) of the said clause provides for adjustment in respect of addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income. It is proposed to insert a new proviso to the said clause to provide that no adjustment under sub-clause (vi) of the said clause shall be made in respect of any return furnished on or after 01/04/2018.

 

New scheme for scrutiny assessment

To impart greater transparency and accountability, by eliminating the interface between the AO and the assessee, optimal utilization of the resources, and introduction of team-based assessment, it is proposed to insert new section 143(3A), 143(3B) and 143(3C) enabling the Central Government to prescribe the aforementioned) enabling the Central Government to prescribe the aforementioned new scheme for scrutiny assessment by way of notification.

 

Deductions in respect of certain incomes not to be allowed unless return is filed by the due date

It is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading C in chapter VIA will not be allowed unless the return of income by the assessee is furnished on or before the due date specified under sub-section 139(1). 0

 

 

Penalty for failure to furnish statement of financial transaction or reportable account u/s 285BA

 

Existing Provision Proposed Provision
Fail to furnish within prescribe time Fail to furnish statement within me specified in notice Fail to furnish within prescribe time Fail to furnish statement within me specified in notice
Rs. 100/Day Rs. 500/Day Rs. 500/Day Rs. 1000/Day

 

Extending the benefit of tax-free withdrawal from NPS to non-employee subscribers

 

Under the existing provisions of the clause (12A) of section 10 this exemption is not available to non-employee subscribers for NPS Subscription. It is proposed to amend clause (12A) of section 10 of the Act to extend the said benefit to all subscribers.

 

Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018-reg

Under the existing regime, long term capital gains arising from transfer of long term capital assets, being equity shares of a company or a unit of equity-oriented fund or a unit of business trust, is exempt from income-tax under clause (38) of section 10 of the Act. However, transactions in such long-term capital assets are liable to securities transaction tax (STT). Consequently, this regime is inherently biased against manufacturing and has encouraged diversion of investment to financial assets. It has also led to significant erosion in the tax base resulting in revenue loss. The problem has been further compounded by abusive use of tax arbitrage opportunities created by these exemptions.

 

In order to minimize economic distortions and curb erosion of tax base, it is proposed to withdraw the exemption under clause (38) of section 10 and to introduce a new section 112A in the Income-tax Act, 1961 (‘the Act’) vide clause 31 of the Finance Bill, 2018 so as to provide that long-term capital gains arising from transfer of such long-term capital asset exceeding one lakh rupees will be taxed at a concessional rate of 10 percent.

 

Since the introduction of the Finance Bill, 2018 on 1st February, 2018, several queries have been raised in different forum on various issues relating to the proposed new tax regime for taxation of long-term capital gains. The responses to these queries are provided below in the notification, link for which is provided below.

(Source: https://www.incomtaxindia.gov.in/newsfaq-on-itq.pdf)

 

CBDT Directs Assessing Officers to adopt No Holds- Barred approach towards Tax Recovery

The CBDT has apparently directed the officials of the income-tax department to “go into overdrive” in the next three months while making recovery of tax. The officials have been warned that their performance is being “monitored at the highest level “.

 

According to a report in the ET, the income-tax department is expected to go into overdrive in the next three months with the Central Board of Direct Taxes, the apex body, alerting all senior tax officials that their performance is being “monitored at the highest level.”

 

“There will be searches, surveys, information verification, and follow-ups. Explanations on ‘cash in hand’ amounts are being sought from different kinds of assessees, and not just from large establishments and jewelers. We will be knocking on many doors even if our respective targets are met,” a senior tax officer was quoted as saying.

 

The CBDT Chief apparently conveyed this message to the tax officials during a recent video-conference.

(Source: http://www.itatonline.org)

 

CBDT Launches Aggressive Prosecution of Tax Evaders & Sends Warning to All Taxpayers

The Finance Ministry has revealed that it has launched aggressive prosecution against willful attempt to evade tax or payment of any tax, willful failure in filing returns of income, false statement in verification and failure to deposit the tax deducted/collected at source etc. It is made clear that the department will carry forward the drive against tax evasion in future as well.

 

All taxpayers have been warned to get their act in order to avoid unpleasant consequences at the hands of the income-tax department.

(Source: http://www.itatonline.org) line.org)

 

A Press Release by dated 11th January 2018 by the Income Tax Department

Income Tax Department steps up actions under Prohibition of Benami Property Transactions Act: Benami properties of more than Rs. 3500 crore attached.

 

The Income Tax Department has stepped up actions under the Prohibition of Benami Property Transactions Act (the ‘Benami Act’), which came into force w.e.f. 1st November, 2016. The Act provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to 7 years and fine upto 25% of fair market value of the property. The Department had set up 24 dedicated Benami Prohibition Units (BPUs) under its Investigation Directorates all over India in May, 2017 to ensure swift action in respect of Benami properties.

 

Due to intensive efforts undertaken by the Department, provisional attachment has been made in more than 900 cases of properties under the Act. These include plots of land, flats, shops, jewellery, vehicles, deposits in bank accounts, fixed deposits etc. The value of properties under attachment is more than Rs. 3500 crore including immovable properties of more than Rs. 2900 crore. The Department is committed to continue its concerted drive against black money and action against Benami transactions will continue to be intensified.

(Source: http://www.incometaxindia.gov.in/pages/press-releases.aspx)

 

Income Tax department likely to achieve 19% growth in tax collection from Bihar, Jharkhand

The Income Tax Department of Bihar & Jharkhand region is likely to achieve a growth of 19 per cent in tax collection during the current fiscal as it has already successfully brought 3.25 lakh new assessees under its net.

 

Out of the set target of 13,200 crore of tax collection for the fiscal 2017-18, the department has already achieved a collection of Rs 7,075 crore and efforts are on to meet the target in next two-and- half months, said Principal Chief Commissioner of Income Tax (Bihar and Jharkhand region), K C Ghumaria.

(Source: http://www.financialexpress.com/economy/income-tax- department-likely- to-achieve- 19-growth-intax-collecon- from-bihar- Jharkhand/1012879/) 79/)

 

Principle CIT & ACIT directed to pay cost for frivolous appeals

In the case of ACIT vs. Epson India Pvt. Ltd, Hon’ble Karnataka High Court has held that:

 

PrCIT & ACIT should pay personal costs for filing frivolous writ peon to challenge ITAT stay order. Hon’ble Court need that raising unsustainable, illegal and high-pitched demands and enforcing coercive recovery and challenging stay orders shows utterly irresponsible and unfair behavior. Thereafter, seeking adjournments by the I. Tax Department of the hearing in the ITAT adds insult to the injury. Irresponsible and uncoordinated manner of the I. Tax Department strongly deprecated.

It is the unnecessary dogged approach of the Revenue to multiply the ligations in the Constituonal Courts, in turn wasting the precious public hours of me and unholy desire to become a litigant in the Constituonal Courts at Government costs, though there may be absolutely no justification for doing so. The public functionaries and public officials cannot be allowed to spend Government money and public me much less public me of the Constituonal Courts just for the sake of proving their such fictional desires. First raising unsustainable, illegal and high-pitched demands and then seeking to coercively recover the same even showing scant regard to the orders passed by highest Tribunal under the Act and for that invoking the writ jurisdiction to seek support to their such effort is nothing but an utterly irresponsible and unfair behavior.

 

It is the lack of such discipline with the Government Officials which turns Government Departments as a major litigant in the Constituonal Courts, in turn depriving the Constituonal Courts to devote their me for looking into the causes of poor people, which deserve their me and attention of the court more than such Government Departments.

(Source: http://www.itatonline.org)

 

Unexplained deposits in focus, taxmen ordered to go all out in the next three months

The income-tax department will in all likelihood go into overdrive in the next three months with the Central Board of Direct Taxes, the apex body, alerting all senior tax officials that their performance is being “monitored at the highest level”

 

It will also give a renewed push towards imposing and recovering tax on Rs 3 lakh crore deposit, which is suspected to be the quantum of unexplained cash parked with banks post demonetization. “There will be searches, surveys, information verification, and follow-ups.”

(Source:https://economicmes.indiames.com/news/economy/finance/income-tax- department-may-gointo-overdrive-this-quarter/articleshow/62502660.cms)

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Sharp increase in prosecutions of tax evaders by Income Tax Department

The Income Tax Department has accorded the highest priority to tackle the menace of black money. With this objective in mind, the Department has initiated criminal prosecution proceedings in a large number of cases of tax offenders and evaders.

 

Prosecutions have been initiated for various offences including willful attempt to evade tax or payment of any tax; willful failure in filing returns of income; false statement in verification and failure to deposit the tax deducted/collected at source or inordinate delay in doing so, among other defaults.

 

During FY 2017-18(upto the end of November, 2017), the Department filed Prosecution complaints for various offences in 2225 cases compared to 784 for the corresponding period in the immediately preceding year, marking an increase of 184%. The number of complaints compounded by the Department during the current FY (upto the end of November, 2017) stands at 1052 as against 575 in the corresponding period of the immediately preceding year, registering a rise of 83%. Compounding of offences is done when the defaulter admits to its offence and pays the compounding fee as per stipulated conditions.

 

Due to the decisive and focused action taken by the Department against tax evaders, the number of defaulters convicted by the courts has also registered a sharp increase during the current fiscal. 48 persons were convicted for various offences during the current year (upto the end of November, 2017) as compared to 13 convictions for the corresponding period in the immediately preceding year, marking an increase of 269%.

 

A few illustrative cases are provided below:

A Dehradun Court convicted one defaulter for holding undisclosed foreign bank account and sentenced him to two years of imprisonment for willful attempt to evade tax and to two years for false statement in verification along with monetary penalty for each default respectively.

 

The Court of CJM, Jalandhar convicted a cloth trader with 2 years rigorous imprisonment for trying to cheat the Department by fabricating affidavits and gift deeds, in connivance with his advocate and witness, with the move of evading tax. The Court, while awarding the sentence to the trader, also simultaneously awarded one year’s imprisonment to the advocate notarizing the forged affidavit and also to the witness for aiding and abetting the serious offence.

 

In Bengaluru, the MD of a company engaged in infrastructure projects was found guilty of non-deposit of TDS of over Rs. 60 lakh (within the prescribed me), and was sentenced to rigorous imprisonment of three months along with imposition of fine. Similarly, a Mohali resident was held guilty of non-deposit of TDS within prescribed me and sentenced to one-year jail alongwith fine.

 

In another case of Hyderabad, the Director of an infrastructure company was sentenced to rigorous imprisonment of six months and fine for willful attempt to evade tax. She was simultaneously sentenced to rigorous imprisonment for six months along with fine for false statement in verification.

 

The Economic Offences Court at Ernakulam sentenced an individual to rigorous imprisonment of three months for selling property to evade payment of taxes of about Rs. 76 lakh despite issuance of the tax recovery certificate by the Tax Recovery Officer.

 

In yet another case reported from Agra, the Special CJM convicted one defaulter with imprisonment of one year & six months for willful attempt to evade tax and for false statement in verification respectively alongwith fine.

 

The Income Tax Department is committed to carry forward the drive against tax evasion and action against tax evaders will continue in all earnest in the remaining part of the current Financial Year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Reduction in GST rate under Composition Scheme

 

The Central Government has reduced the rate of tax under composition scheme as follows:

Sr. No. Particulars Rate
1. Manufacturer 0.5% of turnover in state
2. Other suppliers 0.5% of taxable turnover of goods in state

 

(Notification No.1 /2018 – Central Tax dated January 1, 2018)

 

Reduction in late filing fees for delay in filing of GSTR-1, GST-5, GSTR-5A and GSTR-6

Late fees payable for delay in filing of GSTR-1, GST-5, GSTR-5A and GSTR-6 reduced to fiy rupees (twenty-five each for CGST and SGST) and in case of NIL return, the late fees reduced to twenty rupees (ten each for CGST and SGST).

(Notification No. 4, 5, 6 and 7 /2018 – Central Tax dated January 23, 2018)

 

Extension of date for filing the return in FORM GSTR-6

The Central Board of Excise and Customs (CBEC), has extended the me limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2017 to February, 2018, ll the March 31, 2018.

(Notification No.8 /2018 – Central Tax dated January 23, 2018)

 

Postponement of the coming into force

The Central Board of Excise and Customs (CBEC), vide Notification No. 74/2017 dated December 29, 2017 had notified that the E-way Bill shall come in to force effective February 1, 2018. However, on February 2, 2018 the Central Government has rescinds this notification and postpone the effective date for E-way Bill. The new date for E-way bill enforcement is yet to be notified.

(Notification No.11 /2018 – Central Tax dated February 2, 2018)

 

Changes relating to GST rates on certain Goods and Services

Changes in GST rate on certain goods and services recommended by GST Council in its 25th Meeting held on January 18, 2018, as relief measures covering many sectors and commodities, including exemption for certain items. Also, clarifications in respect of GST rate and taxability of certain goods and services have been issued. All such changes in GST rates would be applicable prospectively from January 25, 2018 onwards. The relevant notifications have been released on January 25, 2018

 

 

 

 

 

FEMA

 

FDI norms further liberalized

The government of India has been actively relaxing foreign direct investment routes, with the objective of further easing the foreign direct investment regime in India by liberalizing and simplifying the FDI Policy in order to promote ease of doing business in India. The present set of reforms introduced by the government (Department of Industrial Policy and Promotion), by way of Press Note 1 of 2018, comes in the backdrop of the World Economic Forum, in Davos, where the Indian delegation, led by Prime Minister Modi, is actively engaged in building optimism and generating further interest amongst foreign investors.

 

The announcement of allowing 100% FDI in the single brand retail (SBRT) sector, and the tweaks made to local sourcing norms may entice such global retailers, who are yet to set shop in India. The revised norms will permit entities undertaking SBRT and having FDI in excess of 51% to off-set additional global sourcing (above current levels) to satisfy the local sourcing norms. This is a welcome step, especially for the apparel industry, as a number of brands presently source products from India for their global operations. If such brands increase their sourcing for global operations from India, such increased sourcing can be set off against the requirements under the local sourcing norms. The revised norms will also make it easier for foreign brands to incorporate wholly owned subsidiaries in India, without tying up with any local Indian partner, and will thus enable them to exercise greater control over their business in India.

 

The move to allow foreign airlines to invest in Air India also comes at a juncture when the government is in the process of finalizing the modalities for the cash-strapped and loss-making Air India, and is a clear indication of the intention of the government in getting competitive bids for Air India.

 

In relation to the construction and development sector, the government has clarified that real estate broking does not amount to real estate business and is therefore, eligible for 100 per cent FDI under automatic route. Similarly, the government has also eased rules for foreign investment in power exchanges, allowing FIIs/FPIs to invest in Power Exchanges through primary market as well, and has also permitted issuance of shares against non-cash consideration like pre-incorporation expenses, import of machinery, without requiring government approval for sectors under the automatic route. Further changes in the FDI policy, including clarifications on the FDI policy on sectors involving foreign investment in an Indian company that is engaged only in the activity of investing in the capital of other Indian company/ies/ LLP, with FDI policy provisions on Other Financial Services, are significant steps to reduce red-tape.

 

However, surprisingly, amidst all the positive steps taken by the government, the government has announced restrictions with respect to appointment of auditors for auditing Indian investee companies, and now, if the foreign investor wishes to engage an audit firm having an international network, the audit of Indian investee companies should be carried out as joint audit, wherein one of the auditors should not be part of the same network. This is a surprising move on part of the government since the rationale for imposition of the abovemenoned conditions is not clear and this may increase the cost of doing business in India if a foreign investor wishes to use its global auditor to audit its Indian subsidiary.

 

Nevertheless, as a whole, the reforms introduced by the government will certainly improve sentiments amongst foreign investors and are in line with the steady stream of reforms being introduced to liberalize the FDI regime and attract more foreign investment.

(DIPP PressNote1of2018dated23rdjanuary2018)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Law

Companies (Appointment and Qualification of Directors) Rules, 2014

In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the companies Act, 2013 (18 of 2013), the central Government hereby makes the following rules further to amend the companies (Appointment and Qualification of Directors) Rules, 2014, namely:

  • These rules may be called the companies (Appointment and qualification of Directors) Amendment Rules, 2018.
  • They shall come into force on the date of their publication in the official Gazette. The extract of notification can be referred in the following link. http://www.mca.gov.in/Ministry/pdf/AppointmentQualificaonDirectoramendmentrules2018_25012018.pdf

 

Amendment to Companies (Incorporation) Rules, 2014,

In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Incorporation) Rules, 2014, namely: –

  • These rules may be called the Companies (Incorporation) Amendment Rules, 2018.
  • They shall come into force from the 26th day of January, 2018.

 

The extract of notification can be referred in the following link.

http://www.mca.gov.in/Ministry/pdf/CompaniesIncorporaonAmendmentRules2018_25012018.pdf

 

Amendment to The Companies Registration (Offices and Fees) Rules, 2014,

  • These rules may be called the companies (Registration offices and Fees) Amendment Rules, 2018
  • They shall come into force from the 26th January, 2017 the extract of notification can be referred in the following link.

http://www.mca.gov.in/Ministry/pdf/CompaniesRegnofficeandfeesAmendmentRules2018_25012018.pdf

 

Appointment date of Section 4(1)

In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 20l7 (1 of 2018), the Central Government hereby appoints the 26t January, 20L8 as the date on which the provisions of section 1 and section 4 of the said Act shall come into force.

http://www.mca.gov.in/Ministry/pdf/NotificationCompaniesAct_23012018.pdf

Key Highlights from Budget 2018:

 

10% LTCG tax introduced, No changes in personal income tax rates

Fiscal Situation
* Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal

* GST revenue will be received only for 11 months, that will have an effect on balance sheets

* Rs 21.57 lakh crores transferred as net GST to states as against projection of Rs 21.47 lakh crores
Tax

* 85.51 lakh new tax payers filed income tax returns in FY17

 

* NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET 

* Growth in direct taxes (till Jan 15) is 18.7 %

* 100% tax deduction is allowed to co-operative societies

* Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17

* Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices

* Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D  ..
* Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh

* Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers

* Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration

 

* Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees

* Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos

* Rs 19,000 cr revenue loss on direct tax in last fiscal

* LONG TERM CAPITAL GAINS EXCEEDING RS 1 L AKH WILL BE TAXED AT 10% WITHOUT INDEXING

* Short term capital tax remains at 15%

* A tax on distributed income at 10%

* Education cess increased to 4 pc from 3 pc to collect additional Rs 11,000 cr

 

Imports and Exports 
* Customs Duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to ‘Make in India’

* Social welfare surcharge of 10% on imported goods.

* Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs

 

Agriculture

* The government’s emphasis will be on generating higher incomes for farmers, by helping them produce more with lesser cost, and in turn, earn higher income for their produce.

* Jaitley stressed on the fact that India’s agricultural production is at a record high level today. 275 million tonne foodgrains and 300 million tonne fruits and vegetable have been produced in the country.

* The FM said the government wants farmers to earn 1.5 times the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price. Jaitley said the Centre will work with states to ensure that all farmer get a fair price.

* Agricultural market and infra fund of Rs 2000 crore fund will be set up to strengthen the market connectivity.

* A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote agricultural products.

* Extend the facility of Kisan credit card to fisheries and for animal husbandry

* Rs 10,000 crore set aside for Fisheries and Aquaculture Development Fund

* Rs 10,000 crore set aside for animal husbandry infra fund

* Propose to launch a restructured bamboo mission with a fund of Rs 1200 crore . “Bamboo is green gold,” Jaitley said.

* Agricultural credit target increased from Rs 8.5 lakh crore to Rs 11 lakh core

* Special scheme to manage crop reduce in Haryana, Punjab and Delhi to reduce pollution

 

Rural Economy
* 8 crore poor women will get new LPG connections.

* PM Saubhagya Yojana: 4 crore poor people will get power connection.

* The government will spend Rs 16,000 crore on this scheme.

* Govt plans to construct 2 crore toilets in next fiscal year under Swach Bharat Mission

* Government target house for all by 2022. 51 lakh houses have been constructed affordable houses in rural and further 50 lakh houses in urban areas.

 

* 1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas

* National livelihood scheme gets Rs 5,750 crore .

* In 2018-19, ministries will be able to spend Rs 14.34 lakh crores for creation of livelihood in rural areas.

* Govt gives Rs 9,975 crore for social security schemes for the next fiscal year.

 

Education 

* Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education: FM Jaitley

* Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector. Promoting learning based outcomes and research.

* By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas

* Aims to move from black board to digital board schools by 2022.

* PM reasearch fellows: Govt will identify 1000 Btech students each years and provide them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week at that time.

 

Health
* Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home. Rs 1,200 crore to be allocated for this programme

* Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. World’s largest government-funded healthcare programme.

* Universal health coverage will be expanded after seeing the performance of the scheme

* Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment.

* Jaitley announces setting up of one medical college for every three parliamentary constituencies, with 24 New government medical colleges also being envisioned. Government also will work on upgrading hospitals to medical colleges

 

Social Security
* PM Jivan Bhma Yojana has benefited 5.22 crore families

* Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance and pension schemes

* 1.26 cr accounts opened under Sukanya Samriddhi Scheme

* Social inclusion schemes for Scheduled Castes – Rs 52,719 crore

* Social inclusion schemes for Scheduled Tribes Rs 39,139 crore

 

MSME 
* Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas

* Rs 3 lakh crore target has been set for the Mudra Yojana

* Rs 4.6 lakh cr sanctioned under MUDRA Scheme

Employee-centric schemes 
* Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years

* Women contribution to EPF reduced to 8% for first 3 years

 

Infrastructure
* India needs investment of Rs 50 lakh crore in the infrastructure sector

* Construction of new tunnel in Sera Pass to promote tourism

* Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore

* 10 prominent tourist sites will be made iconic tourist destinations, with an amalgamation of private funding, marketing and branding.

 

* Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh crore

* Govt to introduce pay-as-you-use system for toll payments

Railways

* Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year

* Eliminate unmanned railway crossing

* All stations with footfall of greater than 25,000 will have escalators.

* More stations and trains will progressively be built with WiFi and CCTV camera

* Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years

* Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bengaluru metro

* 150 km of additional suburban railway networks to be set up in Bengaluru at the cost of Rs 17,000 cr.

 

Aviation

* Airport Authority of India (AAI) has 124 airports. Propose to increase the number by at least 5 times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the initiative

* UDAN Scheme to connect 64 unconnected airports across the country

Markets 
* Govt to take additional measures to strengthen environment for venture capitalists and angel investors.

* SEBI to consider mandating large corporations to meet 1/4th of their debt needs

* SEBI to mull asking large cos to meet 25% debt from bond market

* RBI norms to nudge companies to access bond market for funds

Technology

* Allocation to Digital India scheme doubled to Rs 3073 cr

* 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr.

* Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender

* Government will explore the usage of Blockchain technology.

Companies
 

* AADHAAR FOR CORPORATES? Govt will evolve a scheme to assign a Unique ID for cos

* Disinvestment target of Rs 80,000 crore for FY19

* National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed

* Govt revises divestment target for the current fiscal to Rs 1 lakh crore for FY 18.
Banking 
* Recapitalisation will pave the way for public banks to lend an additional Rs 5 lakh crore

Industries

* Rs 7,148 cr allocated for textile sector

Miscellaneous
 
* Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors

* Emoluments for Parliamentrians: Law for increase in pay based on index to inflation

* Govt earmarks Rs 150 cr to commemorate 150 years of birth of Mahatma Gandhi
 

1
General Budget
2018-19
“15”
Pib.nic.in
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
HIGHLIGHTS OF BUDGET 2018-19
New Delhi, 01th February, 2018
12 Magha, 1939
 Finance Minister Shri Arun Jaitley presents general Budget 2018-19 in Parliament.
 Budget guided by mission to strengthen agriculture, rural development, health, education,
employment, MSME and infrastructure sectors
 Government says, a series of structural reforms will propel India among the fastest
growing economies of the world. Country firmly on course to achieve over 8 % growth as
manufacturing, services and exports back on good growth path.
 MSP for all unannounced kharif crops will be one and half times of their production cost
like majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19
from 8.5 lakh crore in 2014-15.
 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to
protect the interests of 86% small and marginal farmers.
 “Operation Greens” launched to address price fluctuations in potato, tomato and onion
for benefit of farmers and consumers.
 Two New Funds of Rs10,000 crore announced for Fisheries and Animal Husbandary
sectors; Re-structured National Bamboo Mission gets Rs.1290 crore.
 Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500
crore last year.
 Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to lower and middle
class in providing free LPG connections, electricity and toilets.
 Outlay on health, education and social protection will be 1.38 lakh crore. Tribal students
to get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs
gets a boost.
 World‟s largest Health Protection Scheme covering over 10 crore poor and vulnerable
families launched with a family limit upto 5 lakh rupees for secondary and tertiary
treatment.
 Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.
2
 Rs. 5.97 lakh crore allocation for infrastructure
 Ten prominent sites to be developed as Iconic tourist destinations
 NITI Aayog to initiate a national programme on Artificial Intelligence(AI)
 Centres of excellence to be set up on robotics, AI, Internet of things etc
 Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore
3
 Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class
 100 percent deduction proposed to companies registered as Farmer Producer Companies
with an annual turnover upto Rs. 100 crore on profit derived from such activities, for five
years from 2018-19.
 Deduction of 30 percent on emoluments paid to new employees Under Section 80-JJAA
to be relaxed to 150 days for footwear and leather industry, to create more employment.
 No adjustment in respect of transactions in immovable property where Circle Rate value
does not exceed 5 percent of consideration.
 Proposal to extend reduced rate of 25 percent currently available for companies with
turnover of less than 50 crore (in Financial Year 2015-16), to companies reporting
turnover up to Rs. 250 crore in Financial Year 2016-17, to benefit micro, small and
medium enterprises.
 Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance
and reimbursement of miscellaneous medical expenses. 2.5 crore salaried employees and
pensioners to benefit.
 Relief to Senior Citizens proposed:-
 Exemption of interest income on deposits with banks and post offices to be
increased from Rs. 10,000 to Rs. 50,000.
 TDS not required to be deducted under section 194A. Benefit also available for
interest from all fixed deposit schemes and recurring deposit schemes.
 Hike in deduction limit for health insurance premium and/ or medical expenditure
from Rs. 30,000 to Rs. 50,000 under section 80D.
 Increase in deduction limit for medical expenditure for certain critical illness from
Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior
citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.
 Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020.
Current investment limit proposed to be increased to Rs. 15 lakh from the
existing limit of Rs. 7.5 lakh per senior citizen.
4
 More concessions for International Financial Services Centre (IFSC), to promote trade in
stock exchanges located in IFSC.
 To control cash economy, payments exceeding Rs. 10,000 in cash made by trusts and
institutions to be disallowed and would be subject to tax.
 Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10 percent, without
allowing any indexation benefit. However, all gains up to 31st January, 2018 will be
grandfathered.
 Proposal to introduce tax on distributed income by equity oriented mutual funds at the
rate of 10 percent.
 Proposal to increase cess on personal income tax and corporation tax to 4 percent from
present 3 percent.
 Proposal to roll out E-assessment across the country to almost eliminate person to person
contact leading to greater efficiency and transparency in direct tax collection.
 Proposed changes in customs duty to promote creation of more jobs in the country and
also to incentivise domestic value addition and Make in India in sectors such as food
processing, electronics, auto components, footwear and furniture.
****
DS/OK/RM/NW/RV/SNC
5
General Budget
2018-19
“15”
Pib.nic.in
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
**
SUMMARY OF BUDGET 2018-19
New Delhi, 01th February, 2018
12 Magha, 1939
Government says that it is firmly on course to achieve high growth of 8% plus as
manufacturing, services and exports are back on good growth path. While GDP growth at 6.3%
in the second quarter of 2017-18 signalled turnaround of the economy, growth in the second half
is likely to remain between 7.2% to 7.5%. The Union Minister for Finance and Corporate
Affairs Shri Arun Jaitley while presenting the General Budget 2018-19 in Parliament today said
that Indian society, polity and economy had shown remarkable resilience in adjusting with the
structural reforms. IMF, in its latest Update, has forecast that India will grow at 7.4% next year
in the backdrop of services resuming high growth rates of 8% plus, exports expected to grow at
15% in 2017-18 and manufacturing back on good growth path.
Reiterating the pledge given to the people of India four years ago to give this nation an
honest, clean and transparent Government and to build a strong, confident and a New India, Shri
Jaitley said, the Government led by Prime Minister, Shri Narendra Modi, has successfully
implemented a series of fundamental structural reforms to propel India among the fastest
growing economies of the world.
6
The Finance Minister said that Government has taken up programmes to direct the
benefits of structural changes and good growth to reach farmers, poor and other vulnerable
sections of our society and to uplift the under-developed regions. He said, this year‟s Budget will
consolidate these gains and particularly focus on strengthening agriculture and rural economy,
provision of good health care to economically less privileged, taking care of senior citizens,
infrastructure creation and working with the States to provide more resources for improving the
quality of education in the country. He said, the Government has ensured that benefits reach
eligible beneficiaries and are delivered to them directly and said that Direct Benefit Transfer
mechanism of India is the biggest such exercise in the world and is a global success story.
Agriculture and Rural Economy
Referring to the Government‟s commitment to the welfare of farmers and doubling
farmers‟ income by 2022, the Finance Minister announced a slew of new schemes and measures.
He said ,that government has decided to keep MSP for all unannounced kharif crops atleast one
and half times of their production cost after declaring the same for the majority of rabi cops. He
said,the volume of institutional credit for agriculture sector from year-to-year increased from
Rs.8.5 lakh crore in 2014-15 to Rs.10 lakh crore in 2017-18 and he proposed to raise this to
Rs.11 lakh crore for the year 2018-19. After the establishment of Dairy Infrastructure Fund, Shri
Jaitley announced setting up a Fisheries and Aqua culture Infrastructure Development Fund
(FAIDF) for fisheries sector and an Animal Husbandry Infrastructure Development Fund
(AHIDF) for financing infrastructure requirement of animal husbandry sector with a total corpus
of Rs.10,000 crore for the two new funds. On the lines of „„Operation Flood‟‟ a new Scheme
„„Operation Greens‟‟ was announced with an outlay of Rs 500 Crore to address the challenge of
price volatility of perishable commodities like tomato, onion and potato with the satisfaction of
both the farmers and consumers. He also announced to develop and upgrade existing 22,000
rural haats into Gramin Agricultural Markets (GrAMs) to take care of the interests of more than
86% small and marginal farmers. These GrAMs, electronically linked to e-NAM and exempted
from regulations of APMCs, will provide farmers facility to make direct sale to consumers and
bulk purchasers. Moreover, an Agri-Market Infrastructure Fund with a corpus of Rs.2000 crore
will be setup for developing and upgrading agricultural marketing infrastructure in the 22000
Grameen Agricultural Markets (GrAMs) and 585APMCs. He said, so far 470 APMCs have been
connected to e-NAM network and rest will be connected by March, 2018. Shri Jaitley announced
Rs 200 crore for organized cultivation of highly specialized medicinal and aromatic plants and
said that the organic farming by Farmer Producer Organizations (FPOs) and Village Producers‟
Organizations (VPOs) in large clusters, preferably of 1000 hectares each will be encouraged.
7
Similarly, allocation of Ministry of Food Processing has been doubled from Rs.715 crore in
2017-18 to Rs.1400 crore in 2018-19. Terming Bamboo as „Green Gold‟, the Finance Minister
announced a Re-structured National Bamboo Mission with an outlay of Rs.1290 crore to
promote bamboo sector in a holistic manner. Under Prime Minister Krishi Sinchai Yojna-Har
Khet ko Pani, 96 deprived irrigation districts will be taken up with an allocation of Rs 2600
crore. The Centre will work with the state governments to facilitate farmers for installing solar
water pumps to irrigate their fields. He also proposed to extend the facility of Kisan Credit Cards
to fisheries and animal husbandry farmers to help them meet their working capital needs. Shri
Jaitley said India‟s agri-exports potential is as high as US $100 billion against current exports of
US $30 billion and to realize this potential, export of agri-commodities will be liberalized. He
also proposed to set up state-of-the-art testing facilities in all the forty two Mega Food Parks. He
also announced a special Scheme to support the efforts of the governments of Haryana, Punjab,
Uttar Pradesh and the NCT of Delhi to address air pollution in the Delhi-NCR region by
subsidizing machinery required for in-situ management of crop residue.
On the loans to Self Help Groups of women, the Finance Minister said it increased to
about Rupees 42,500 crore in 2016-17, growing 37% over previous year and expressed
confidence that loans to SHGs will increase to Rs.75,000 crore by March, 2019. He also
8
substantially increased allocation of National Rural Livelihood Mission to Rs 5750 crore in
2018-19.
Referring to the measures taken for the benefit of lower and middle class, the Finance
Minister said, under Ujjwala Scheme distribution of free LPG connections will be given to 8
crore poor women instead of the previous target of 5 crore women. Under Saubahagya Yojana, 4
crore poor households are being provided with electricity connection with an outlay of Rs.16,000
crore. To fulfil target of housing for All by 2022 ,more than one crore houses will be built by
2019 in rural areas, besides already constructed 6 crore toilets under Swachh Bharat Mission.
Shri Jaitley stressed that the focus of the Government next year will be on providing
maximum livelihood opportunities in the rural areas by spending more on livelihood, agriculture
and allied activities and construction of rural infrastructure. He said, in the year 2018-19, for
creation of livelihood and infrastructure in rural areas, total amount to be spent by the Ministries
will be Rs.14.34 lakh crore, including extra-budgetary and non-budgetary resources of Rs.11.98
lakh crore. Apart from employment due to farming activities and self employment, this
expenditure will create employment of 321 crore person days, 3.17 lakh kilometers of rural
roads, 51 lakh new rural houses, 1.88 crore toilets, and provide 1.75 crore new household electric
connections besides boosting agricultural growth.
Education, Health and Social Protection
The Finance Minister said that estimated budgetary expenditure on health, education and
social protection for 2018-19 is Rs.1.38 lakh crore against estimated expenditure of Rs.1.22 lakh
crore in 2017-18 .
9
On education front, Shri Jaitley announced setting up of Ekalavya Model Residential
School on par with Navodaya Vidyalayas to provide the best quality education to the tribal
children in their own environment by 2022 in every block with more than 50% ST population
and at least 20,000 tribal persons with special facilities for preserving local art and culture
besides providing training in sports and skill development. To step up investments in research
and related infrastructure in premier educational institutions, including health institutions, a
major initiative named „„Revitalising Infrastructure and Systems in Education (RISE) by 2022‟‟
with a total investment of Rs.1,00,000 crore in next four years was announced . He said that a
survey of more than 20 lakh children has been conducted to assess the status on the ground,
which will help in devising a district-wise strategy for improving quality of education. To
improve the quality of teachers an integrated B.Ed. programme for teachers will be initiated. Shri
Jaitley said, the Government would launch the „„Prime Minister‟s Research Fellows (PMRF)‟‟
Scheme this year. Under this, 1,000 best B.Tech students will be identified each year from
premier institutions and provide them facilities to do Ph.D in IITs and IISc, with a handsome
fellowship. Allocation on National Social Assistance Programme this year has been kept at Rs.
9975 crore.
The Finance Minister announced the world‟s largest government funded health care
programme titled National Health Protection Scheme to cover over 10 crore poor and vulnerable
families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family
per year for secondary and tertiary care hospitalization. He also committed Rs 1200 crore for
the National Health Policy, 2017, which with 1.5 lakh Health and Wellness Centres will bring
health care system closer to the homes of people. The Government also decided to allocate
additional Rs.600 crore to provide nutritional support to all TB patients at the rate of Rs.500 per
10
month for the duration of their treatment. Shri Jaitley said, the government will be setting up 24
new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the
country.
On cleaning the Ganga, the Finance Minister said, a total of 187 projects have been
sanctioned under the Namami Gange programme for infrastructure development, river surface
cleaning, rural sanitation and other interventions at a cost of Rs.16,713 crore. 47 projects have
been completed and remaining projects are at various stages of execution. All 4465 Ganga
Grams – villages on the bank of river – have been declared open defecation free. He said, the
government has identified 115 aspirational districts taking various indices of development in
consideration for making them model districts of development.
Medium, Small and Micro Enterprises (MSMEs) and Employment
The Budget has given a big thrust to Medium, Small and Micro Enterprises (MSMEs) to
boost employment and economic growth. A sum of Rs. 3794 crore has been provided for giving
credit support, capital and interest subsidy and for innovations. MUDRA Yojana launched in
April, 2015 has led to sanction of Rs.4.6 lakh crore in credit from 10.38 crore MUDRA loans.
76% of loan accounts are of women and more than 50% belong to SCs, STs and OBCs. It is
11
proposed to set a target of Rs.3 lakh crore for lending under MUDRA for 2018-19 after having
successfully exceeded the targets in all previous years.
Employment Generation
Reiterating that creating job opportunities is at the core of Government policies, Finance
Minister cited an independent study as showing that 70 lakh formal jobs will be created this year.
To carry forward the momentum created by the measures taken during the last 3 years to boost
employment generation, Shri Jaitley announced that the Government will contribute 12% of the
wages of the new employees in the EPF for all the sectors for next three years. He proposed to
make amendments in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to
reduce women employees’ contribution to 8% for first three years of their employment against
existing rate of 12% or 10% with no change in employers’ contribution.
The Budget proposed an outlay of Rs.7148 crore for the textile sector in 2018-19 as
against Rs.6,000 Crore in 2016.
12
Infrastructure and Financial Sector Development
Emphasising that infrastructure is the growth driver of economy, the Finance Minister
estimated that investment in excess of Rs.50 lakh crore is needed to increase growth of GDP and
connect the nation with a network of roads, airports, railways, ports and inland waterways. He
announced increase of budgetary allocation on infrastructure for 2018-19 to Rs.5.97 lakh crore
against estimated expenditure of Rs.4.94 lakh crore in 2017-18.
The Government has made an all-time high allocation to rail and road sectors and is
committed to further enhance public investment. The Prime Minister personally reviews the
targets and achievements in infrastructure sectors on a regular basis. Using online monitoring
system of PRAGATI alone, projects worth 9.46 lakh crore have been facilitated and fast tracked.
To further boost tourism, the Budget proposes to develop ten prominent tourist sites into
Iconic Tourism destinations by following a holistic approach involving infrastructure and skill
development, development of technology, attracting private investment, branding and marketing.
Under the Bharatmala Pariyojana, about 35000 kms road construction in Phase-I at an
estimated cost of Rs.5,35,000 crore has been approved.
Railways
Railways Capital Expenditure for the year 2018-19 has been pegged at Rs.1,48,528 crore.
A large part of the Capex is devoted to capacity creation. 4000 kilometers of electrified railway
network is slated for commissioning during 2017-18. Work on Eastern and Western dedicated
Freight Corridors is in full swing. Adequate number of rolling stock – 12000 wagons, 5160
coaches and approximately 700 locomotives are being procured during 2018-19. Over 3600 kms
of track renewal is targeted during the current fiscal. Redevelopment of 600 major railway
stations is being taken up.
13
Mumbai‟s local train network will have 90 kilometers of double line tracks at a cost of
over Rs.11,000 crore. 150 kilometers of additional suburban network is being planned at a cost
of over Rs.40,000 crore, including elevated corridors on some sections. A suburban network of
approximately 160 kilometers at an estimated cost of Rs.17,000 crore is being planned to cater to
the growth of the Bengaluru metropolis.
Air Transport
The Budget proposes to expand the airport capacity more than five times to handle a
billion trips a year under a new initiative – NABH Nirman. Under the Regional connectivity
scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the Government last year, 56 unserved
airports and 31 unserved helipads would be connected.
Finance
To encourage raising funds from bond market, the Finance Minister urged regulators to
move from „AA‟ to „A‟ rating for investment eligibility. He said that the Government will
establish a unified authority for regulating all financial services in International Finance Service
Centre (IFSCs) in India.
14
Digital Economy
The Finance Minister said that NITI Aayog will initiate a national program to direct
efforts in artificial intelligence.
Department of Science & Technology will launch a Mission on Cyber Physical Systems
to support establishment of centres of excellence for research, training and skilling in robotics,
artificial intelligence, digital manufacturing, big data analysis, quantum communication and
internet of things. The Budget doubled the allocation on Digital India programme to Rs 3073
crore in 2018-19.

15
To further Broadband access in villages, the Government proposes to set up five lakh wifi
hotspots to provide net connectivity to five crore rural citizens. The Finance Minister allocated
Rs. 10000 crore in 2018-19 for creation and augmentation of Telecom infrastructure.
Defence
Recognizing the sacrifices made by the Armed Forces in meeting the security challenges,
the Finance Minister proposed development of two defence industrial production corridors.
Shi Jaitley announced that a scheme will be evolved to assign every individual enterprise
in India a unique ID, on the lines of Aadhar.
Disinvestment
The Finance Minister announced that 2017-18 disinvestment target of Rs.72,500 crore
has been exceeded and expected receipts of Rs.1,00,000 crore. He set disinvestment target of
Rs.80,000 crore for 2018-19.
16
Three Public Sector Insurance companies- National Insurance Co. Ltd., United India
Assurance Co. Ltd., and Oriental India insurance Co. Ltd., will be merged into a single insurance
entity.
The Finance Minister announced that a comprehensive Gold Policy will be formulated to
develop gold as an asset class. The Government will also establish a system of consumer
friendly and trade efficient system of regulated gold exchanges in the country. Gold
Monetization Scheme will be revamped to enable people to open a hassle-free Gold Deposit
Account.
The Budget proposes to revise emoluments to Rs.5 lakh for the President, Rs 4 lakhs for
the Vice President and Rs.3.5 lakh per month to Governor. These emoluments were last revised
in 2006.
With regard to the emoluments paid to the Members of Parliament, the Finance Minister
proposed necessary changes to refix the salary and allowances with effect from April 1, 2018.
He said the law will also provide for automatic revision of emoluments every five years indexed
to inflation and hoped that the Hon‟ble Members will welcome this initiative.
To celebrate the 150 Birth Anniversary of Mahatma Gandhi, Father of the Nation from
2
nd October 2019, the Budget set aside Rs.150 crore for the activities leading to the
commemoration programme.
Fiscal Management
The Budget Revised Estimates for expenditure in 2017-18 are Rs.21.57 lakh crore (net of
GST compensation transfers to the States) as against the Budget Estimates of Rs.21.47 lakh
crore.
17
Continuing Government‟s path of fiscal reduction and consolidation, the Finance
Minister projected a Fiscal Deficit of 3.3% of GDP for the year 2018-19. The Revised Fiscal
Deficit estimates for 2017-18 were put at Rs. 5.95 lakh crore at 3.5% of GDP. He also proposed
acceptance of key recommendations of the Fiscal Reform and Budget Management Committee
to bring down Central Government‟s Debt to GDP ratio to 40%.
18
Presenting his direct tax proposals, the Finance Minister said that attempts to reduce the
cash economy and increase the tax net have paid rich dividends. The growth rate of direct taxes
in financial years 2016-17 and 2017-18 have been significant, he said. The growth of direct taxes
in financial year 2016-17 was 12.6 percent, and for financial year 2017-18 (upto 15th January,
2018) is 18.7 percent. Therefore Shri Jaitley said buoyancy in personal income tax for financial
year 2016-17 and 2017-18 (RE) are 1.95 and 2.11 respectively. This the Finance Minister said,
indicates that additional revenue collected in the last two financial years from personal income
tax compared to average buoyancy for the pre 2016-17 period, amounts to a total of Rs. 90,000
crore, which is a result of a strong anti-evasion measures by the government.
19
The Finance Minister also said that there has been a huge increase in the number of
returns filed by tax payers. The number of Effective Tax Payers has increased from 6.47 crore at
the beginning of Financial year 2014-15 to 8.27 crore at the end of 2016-17.
Shri Jaitley has proposed 100 percent deduction to companies registered as Farmer
Producer Companies with an annual turnover upto Rs. 100 crore on profit derived from such
activities, for a period of five years from financial year 2018-19. This he said will promote post
20
harvest agriculture activities and also encourage “Operation Greens” announced earlier and
would give a boost to the Sampada Yojana.
In order to encourage creation of new employment the deduction of 30 percent Under
Section 80-JJAA with a further relaxation to 150 days in the case of the apparel industry, has
been proposed to be extended to the footwear and leather industry. The Finance Minister has also
proposed to rationalise the deduction of 30 percent by allowing the benefit for a new employee
employed for less than the minimum period during the first year, but continues to remain
employed for the minimum period in the subsequent year.
Turning to the real estate sector, the Finance Minister has proposed that no adjustment
shall be made in respect of transactions in immovable property, where the Circle Rate value does
not exceed 5 percent of the consideration. This would minimize hardship in real estate
transactions.
In fulfilment of the promise to reduce the corporate tax rate in a phased manner, Shri
Jaitley has proposed to extend the reduced rate of 25 percent currently available for companies
with turnover of less than 50 crore (in Financial Year 2015-16), also to companies reporting
turnover up to Rs. 250 crore in Financial Year 2016-17. This would benefit the entire class of
micro, small and medium enterprises, which account for almost 99 percent of companies filing
tax returns, he said. The estimated revenue forgone during Financial Year 2018-19 will be Rs.
7,000 crore. This lower corporate income tax rate would leave such companies with higher
investible surplus, which would create more jobs.
The Budget proposals also seek to provide relief to salaried tax payers by allowing a
Standard Deduction of Rs. 40,000 in place of the present exemption allowed for transport
allowance and reimbursement of miscellaneous medical expenses. However, transport allowance
at enhanced rate is proposed to be continued for differently abled persons. Further, it is also
proposed to continue medical reimbursement benefits in case of hospitalization etc. for all
employees. The proposed Standard Deduction will help middle class employees even further in
reducing their tax liabilities. It will also significantly benefit pensioners, who normally do not
enjoy any allowance for transport and medical expenses, Shri Jaitley said. 2.5 crore salaried
employees and pensioners would benefit from this proposal and the revenue cost would be
approximately Rs. 8,000 crore.
21
Relief to Senior Citizens has also been proposed. The proposals are :-
 Exemption of interest income on deposits with banks and post offices are
proposed to be increased from Rs. 10,000 to Rs. 50,000. TDS shall not be
required to be deducted under section 194A. Benefit will also be available for
interest from all fixed deposit schemes and recurring deposit schemes.
 Hike in deduction limit for health insurance premium and/ or medical expenditure
from Rs. 30,000 to Rs. 50,000 under section 80D.
 Increease in deduction limit for medical expenditure for certain critical illness
from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very
senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.
Concessions will give extra tax benefit of Rs. 4,000 crore to senior citizen. It is
also proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March,
2020. The current investment limit is also proposed to be increased to Rs. 15 lakh
from the existing limit of Rs. 7.5 lakh per senior citizen.
It is proposed to provide more concessions for International Financial Services Centre
(IFSC), in order to promote trade in stock exchanges located in IFSC. The concessions propose
transfer of derivatives and certain securities by non- residents from capital gains tax, and non
corporate tax payers operating in IFSC to be charged Alternate Minimum Tax (AMT) at
concessional rate of 9 percent at par with Minimum Alternate Tax (MAT) applicable for
corporates.
In a measure that proposes to control the cash economy, payments exceeding Rs. 10,000
in cash made by trusts and institutions shall be disallowed and would be subject to tax. In order
to improve TDS compliance by these entities, the Finance Minister has proposed to provide that
in case of non deduction of tax, 30 percent of the amount shall be disallowed and would be
taxed.
Turning to rationalization of Long Term Capital Gains (LTCG), the Finance Minister
noted buoyancy in the equity market, as a result of reforms and incentives given so far. The total
amount of exempted capital gains from listed shares and units is around Rs. 3,67,000 crore (as
per returns filed for A.Y. 2017-18). Shri Jaitley said that a major part of this gain has accrued to
corporates and LLPs. This has also created a bias against manufacturing, leading to more
22
business surpluses being invested in financial assets. Due to attractiveness on return on
investment on equity, even without tax exemption, there is a strong case for bringing Long Term
Capital Gains from listed equities in the tax net, the Finance Minister said. He has however only
proposed a modest change in the present regime, recognizing that a vibrant equity market is
essential for economic growth. Shri Jaitley has proposed to tax such Long Term Capital Gains
exceeding Rs. 1 lakh at the rate of 10 percent, without allowing any indexation benefit. However,
all gains up to 31st January, 2018 will be grandfathered. The Finance Minister has also proposed
to introduce a tax on distributed income by equity oriented mutual funds at the rate of 10 percent,
to provide a level field across growth oriented funds and dividend distributing funds. The
proposed change in Capital Gains Tax will bring marginal revenue gain of about Rs. 20,000
crore in the first year, in view of grandfathering.
In order to take care of the education and health care needs of Below Poverty Line (BPL)
and rural families, The Budget proposes to increase the cess on personal income tax and
corporation tax to 4 percent from the present 3 percent. The new cess will be called the “Health
and Education Cess” and is expected to lead to a collection of an estimated additional amount of
Rs. 11,000 crore.
The Finance Minister also announced a proposal to roll out E-assessment across the
country to almost eliminate person to person contact leading to greater efficiency and
transparency in direct tax collection. E-assessment had been introduced on a pilot basis in 2016
and extended to 102 cities in 2017.
On the indirect taxes side, this being the first budget after the roll out of the Goods and
Services Tax (GST), the budget proposals are mainly on the customs side. The Finance Minister
has proposed changes in customs duty to promote creation of more jobs in the country and also
to incentivise domestic value addition and Make in India in sectors such as food processing,
electronics, auto components, footwear and furniture. Therefore it is proposed to increase
customs duty on mobile phones from 15 percent to 20 percent, on some of their parts and
accessories to 15 percent and on certain parts of televisions to 15 percent.
Customs duty is proposed to be reduced on raw cashew from 5 percent to 2.5 percent, to
help the cashew processing industry.
23
It is also proposed to abolish the Education Cess and Secondary and Higher Education
Cess on imported goods. In its place it is proposed to impose a Social Welfare Surcharge at the
rate of 10 percent of the aggregate duties of Customs, on imported goods, to provide for social
welfare schemes of the government. However, goods which were so far exempt from Education
Cesses on imported goods, will however continue to be so. In addition, certain specified goods,
mentioned in Annexure 6 of the Budget speech, will attract the proposed Surcharge, at the rate of
3 percent of the aggregate duties of customs only.
With the roll of GST, the Budget also proposes to change the name of the Central Board
of Excise and Customs (CBEC) to the Central Board of Indirect Taxes and Customs (CBIC).
****
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24
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
******
BACKGROUND INFORMATION ON MAJOR INITIATIVES & ANNOUNCEMENTS
FOR RURAL DEVELOPMENT SECTOR IN THE GENERAL BUDGET 2018-19
New Delhi, February 01, 2018
12 Magha, 1939
The Department of Rural Development has been continuously trying to improve the quality of
lives of rural poor households. From Budget provision of Rs. 50,162 crore in 2012-13 the
allocation for DoRD went up to Rs. 109042.45 crores in 2017-18. Besides this, higher Finance
Commission grant and larger State share in PMGSY and PMAY (G) was also available for
programmes of DoRD during 2017-18. All together it amounts to almost three times the total
funds available in 2012-13. Besides increased financial provision, the Department of Rural
Development has undertaken far reaching governance reforms for promoting transparency, using
the Socio-Economic Caste Census- 2011 (SECC 2011), IT/DBT payment system, transactionbased
programme MISs and space technology for geo-tagging of assets.
The PMGSY set out to provide all weather road connectivity to 1,78,184 habitations of
500 population in plain areas and 250 population in hilly areas. As of March, 2014, 97838
habitations (55%) were connected. Today 1,30,947 habitations stand connected under PMGSY
and another 14,620 through State Governments‟ programmes bringing the total habitations
connected to 82%. In 2016-17, a total of 47,447 kms roads were constructed at a speed of 130
kms per day. Efforts are being made to take this to 51,000 kms at a speed of 140 kms per day in
2017-18. This will enable achievement of completed all weather road connectivity to all the
eligible habitations by March, 2019.
Realising the importance of good wide roads to agriculture market (mandis), we want to
consolidate the rural road network by providing for upgradation of existing selected rural roads
based on their economic potential and their role in facilitating the growth of rural market centres
and rural hubs. This will further strengthen Phase-II which is already under implementation.
1,10,000 kilometers of upgradation is proposed as PMGSY-III. To do so, annual funding support
of Rs. 19,000 crore will be maintained, from the Central Government upto 2022. Prime
Minister‟s dream of “New India 2022” requires connectivity and also consolidations of roads
that connect markets, to enable farmers to get the benefit of markets.
Realising the importance of improved road maintenance and GIS mapping of all roads,
for States/UTs to qualify for Phase-III, they will have to necessarily ensure a robust maintenance
policy and funding along with completion of GIS mapping of all roads. This will ensure
maintenance of PMGSY roads at high standards. 15% of all PMGSY roads are now being taken
up through use of innovative green technologies like use of waste plastic, geo-textiles, fly ash,
iron and copper slag and cold mix. This not only reduces cost of construction, but also promotes
use of local and „waste‟ materials, thereby reducing carbon footprint.
25
For diversifying livelihoods the Deendayal Antyodaya Yojna-National Rural Livelihood
Mission has successfully brought more than 4.5 crore women into the fold of SHGs. Through
capacity development and skill training, the Bank linkages for economic activities have
expanded considerably in the last few years. From Bank linkages of Rs. 23,953 crore in 2014-15
the current outstanding loans stands at nearly Rs. 60,000 crores. Women SHGs in Northern,
Eastern and North-Eastern States are also diversifying livelihoods like the SHGs in Southern
States did over the last few decades. This facilitates poor households coming out of poverty by
increasing productivity assets and incomes. Work with over 32 lakh women farmers is also going
on for sustainable agriculture moving towards development of 1000 organic clusters. DAYNRLM
and MGNREGS along with Ministry of Agriculture will provide support for developing
market infrastructure for these women SHGs, Producer Groups and Producer Companies.
MGNREGS has provided the role of social insurance in times of need. The resources for
wage employment have been effectively utilized over the last three years to improve livelihood
security of poor households and also to promote climate resilient agriculture through effective
water conservation, afforestation and asset development. Over 10 lakh farm ponds and 6.7 lakh
compost pits have already been completed during this period besides over 1.6 lakh Liquid
Resource Management soak pits and Solid Resource Management spread across many States.
MGNREGS resources have also been used convergently with the PMAY(G) to provide 90/95
days of work and Rs. 12,000 either through Swachch Bharat Mission or MGNREGS for
individual household latrines with the new homes of poor people. During the last three years
over 71.50 lakh houses have already been completed which include 17.83 lakh PMAY(G)
houses. Another 33 lakh PMAY(G) homes are expected to be completed by 31st March, 2018 as
they are already at an advanced stage. MGNREGS has been used as a livelihood resource and a
range of individual beneficiary schemes like farm ponds, irrigation wells, goat sheds, dairy
sheds, poultry sheds etc. has been constructed for poor households using these resources.
The DoRD hopes to continue this resolve to eliminate rural poverty in the new India of
2022 through concerted action for livelihood diversification and improved infrastructure. The
Department already started work on 5,000 Clusters spread over 50,000 Gram Panchayats in
partnership with the State Governments to simultaneously address all the dimensions of poverty
effectively. The DoRD develops skill for wage employment under DDUGKY and self
employment through Rural Self Employment Training Institutes (RSETI) for over 7 lakh poor
households every year. Efforts to improve skill and capacity development for poor households
significantly over the current level will be made using the Skill India initiatives more effectively
along with even better implementation of DDUGKY and RSETI programmes.
In the last Budget, announcement had been made regarding Mission Antyodaya bringing
one crore households in 50,000 Gram Panchayats out of poverty. The Department of Rural
Development has done a ranking of these Gram Panchayats, purposively selected by the State
Governments. The gaps on infrastructure, human development and economic parameters have
been identified and our Government in committed to bridge these gaps and make a difference in
the life of the poorest households.
26
Efforts to develop 300 Rurban clusters and nearly 1200 Saansad Adarsh Gram
Panchayats is also part of the Mission Antyodaya thrust. Over 8000 Mission Antyodaya Gram
Panchayats fall 115 aspirational districts. All efforts for their speedy development through
livelihood diversification will be made. Under the Mahila Kisan Sashaktikaran Pariyojana
(MKSP), work is going on with over 32 lakh women Self Help Group Members for sustainable
agriculture. For promoting Indian Agricultural Exports, developing geographical areas which are
certified as organic, in important, through its women Self Help Groups in Mission Antyodaya
clusters, will work towards developing at least 1000 cluster for sustainable agriculture through
convergence focused on water conservation, solid and liquid waste management linked to
manufacture of organic compost for use in organic farming, skill development, banking linkage,
livelihood infrastructure facilities etc.
*****
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27
GENERAL BUDGET
2018-19
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
*****
DOUBLING FARMERS‟ INCOME: GOVERNMENT KEEPS MSP OF ALL HITHERTO
UNANNOUNCED KHARIF CROPS AT LEAST AT ONE AND HALF TIMES OF
PRODUCTION COST
FINANCE MINISTER ANNOUNCES RAISING INSTITUTIONAL CREDIT FOR
AGRICULTURE SECTOR TO RS.11 LAKH CRORE FOR 2018-19 FROM RS.10 LAKH
CRORE IN 2017-18
RS. 500 CRORE „OPERATION GREENS‟ ANNOUNCED TO ADDRESS PRICE
VOLATILITY OF PERISHABLE COMMODITIES LIKE POTATO, TOMATO AND
ONION AND BENEFIT BOTH PRODUCERS AND CONSUMERS
RS.200 CRORE ALLOCATED TO SUPPORT ORGANIZED CULTIVATION OF
HIGHLY SPECIALIZED MEDICINAL AND AROMATIC PLANTS AND
ASSOCIATED INDUSTRY
22,000 RURAL HAATS TO BE DEVELOPED AND UPGRADED INTO GRAMIN
AGRICULTURAL MARKETS (GRAMS) FOR FARMERS TO DIRECTLY SELL TO
CONSUMERS AND BULK PURCHASERS
RS.2000 CRORE FUND TO BE SET UP FOR DEVELOPING AND UPGRADING
AGRICULTURAL MARKETING INFRASTRUCTURE IN THE 22000 GRAMS AND
585 APMCS
DOUBLING ALLOCATION FOR FOOD PROCESSING SECTOR TO RS.1400 CRORE,
GOVERNMENT TO PROMOTE ESTABLISHMENT OF SPECIALIZED AGROPROCESSING
FINANCIAL INSTITUTIONS
FACILITY OF KISAN CREDIT CARDS EXTENDED TO FISHERIES AND ANIMAL
HUSBANDRY FARMERS TO HELP THEM MEET THEIR WORKING CAPITAL
NEEDS; RS.10,000 CRORE FUNDS ANNOUNCED CUMULATIVELY FOR
INFRASTRUCTURE DEVELOPMENT IN THE TWO SECTORS
RS.1290 CRORE RE-STRUCTURED NATIONAL BAMBOO MISSION ANNOUNCED
TO PROMOTE BAMBOO SECTOR IN A HOLISTIC MANNER
28
SPECIAL SCHEME TO BE IMPLEMENTED TO SUPPORT HARYANA, PUNJAB,
UTTAR PRADESH AND THE DELHI TO ADDRESS AIR POLLUTION AND TO
SUBSIDIZE MACHINERY REQUIRED FOR IN-SITU MANAGEMENT OF CROP
RESIDUE
New Delhi, 1st February, 2018
12Magha, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, while announcing the
General Budget 2018-19 in Parliament today said that Prime Minister, Shri Narendra Modi gave
a clarion call to double farmers‟ income by 2022 when India celebrates its 75th year of
Independence. “Our emphasis is on generating higher incomes for farmers. We consider
agriculture as an enterprise and want to help farmers produce more from the same land parcel at
lesser cost and simultaneously realize higher prices for their produce”, the Minister added while
announcing a slew of new initiatives for the farm sector in Budget 2018-19.
Shri Jaitley was pleased to announce that the Government has decided to keep Minimum
Support Price (MSP) for all hitherto unannounced crops of Kharif at least at one and half times
of their production cost. “This historic decision would prove an important step towards doubling
the income of our farmers and NITI Ayog in consultation with Central and State Governments
will put in place a fool proof mechanism so that farmers will get adequate price for their
produce”, the Minister said.
As a primary measure, the Government announced raising institutional credit for agriculture
sector to Rs.11 lakh crore for the year 2018-19 from Rs.10 lakh crore in 2017-18. Taking
Government‟s vision ahead, the Finance Minister, in Budget 2018-19, announced the launching
of „Operation Greens‟ to address price volatility of perishable commodities like potatoes,
tomatoes and onions, at an outlay of Rs. 500 crore. „Operation Greens‟, on the lines of
„Operation Flood‟, shall promote Farmer Producers Organizations (FPOs), agri-logistics,
processing facilities and professional management in the sector. Also, Shri Jaitley announced
100% deduction in respect of profits to Farmer Producer Companies (FPCs), having
turnover up to Rs. 100 crore, for a period of 5 years from FY 2018-19, in order to encourage
professionalism in post harvest value addition in agriculture.
29
Further, Shri Jaitley informed that the Government has promoted organic farming in a big way.
Organic farming by Farmer Producer Organizations (FPOs) and Village Producers‟
Organizations (VPOs) in large clusters, preferably of 1000 hectares each, will be encouraged.
Women Self Help Groups (SHGs) will also be encouraged to take up organic agriculture in
clusters under National Rural Livelihood Programme. Also, a sum of Rs.200 crore have been
allocated to support organized cultivation of highly specialized medicinal and aromatic plants
and aid small and cottage industries that manufacture perfumes, essential oils and other
associated products, the Minister added.
Announcing the development and upgradation of existing 22,000 rural haats into Gramin
Agricultural Markets (GrAMs), the Finance Minister said that more than 86% of farmers in
India are small and marginal who are not always in a position to directly transact at APMCs and
other wholesale markets. In these GrAMs, physical infrastructure will be strengthened using
MGNREGA and other Government Schemes and would be electronically linked to e-NAM and
exempted from regulations of APMCs. This would provide farmers facility to make direct sale to
consumers and bulk purchasers, the Minister added.
30
Shri Jaitley said that in the last Budget, the Government had announced strengthening of e-NAM
and to expand coverage of e-NAM to 585 APMCs. Out of that, 470 APMCs have been
connected to e-NAM network and rest will be connected by March, 2018. Further, an AgriMarket
Infrastructure Fund with a corpus of Rs.2000 crore will be set up for developing and
upgrading agricultural marketing infrastructure in the 22000 Grameen Agricultural Markets
(GrAMs) and 585 APMCs, the Minister informed.
Announcing doubling of allocation for Ministry of Food Processing from Rs.715 crore in RE
2017-18 to Rs.1400 crore in BE 2018-19, Shri Jaitley said that the Prime Minister Krishi
Sampada Yojana is our flagship programme for boosting investment in food processing and the
sector is growing at an average rate of 8% per annum. With the increased allocation for the
sector, the Government will promote establishment of specialized agro-processing financial
institutions in this sector and to set up state-of-the-art testing facilities in all the forty two Mega
Food Parks, the Minister added.
Announcing a major step to help small and marginal farmers in fisheries and animal
husbandry sector to meet their working capital needs, the Finance Minister extended the facility
of Kisan Credit Cards (KCC) to the sector. This would give benefit of crop loan and interest
subvention, so far available to agriculture sector only under KCC, for rearing of cattle, buffalo,
31
goat, sheep poultry and fisheries. Further, the Finance Minister also announced setting up of a
Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector
and an Animal Husbandry Infrastructure Development Fund (AHIDF) for financing
infrastructure requirement of animal husbandry sector. Total Corpus of these two new Funds
would be Rs.10,000 crore.
Calling Bamboo as „Green Gold‟, Shri Jaitley announced the launch of the Rs.1290-crore Restructured
National Bamboo Mission, which is based on a cluster based approach to address
the complete bamboo value chain and promote bamboo sector in a holistic manner. With a focus
on linking bamboo growers with consumers; creation of facilities for collection, aggregation,
processing, marketing, MSMEs, skill building and brand building, this announcement would
contribute in generating additional income for farmers, employment opportunities for skilled and
unskilled youth especially in rural areas.
As a measure to tackle the challenge of air pollution in the Delhi-NCR region, Shri Jaitley said
that a special Scheme will be implemented to support the efforts of the governments of Haryana,
Punjab, Uttar Pradesh and the NCT of Delhi to address air pollution and to subsidize machinery
required for in-situ management of crop residue.
*****
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GENERAL BUDGET 2018-19
“15”
pib.nic.in
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
GOVERNMENT UNDERTAKES VARIOUS PROGRAMMES TO BENEFIT FARMERS,
POOR AND OTHER VULNERABLE SECTIONS
SERIES OF FUNDAMENTAL STRUCTURAL REFORMS ARE HELPING INDIAN
ECONOMY ACHIEVE STRONGER GROWTH IN THE MEDIUM AND LONG RUN
New Delhi, 01st February, 2018
12 Magha, 1939
The Union Finance Minister asserted that Shri Narendra Modi, Government had worked
sincerely and without weighing political costs. Presenting the General Budget 2018-19 in
Parliament here today, the Minister for Finance and Corporate Affairs Shri Arun Jaitely said that
the Government had taken up programmes to benefit farmers, poor and other vulnerable sections
and also to uplift the under-developed regions of the country.
Government is providing free LPG connections to the poor through UjjwalaYojana.
Under Saubhagya Yojna 4 crore households are being provided with electricity connections.
More than 800 medicines are being sold at lower price, through more than 3 thousand Jan
Aushadhi Centers. Cost of stents has been controlled. Special scheme for free dialysis of poor
have been initiated. Persons belonging to poor and middle class are also being provided a great
relief in interest rates on housing schemes. Efforts are being made to provide all government
services, whether bus or train tickets or individual certificates on line. These include passports
which may be delivered at doorstep in two or three days or Company registration in one day
time. The Finance Minister has said that all these facilities have benefited a large section of our
country. Certificate attestation is not mandatory; interviews for appointment in Group C and
Group D posts have been done away with. These measures have saved time and money of lakhs
of our youth. Our government by using modern technology is committed to provide a relief to
those who suffer because of rigid rules and regulations, he said.
33
The Finance Minister Shri Jaitley said that four years ago, the present Government
pledged to give an honest, clean and transparent Government. We promised a leadership capable
of taking difficult decisions to restore strong performance of Indian economy. We promised to
reduce poverty, expedite infrastructure creation and build a strong, confident and a New India,
the Finance Minister said.
He said the Government has successfully implemented a series of fundamental Structural
Reforms. The Indirect Tax system, with introduction of Goods and Services Tax (GST), has been
made simpler. Benefits to the poor have been targeted more effectively with use of digital
technology. The demonetization of high value currency has reduced the quantum of cash
currency in circulation. It has increased the taxation base and spurred greater digitization of the
economy. The Insolvency and Bankruptcy Code (IBC) has changed the lender-debtor
relationship. The recapitalized banks will now have greater ability to support growth. All these
structural reforms will help Indian economy achieve stronger growth in the medium and long
run.
The Finance Minister said that the result, India stands out among the fastest growing
economies of the world, IMF, in its latest Update, has forecast that India will grow at 7.4% next
year, he added. Shri Jaitley asserted that India is firmly on course to achieve a high growth of
8% plus after Indian society polity and economy have shown remarkable resilience in adjusting
to such structural reforms.
The Finance Minister said that India achieved an average growth of 7.5% in first three
years of our Government. Indian economy is now 2.5 trillion dollar economy – seventh largest
in the world. India is expected to become the fifth largest economy very soon. On Purchasing
Power Parity (PPP) basis, we are already the third largest economy, the Finance Minister added.
Shri Jaitley said that this year‟s Budget will consolidate these gains and particularly focus
on strengthening agriculture and rural economy, provisioning for good health care to
economically less privileged, taking care of senior citizens, infrastructure creation and working
with the States to provide more resources for improving the quality of education in the country.
Terming the Journey of Economic Reforms, during the past few years, as challenging,
Shri Jaitley said they have led to growth of foreign direct investments and also making it much
easier to do business in India. He said to further carry the business reforms for ease of doing
business deeper and in every State of India; the Government of India has identified 372 specific
business reform actions. All States have taken up these reforms and simplifications in a mission
mode constructively competing with each other. Evaluation of performance under this
Programme will now be based on user feedback.
34
Saying that the Prime Minister Shri Narendra Modi has always stressed importance of
good governance, the Finance Minister said that such a vision has inspired Government agencies
to carry out hundreds of reforms in policies, rules and procedures. He said Natural resources are
now being allocated in a transparent and honest manner and there is a premium on honesty. This
transformation is reflected in improvement of India‟s ranking by 42 places in last three years in
the World Bank‟s „Ease of Doing Business‟ with India breaking into top 100 for the first time.
The Finance Minister said that the Government is also ensuring that benefits of
Governmental programmes are delivered directly to eligible beneficiaries. Aadhar which
provided an identity to every Indian has eased delivery of so many public services to our people,
he said. Many services and benefits are being delivered to the people at their doorsteps or in
their accounts. It has reduced corruption and cost of delivery and has eliminated middlemen in
the process. Direct Benefit Transfer mechanism of India is the biggest such exercise in the world
and is a global success story. The Finance Minister pointed out that every enterprise, major or
small, also needs a unique ID. He said that the Government will evolve a Scheme to assign
every individual enterprise in India a unique ID.
***
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35
GENERAL BUDGET
2018-19
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
*****
Rs.14.34 LAKH CRORE TO BE SPENT IN 2018-19 FOR CREATION OF LIVELIHOOD
AND INFRASTRUCTURE IN RURAL AREAS
Rs. 2600 CRORE ALLOCATED UNDER PRIME MINISTER KRISHI SINCHAI YOJNA
TO PROVIDE ASSURED IRRIGATION IN 96 DEPRIVED IRRIGATION DISTRICTS
New Delhi, 1st February, 2018
12Magha, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, while announcing the
General Budget 2018-19 in Parliament today announced important measures to give a boost to
livelihoods in rural areas of the country. “As my proposals outlined indicate, focus of the
Government next year will be on providing maximum livelihood opportunities in the rural areas
by spending more on livelihood, agriculture and allied activities and construction of rural
infrastructure”, the Minister said.
Shri Jaitley informed that in 2018-19, for creation of livelihood and infrastructure in rural areas,
total amount to be spent by various Ministries will be Rs.14.34 lakh crore, including extrabudgetary
and non-budgetary resources of Rs.11.98 lakh crore. Apart from employment due to
farming activities and self employment, this expenditure will create employment of 321 crore
person days, 3.17 lakh kilometers of rural roads, 51 lakh new rural houses, 1.88 crore toilets, and
provide 1.75 crore new household electric connections besides boosting agricultural growth.
Further, the Government substantially increased the allocation of National Rural Livelihood
Mission to Rs. 5750 crore in 2018-19. Shri Jaitley said that loans to Self Help Groups (SHGs) of
women increased to about Rs. 42,500 crore in 2016-17, growing 37% over previous year. The
Government is confident that loans to SHGs will increase to Rs.75,000 crore by March, 2019,
the Minister added.
Strengthening the Ground water irrigation scheme under Prime Minister Krishi Sinchai Yojna –
Har Khet ko Pani – the Government allocated Rs 2600 crore for this purpose. This would
provide assured irrigation in 96 deprived irrigation districts where less than 30% of the land
holdings get that presently, the Minister said.
*****
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36
“15”
Pib.nic.in
Press Information Bureau
Government of India
*******
TAX INCENTIVE FOR PROMOTING POST-HARVEST ACTIVITIES OF
AGRICULTURE
New Delhi, 1st February, 2018
Magha 12, 1939
In order to encourage professionalism in post-harvest value addition in agriculture, the
Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley proposed to allow hundred
per cent deduction to companies registered as Farmer Producer Companies and having annual
turnover up to Rs.100 crores in respect of their profit derived from such activities for a period of
five years from financial year 2018-19. This was announced by the Finance Minister Shri Arun
Jaitley while presenting the General Budget 2018-19 in Parliament here today.
The Finance Minister mentioned that at present, hundred per cent deduction is allowed in
respect of profit of co-operative societies which provide assistance to its members engaged in
primary agricultural activities. Over the last few years, a number of Farmer Producer Companies
have been set-up along the lines of co-operative societies which also provide similar assistance to
their members. Thus, Shri Jaitley said, such tax incentive will encourage “Operation Greens”
mission announced earlier and it will give a boost to Sampada Yojana.
GENERAL BUDGET 2018-19
37
DSM/OK/RM/SBS/KMN
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“15”
pib.nic.in
GENERAL BUDGET 2018-19
PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
LAUNCH OF GOBAR-DHAN SCHEME ANNOUNCED TO IMPROVE LIVES OF
VILLAGERS
New Delhi, 01st February, 2018
12 Magha, 1939
In an effort to make the villages open defecation free and improving the lives of villagers, the
Finance Minister in his budget speech today announced the launch of Galvanizing Organic Bio-Agro
Resources Dhan (GOBAR-DHAN) . The Minister added that this will manage and convert cattle dung
and solid waste in farms to compost, bio-gas and bio-CNG.
The Finance Minister also announced that 187 projects have been sanctioned under Namami Gange
Programme for infrastructure development, reverse surface cleaning, rural sanitation and other
interventions at a cost of Rs.16, 713 crore. 47 projects have been completed and remaining projects are at
various stages of execution All 4465 Ganga Grams villages on the bank of river have been declared open
defecation free.
To achieve the vision of an inclusive society, the Government has identified 115 aspirational districts
taking various indices of development in consideration, aiming at improving the quality of life in these
districts by investing in social services like health, education, nutrition, skill up gradation, financial
inclusion and infrastructure like irrigation, rural electrification, potable drinking water and access to
toilets at an accelerated pace and in a time bound manner. These 115 districts are expected to become
model of development, the Finance Minister added.
*****
DSM/OK/RM/RDS/HK/sk
39
“15”
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
INFRASTRUCTURE ALLOCATION ENHANCED TO RS.5.97 LAKH CRORE:
TRANSPORT SECTOR GETS AN ALL TIME HIGH ALLOCATION
NABH NIRMAN INITIATIVE ANNOUNCED TO EXPAND AIRPORT CAPACITY
10 ICONIC TOURISM DESTINATIONS TO BE DEVELOPED
ALLOCATION FOR DIGITAL INDIA PROGRAM DOUBLED : MISSION ON CYBER
PHYSICAL SYSTEMS TO BE LAUNCHED
RS. 10000 CRORE PROVIDED FOR CREATION AND AUGMENTATION OF
TELECOM INFRASTRUCTURE.
ONLINE MONITORING SYSTEM PRAGATI HELPS FAST TRACK INFRA
PROJECTS WORTH RS 9.46 LAKH CRORE
New Delhi, 01st February, 2018
12 Magha, 1939
The Government has enhanced allocation for the Infrastructure Sector in the Union
Budget 2018-19, recognizing its role as the growth driver of the economy. The budgetary and
extra budgetary expenditure for the Sector has been increased from Rs.4.94 lakh crore in 2017-
18 to Rs.5.97 lakh crore in 2018-19. An all time high allocation of Rs 1,34,572 crore has been
made for the transport sector while the efforts to develop disaster resilient infrastructure is being
given a push with an allocation of Rs. 60 crore in 2018-19. This was announced by the Union
Finance Minister, Shri Arun Jaitley while presenting the General Budget 2018-19 in Parliament
here today.
In the Urban Infrastructure Sector, the Government proposes to develop ten prominent
tourist sites as Iconic Tourism destinations through holistic infrastructure and skill development.
In addition, tourist amenities will be upgraded at 100 Adarsh monuments of the Archaeological
Survey of India (ASI). The Finance Minister, Shri Arun Jaitley lauded the work being done
under the government‟s inter linked programs – Smart Cities Mission and the AMRUT. He
informed that 99 cities have been selected with an outlay of Rs. 2.04 lakh crore under the Smart
Cities Mission. Projects worth Rs. 2350 crore have been completed and works of Rs. 20,852
GENERAL BUDGET
2018-19
40
crore are under progress. The National Heritage City Development and Augmentation Yojana
(HRIDAY) has been taken-up to revitalize heritage cities.
Under AMRUT program, State level plans of Rs. 77,640 crore for 500 cities have been
approved. Water supply contracts for 494 projects worth Rs. 19,428 crore and sewerage work
contract for 272 projects costing Rs. 12, 429 crore has been awarded. 482 cities have started
Credit rating and 144 cities have got investment grade rating.
The Finance Minister announced that his Ministry will leverage the India Infrastructure
Finance Corporation Limited (IIFCL) to help finance infrastructure projects including investment
in education and health infrastructure.
In the Road sector, the recently approved Bharatmala Pariyojana aims to develop about
35,000 km of highways at a cost of Rs. 5,35,000 crore in Phase I. The National Highways
Authority of India (NHI) will consider organizing its road assets into Special Purpose Vehicles
and use innovative monetizing structures like Toll, Operate and Transfer (TOT) and
Infrastructure Investment Funds (InvITs) for raising funds.
In order to enhance connectivity in border areas, the Finance Minister announced that the
Government will take up construction of tunnel under Sela Pass. He also announced that for
promoting tourism and emergency medical care, the Government will make the necessary frame
work for encouraging investment in sea plane activities.
In the Civil Aviation Sector, the Budget 2018-19 announced a new initiative NABH
Nirman to expand airport capacity by more than five times to handle a billion trips in a year. The
expansion will be funded by leveraging the balance sheet of Airports Authority of India.
Domestic air passenger traffic has grown at 18% per annum and the regional connectivity
Scheme UDAN, will connect 56 unserved airports and 31 unserved helipads across the
country.Opertions have already started at 16 airports.
41
In the sector of Digital Infrastructure the General Budget 2018-19 announced a doubling
of allocation on Digital India Program to Rs.3073crore in 2018-19. Department of Science and
Technology will launch a Mission on Cyber Physical Systems to support establishment of
centers of excellence for research in training and skilling in robotics, artificial intelligence,
digital manufacturing, big data analysis and quantum communication.
Rs. 10000 crore have been provided in Budget 2018-19 for creation and augmentation of
telecom infrastructure. The Government proposes to set up 5 lakh wifi hot spots which will
provide broadband access to 5 crore rural citizens. The Finance Minister informed that the Phase
I of Bharatnet Project has already enabled broadband access to over 20 crore rural Indians.
Shri Jaitley also announced that NITI Aayog will initiate a national program to direct
efforts in the area of artificial intelligence. To harness the benefit of emerging new technologies,
the Department of Telecom will support establishment of an indigenous 5G Test Bed at IIT,
Chennai.
The Government will take all measures to eliminate the use of crypto-assets in financing
illegitimate activities. The Government will also explore the use of block chain technology for
ushering in digital economy.
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GOVERNMENT OF INDIA
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RAILWAY‟S CAPEX FOR THE YEAR 2018-19 PEGGED AT Rs.1,48,528 CRORE
FIRST MODERN TRAIN-SETS TO BE COMMISSIONED DURING 2018-19
600 MAJOR RAILWAY STATIONS TO BE REDEVELOPED
MUMBAI AND BENGALURU RAIL NETWORKS BEING EXPANDED
INSTITUTE IN VADODARA TO TRAIN MANPOWER FOR HIGH SPEED RAIL
PROJECTS.
New Delhi, 01st February, 2018
12 Magha, 1939
In keeping with the Government‟s focus on strengthening the Railways network in the country
the General Budget 2018-19 has enhanced the allocation for the Ministry. Presenting the Budget
in the Parliament here today, the Union Minister for Finance & Corporate Affairs, Shri Arun
Jaitley said that Railways‟ Capex for the year 2018-19 has been pegged at Rs.1,48,528 crore. A
large part of this will be devoted to capacity creation. 18,000 kilometers of doubling, third and
fourth line works and 5000 kilometers of gauge conversion would augment capacity and
transform almost the entire network into Broad Gauge. Shri Jaitley also said that 4000 kilometers
of railway network are to be commissioned for electrification during 2017-18.
The Finance Minister, Shri Jaitley announced that 12000 wagons, 5160 coaches and
approximately 700 locomotives are being procured during 2018-19, and the work on Eastern and
Western dedicated Freight Corridors is in full swing. A major programme has been initiated to
strengthen infrastructure at the Goods sheds and fast track commissioning of private sidings.
Shri Jaitley has assured that adequate funds will be available under Rashtriya Rail Sanraksha
Kosh. Over 3600 kms of track renewal is targeted during 2018-19. There will be increasing use
of technology like „„Fog Safe‟‟ and „„Train Protection and Warning System‟‟. 4267 unmanned
level crossings in the broad gauge network will be eliminated in the next two years.
GENERAL BUDGET
2018-19
43
Modern train-sets with the state-of-the-art amenities and features are being designed at Integrated
Coach Factory, Perambur. First such train-set will be commissioned during 2018-19.
Redevelopment of 600 major railway stations is being taken up by Indian Railway Station
Development Co. Ltd. All stations with more than 25000 footfalls will have escalators. All
railway stations and trains will be progressively provided with wi-fi. CCTVs will be provided at
all stations and on trains to enhance security of passengers.
The Finance Minister has informed that 90 kilometers of double line tracks are being added to
Mumbai‟s transport system at a cost of over Rs.11,000 crore. 150 kilometers of additional
suburban network is being planned at a cost of over Rs.40,000 crore, including elevated corridors
on some sections. In Bengaluru, a suburban network of approximately 160 kilometers at an
estimated cost of Rs.17,000 crore is being planned to cater to the growth of the metropolis.

Foundation for the Mumbai-Ahmedabad bullet train project, India‟s first high speed rail project
was laid on September 14, 2017. An Institute is coming up at Vadodara to train manpower
required for high speed rail projects.
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
MSMEs PROVIDED Rs. 3794 CRORE FOR CREDIT SUPPORT & INNOVATION
GOVERNMENT TAKES NEW INITIATIVES TO INCREASE EMPLOYMENT
OPPORTUNITY
STUDY SHOWS 70 LAKH FORMAL JOBS HAVE BEEN CREATED THIS YEAR,
SAYS FINANCE MINISTER
New Delhi, 01st February, 2018
12 Magha, 1939
Announcing that a provision of Rs. 3794 crore has been provided in the General Budget
2018-19 for the Medium, Small and Micro Enterprises (MSMEs),the Union Minister for Finance
and Corporate Affairs, Shri Arun Jaitley said that this has been done to provide credit support,
capital and interest subsidy and innovations to this Sector. Presenting the General Budget
2018-19 in Parliament here today, Shri Jaitley added that an outlay of Rs.7148 crore has been
provided for the Textile Sector.
Strongly emphasising that creation of job opportunities and facilitating generation of
employment has been at the core of policy-making of the Government over the last three years,
the Finance Minister mentioned that an independent study conducted recently has shown creation
of 70 lakh formal jobs this year. Shri Jaitley pointed out that the Government will contribute
12% of the wages of the new employees in the Employee Provident Fund (EPF) for all the
sectors for next three years. The Finance Minister also referred to the extension of the facility of
fixed term employment to all sectors. He underlined that the Government will soon announce
measures for effectively addressing non-performing assets and stressed accounts of MSMEs.
In an effort to reduce tax burden on MSMEs and to create large-scale employment,
Shri Jaitley also announced measures to extend the benefit of reduced rate of 25% to companies
who have reported turnover up to Rs.250 crore in the Financial Year 2016-17. “This will benefit
the entire class of micro, small and medium enterprises which accounts for almost 99% of
companies filing their tax returns,” the Finance Minister said. He expressed confidence that the
lower Corporate Income Tax rate for 99% will leave companies with higher investible surplus,
leading to creation of more jobs.
45
Shri Jaitley, the Finance Minister, laid emphasis on the effort to provide incentive to
employment of more women in the formal sector. He added that this will lead to higher takehome
salary. “Amendments have been proposed to reduce women employees’ contribution to
8% for first three years of their employment against existing rate of 12% or 10% with no change
in employers’ contribution in the Employees Provident Fund and Miscellaneous Provisions Act,
1952,” Shri Jaitley stated.
The Finance Minister announced that the Government is setting up a model aspirational
skill centre in every district of the country under Pradhan Mantri Kaushal Kendra Programme.
Shri Jaitley said that he proposed to onboard Public Sector Banks and corporates on Trade
Electronic Receivable Discounting System (TReDS) platform and link it to GSTN. “Online
loan sanctioning facility for MSMEs will be revamped for quick decision making by the banks,”
he said.
Shri Jaitley referred to the review of the refinancing policy and eligibility criteria set by
MUDRA for better refinancing of Non-Banking Finance Companies NBFCs. In this regard, he
proposed setting a target of Rs.3 lakh crore for lending under MUDRA for 2018-19, as the
targets had been exceeded in all previous years.
.
The Finance Minister also referred to a Group in the Finance Ministry that is examining
the policy and institutional development measures needed for creating right environment for
Fintech companies to grow. He also stated that additional measures will be taken to strengthen
the environment for Venture Capital Funds and for their growth and successful operation of
alternative investment funds in the country.
****
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Government of India
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99% MSMEs TO GAIN BY TAX INCENTIVES PROVIDED IN GENERAL BUDGET
2018-19
GOVERNMENT TO FOREGO RS 7,000 CRORES DUE TO THIS INCENTIVE
New Delhi, 1st February, 2018
Magha 12, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley has proposed a
reduced rate of 25% to companies that have reported turnover up to Rs 250 crores in financial
year 2016-17. This will benefit the entire class of Micro, Small and Medium Enterprises which
accounts for almost 99% of companies filing their tax returns. Accepting Rs 7,000 crores as the
estimated revenue forgone due to this measure during the financial year 2018-19, the Finance
Minister, while presenting the General Budget 2018-19 in Parliament here today, said, “This is
towards fulfilment of my promise to reduce corporate tax rate in a phased manner.” He further
added, “The lower corporate income tax rate for 99% of the companies will leave them with
higher investible surplus which in turn will create more jobs.”
The Finance Minister recalled that in the Union Budget 2017, he had announced the
reduction of corporate tax rate to 25% for companies whose turnover was less than Rs.50 crores
in financial year 2015-16. This had benefitted 96% of the total companies filing tax returns. The
Finance Minister also said that after this measure, out of about 7 lakh companies filing returns,
about 7,000 companies which file returns of income and whose turnover is above Rs.250 crores
will remain in 30% slab.
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GOVERNMENT OF INDIA
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A RECORD ONE LAKH CRORE RUPEES EXPECTED TO BE GENERATED
THROUGH DISINVESTMENT DURING THE PERIOD 2017-18
BANK RECAPITALIZATION PROGRAM WILL ENABLE PUBLIC SECTOR BANKS
TO LEND ADDITIONAL RUPEES 5 LAKH CRORE
New Delhi, 01st February, 2018
12 Magha, 1939
The Government has initiated efforts to generate funds as well as undertake banking
sector reforms. The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitely, while
presenting the General Budget 2018-19 in Parliament here today said that the Government has
initiated the process of strategic disinvestment in 24 CPSEs including strategic privatization of
Air India.
Highlighting the Government‟s effort to generate funds, the Finance Minister said that
the Exchange Traded Fund Bharat-22 which was introduced to raise Rs. 14,500 Crore, was oversubscribed
in all segments. Similarly, the 2017-18 Budget Estimates for disinvestment were
pegged at the highest ever level of Rs.72,500 Crore and the estimated receipts from the same are
expected to the tune of Rs.1,00,000 crore in 2017-18, far exceeding the target. The Finance
Minister has also set the disinvestment target of Rs.80,000 crore for 2018-19.
Making his Budget Speech, the Finance Minister said that bank recapitalization program
has been launched with bonds of Rs.80,000 crore being issued this year. This recapitalization
will pave the way for the Public Sector Banks to lend additional credit of Rs.5 lakh crore. It is
proposed to allow strong Regional Rural Banks to raise capital from the market to enable them to
increase their credit to rural economy.
National Housing Bank Act is being amended to transfer its equity from the Reserve
Bank of India (RBI) to the Government. Indian Post Offices Act, Provident Fund Act and
National Saving Certificate Act are being amalgamated and certain additional people friendly
measures are being introduced. To provide the Reserve Bank of India an instrument to manage
excess liquidity, Reserve Bank of India Act is being amended to institutionalize an
GENERAL BUDGET 2018-19
48
Uncollateralized Deposit Facility. Securities and Exchange Board of India Act, 1992, Securities
Contracts (Regulation) Act 1956, and Depositories Act 1996, are being amended to streamline
adjudication procedures and to provide for penalties for certain infractions.
*****
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GOVERNMENT TO MOVE AHEAD WITH REFORMS FOR BUILDING
INSTITUTIONS AND IMPROVING PUBLIC SERVICE DELIVERY
EVERY INDIVIDUAL ENTERPRISE TO BE ASSIGNED A UNIQUE ID
THREE PUBLIC SECTOR GENERAL INSURANCE COMPANIES TO BE MERGED
INTO ONE
New Delhi, 01st February, 2018
12 Magha, 1939
The Government has taken up several important reforms for building institutions and
improving public service delivery across the country over the last three and a half years. While
presenting the General Budget 2018-19 in the Parliament today, the Union Minister for Finance
and Corporate Affairs, Shri Arun Jaitely said while AADHAR has provided identity to every
Indian, every enterprise, big or small, also needs a unique ID. The Government will evolve a
scheme to assign every individual enterprise in India a unique ID, the Finance Minister
announced.
Further, capital of the Food Corporation of India will be restructured to enhance equity
and to raise long-term debt for meeting its standing working capital requirement. Budgeting of
Government of India‟s contribution in equity and debt of the metro ventures floated by the State
Governments will also be streamlined, the Finance Minister stated.
The Government has approved listing of 14 Central Public Sector Enterprises (CPSEs),
including two insurance companies, on the stock exchanges. Shri Jaitely said that the process of
acquisition of Hindustan Petroleum Corporation by the ONGC has been successfully completed.
Three public sector general insurance companies National Insurance Company Ltd., United India
Assurance Company Limited and Oriental India Insurance Company Limited will be merged into
a single insurance entity and will be subsequently listed.
GENERAL BUDGET 2018-19
50
The Finance Minister also announced that the Government will formulate a
comprehensive Gold Policy to develop gold as an asset class. The Government will also
establish a system of consumer friendly and trade efficient system of regulated gold exchanges in
the country. Gold Monetization Scheme will be revamped to enable people to open a hassle-free
Gold Deposit Account.
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GOVERNMENT OF INDIA
***
“EDUCATION WILL BE TREATED HOLISTICALLY FROM PRE-NURSERY TO
CLASS XII”, SAYS FINANCE MINISTER
RS. 1, 00, 000 CRORE INITIATIVE TO DRIVE RESEARCH AND INFRASTRUCTURE
OVER THE NEXT FOUR YEARS
New Delhi, 01st February, 2018
12 Magha, 1939
Expressing concern over the quality of education, Union Minister for Finance and
Corporate Affairs, Shri Arun Jaitley has said that education will be treated in a holistic manner
from pre-nursery to Class XII. Presenting the General Budget 2018-19 in Parliament here
today, the Finance Minister expressed the Government‟s resolve to increase the digital intensity
in education. “The Government proposes to gradually move away from „„black board‟‟ to
„„digital board,‟‟ he said. The Finance Minister underlined that a district-wise strategy for
improving the quality of education is also being prepared. Emphasising the need to step up
investment in research and related infrastructure in leading educational institutions, the Finance
Minister announced the proposal to launch a major initiative named “Revitalising Infrastructure
and Systems in Education (RISE)”. Shri Jaitley said that over the next four years, a total of Rs.
1, 00, 000 crore will be invested in the initiative.
Referring to higher education, Shri Jaitley announced the launch of „„Prime Minister‟s
Research Fellows (PMRF)‟‟ Scheme. He pointed out that 1,000 best B.Tech students will be
identified from premier institutions each year and facilities will be provided to them to undertake
Ph.D in IITs and IISc with an attractive fellowship. Acknowledging the critical nature of the
training of teachers during service, the Finance Minister also referred to the move to initiate an
integrated B.Ed. programme for teachers.
52
The Finance Minister pointed to the need for best quality education to the tribal children
in their own environment. “To realise this mission, it has been decided that by the year 2022,
every block with more than 50% ST population and at least 20,000 tribal persons, will have an
Ekalavya Model Residential School”, Shri Jaitley said. He emphasised that Ekalavya schools
will be treated at par with Navodaya Vidyalayas and will have special facilities for preserving
local art and culture, besides providing training in sports and skill development.
Referring to the initiative of setting up Institutes of Eminence, Shri Jaitley said that more
than 100 applications have been received. “We have also taken steps to set up a specialized
Railways University at Vadodara”, the Finance Minister said. He added that 18 new Schools of
Planning & Architecture (SPAs) will also be established in IITs and NITs as autonomous
schools.
Stressing the need to reach out to every household of old, widows, orphaned children,
divyaang and deprived as defined by the Socio-Economic Caste Census, the Finance Minister
enumerated the implementation of a comprehensive social security and protection programme.
He announced that a sum of Rs.9, 975 crore has been allocated for the National Social Assistance
Programme this year.
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
AYUSHMAN BHARAT FOR A NEW INDIA -2022, ANNOUNCED
TWO MAJOR INITIATIVES IN HEALTH SECTOR ANNOUNCED
RS. 1200 CRORE ALLOCATED FOR 1.5 LAKH HEALTH AND WELLNESS CENTRES
NATIONAL HEALTH PROTECTION SCHEME TO PROVIDE HOSPITALISATION
COVER TO OVER 10 CRORE POOR AND VULNERABLE FAMILIES
New Delhi, 01st February, 2018
12 Magha, 1939
The Government today announced two major initiatives in health sector , as part of Ayushman
Bharat programme. The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitely
while presenting the General Budget 2018-19 in Parliament here today said that this was aimed at
making path breaking interventions to address health holistically, in primary, secondary and tertiary care
systems, covering both prevention and health promotion.
The initiatives are as follows:-
(i) Health and Wellness Centre:- The National Health Policy, 2017 has envisioned Health and
Wellness Centres as the foundation of India‟s health system. Under this 1.5 lakh centres will
bring health care system closer to the homes of people. These centres will provide
comprehensive health care, including for non-communicable diseases and maternal and child
health services. These centres will also provide free essential drugs and diagnostic services. The
Budget has allocated Rs.1200 crore for this flagship programme. Contribution of private sector
through CSR and philanthropic institutions in adopting these centres is also envisaged.
(ii) National Health Protection Scheme:- The second flagship programme under Ayushman
Bharat is National Health Protection Scheme, which will cover over 10 crore poor and
vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees
54
per family per year for secondary and tertiary care hospitalization. This will be the world‟s
largest government funded health care programme. Adequate funds will be provided for smooth
implementation of this programme.
The Finance Minister further said, that these two health sector initiatives under Ayushman
Bharat Programme will build a New India 2022 and ensure enhanced productivity, well being
and avert wage loss and impoverishment. These Schemes will also generate lakhs of jobs,
particularly for women.
The Finance Minister said, that in order to further enhance accessibility of quality medical
education and health care, 24 new Government Medical Colleges and Hospitals will be set up, by
up-grading existing district hospitals in the country. This would ensure that there is at least 1
Medical College for every 3 Parliamentary Constituencies and at least 1 Government Medical
College in each State of the country.
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RELIEF TO SENIOR CITIZENS: EXEMPTION OF INTEREST INCOME ON
DEPOSITS INCREASED TO Rs 50,000
PRADHAN MANTRI VAYA VANDANA YOJANA EXTENDED UP TO MARCH 2020
EXISTED LIMIT ON INVESTMENT UNDER PMVVY ENHANCED TO Rs 15 LAKHS
New Delhi, 1st February, 2018
Magha 12, 1939
With the objective of providing a dignified life to senior citizens, the Union Minister for
Finance and Corporate Affairs, Shri Arun Jaitley, announced significant incentives for senior
citizens.
Presenting the General Budget 2018-19 in Parliament here today, the Finance Minister
said that the exemption of interest income on deposits with banks and post offices to be increased
from Rs. 10,000/- to Rs. 50,000/- and TDS shall not be required to be deducted on such income,
under section 194A. This benefit shall be available also for interest from all fixed deposits
schemes and recurring deposit schemes.
The Finance Minister also announced raising the limit of deduction for health insurance
premium and/ or medical expenditure from Rs. 30,000/- to Rs. 50,000/-, under section 80D. All
senior citizens will now be able to claim benefit of deduction up to Rs. 50,000/- per annum in
respect of any health insurance premium and/or any general medical expenditure incurred.
56
Further, the Finance Minister proposed raising the limit of deduction for medical
expenditure in respect of certain critical illness from Rs. 60,000/- in case of senior citizens and
from Rs. 80,000/- in case of very senior citizens, to Rs. 1 lakh in respect of all senior citizens,
under section 80DDB.
These concessions will give extra tax benefit of Rs. 4,000 crores to senior citizens.
In addition to tax concessions, the Finance Minister proposed to extend the Pradhan
Mantri Vaya Vandana Yojana up to March 2020 under which an assured return of 8% is given
by Life Insurance Corporation of India. The existing limit on investment of Rs. 7.5 lakh per
senior citizen under this scheme is also being enhanced to Rs. 15 lakh.
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RELIEF TO SALARIED TAXPAYERS: STANDARD DEDUCTION OF Rs 40,000
ALLOWED IN LIEU OF PRESENT EXEMPTIONS
2.5 CRORES SALARIED EMPLOYEES AND PENSIONERS TO BENEFIT
DIFFRENTLY-ABLED WILL CONTINUE TO GET TRANSPORT ALLOWANCE AT
ENHANCED RATE
New Delhi, 1st February, 2018
Magha 12, 1939
In order to provide relief to salaried taxpayer, the Union Minister for Finance and
Corporate Affairs, Shri Arun Jaitley, proposed to allow a standard deduction of Rs. 40,000/- in
lieu of the present exemption in respect of transport allowance and reimbursement of
miscellaneous medical expenses. However, the transport allowance at enhanced rate shall
continue to be available to differently-abled persons. Also, other medical reimbursement benefits
in case of hospitalisation etc., for all employees shall continue.
Presenting the General Budget 2018-19 in the Parliament here today, the Finance
Minister said, “Standard deduction shall significantly benefit the pensioners also, who normally
do not enjoy any allowance on account of transport and medical expenses. The revenue cost of
this decision is approximately Rs.8,000 crores. The total number of salaried employees and
pensioners who will benefit from this decision is around 2.5 crores.”
58
Shri Jaitley said, “The Government had made many positive changes in the personal
income-tax rate applicable to individuals in the last three years. Therefore, I do not propose to
make any further change in the structure of the income tax rates for individuals. There is a
general perception in the society that individual business persons have better income as
compared to salaried class.”
The Finance Minister further said, “Apart from reducing paper work and compliance, this
will help middle class employees even more in terms of reduction in their tax liability.”
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PRESS INFORMATION BUREAU
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***
ALLOCATION FOR SCs AND STs INCREASED
New Delhi, 01st February, 2018
12 Magha, 1939
Presenting the General Budget 2018-19 in Parliament here today, the Union Minister for
Finance and Corporate Affairs, Shri Arun Jaitely said that the total earmarked allocation for SCs
in 279 programmes has been increased from Rs.34,334 crore in 2016-17 to Rs.52,719 crore in
RE 2017-18. Likewise, for STs, earmarked allocation has been increased from Rs.21,811 crore
in 2016-17 to Rs.32,508 crore in RE 2017-18 in 305 programmes. The Finance Minister said
that earmarked allocation has been further increased to Rs.56,619 crore for SCs and Rs.39,135
crore for STs in BE 2018-19.
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
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MORE THAN 1.26 CRORE ACCOUNTS OPENED ACROSS THE COUNTRY UNDER
SUKANYA SAMRIDDHI ACCOUNT SCHEME
5.22 CRORE FAMILIES BENEFITTED UNDER PRADHAN MANTRI JEEVAN JYOTI BEEMA
YOJANA
New Delhi, 01st February, 2018
12 Magha, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitely while presenting the
General Budget 2018-19 in Parliament today stated that the Pradhan Mantri Jeevan Jyoti Beema Yojana
(PMJJBY) has benefitted 5.22 crore families with a life insurance cover of Rs.2 lakh on payment of a
premium of only Rs.330/- per annum. Likewise, under Pradhan Mantri Suraksha Bima Yojana, 13 crore
25 lakh persons have been insured with personal accident cover of Rs.2 lakh on payment of a premium of
only Rs.12 per annum. The Minister further added that the Government will work to cover all poor
households, including SC/ST households, under these in a mission mode. The Government will expand
the coverage under Prime Minister Jan Dhan Yojana by bringing all sixty crore basic accounts within its
fold and undertake measures to provide services of micro insurance and unorganized sector pension
schemes through these accounts.
Under „„Beti Bachao Beti Padhao‟‟ , Sukanya Samriddhi Account Scheme launched in January
2015 has been a great success. Until November, 2017 more than 1.26 crore accounts have been opened
across the country in the name of girl-child securing an amount of Rs.19,183 crore, the Minister added.
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
***
TOTAL EXPENDITURE FOR THE FISCAL YEAR 2018-19 IS ESTIMATED TO BE
OVER RS 24.42 LAKH CRORE
FISCAL DEFICIT TO BE 3.3% OF THE GDP FOR THE COMING FISCAL YEAR
New Delhi, 01st February, 2018
12 Magha, 1939
Total expenditure during 2018-19 is estimated to be over Rs. 24.42 lakh crore.
Fiscal Deficit at 3.3% is expected to be Rs. 6,24,276 crore, to be financed through
borrowings.
The Union Finance Minister Shri Arun Jaitley while presenting the General Budget for
2018-19 in Parliament here today, said that this Budget reflects the government‟s firm
commitment to substantially boost investment in Agriculture, social sector, Digital Payments,
Infrastructure and Employment Generation while simultaneously sticking to the path of fiscal
rectitude. The Minister for Finance and Corporate Affairs Shri Arun Jaitely said that the
government‟s commitment is substantiated by increase in expenditure of Rs 2,24,463 crores over
RE (2017-18). He said the aim is for a reduction of Fiscal Deficit by 0.2% of GDP over RE
2017-18. He projected a Fiscal Deficit of 3.3% of GDP for the year 2018-19
The Finance Minister, Shri Arun Jaitley said that the present Government assumed office
in May, 2014 when fiscal deficit was running at very high levels. Fiscal Deficit for 2013-14 was
4.4% of GDP. The Prime Minister and the Government have always attached utmost priority to
prudent fiscal management and controlling fiscal deficit. He said that the present Government
has embarked on the path of consistent fiscal reduction and consolidation in 2014. Fiscal Deficit
was brought down to 4.1% in 2014-15 to 3.9% in 2015-16, and to 3.5% in 2016-17. Revised
Fiscal Deficit estimates for 2017-18 are Rs. 5.95 lakh crore at 3.5% of GDP.
62
The Finance Minister said that in order to impart unquestionable credibility to the
Government‟s commitment for the revised fiscal glide path, he is proposing to accept key
recommendations of the Fiscal Reform and Budget Management (FRBM) Committee relating to
adoption of the Debt Rule and to bring down the Central Government‟s Debt to GDP ratio to
40%. The Government has also accepted the recommendation to use Fiscal Deficit target as the
key operational parameter. Necessary amendment proposals are included in the Finance Bill,
Shri Jaitley pointed out.
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GOVERNMENT OF INDIA
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372 SPECIFIC BUSINESS REFORM ACTIONS BEING IMPLEMENTED THROUGH
STATES
NATIONAL LOGISTICS PORTAL AS A SINGLE WINDOW ONLINE MARKET
PLACE TO BE DEVELOPED
New Delhi, 01st February, 2018
12 Magha, 1939
The Government has been continuously working towards improving the ease of doing
business across the country. The Union Minister for Finance and Corporate Affairs, Shri Arun
Jaitely, while presenting the General Budget 2018-19 in Parliament today said that the Prime
Minister, Shri Narendra Modi has always stressed the importance of good governance with the
vision of “Minimum Government and Maximum Governance”. This vision has inspired
Government agencies to carry out hundreds of reforms in policies, rules and procedures. This
transformation is reflected in improvement of India‟s ranking by 42 places in last three years in
the World Bank‟s „Ease of Doing Business‟ with India breaking into top 100 for the first time.
The Finance Minister stated that to carry the business reforms for ease of doing business
deeper and in every State of India, the Government of India has identified 372 specific business
reform actions. All States have taken up these reforms and simplifications in a mission mode
constructively competing with each other. Evaluation of performance under this Programme will
now be based on user feedback.
The Finance Minister announced that the Department of Commerce will be developing a
National Logistics Portal as a single window online market place to link all stakeholders.
Shri Jaitely stated that the Government is transforming method of disposal of its business
by introduction of e-office and other e-governance initiatives in central Ministries and
Departments. A web-based Government Integrated Financial Management Information System
(GIFMIS), is being administered by Controller General of Accounts, for budgeting, accounting,
expenditure and cash management of the Government.
GENERAL BUDGET 2018-19
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A Central Public Procurement Portal provides a single point access for all information on
procurement. Around 3.5 lakh contractors and vendors are registered on this platform. In
November, 2017 alone, electronic bids for over one lakh tenders valued at around two lakh forty
thousand crore were invited through this portal.
The Government E-Marketplace (GeM) facilitates procurement at the right price, in right
quality and quantity in a transparent and efficient manner. The platform has seventy eight
thousand buyers, fifty thousand sellers, three lakh seventy five thousand products and twelve
services. Besides facilitating transaction of the value of Rs.3000 crore in about two lakh
transactions, it could achieve savings of more than 25% over the base price.
For easier access, links to all Detailed Demand for Grants will be provided at
india.gov.in. The Government will also consider feasibility of providing disclosed fiscal
information in a machine readable form.
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
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BUDGETARY SUPPORT TO DEFENCE SECTOR TO REMAIN GOVERNMENT‟S
PRIORITY
TWO DEFENCE INDUSTRIAL PRODUCTION CORRIDORS TO BE DEVELOPED
GOVERNMENT TO BRING OUT INDUSTRY FRIENDLY DEFENCE PRODUCTION
POLICY 2018
New Delhi, 01st February, 2018
12 Magha, 1939
Ensuring adequate budgetary support to the Defence Sector will be the priority of the
Government. Presenting the General Budget 2018-19 in Parliament today, the Union Minister for
Finance and Corporate Affairs, Shri Arun Jaitely said that a lot of emphasis has been given to
modernizing and enhancing the operational capability of the Defence Forces over the last three
and a half years. The Finance Minister appreciated the stellar role played by the Armed Forces in
meeting the challenges on the country‟s borders as well as in managing the internal security
environment both in Jammu and Kashmir and the North East.
A number of initiatives have been taken to develop and nurture intrinsic defence
production capability to make the Nation self-reliant for meeting our defence needs, the Finance
Minister explained.
Shri Arun Jaitely said that private investment in defence production has been
opened up including liberalizing foreign direct investment. The Government will take
measures to develop two defence industrial production corridors in the country. The
Government will also bring out an industry friendly Defence Production Policy 2018 to
promote domestic production by public sector, private sector and MSMEs, he said.
*****
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GOVERNMENT OF INDIA
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SEBI TO CONSIDER MANDATING CORPORATES TO MEET ONE-FOURTH
FINANCING FROM BOND MARKET
GOVERNMENT WILL REFORM STAMP DUTY REGIME ON FINANCIAL
SECURITIES TRANSACTIONS
A UNIFIED AUTHORITY TO BE ESTABLISHED FOR REGULATING ALL
FINANCIAL SERVICES IN IFSCS IN INDIA
New Delhi, 01st February, 2018
12 Magha, 1939
The Finance Minister Shri Arun Jaitley has said that his Ministry will leverage the India
Infrastructure Finance Corporation Limited (IIFCL) to help finance major infrastructure projects,
including investments in educational and health infrastructure, on strategic and larger societal
benefit considerations. Shri Jaitley said this while presenting the General Budget 2018-19 in
Parliament here today.
The Finance Minister Shri Arun Jaitley further said that the Government and market regulators
have taken necessary measures for development of monetizing vehicles like Infrastructure
Investment Trust (InvIT) and Real Investment Trust (ReITs) in India. The Government would
initiate monetizing select CPSE assets using InvITs from next year. He said Reserve Bank of
India has issued guidelines to nudge Corporates access bond market. SEBI will also consider
GENERAL BUDGET
2018-19
67
mandating, beginning with large Corporates, to meet about one-fourth of their financing needs
from the bond market.
In India, most regulators permit bonds with the „AA‟ rating only as eligible for investment. The
Finance Minister Shri Arun Jaitley said it is now time to move from „AA‟ to „A‟ grade ratings.
The government and concerned regulators will take necessary action for this. He also assured
that the Government will take reform measures with respect to stamp duty regime on financial
securities transactions in consultation with the states and make necessary amendments the Indian
Stamp Act. The Government will establish a unified authority for regulating all financial services
in IFSCs in India.
***
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RATIONALISATION OF LONG TERM CAPITAL GAINS PROPOSED
REVENUE GAIN OF ABOUT RS.20,000 CRORES EXPECTED IN THE FIRST YEAR
New Delhi, 1st February, 2018
Magha 12, 1939
The Union Finance and Corporate Affairs Minister Shri Arun Jaitley today proposed to
tax long term capital gains exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of
any indexation. Presenting the General Budget 2018-19 in Parliament here today, Shri Jaitley
said that all gains up to 31st January, 2018 will be grandfathered. Recognising that a vibrant
equity market is essential for economic growth, Shri Jaitley proposed only a modest change in
the present regime.
The Finance Minister also proposed to introduce a tax on distributed income by equity
oriented mutual fund at the rate of 10% to provide level playing field across growth-oriented
funds and dividend distributing funds. He elaborated that in view of grandfathering, this change
in capital gain tax will bring marginal revenue gain of about Rs.20,000 crores in the first year
2018-19. The revenues in subsequent years may be more.
The Finance Minister Shri Jaitley added that currently, Long Term Capital Gains arising
from transfer of listed equity shares, units of equity oriented fund and unit of a business trust are
exempt from tax. With the reforms introduced by the Government and incentives given so far,
the equity market has become buoyant. “The total amount of exempted capital gains from listed
GENERAL BUDGET 2018-19
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shares and units is around Rs. 3,67,000 crores as per returns filed for A.Y.17-18. Major part of
this gain has accrued to Corporates and Limited Liability Partnerships (LLPs). This has also
created a bias against manufacturing, leading to more business surpluses being invested in
financial assets. The return on investment in equity is already quite attractive even without tax
exemption. There is therefore a strong case for bringing Long Term Capital Gains from listed
equities in the tax net” the Minister explained.
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AMENDMENTS IN THE INCOME-TAX ACT PROPOSED TO NOTIFY A NEW
SCHEME FOR ASSESSMENT IN ELECTRONIC MODE.
E-ASSESSMENT TO BE ROLLED-OUT ACROSS THE COUNTRY TO TRANSFORM
AGE-OLD ASSESSMENT PROCEDURE
New Delhi, 1st February, 2018
Magha 12, 1939
In the General Budget 2018-19 presented in Parliament today, the Union Minister for
Finance and Corporate Affairs, Shri Arun Jaitley proposed to amend the Income-tax Act to
notify a new scheme for assessment. Shri Jaitley said the assessment will be done in electronic
mode which will almost eliminate person to person contact leading to greater efficiency and
transparency. The Finance Minister added that the e-assessment system was introduced in 2016
on a pilot basis. In 2017, it was extended to 102 cities with the objective of reducing the interface
between the department and the taxpayers. “With the experience gained so far, we are now ready
to roll out the E-assessment across the country, which will transform the age-old assessment
procedure of the income tax department and the manner in which they interact with taxpayers
and other stakeholders” Shri Jaitley said. .
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TO INCENTIVISE DOMESTIC VALUE ADDITION AND MAKE IN INDIA, CUSTOMS
DUTY INCREASED ON MOBILE PHONES AND TV PARTS
MEASURE WILL HELP PROMOTE CREATION OF MORE JOBS
CUSTOMS DUTY ON RAW CASHEW HALVED
New Delhi, 1st February, 2018
Magha 12, 1939
In the first General Budget 2018-19 after the roll-out of the Goods and Services Tax
(GST), the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, made a
calibrated departure from the underlying policy in the last two decades, wherein the trend largely
was to reduce the customs duty. In the General Budget 2018-19 presented in Parliament here
today, Shri Jaitley acknowledged there is substantial potential for domestic value addition in
certain sectors, like food processing, electronics, auto components, footwear and furniture. The
Finance Minister thus proposed to reduce customs duty on raw cashew from 5% to 2.5% to help
the cashew processing industry.
To further incentivise the domestic value addition and Make in India, the Finance
Minister proposed to increase customs duty on mobile phones from 15% to 20%, on some of
their parts and accessories to 15% and on certain parts of TVs to 15%.“This measure will
promote creation of more jobs in the country‟ Shri Jaitley added. In fact, this will make the
domestic items cheaper than imported ones and will generate more demand which, in turn, will
create more employment opportunities for the people at large.
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CHANGES PROPOSED TO THE CUSTOMS ACT TO IMPROVE EASE OF DOING
BUSINESS BY SMOOTHENING DISPUTE RESOLUTION PROCESS AND REDUCING
LITIGATION
New Delhi, 1
st February, 2018
Magha 12, 1939
With the aim of further improving Ease of Doing Business in cross border trade, and to
align certain provisions with the commitments under the Trade Facilitation Agreement, the
Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley announced certain changes
to the Customs Act, 1962 while presenting the General Budget 2018-19 in Parliament today.
Shri Jaitley added that to smoothen dispute resolution processes and to reduce litigation,
these amendments are being made to provide for pre-notice consultation, definite timelines for
adjudication and deemed closure of cases if those timelines are not adhered to.
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GENERAL BUDGET 2018-19
GENERAL BUDGET 2018-19
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CENTRAL BOARD OF EXCISE AND CUSTOMS [CBEC] TO BE RENAMED
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC).
New Delhi, 1st February, 2018
Magha 12, 1939
With the roll out of GST, the Union Minister for Finance and Corporate Affairs, Shri
Arun Jaitley while presenting the General Budget 2018-19 in Parliament today, announced that
the name of Central Board of Excise and Customs [CBEC] will be changed to Central Board of
Indirect Taxes and Customs (CBIC). The necessary changes in law for this are proposed in the
Finance Bill, Shri Jaitley added
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STRICTER CONTROLS OVER SMALL CASH FLOW BY COMPANIES;
PAYMENTS EXCEEDING RS. 10,000/- IN CASH MADE BY SUCH ENTITIES SHALL
BE DISALLOWED
New Delhi, 1st February, 2018
Magha 12, 1939
In order to control the cash economy and increase TDS compliance, the Union Finance
and Corporate Affairs Minister Shri Arun Jaitley proposed to impose restriction on entities
incurring expenditure in cash without paying tax.
Presenting the General Budget 2018-19 in Parliament here today, the Finance Minister
said, “Currently, the income of trusts and institutions is exempt if they utilise their income
towards their objects in accordance with the relevant provisions of the Income-tax Act. However,
there is no restriction on these entities for incurring expenditure in cash. In order to have audit
trail of the expenses incurred by these entities, it is proposed that payments exceeding Rs.
10,000/- in cash made by such entities shall be disallowed and the same shall be subject to tax.”
Further, in order to improve TDS compliance by these entities, the Finance Minister
proposed to provide that in case of non-deduction of tax, 30% of the amount shall be disallowed
and the same shall be taxed.
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SOCIAL WELFARE SURCHARGE, ON IMPORTED GOODS, TO PROVIDE FOR
SOCIAL WELFARE SCHEMES OF THE GOVERNMENT
New Delhi, 1st February, 2018
Magha 12, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley proposed to
abolish the Education Cess and Secondary and Higher Education Cess on imported goods, and in
its place impose a Social Welfare Surcharge. While presenting the General Budget 2018-19 in
Parliament today, Shri Jaitley elaborated that the Social Welfare Surcharge at the rate of 10% of
the aggregate duties of Customs, on imported goods, will help provide for Social Welfare
Schemes of the Government.
The Finance Minister said that Goods which were hitherto exempt from Education Cesses
on imported goods will, however, be exempt from this Surcharge. In addition, certain specified
goods (as mentioned in the Annexure 6 to the Budget speech) will attract the proposed Surcharge
at the rate of 3% of the aggregate duties of customs only.
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BENEFITS UNDER SECTION 80-JJAA OF THE INCOME-TAX ACT EXTENDED TO
FOOTWEAR AND LEATHER INDUSTRY TO HELP EMPLOYMENT GENERATION
New Delhi, 1st February, 2018
Magha 12, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley has proposed to
extend the benefits under Section 80-JJAA of the Income-tax Act to footwear and leather
industry. While presenting the General Budget 2018-19 in Parliament here today, the Union
Finance Minister said, “Currently, a deduction of 30% is allowed in addition to normal deduction
of 100% in respect of emoluments paid to eligible new employees who have been employed for a
minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act.” He
however, noted that the minimum period of employment is relaxed to 150 days in the case of
apparel industry. Extending this relaxation of minimum period of 150 days to footwear and
leather industry also, the Finance Minister hoped this would encourage creation of new
employment in this sector.
Shri Jaitley further proposed to rationalise deduction of 30% by allowing the benefit for a
new employee who is employed for less than the minimum period during the first year but
continues to remain employed for the minimum period in subsequent year.
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INCENTIVE FOR REAL ESTATE: NO ADJUSTMENT TO BE MADE IF THE CIRCLE
RATE VALUE DOES NOT EXCEED 5% OF THE CONSIDERATION
New Delhi, 1st February, 2018
Magha 12, 1939
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley proposed that
no adjustment shall be made in a case where the circle rate value does not exceed 5% of the
consideration. While presenting the General Budget 2018-19 in Parliament here today, he said,
“Currently, while taxing income from capital gains, business profits and other sources in respect
of transactions in immovable property, the consideration or circle rate value, whichever is higher,
is adopted and the difference is counted as income both in the hands of the purchaser and seller.
Sometimes, this variation can occur in respect of different properties in the same area because of
a variety of factors including shape of the plot and location.”
Thus in order to minimise hardship in real estate transaction, the Finance Minister
proposed to provide that no adjustment shall be made in a case where the circle rate value does
not exceed 5% of the consideration.
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Press Information Bureau
Government of India
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TAX INCENTIVES FOR INTERNATIONAL FINANCIAL SERVICES CENTRE
TRANSFER OF DERIVATIVES AND CERTAIN SECURITIES BY NON-RESIDENTS
EXEMPTED FROM CAPITAL GAINS TAX
NON-CORPORATE TAXPAYERS OPERATING IN IFSC TO BE CHARGED
ALTERNATE MINIMUM TAX AT CONCESSIONAL RATE OF 9% AT PAR WITH
MINIMUM ALTERNATE TAX APPLICABLE FOR CORPORATES
New Delhi, 1st February, 2018
Magha 12, 1939
In order to promote trade in stock exchanges located in International Financial Services
Centre (IFSC), the Union Finance and Corporate Affairs Minister Shri Arun Jaitley proposed to
provide two more concessions for IFSC. Presenting the General Budget 2018-19 in Parliament
here today, Shri Jaitley proposed to exempt transfer of derivatives and certain securities by nonresidents
from capital gains tax. Further, the Finance Minister added that non-corporate
taxpayers operating in IFSC shall be charged Alternate Minimum Tax (AMT) at concessional
rate of 9% at par with Minimum Alternate Tax (MAT) applicable for corporates.
The Government had endeavoured to develop a world class international financial
services centre in India. In recent years, various measures including tax incentives have been
provided in order to fulfil this objective.
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Budget 2018-2019
Speech of
Arun Jaitley
Minister of Finance
February 1, 2018
Section I
Governance, Economy and Development
Madam Speaker,
1. I rise to present the Budget for 2018-19.
2. Madam, four years ago, we pledged to the people of India to
give this nation an honest, clean and transparent Government. We
promised a leadership capable of taking difficult decisions and restoring
strong performance of Indian economy. We promised to reduce
poverty, expedite infrastructure creation and build a strong, confident
and a New India. When our Government took over, India was
considered a part of fragile 5; a nation suffering from policy paralysis
and corruption. We have decisively reversed this. The Government, led
by Prime Minister, Shri Narendra Modi, has successfully implemented a
series of fundamental structural reforms. With the result, India stands out
among the fastest growing economies of the world.
3. The journey of economic reforms during the past few years has been
challenging but rewarding. As a result of the reforms undertaken by the
Government, foreign direct investment has gone up. Measures taken by the
Government have made it much easier to do business in India. Natural
resources are now allocated in a transparent and honest manner. There is a
premium on honesty. There was a time when corruption was commonplace.
Today, our people, especially our youths, are curious to lead their
lives honestly. The indirect tax system, with introduction of Goods and
Services Tax, has been made simpler. Benefits to the poor have been
targeted more effectively with use of digital technology. The
demonetization of high value currency has reduced the quantum of cash
currency and circulation in India. It has increased the taxation base and
spurred greater digitization of the economy. The Insolvency and
2
Bankruptcy Code (IBC) has changed the lender-debtor relationship. The
recapitalized banks will now have a greater ability to support growth. All
these structural reforms in the medium and long run will help Indian
economy achieve stronger growth for a long time.
4. Indian economy has performed very well since our Government
took over in May, 2014. India achieved an average growth of 7.5% in
first three years of our Government. Indian economy is now 2.5 trillion
dollar economy – seventh largest in the world. India is expected to
become the fifth largest economy very soon. On Purchasing Power
Parity (PPP) basis, we are already the third largest economy.
5. Indian society, polity and economy had shown remarkable
resilience in adjusting with the structural reforms. GDP growth at 6.3%
in the second quarter signaled turnaround of the economy. We hope to
grow at 7.2% to 7.5% in the second half. IMF, in its latest Update, has
forecast that India will grow at 7.4% next year. Manufacturing sector is
back on good growth path. The services, mainstay of our growth, have
also resumed their high growth rates of 8% plus. Our exports are
expected to grow at 15% in 2017-18. We are now firmly on course to
achieve high growth of 8% plus.
6. We have taken up programmes to direct the benefits of
structural changes and good growth to reach farmers, poor and other
vulnerable sections of our society and to uplift the under-developed
regions. This year’s Budget will consolidate these gains and particularly
focus on strengthening agriculture and rural economy, provision of good
health care to economically less privileged, taking care of senior citizens,
infrastructure creation and working with the States to provide more
resources for improving the quality of education in the country.
7. Prime Minister Shri Narendra Modi has always stressed
importance of good governance. He has articulated the vision of
‘‘Minimum Government and Maximum Governance’’. This vision has
inspired Government agencies in carrying out hundreds of reforms in
policies, rules and procedures. This transformation is reflected in
improvement of India’s ranking by 42 places in last three years in the
World Bank’s ‘Ease of Doing Business’ with India breaking into top 100
for the first time. I would like to congratulate all those who worked to
achieve this.
8. Now, our Government has taken Ease of Doing business further by
stress on ‘Ease of Leaving’ for the common men of this country, especially
for those belonging to poor & middle class of the society. Good governance
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also aims at minimum interference by the government in the life of
common people of the country.
9. Government is providing free LPG connections to the poor of this
country through Ujjwala Yojana. Under Saubhagya Yojna 4 crore household
are being provided with electricity connections. More than 800 medicines
are being sold at lower price through more than 3 thousand Jan Aushadhi
Centres. Cost of stents have been controlled. Special scheme for free
dialysis of poor have been initiated. Persons belonging to poor and middle
class are also being provided a great relief in interest rates on housing
schemes. Efforts are being made to provide all government services,
whether bus or train tickets or individual certificates on line. These include
passports which may be delivered at doorstep in two or three days or
Company registration in one day time and these facilities have benefited a
large section of our country. Certificate attestation is not mandatory,
interviews for appointment in Group C and Group D posts have been done
away with. These measures have saved time and money of lakhs of our
youth. Our Government by using modern technology is committed to
provide a relief to those who suffer because of rigid rules and regulations.
10. Madam, while undertaking these reforms and programmes, we
have worked sincerely and without weighing the political costs. Our
Government has ensured that benefits reach eligible beneficiaries and
are delivered to them directly. Many services and benefits are being
delivered to the people at their doorsteps or in their accounts. It has
reduced corruption and cost of delivery and has eliminated middlemen
in the process. Direct Benefit Transfer mechanism of India is the biggest
such exercise in the world and is a global success story.
Section II
Investment, Expenditure and Policy Initiatives
Agriculture and Rural Economy
11. My Government is committed for the welfare of farmers. For
decades, country’s agriculture policy and programme had remained
production centric. We have sought to effect a paradigm shift.
Honourable Prime Minister gave a clarion call to double farmers’ income
by 2022 when India celebrates its 75th year of independence. Our
emphasis is on generating higher incomes for farmers. We consider
agriculture as an enterprise and want to help farmers produce more
from the same land parcel at lesser cost and simultaneously realize
higher prices for their produce. Our emphasis is also on generating
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productive and gainful on-farm and non-farm employment for the
farmers and landless families.
12. Madam Speaker, as a result of the hard work of our country’s
farmers agriculture production in our country is at a record level. Doing the
year 2016-17 we achieved a record food grain production of around 275
million tonnes and around 300 million tonnes of fruits and vegetables.
13. Madam Speaker, in our party’s manifesto it has been stated that the
farmers should realize at least 50 per cent more than the cost of their
produce, in other words, one and a half times of the cost of their
production. Government have been very much sensitive to this resolutions
and it has declared Minimum support price (MSP) for the majority of rabi
crops at least at one and a half times the cost involved. Now, we have
decided to implement this resolution as a principle for the rest of crops. I
am pleased to announce that as per pre-determined principle, Government
has decided to keep MSP for the all unannounced crops of kharif at least at
one and half times of their production cost. I am confident that this historic
decision will prove an important step towards doubling the income of our
farmers.
14. Our Government works with the holistic approach of solving any
issue rather than in fragments. Increasing MSP is not adequate and it is
more important that farmers should get full benefit of the announced MSP.
For this, it is essential that if price of the agriculture produce market is less
than MSP, then in that case Government should purchase either at MSP or
work in a manner to provide MSP for the farmers through some other
mechanism. Niti Ayog, in consultation with Central and State Governments,
will put in place a fool-proof mechanism so that farmers will get adequate
price for their produce.
15. For better price realization, farmers need to make decisions
based on prices likely to be available after its harvest. Government will
create an institutional mechanism, with participation of all concerned
Ministries, to develop appropriate policies and practices for price and
demand forecast, use of futures and options market, expansion of
warehouse depository system and to take decisions about specific
exports and imports related measures.
16. Madam Speaker, last year, I had announced strengthening of
e-NAM and to expand coverage of e-NAM to 585 APMCs. 470 APMCs
have been connected to e-NAM network and rest will be connected by
March, 2018.
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17. More than 86% of our farmers are small and marginal. They are
not always in a position to directly transact at APMCs and other
wholesale markets. We will develop and upgrade existing 22,000 rural
haats into Gramin Agricultural Markets (GrAMs). In these GrAMs,
physical infrastructure will be strengthened using MGNREGA and other
Government Schemes. These GrAMs, electronically linked to e-NAM and
exempted from regulations of APMCs, will provide farmers facility to
make direct sale to consumers and bulk purchasers.
18. An Agri-Market Infrastructure Fund with a corpus of `2000 crore
will be set up for developing and upgrading agricultural marketing
infrastructure in the 22000 Grameen Agricultural Markets (GrAMs) and
585 APMCs.
19. Task of connecting all eligible habitations with an all-weather
road has been substantially completed, with the target date brought
forward to March, 2019 from March 2022. It is now time to strengthen
and widen its ambit further to include major link routes which connect
habitations to agricultural and rural markets (GrAMs), higher secondary
schools and hospitals. Prime Minister Gram Sadak Yojana Phase III will
include such linkages.
20. For several years, we have been stating that India is primarily an
agriculture based country. As India is primarily an agriculture based country,
our districts can specialize in some or other agricultural produce and be
known for it. But special attention is lacking in this regard. There is a need
to develop cluster based model in a scientific manner for identified
agriculture produces in our districts in the same manner as we have
developed model for industrial sector.
21. Cultivation of horticulture crops in clusters bring advantages of
scales of operations and can spur establishment of entire chain from
production to marketing, besides giving recognition to the districts for
specific crops. The Ministry of Agriculture & Farmers’ Welfare will reorient
its ongoing Schemes and promote cluster based development of agricommodities
and regions in partnership with the Ministries of Food
Processing, Commerce and other allied Ministries.
22. Our Government has promoted organic farming in a big way.
Organic farming by Farmer Producer Organizations (FPOs) and Village
Producers’ Organizations (VPOs) in large clusters, preferably of 1000
hectares each, will be encouraged. Women Self Help Groups (SHGs) will
also be encouraged to take up organic agriculture in clusters under
National Rural Livelihood Programme.
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23. Our ecology supports cultivation of highly specialized medicinal
and aromatic plants. India is also home to a large number of small and
cottage industries that manufacture perfumes, essential oils and other
associated products. Our Government shall support organized cultivation
and associated industry. I propose to allocate a sum of `200 crore for
this purpose.
24. Food Processing sector is growing at an average rate of 8% per
annum. Prime Minister Krishi Sampada Yojana is our flagship
programme for boosting investment in food processing. Allocation of
Ministry of Food Processing is being doubled from `715 crore in
RE 2017-18 to `1400 crore in BE 2018-19. Government will promote
establishment of specialized agro-processing financial institutions in this
sector.
25. Tomato, onion and potato are basic vegetables consumed
throughout the year. However, seasonal and regional production of
these perishable commodities pose a challenge in connecting farmers
and consumers in a manner that satisfies both. My Government
proposes to launch an ‘‘Operation Greens’’ on the lines of ‘‘Operation
Flood’’. ‘‘Operation Greens’’ shall promote Farmer Producers
Organizations (FPOs), agri-logistics, processing facilities and professional
management. I propose to allocate a sum of `500 crore for this purpose.
26. India’s agri-exports potential is as high as US $ 100 billion against
current exports of US $ 30 billion. To realize this potential, export of
agri-commodities will be liberalized. I also propose to set up state-ofthe-art
testing facilities in all the forty two Mega Food Parks.
27. I propose to extend the facility of Kisan Credit Cards to fisheries and
animal husbandry farmers to help them meet their working capital needs.
Small and marginal farmers will get more benefits.
28. Bamboo is ‘Green Gold’. We removed bamboo grown outside
forest areas from the definition of trees. Now, I propose to launch a
Re-structured National Bamboo Mission with an outlay of `1290 crore to
promote bamboo sector in a holistic manner.
29. Many farmers are installing solar water pumps to irrigate their
fields. Generation of solar electricity is harvesting of Sun by the farmers
using their lands. Government of India will take necessary measures and
encourage State Governments to put in place a mechanism that their
surplus solar power is purchased by the distribution companies or
licencees at reasonably remunerative rates.
7
30. Our Government set up a Long Term Irrigation Fund (LTIF) in
NABARD for meeting funding requirement of irrigation works. Scope of
the Fund would be expanded to cover specified command area
development projects.
31. Last year, I had announced setting up of Micro Irrigation Fund
(MIF) for facilitating expansion of coverage under micro irrigation and
Dairy Processing Infrastructure Development Fund (DPIDF) to help
finance investment in dairying infrastructure. It is now time to expand
such focused investment Funds. I, now, announce setting up a Fisheries
and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries
sector and an Animal Husbandry Infrastructure Development Fund
(AHIDF) for financing infrastructure requirement of animal husbandry
sector. Total Corpus of these two new Funds would be `10,000 crore.
32. Our Government has been steadily increasing the volume of
institutional credit for agriculture sector from year-to-year from `8.5 lakh
crore in 2014-15 to `10 lakh crore in 2017-18. I now propose to raise
this to `11 lakh crore for the year 2018-19.
33. Presently, lessee cultivators are not able to avail crop loans.
Consequently, a significant proportion of arable land remains fallow and
tenant cultivators are forced to secure credit from usurious money
lenders. NITI Aayog, in consultation with State Governments, will evolve
a suitable mechanism to enable access of lessee cultivators to credit
without compromising the rights of the land owners.
34. Government will extend a favourable taxation treatment to
Farmer Producers Organisations (FPOs) for helping farmers aggregate
their needs of inputs, farm services, processing and sale operations.
I shall give details in Part B of my speech.
35. Air pollution in the Delhi-NCR region has been a cause of
concern. A special Scheme will be implemented to support the efforts
of the governments of Haryana, Punjab, Uttar Pradesh and the NCT of
Delhi to address air pollution and to subsidize machinery required for insitu
management of crop residue.
36. Madam Speaker, the present top leadership of this country has
reached at this level after seeing poverty at close quarters. Our leadership is
familiar with the problems being faced by the SC, ST, Backward Classes and
economically weaker sections of the society. People belonging to poor and
middle class are not case studies for them, on the other hand they
themselves are case study.
8
37. The Lower and Middle Class have been the focus of our Government
during the last three years. This Government is continuously striving to
alleviate all the small and major problems of the poor.
38. We launched Prime Minister’s Ujjwala Scheme to make poor women
free from the smoke of wood. Initially our target was to provide free LPG
connections to about 5 crore poor women. But in view of the pace of
implementation of Ujjwala scheme and its popularity among the women,
we propose to increase the target of providing free connection to 8 crore
poor women.
39. Our Government has launched Prime Minister Saubhagya Yojana for
providing electricity to all households of the country. Under this scheme,
four crores poor households are being provided with electricity connection
free of charge. We are spending `16000 crore under this scheme. You can
very well imagine our anxiety and restlessness even with one hour power
cut. Think about those women and children whose houses will not get
electricity. Their life is going to change because of Pradhan Mantri
Saubhagya Yojana.
40. Swachh Bharat Mission has benefited the poor. Under this mission,
Government has already constructed more than 6 crore toilets. The positive
effect of these toilets is being seen on the dignity of ladies, education of
girls and the overall health of family. Government is planning to construct
around 2 crore toilets.
41. Madam Speaker, a roof for his family is another concern of the poor.
Far from the Benami properties earned by corruption, the poor only desire
to have a roof, a small house by his earning of honesty. Our Govt. is helping
them so that they may fulfil the dream of their own house. We have fixed a
target that every poor of this country may have his own house by 2022. For
this purpose Prime Minister Awas Yojana has been launched in rural and
urban areas of the country. Under Prime Minister Awas Scheme Rural, 51
lakhs houses in year 2017-18 and 51 lakh houses during 2018-19 which is
more than one crore houses will be constructed exclusively in rural areas. In
urban areas the assistance has been sanctioned to construct 37 lakh houses.
42. My Government will also establish a dedicated Affordable
Housing Fund (AHF) in National Housing Bank, funded from priority
sector lending shortfall and fully serviced bonds authorized by the
Government of India.
43. Loans to Self Help Groups of women increased to about Rupees
42,500 crore in 2016-17, growing 37% over previous year. The
9
Government is confident that loans to SHGs will increase to `75,000
crore by March, 2019. I propose to substantially increase allocation of
National Rural Livelihood Mission to `5750 crore in 2018-19.
44. Ground water irrigation scheme under Prime Minister Krishi
Sinchai Yojna- Har Khet ko Pani will be taken up in 96 deprived irrigation
districts where less than 30% of the land holdings gets assured irrigation
presently. I have allocated `2600 crore for this purpose.
45. As my proposals outlined indicate, focus of the Government next
year will be on providing maximum livelihood opportunities in the rural
areas by spending more on livelihood, agriculture and allied activities
and construction of rural infrastructure. In the year 2018-19, for creation
of livelihood and infrastructure in rural areas, total amount to be spent
by the Ministries will be `14.34 lakh crore, including extra-budgetary and
non-budgetary resources of `11.98 lakh crore. Apart from employment
due to farming activities and self employment, this expenditure will
create employment of 321 crore person days, 3.17 lakh kilometers of
rural roads, 51 lakh new rural houses, 1.88 crore toilets, and provide
1.75 crore new household electric connections besides boosting
agricultural growth. Details are in Annexure I.
Health, Education and Social Protection
46. My Government’s goal is to assist and provide opportunity to
every Indian to realize her full potential capable of achieving her
economic and social dreams. Our Government is implementing a
comprehensive social security and protection programme to reach every
household of old, widows, orphaned children, divyaang and deprived as
per the Socio-Economic Caste Census. Allocation on National Social
Assistance Programme this year has been kept at `9975 crore.
47. We have managed to get children to School but the quality of
education is still a cause of serious concern. We have now defined
learning outcomes and National Survey of more than 20 lakh children
has been conducted to assess the status on the ground. This will help
in devising a district-wise strategy for improving quality of education. We
now propose to treat education holistically without segmentation from
pre-nursery to Class 12.
48. Improvement in quality of teachers can improve the quality of
education in the country. We will initiate an integrated B.Ed. programme
for teachers. Training of teachers during service is extremely critical. We
10
have amended the Right to Education Act to enable more than 13 lakh
untrained teachers to get trained.
49. Technology will be the biggest driver in improving the quality of
education. We propose to increase the digital intensity in education and
move gradually from ‘‘black board’’ to ‘‘digital board’’. Technology will
also be used to upgrade the skills of teachers through the recently
launched digital portal ‘‘DIKSHA’’.
50. The Government is committed to provide the best quality
education to the tribal children in their own environment. To realise this
mission, it has been decided that by the year 2022, every block with
more than 50% ST population and at least 20,000 tribal persons, will
have an Ekalavya Model Residential School. Ekalavya schools will be on
par with Navodaya Vidyalayas and will have special facilities for
preserving local art and culture besides providing training in sports and
skill development.
51. To step up investments in research and related infrastructure in
premier educational institutions, including health institutions, I propose
to launch a major initiative named ‘‘Revitalising Infrastructure and
Systems in Education (RISE) by 2022’’ with a total investment of
`1,00,000 crore in next four years. Higher Education Financing Agency
(HEFA) would be suitably structured for funding this initiative.
52. Our Government has taken major initiative of setting up Institutes
of Eminence. There has been tremendous response to this initiative by
institutions both in public and private sectors. We have received more
than 100 applications. We have also taken steps to set up a specialized
Railways University at Vadodara.
53. We propose to set up two new full-fledged Schools of Planning
and Architecture, to be selected on challenge mode. Additionally, 18
new SPAs would be established in the IITs and NITs as autonomous
Schools, also on challenge mode.
54. The Government would launch the ‘‘Prime Minister’s Research
Fellows (PMRF)’’ Scheme this year. Under this, we would identify 1,000
best B.Tech students each year from premier institutions and provide
them facilities to do Ph.D in IITs and IISc, with a handsome fellowship. It
is expected that these bright young fellows would voluntarily commit
few hours every week for teaching in higher educational institutions.
11
55. Now I come to the Health Sector. ºÉ´ÉäÇ £É´ÉxiÉ Ö: ºÉ ÖÉÊJÉxÉ, ºÉ´É äÇ ºÉÆiÉ Ö: ÉÊxÉ®ÉàɪÉÉ
is the guiding principle of my Government. Only Swasth Bharat can be a
Samriddha Bharat. India cannot realize its demographic dividend without
its citizens being healthy.
56. I am pleased to announce two major initiatives as part of
‘‘Ayushman Bharat’’ programme aimed at making path breaking
interventions to address health holistically, in primary, secondary and
tertiary care system covering both prevention and health promotion.
57. The National Health Policy, 2017 has envisioned Health and
Wellness Centres as the foundation of India’s health system. These 1.5
lakh centres will bring health care system closer to the homes of people.
These centres will provide comprehensive health care, including for noncommunicable
diseases and maternal and child health services. These
centres will also provide free essential drugs and diagnostic services.
I am committing `1200 crore in this budget for this flagship programme.
I also invite contribution of private sector through CSR and philanthropic
institutions in adopting these centres.
58. Madam Speaker, we are all aware that lakhs of families in our
country have to borrow or sell assets to receive indoor treatment in
hospitals. Government is seriously concerned about such impoverishment
of poor and vulnerable families. Present Rashtriya Swasthya Bima Yojana
(RSBY) provide annual coverage of only `30,000 to poor families. Several
State Governments have also implemented/supplemented health
protection schemes providing varying coverage. My Government has
now decided to take health protection to more aspirational level.
59. We will launch a flagship National Health Protection Scheme to
cover over 10 crore poor and vulnerable families (approximately 50
crore beneficiaries) providing coverage upto 5 lakh rupees per family per
year for secondary and tertiary care hospitalization. This will be the
world’s largest government funded health care programme. Adequate
funds will be provided for smooth implementation of this programme.
60. Madam Speaker, these two far-reaching initiatives under the
Ayushman Bharat will build a New India 2022 and ensure enhanced
productivity, well being and avert wage loss and impoverishment. These
Schemes will also generate lakhs of jobs, particularly for women. The
Government is steadily but surely progressing towards the goal of Universal
Health Coverage.
12
61. TB claims more lives every year than any other infectious disease.
It affects mainly poor and malnourished people. My Government has,
therefore, decided to allocate additional `600 crore to provide
nutritional support to all TB patients at the rate of `500 per month for
the duration of their treatment.
62. In order to further enhance accessibility of quality medical
education and health care, we will be setting up 24 new Government
Medical Colleges and Hospitals by upgrading existing district hospitals in
the country. This would ensure that there is at least 1 Medical College
for every 3 Parliamentary Constituencies and at least 1 Government
Medical College in each State of the country.
63. Our resolve of making our villages open defecation free is aimed
at improving the life of our villagers. We will launch a Scheme called
Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) for
management and conversion of cattle dung and solid waste in farms to
compost, fertilizer, bio-gas and bio-CNG.
64. Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY) has
benefitted 5.22 crore families with a life insurance cover of `2 lakh on
payment of a premium of only `330/- per annum. Likewise, under
Pradhan Mantri Suraksha Bima Yojana, 13 crore 25 lakh persons have
been insured with personal accident cover of `2 lakh on payment of a
premium of only `12 per annum. The Government will work to cover all
poor households, including SC/ST households, under these in a mission
mode.
65. The Government will expand the coverage under Prime Minister
Jan Dhan Yojana by bringing all sixty crore basic accounts within its fold
and undertake measures to provide services of micro insurance and
unorganized sector pension schemes through these accounts.
66. Our commitment towards ‘‘Beti Bachao Beti Padhao’’ is
unflinching. Sukanya Samriddhi Account Scheme launched in January
2015 has been a great success. Until November, 2017 more than 1.26
crore accounts have been opened across the country in the name of girlchild
securing an amount of `19,183 crore.
67. Cleaning the Ganga is work of national importance and it is our
firm commitment. Members will be happy to learn that this work has
gathered speed. A total of 187 projects have been sanctioned under the
Namami Gange programme for infrastructure development, river surface
cleaning, rural sanitation and other interventions at a cost of
13
`16,713 crore. 47 projects have been completed and remaining projects
are at various stages of execution. All 4465 Ganga Grams – villages on
the bank of river – have been declared open defecation free.
68. To give focused attention and to achieve our vision of an
inclusive society, the Government has identified 115 aspirational districts
taking various indices of development in consideration. The Government
aims at improving the quality of life in these districts by investing in
social services like health, education, nutrition, skill upgradation, financial
inclusion and infrastructure like irrigation, rural electrification, potable
drinking water and access to toilets at an accelerated pace and in a time
bound manner. We expect these 115 districts to become model of
development.
69. Economic and social advancement of hard working people of
Scheduled Castes (SCs) and Scheduled Tribes (STs) has received core
attention of Government. Our Government increased total earmarked
allocation for SCs in 279 programmes from `34,334 crore in 2016-17 to
`52,719 crore in RE 2017-18. Likewise, for STs, earmarked allocation
was increased from `21,811 crore in 2016-17 to `32,508 crore in
RE 2017-18 in 305 programmes. I propose an earmarked allocation of
`56,619 crore for SCs and `39,135 crore for STs in BE 2018-19.
70. Government’s estimated schematic budgetary expenditure on
health, education and social protection for 2018-19 is `1.38 lakh crore
against estimated expenditure of `1.22 lakh crore in BE 2017-18. Details
are in Annexure II. This expenditure is likely to go up by at least `15,000
crore in 2018-19 on account of additional allocation during the year and
extra budgetary expenditure, including through Higher Education
Financing Agency.
Medium, Small and Micro Enterprises (MSMEs) and
Employment
71. Medium, Small and Micro Enterprises (MSMEs) are a major
engine of growth and employment in the country. I have provided
`3794 crore to MSME Sector for giving credit support, capital and
interest subsidy and innovations. Massive formalization of the businesses
of MSMEs is taking place in the country after demonetization and
introduction of GST. This is generating enormous financial information
database of MSMEs’ businesses and finances. This big data base will be
used for improving financing of MSMEs’ capital requirement, including
working capital.
14
72. It is proposed to onboard public sector banks and corporates on
Trade Electronic Receivable Discounting System (TReDS) platform and
link this with GSTN. Online loan sanctioning facility for MSMEs will be
revamped for prompt decision making by the banks. Government will
soon announce measures for effectively addressing non-performing
assets and stressed accounts of MSMEs. This will enable larger financing
of MSMEs and also considerably ease cash flow challenges faced by
them. In order to reduce tax burden on MSMEs and to create larger
number of jobs, I will be announcing some tax measures in Part B of my
speech.
73. MUDRA Yojana launched in April, 2015 has led to sanction of
`4.6 lakh crore in credit from 10.38 crore MUDRA loans. 76% of loan
accounts are of women and more than 50% belong to SCs, STs and
OBCs. It is proposed to set a target of `3 lakh crore for lending under
MUDRA for 2018-19 after having successfully exceeded the targets in all
previous years.
74. Non-Bank Finance Companies (NBFCs) stepped up financing of
MSMEs after demonetization. NBFCs can be very powerful vehicle for
delivering loans under MUDRA. Refinancing policy and eligibility criteria
set by MUDRA will be reviewed for better refinancing of NBFCs.
75. Use of Fintech in financing space will help growth of MSMEs. A
group in the Ministry of Finance is examining the policy and institutional
development measures needed for creating right environment for
Fintech companies to grow in India.
76. Venture Capital Funds and the angel investors need an innovative
and special developmental and regulatory regime for their growth. We
have taken a number of policy measures including launching ‘‘Start-Up
India’’ program, building very robust alternative investment regime in
the country and rolling out a taxation regime designed for the special
nature of the VCFs and the angel investors. We will take additional
measures to strengthen the environment for their growth and successful
operation of alternative investment funds in India.
77. Creating job opportunities and facilitating generation of
employment has been at the core of our policy-making. During the last
three years, we have taken a number of steps to boost employment
generation in the country. These measures include:-
 Contribution of 8.33% of Employee Provident Fund (EPF)
for new employees by the Government for three years.
15
 Contribution of 12% to EPF for new employees for three
years by the Government in sectors employing large
number of people like textile, leather and footwear.
 Additional deduction to the employees of 30% of the
wages paid for new employees under the Income Tax Act.
 Launch of National Apprenticeship Scheme with stipend
support and sharing of the cost of basic training by the
Government to give training to 50 lakh youth by 2020.
 Introducing system of fixed term employment for apparel
and footwear sector.
 Increasing paid maternity leave from 12 weeks to 26
weeks, along with provision of crèches.
78. These measures have started showing results. An independent
study conducted recently has shown that 70 lakh formal jobs will be
created this year.
79. To carry forward this momentum, I am happy to announce that
the Government will contribute 12% of the wages of the new employees
in the EPF for all the sectors for next three years. Also, the facility of
fixed term employment will be extended to all sectors.
80. To incentivize employment of more women in the formal sector
and to enable higher take-home wages, I propose to make amendments
in the Employees Provident Fund and Miscellaneous Provisions Act, 1952
to reduce women employees’ contribution to 8% for first three years of
their employment against existing rate of 12% or 10% with no change in
employers’ contribution.
81. The Government is setting up a model aspirational skill centre in
every district of the country under Pradhan Mantri Kaushal Kendra
Programme. 306 Pradhan Mantri Kaushal Kendra have been established
for imparting skill training through such centers.
82. The Government had approved a comprehensive textile sector
package of `6000 crore in 2016 to boost the apparel and made-up
segments. I, now propose to provide an outlay of `7148 crore for the
textile sector in 2018-19.
16
Infrastructure and Financial Sector Development
83. Infrastructure is the growth driver of economy. Our country
needs massive investments estimated to be in excess of `50 lakh crore
in infrastructure to increase growth of GDP, connect and integrate the
nation with a network of roads, airports, railways, ports and inland
waterways and to provide good quality services to our people.
84. We have made an all-time high allocation to rail and road
sectors. We are committed to further enhance public investment.
Provision of key linkages like coal for power, power for railways and
railway rakes for coal have been rationalized and made very efficient.
Prime Minister personally reviews the targets and achievements in
infrastructure sectors on a regular basis. Using online monitoring system
of PRAGATI alone, projects worth 9.46 lakh crore have been facilitated
and fast tracked.
85. To secure India’s defences, we are developing connectivity
infrastructure in border areas. Rohtang tunnel has been completed to
provide all weather connectivity to the Ladakh region. Contract for
construction of Zozila Pass tunnel of more than 14 kilometer is
progressing well. I now propose to take up construction of tunnel under
Sela Pass. For promoting tourism and emergency medical care,
Government will make necessary framework for encouraging investment
in sea plane activities.
86. Urbanization is our opportunity and priority. My Government has
rolled out two interlinked programmes – Smart Cities Mission and the
AMRUT.
87. Smart Cities Mission aims at building 100 Smart Cities with stateof-the-art
amenities. I am happy to inform that 99 Cities have been
selected with an outlay of `2.04 lakh crore. These Cities have started
implementing various projects like Smart Command and Control Centre,
Smart Roads, Solar Rooftops, Intelligent Transport Systems, Smart Parks.
Projects worth `2350 crore have been completed and works of `20,852
crore are under progress. To preserve and revitalize soul of the heritage
cities in India, National Heritage City Development and Augmentation
Yojana (HRIDAY) has been taken up in a major way.
88. India is blessed with an abundance of tourist attractions. It is
proposed to develop ten prominent tourist sites into Iconic Tourism
destinations by following a holistic approach involving infrastructure and
skill development, development of technology, attracting private
17
investment, branding and marketing. In addition, tourist amenities at
100 Adarsh monuments of the Archaeological Survey of India will be
upgraded to enhance visitor experience.
89. The AMRUT programme focuses on providing water supply to all
households in 500 cities. State level plans of `77,640 crore for 500 cities
have been approved. Water supply contracts for 494 projects worth
`19,428 crore and sewerage work contract for 272 projects costing
`12,429 crore has been awarded.
90. Reforms are being catalyzed by these missions. 482 cities have
started credit rating. 144 cities have got investment grade rating.
91. My Ministry will leverage the India Infrastructure Finance
Corporation Limited (IIFCL) to help finance major infrastructure projects,
including investments in educational and health infrastructure, on
strategic and larger societal benefit considerations.
92. Our Government has scaled new heights in development of Road
Infrastructure sector. We are confident to complete National Highways
exceeding 9000 kilometers length during 2017-18. Ambitious Bharatmala
Pariyojana has been approved for providing seamless connectivity of
interior and backward areas and borders of the country to develop
about 35000 kms in Phase-I at an estimated cost of `5,35,000 crore. To
raise equity from the market for its mature road assets, NHAI will
consider organizing its road assets into Special Purpose Vehicles and use
innovative monetizing structures like Toll, Operate and Transfer (TOT)
and Infrastructure Investment Funds (InvITs).
93. Strengthening the railway network and enhancing Railways’
carrying capacity has been a major focus of the Government. Railways’
Capex for the year 2018-19 has been pegged at `1,48,528 crore. A large
part of the Capex is devoted to capacity creation. 18,000 kilometers of
doubling, third and fourth line works and 5000 kilometers of gauge
conversion would eliminate capacity constraints and transform almost
entire network into Broad Gauge.
94. There has also been significant improvement in the achievement
of physical targets by Railways as well. We are moving fast towards
optimal electrification of railway network. 4000 kilometers are targeted
for commissioning during 2017-18.
95. Work on Eastern and Western dedicated Freight Corridors is in
full swing. Adequate number of rolling stock – 12000 wagons, 5160
18
coaches and approximately 700 locomotives are being procured during
2018-19. A major programme has been initiated to strengthen
infrastructure at the Goods sheds and fast track commissioning of
private sidings.
96. A ‘Safety First’ policy, with allocation of adequate funds under
Rashtriya Rail Sanraksha Kosh is cornerstone of Railways’ focus on safety.
Maintenance of track infrastructure is being given special attention. Over
3600 kms of track renewal is targeted during the current fiscal. Other
major steps include increasing use of technology like ‘‘Fog Safe’’ and
‘‘Train Protection and Warning System’’. A decision has been taken to
eliminate 4267 unmanned level crossings in the broad gauge network in
the next two years.
97. Redevelopment of 600 major railway stations is being taken up
by Indian Railway Station Development Co. Ltd. All stations with more
than 25000 footfalls will have escalators. All railway stations and trains
will be progressively provided with wi-fi. CCTVs will be provided at all
stations and on trains to enhance security of passengers. Modern trainsets
with state-of-the-art amenities and features are being designed at
Integrated Coach Factory, Perambur. First such train-set will be
commissioned during 2018-19.
98. Mumbai’s transport system, the lifeline of the City, is being
expanded and augmented to add 90 kilometers of double line tracks at
a cost of over `11,000 crore. 150 kilometers of additional suburban
network is being planned at a cost of over `40,000 crore, including
elevated corridors on some sections. A suburban network of
approximately 160 kilometers at an estimated cost of `17,000 crore is
being planned to cater to the growth of the Bengaluru metropolis.
99. Foundation for the Mumbai-Ahmedabad bullet train project,
India’s first high speed rail project was laid on September 14, 2017. An
Institute is coming up at Vadodara to train manpower required for high
speed rail projects.
100. In the last three years, the domestic air passenger traffic grew at
18% per annum and our airline companies placed orders for more than
900 aircrafts. Regional connectivity scheme of UDAN (Ude Desh ka Aam
Nagrik) initiated by the Government last year shall connect 56 unserved
airports and 31 unserved helipads across the country. Operations have
already started at 16 such airports. ºÉ®BÉEÉ® BÉEÉ Ò <ºÉ {ÉcãÉ ºÉ ä c´ÉÉ<Ç SÉ{{ÉãÉ {ÉcxÉxÉä
´ÉÉãÉä xÉÉMÉÉ Ê®BÉE £ÉÉÒ c´ÉÉ<Ç VÉcÉVÉ àÉä ªÉÉjÉÉ BÉE® ®cä cé* Airport Authority of India (AAI)
has 124 airports. We propose to expand our airport capacity more than
19
five times to handle a billion trips a year under a new initiative – NABH
Nirman. Balance sheet of AAI shall be leveraged to raise more resources
for funding this expansion.
101. Our efforts to set up a Coalition on Disaster Resilient
Infrastructure for developing international good practices, appropriate
standards and regulatory mechanism for resilient infrastructure
development are moving well. I propose to allocate `60 crores to kick
start this initiative in 2018-19.
102. The Government and market regulators have taken necessary
measures for development of monetizing vehicles like Infrastructure
Investment Trust (InvIT) and Real Investment Trust (ReITs) in India. The
Government would initiate monetizing select CPSE assets using InvITs
from next year.
103. In the current year, we included, in the scope of harmonized list
of infrastructure, ropeways to promote tourism, logistics parks and
expanded the scope of railways infrastructure to include development of
commercial land around railway stations.
104. Reserve Bank of India has issued guidelines to nudge Corporates
access bond market. SEBI will also consider mandating, beginning with
large Corporates, to meet about one-fourth of their financing needs
from the bond market.
105. Corporate bonds rated ‘BBB’ or equivalent are investment grade.
In India, most regulators permit bonds with the ‘AA’ rating only as
eligible for investment. It is now time to move from ‘AA’ to ‘A’ grade
ratings. The government and concerned regulators will take necessary
action.
106. We will take reform measures with respect to stamp duty regime
on financial securities transactions in consultation with the States and
make necessary amendments the Indian Stamp Act.
107. International Financial Service Centre (IFSC) at Gift City, which has
become operational, needs a coherent and integrated regulatory
framework to fully develop and to compete with other offshore financial
centres. The Government will establish a unified authority for regulating
all financial services in IFSCs in India.
108. Global economy is transforming into a digital economy thanks to
development of cutting edge technologies in digital space – machine
20
learning, artificial intelligence, internet of things, 3D printing and the
like. Initiatives such as Digital India, Start Up India, Make in India would
help India establish itself as a knowledge and digital society. NITI Aayog
will initiate a national program to direct our efforts in the area of
artificial intelligence, including research and development of its
applications.
109. Combining cyber and physical systems have great potential to
transform not only innovation ecosystem but also our economies and
the way we live. To invest in research, training and skilling in robotics,
artificial intelligence, digital manufacturing, big data analysis, quantum
communication and internet of things, Department of Science &
Technology will launch a Mission on Cyber Physical Systems to support
establishment of centres of excellence. I have doubled the allocation on
Digital India programme to ` 3073 crore in 2018-19.
110. Task of connecting one lakh gram panchayat through high speed
optical fiber network has been completed under phase I of the
Bharatnet project. This has enabled broadband access to over 20 crore
rural Indians in about two lakh fifty thousand villages. The Government
also proposes to setup five lakh wi-fi hotspots which will provide
broadband access to five crore rural citizens. I have provided `10000
crore in 2018-19 for creation and augmentation of Telecom
infrastructure.
111. To harness the benefit of emerging new technologies, particularly
the ‘Fifth Generation’ (5G) technologies and its adoption, the
Department of Telecom will support establishment of an indigenous 5G
Test Bed at IIT, Chennai.
112. Distributed ledger system or the block chain technology allows
organization of any chain of records or transactions without the need of
intermediaries. The Government does not consider crypto-currencies
legal tender or coin and will take all measures to eliminate use of these
crypto-assets in financing illegitimate activities or as part of the payment
system. The Government will explore use of block chain technology
proactively for ushering in digital economy.
113. The system of toll payments physically by cash at road toll plazas
is being fast replaced with Fastags and other electronic payment systems
to make road travel seamless. Number of Fastags has gone up from
about 60,000 in December, 2016 to more than 10 lakh now. From
December, 2017 all class ‘‘M’’ and ‘‘N’’ vehicles are being sold only with
the Fastags. The Government will come out with a policy to introduce
toll system on ‘‘pay as you use’’ basis.
21
114. In order to create employment and aid growth, Government’s
estimated budgetary and extra budgetary expenditure on infrastructure
for 2018-19 is being increased to `5.97 lakh crore against estimated
expenditure of `4.94 lakh crore in 2017-18. Details are in Annexure III.
Building Institutions and Improving Public Service Delivery
115. Our armed forces have played a stellar role in meeting the
challenges we have been facing on our borders as well as in managing
the internal security environment both in Jammu and Kashmir and the
North East. I would like to place on record our appreciation for the
efforts and the sacrifices made by the three services in defending the
interests of the Nation.
116. Ever since the NDA Government has assumed office in 2014, lot
of emphasis has been given to modernizing and enhancing the
operational capability of the Defence Forces. A number of initiatives
have been taken to develop and nurture intrinsic defence production
capability to make the Nation self-reliant for meeting our defence needs.
Ensuring adequate budgetary support will be our priority.
117. We have opened up private investment in defence production
including liberalizing foreign direct investment. We will take measures
to develop two defence industrial production corridors in the country.
The Government will also bring out an industry friendly Defence
Production Policy 2018 to promote domestic production by public sector,
private sector and MSMEs.
118. Aadhar has provided an identity to every Indian. Aadhar has
eased delivery of so many public services to our people. Every
enterprise, major or small, also needs a unique ID. The Government will
evolve a Scheme to assign every individual enterprise in India a
unique ID.
119. To carry the business reforms for ease of doing business deeper
and in every State of India, the Government of India has identified 372
specific business reform actions. All States have taken up these reforms
and simplifications in a mission mode constructively competing with each
other. Evaluation of performance under this Programme will now be
based on user feedback.
120. Capital of the Food Corporation of India will be restructured to
enhance equity and to raise long-term debt for meeting its standing
working capital requirement.
22
121. Budgeting of Government of India’s contribution in equity and
debt of the metro ventures floated by the State Governments will be
streamlined.
122. Department of Commerce will be developing a National Logistics
Portal as a single window online market place to link all stakeholders.
123. The Government has approved listing of 14 CPSEs, including two
insurance companies, on the stock exchanges. The Government has also
initiated the process of strategic disinvestment in 24 CPSEs. This includes
strategic privatization of Air India.
124. Process of acquisition of Hindustan Petroleum Corporation by the
ONGC has been successfully completed. Three public sector general
insurance companies National Insurance Company Ltd., United India
Assurance Company Limited and Oriental India Insurance Company
Limited will be merged into a single insurance entity and will be
subsequently listed.
125. The Government introduced Exchange Traded Fund Bharat-22 to
raise `14,500 crore, which was over-subscribed in all segments. DIPAM
will come up with more ETF offers including debt ETF.
126. 2017-18 Budget Estimates for disinvestment were pegged at the
highest ever level of `72,500 crore. I am happy to inform the House
that we have already exceeded the budget estimates. I am assuming
receipts of `1,00,000 crore in 2017-18. I am setting the disinvestment
target of `80,000 crore for 2018-19.
127. Bank recapitalization program has been launched with bonds of
`80,000 crore being issued this year. The programme has been
integrated with an ambitious reform agenda, under the rubric of an
Enhanced Access and Service Excellence (EASE) programme. This
recapitalization will pave the way for the public sector banks to lend
additional credit of `5 lakh crore.
128. It is proposed to allow strong Regional Rural Banks to raise
capital from the market to enable them increase their credit to rural
economy.
129. National Housing Bank Act is being amended to transfer its equity
from the Reserve Bank of India to the Government. Indian Post Offices
Act, Provident Fund Act and National Saving Certificate Act are being
amalgamated and certain additional people friendly measures are being
introduced. To provide the Reserve Bank of India an instrument to
manage excess liquidity, Reserve Bank of India Act is being amended to
institutionalize an Uncollateralized Deposit Facility. Securities and
23
Exchange Board of India, Act 1992, Securities Contracts (Regulation) Act
1956, and Depositories Act 1996, are being amended to streamline
adjudication procedures and to provide for penalties for certain
infractions. These proposals are in the Finance Bill.
130. For easier access, links to all Detailed Demand for Grants will be
provided at india.gov.in. The Government will also consider feasibility of
providing disclosed fiscal information in a machine readable form.
131. The Government is transforming method of disposal of its
business by introduction of e-office and other e-governance initiatives in
central Ministries and Departments. These initiatives are listed in
Annexure IV.
132. The Government will formulate a comprehensive Gold Policy to
develop gold as an asset class. The Government will also establish a
system of consumer friendly and trade efficient system of regulated gold
exchanges in the country. Gold Monetization Scheme will be revamped
to enable people to open a hassle-free Gold Deposit Account.
133. Outward Direct Investment (ODI) from India has grown to US$15
billion per annum. The Government will review existing guidelines and
processes and bring out a coherent and integrated Outward Direct
Investment (ODI) policy.
134. Hybrid instruments are suitable for attracting foreign investments
in several niche areas, especially for the startups and venture capital
firms. The Government will evolve a separate policy for the hybrid
instruments.
135. The emoluments of the President, the Vice President and the
Governors were last revised with effect from 1st January, 2006. These
emoluments are proposed to be revised to `5 lakh for the President,
`4 lakhs for the Vice President and to `3.5 lakh per month for the
Governors.
136. There has been a public debate with regard to the emoluments
paid to the Members of Parliament. Present practice allows the
recipients to fix their own emoluments which invites criticism. I am,
therefore, proposing necessary changes to refix the salary, constituency
allowance, office expenses and meeting allowance payable to Members
of Parliament with effect from April 1, 2018. The law will also provide
for automatic revision of emoluments every five years indexed to
inflation. I am sure Hon’ble Members will welcome this initiative and will
not suffer such criticism in future.
24
137. Our country will commemorate 150th birth anniversary of
Mahatma Gandhi, Father of the Nation, from 2nd October, 2019 to 2nd
October 2020. The Government and the People of India will rededicate
them, through their actions, to the ideals that the Mahatma taught and
lived by. A National Committee, chaired by the Prime Minister, which
includes Chief Ministers of all the States, representatives from across the
political spectrum, Gandhians, thinkers and eminent persons from all
walks of life, has been constituted to formulate a Commemoration
Programme. My Government has earmarked `150 crore for the year
2018-19 for the activities leading to the Commemoration.
Section III – Fiscal Management
138. I now turn to the fiscal situation for 2017-18 and fiscal estimates
for 2018-19.
139. In 2017-18, Central Government will be receiving GST revenues
only for 11 months, instead of 12 months. This will have fiscal effect.
There has also been some shortfall in Non-Tax revenues on account of
certain developments, including deferment of spectrum auction. A part
of this shortfall has been made up through higher direct tax revenues
and bigger disinvestment receipts.
140. Total Revised Estimates for expenditure in 2017-18 are `21.57
lakh crore (net of GST compensation transfers to the States) as against
the Budget Estimates of `21.47 lakh crore.
141. Our Government assumed office in May, 2014 when fiscal deficit
was running at very high levels. Fiscal Deficit for 2013-14 was 4.4% of
GDP. The Prime Minister and the Government have always attached
utmost priority to prudent fiscal management and controlling fiscal
deficit. As Hon’ble Members would recall, we embarked on the path of
consistent fiscal reduction and consolidation in 2014. Fiscal Deficit was
brought down to 4.1% in 2014-15 to 3.9% in 2015-16, and to 3.5% in
2016-17. Revised Fiscal Deficit estimates for 2017-18 are `5.95 lakh
crore at 3.5% of GDP. I am projecting a Fiscal Deficit of 3.3% of GDP for
the year 2018-19.
142. In order to impart unquestionable credibility to the Government’s
commitment for the revised fiscal glide path, I am proposing to accept
key recommendations of the Fiscal Reform and Budget Management
Committee relating to adoption of the Debt Rule and to bring down
Central Government’s Debt to GDP ratio to 40%. Government has also
accepted the recommendation to use Fiscal Deficit target as the key
operational parameter. Necessary amendment proposals are included in
the Finance Bill.
25
PART B
Madam Speaker,
143. I shall now present my tax proposals.
144. The attempts made by our Government for reducing the cash
economy and for increasing the tax net have paid rich dividends. The
growth rate of direct taxes in the financial years 2016-17 and 2017-18 has
been significant. We ended the last year with a growth of 12.6% in direct
taxes and in the current year, the growth in direct taxes up to 15th January,
2018 is 18.7%. The average buoyancy in personal income tax of seven years
preceding these two years comes to 1.1. In simple terms tax buoyancy of
1.1 means that if nominal GDP growth rate of the country is 10%, the
growth rate of personal income tax is 11%. However, the buoyancy in
personal income tax for financial years 2016-17 and 2017-18 (RE) is 1.95
and 2.11 respectively. This indicates that the excess revenue collected in
the last two financial years from personal income tax compared to the
average buoyancy pre 2016-17 amounts to a total of about `90,000 crores
and the same can be attributed to the strong anti-evasion measures taken
by the Government.
145. Similarly, there has been huge increase in the number of returns
filed by taxpayers. In financial year 2016-17, 85.51 lakhs new taxpayers filed
their returns of income as against 66.26 lakhs in the immediately preceding
year. By including all filers as well as persons who did not file returns but
paid tax by way of advance tax or TDS, we can derive the figure of Effective
Taxpayer Base. This number of effective tax payer base increased from 6.47
crores at the beginning of F.Y.14-15 to 8.27 crores at the end of F.Y.16-17.
We are enthused by this success of our measures and we pledge to
continue to take all such measures in future by which the black money is
contained and the honest taxpayers are rewarded. Demonetization was
received well by honest taxpayers as “imandari ka utsav” only for this
reason.
146. Madam Speaker, recognising the need for facilitating compliance,
Government had liberalized the presumptive income scheme for small
traders and entrepreneurs with annual turnover of less than `2 crores and
introduced a similar scheme for professionals with annual turnover of less
than `50 lakhs with the hope that there would be significant increase in
compliance. Under this scheme, 41% more returns were filed during this
year which shows that many more persons are joining the tax net under
simplified scheme. However, the turnover shown is still not encouraging.
The Department has received 44.72 lakh returns for assessment year
26
2017-18 from individual, HUF and firms with a meagre average turnover of
`17.97 lakhs and an average tax payment of `7,000/- only. The tax
compliance behaviour of professionals is no better; the department has
received 5.68 lakh returns under the presumptive income scheme for
assessment year 2017-18 with average gross receipts of `5.73 lakhs only.
Average tax paid by them is only `35,000/-.
Tax incentive for promoting post-harvest activities of agriculture
147. Madam Speaker, at present, hundred per cent deduction is allowed
in respect of profit of co-operative societies which provide assistance to its
members engaged in primary agricultural activities. Over the last few years,
a number of Farmer Producer Companies have been set up along the lines
of co-operative societies which also provide similar assistance to their
members. In order to encourage professionalism in post-harvest value
addition in agriculture, I propose to allow hundred per cent deduction to
these companies registered as Farmer Producer Companies and having
annual turnover up to `100 crores in respect of their profit derived from
such activities for a period of five years from financial year 2018-19. This
measure will encourage “Operation Greens” mission announced by me
earlier and it will give a boost to Sampada Yojana.
Employment generation
148. Currently, a deduction of 30% is allowed in addition to normal
deduction of 100 % in respect of emoluments paid to eligible new
employees who have been employed for a minimum period of 240 days
during the year under section 80-JJAA of the Income-tax Act. However, the
minimum period of employment is relaxed to 150 days in the case of
apparel industry. In order to encourage creation of new employment,
I propose to extend this relaxation to footwear and leather industry.
Further, I also propose to rationalise this deduction of 30% by allowing the
benefit for a new employee who is employed for less than the minimum
period during the first year but continues to remain employed for the
minimum period in subsequent year.
Incentive for real estate
149. Currently, while taxing income from capital gains, business profits
and other sources in respect of transactions in immovable property, the
consideration or circle rate value, whichever is higher, is adopted and the
difference is counted as income both in the hands of the purchaser and
seller. Sometimes, this variation can occur in respect of different properties
in the same area because of a variety of factors including shape of the plot
and location. In order to minimize hardship in real estate transaction,
27
I propose to provide that no adjustment shall be made in a case where the
circle rate value does not exceed 5% of the consideration.
Incentivising micro, small and medium entrepreneurs
150. In the Union Budget, 2017, I had announced the reduction of
corporate tax rate to 25% for companies whose turnover was less than `50
crore in financial year 2015-16. This benefitted 96% of the total companies
filing tax returns. Towards fulfilment of my promise to reduce corporate tax
rate in a phased manner, I now propose to extend the benefit of this
reduced rate of 25% also to companies who have reported turnover up to
`250 crore in the financial year 2016-17. This will benefit the entire class of
micro, small and medium enterprises which accounts for almost 99% of
companies filing their tax returns. The estimate of revenue forgone due to
this measure is `7,000 crores during the financial year 2018-19. After this,
out of about 7 lakh companies filing returns, about 7,000 companies which
file returns of income and whose turnover is above `250 crores will remain
in 30% slab. The lower corporate income tax rate for 99% of the companies
will leave them with higher investible surplus which in turn will create more
jobs.
Relief to salaried taxpayers
151. The Government had made many positive changes in the personal
income-tax rate applicable to individuals in the last three years. Therefore,
I do not propose to make any further change in the structure of the income
tax rates for individuals. There is a general perception in the society that
individual business persons have better income as compared to salaried
class. However, income tax data analysis suggests that major portion of
personal income-tax collection comes from the salaried class. For
assessment year 2016-17, 1.89 crore salaried individuals have filed their
returns and have paid total tax of `1.44 lakh crores which works out to
average tax payment of `76,306/- per individual salaried taxpayer. As
against this, 1.88 crores individual business taxpayers including
professionals, who filed their returns for the same assessment year paid
total tax of `48,000 crores which works out to an average tax payment of
`25,753/- per individual business taxpayer. In order to provide relief to
salaried taxpayers, I propose to allow a standard deduction of `40,000/- in
lieu of the present exemption in respect of transport allowance and
reimbursement of miscellaneous medical expenses. However, the transport
allowance at enhanced rate shall continue to be available to differentlyabled
persons. Also other medical reimbursement benefits in case of
hospitalization etc., for all employees shall continue. Apart from reducing
paper work and compliance, this will help middle class employees even
28
more in terms of reduction in their tax liability. This decision to allow
standard deduction shall significantly benefit the pensioners also, who
normally do not enjoy any allowance on account of transport and medical
expenses. The revenue cost of this decision is approximately `8,000 crores.
The total number of salaried employees and pensioners who will benefit
from this decision is around 2.5 crores.
Relief to senior citizen
152. A life with dignity is a right of every individual in general, more so for
the senior citizens. To care of those who cared for us is one of the highest
honours. To further the objective of providing a dignified life, I propose to
announce the following incentives for senior citizens:
 Exemption of interest income on deposits with banks and post
offices to be increased from `10,000/- to `50,000/- and TDS shall
not be required to be deducted on such income, under section 194A.
This benefit shall be available also for interest from all fixed deposits
schemes and recurring deposit schemes.
 Raising the limit of deduction for health insurance premium and/ or
medical expenditure from `30,000/- to `50,000/-, under section
80D. All senior citizens will now be able to claim benefit of deduction
up to `50,000/- per annum in respect of any health insurance
premium and/or any general medical expenditure incurred.
 Raising the limit of deduction for medical expenditure in respect of
certain critical illness from, `60,000/- in case of senior citizens and
from `80,000/- in case of very senior citizens, to `1 lakh in respect of
all senior citizens, under section 80DDB.
These concessions will give extra tax benefit of `4,000 crores to senior
citizens. In addition to tax concessions, I propose to extend the Pradhan
Mantri Vaya Vandana Yojana up to March, 2020 under which an assured
return of 8% is given by Life Insurance Corporation of India. The existing
limit on investment of `7.5 lakh per senior citizen under this scheme is also
being enhanced to `15 lakh.
Tax incentive for International Financial Services Centre (IFSC)
153. The Government had endeavoured to develop a world class
international financial services centre in India. In recent years, various
measures including tax incentives have been provided in order to fulfil this
objective. To further this objective, I propose to provide two more
concessions for IFSC. In order to promote trade in stock exchanges located
in IFSC, I propose to exempt transfer of derivatives and certain securities by
29
non-residents from capital gains tax. Further, non-corporate taxpayers
operating in IFSC shall be charged Alternate Minimum Tax (AMT) at
concessional rate of 9% at par with Minimum Alternate Tax (MAT)
applicable for corporates.
Further Measures to control cash economy:
154. Currently, the income of trusts and institutions is exempt if they
utilise their income towards their objects in accordance with the relevant
provisions of the Income-tax Act. However, there is no restriction on these
entities for incurring expenditure in cash. In order to have audit trail of the
expenses incurred by these entities, it is proposed that payments exceeding
`10,000/- in cash made by such entities shall be disallowed and the same
shall be subject to tax. Further, in order to improve TDS compliance by
these entities, I propose to provide that in case of non-deduction of tax,
30% of the amount shall be disallowed and the same shall be taxed.
Rationalisation of Long Term Capital Gains (LTCG)
155. Madam Speaker, currently, long term capital gains arising from
transfer of listed equity shares, units of equity oriented fund and unit of a
business trust are exempt from tax. With the reforms introduced by the
Government and incentives given so far, the equity market has become
buoyant. The total amount of exempted capital gains from listed shares and
units is around `3,67,000 crores as per returns filed for A.Y.17-18. Major
part of this gain has accrued to corporates and LLPs. This has also created a
bias against manufacturing, leading to more business surpluses being
invested in financial assets. The return on investment in equity is already
quite attractive even without tax exemption. There is therefore a strong
case for bringing long term capital gains from listed equities in the tax net.
However, recognising the fact that vibrant equity market is essential for
economic growth, I propose only a modest change in the present regime.
I propose to tax such long term capital gains exceeding `1 lakh at the rate
of 10% without allowing the benefit of any indexation. However, all gains
up to 31st January, 2018 will be grandfathered. For example, if an equity
share is purchased six months before 31st January, 2018 at `100/- and the
highest price quoted on 31st January, 2018 in respect of this share is `120/-,
there will be no tax on the gain of `20/- if this share is sold after one year
from the date of purchase. However, any gain in excess of `20 earned after
31st January, 2018 will be taxed at 10% if this share is sold after 31st July,
2018. The gains from equity share held up to one year will remain short
term capital gain and will continue to be taxed at the rate of 15%. Further,
I also propose to introduce a tax on distributed income by equity oriented
mutual fund at the rate of 10%. This will provide level playing field across
30
growth oriented funds and dividend distributing funds. In view of
grandfathering, this change in capital gain tax will bring marginal revenue
gain of about `20,000 crores in the first year. The revenues in subsequent
years may be more.
Health and Education Cess
156. Madam Speaker, at present there is a three per cent cess on
personal income tax and corporation tax consisting of two per cent cess for
primary education and one per cent cess for secondary and higher
education. In order to take care of the needs of education and health of BPL
and rural families, I have announced programs in Part A of my speech. To
fund this, I propose to increase the cess by one per cent. The existing three
per cent education cess will be replaced by a four per cent “Health and
Education Cess” to be levied on the tax payable. This will enable us to
collect an estimated additional amount of `11,000 crores.
E-assessment.
157. We had introduced e-assessment in 2016 on a pilot basis and in
2017, extended it to 102 cities with the objective of reducing the interface
between the department and the taxpayers. With the experience gained so
far, we are now ready to roll out the E-assessment across the country,
which will transform the age-old assessment procedure of the income tax
department and the manner in which they interact with taxpayers and
other stakeholders. Accordingly, I propose to amend the Income-tax Act to
notify a new scheme for assessment where the assessment will be done in
electronic mode which will almost eliminate person to person contact
leading to greater efficiency and transparency.
158. My other tax proposals on direct tax are listed in Annexure 5 of my
speech.
Indirect Tax.
159. On the Indirect Taxes side, this is the first budget after the roll out of
the Goods and Service Tax. Excise duties to a large extent and service tax
have been subsumed in GST, along with corresponding duties on imports.
Hence, my budget proposals are mainly on the customs side.
160. In this budget, I am making a calibrated departure from the
underlying policy in the last two decades, wherein the trend largely was to
reduce the customs duty. There is substantial potential for domestic value
addition in certain sectors, like food processing, electronics, auto
components, footwear and furniture. To further incentivise the domestic
value addition and Make in India in some such sectors, I propose to increase
31
customs duty on certain items. I propose to increase customs duty on
mobile phones from 15% to 20%, on some of their parts and accessories to
15% and on certain parts of TVs to 15%. This measure will promote creation
of more jobs in the country. Details of changes made in rates of customs
duty as well as certain changes made in the excise duty structure are given
in Annexure 6 to my speech.
161. To help the cashew processing industry, I propose to reduce
customs duty on raw cashew from 5% to 2.5%.
162. I propose to abolish the Education Cess and Secondary and Higher
Education Cess on imported goods, and in its place impose a Social Welfare
Surcharge, at the rate of 10% of the aggregate duties of Customs, on
imported goods, to provide for social welfare schemes of the Government.
Goods which were hitherto exempt from Education Cesses on imported
goods will, however, be exempt from this Surcharge. In addition, certain
specified goods, mentioned in the Annexure 6 to my speech will attract the
proposed Surcharge at the rate of 3% of the aggregate duties of customs
only.
163. I also propose to make certain changes to the Customs Act, 1962, to
further improve ease of doing business in cross border trade, and to align
certain provisions with the commitments under the Trade Facilitation
Agreement. To smoothen dispute resolution processes and to reduce
litigation, certain amendments are being made, to provide for pre-notice
consultation, definite timelines for adjudication and deemed closure of
cases if those timelines are not adhered to.
164. With the roll out of GST, I propose to change the name of Central
Board of Excise and Customs [CBEC] to Central Board of Indirect Taxes and
Customs (CBIC). The necessary changes in law for this are proposed in the
Finance Bill.
165. Madam, while making the proposals in this year’s Budget, we have
been guided by our mission to especially strengthen agriculture, rural
development, health, education, employment, MSME and infrastructure
sectors of Indian economy. I am sure the New India which we aspire to
create now will emerge. Swami Vivekanand had also envisioned decades
ago in his Memoirs of European Travel, ‘‘You merge yourselves in the void
and disappear, and let new India arise in your place. Let her arise – out of
the peasants’ cottage, grasping the plough; out of the huts of the fisherman.
Let her spring from the grocer’s shop, from beside the oven of the fritterseller.
Let her emanate from the factory, from marts, and from markets.
Let her emerge from groves and forests, from hills and mountains’’.
32
166. With these words, Madam Speaker, I commend the Budget to the
House.
33
Annexure I
(as referred in para 45)
Budgetary & Non-Budgetary Resources on Agriculture & other Livelihood
Programmes in Rural Area
(`crore)
Name of
Scheme
Infrastructure/
Livelihood /
Both
2018-19 targets
Physical Target Financial Target
GBS EBR Total
M/o Water Resources, River Development & Ganga Rejuvenation
PMKSY-AIBP Infrastructure 48 AIBP priority
Projects by December
2019
15000 15000
PMKSY-HKKP
(CADWM)
Infrastructure Utilisation of irrigation
potential of 15 lakh
Hectare
2300 2300
Other Schemes
of MoWR,
RD&GR
Both 1461 1461
Sub-total MoWR,RD&GR 3761 15000 18761
Department of Agriculture, Cooperation & Farmers Welfare
Pradhan Mantri
Fasal Bima
Yojna
Livelihood 98 million ha Gross
Crop Area
13000 13000
Interest Subsidy
for short term
credit to
Farmers
Livelihood 15000 15000
Pradhan Mantri
Krishi Sinchayee
Yojana
Infrastructure Irrigation projects
covering 17.2 lakh ha
4000 4000
Livelihood 15 lakh beneficiaries
National Food
Security
Mission
Livelihood 1.81 lakh beneficiaries 1500 1500
Sub Mission on
Agricultural
Mechanization
Infrastructure 62466 centres for
Agriculture Machinery
and equipment, Farm
Machinery Banks, HiTech
Productive
Equipment
1100 1100
Livelihood 17.81 lakh
beneficiaries
34
Rashtriya Krishi
Vikas Yojana
(RKVY)
Infrastructure 10,45,878 Cold
Storage, Godowns,
Glass Houses, Custom
Hiring Centers, Soil/
Seed Testing Labs, etc.
3100 3100
Livelihood 116.99 lakh
beneficiaries
Mission for
Integrated
Development of
Horticulture
Infrastructure 3,30,436 centres 1599 1599
Other Schemes
of D/o AC&FW
Both 2912 2912
Sub-total of D/o AC&FW 42211 42211
Ministry of Food Processing
Scheme for
Mega Food
Parks
Infrastructure 12 Mega Food Parks 390 1170 1560
Livelihood Direct & indirect
employment to 95000
persons in 2017-18 &
2018-19
Scheme for
Cold Chain and
Value Addition
Infrastructure
Infrastructure 101 projects 220 880 1100
Livelihood Direct: 12000 &
indirect: 63000
employment in 2017-
18 & 2018-19
Other Schemes
of M/o Food
Processing
Both 210 640 850
Sub-total of M/o Food
Processing
820 2690 3510
Department of Agriculture, Research and Education
DARE Livelihood Production of 21960
tons Seeds, 255 lakh
nos. planting material,
132.5 lakh nos. Animal
resources
7800 7800
1.60 lakh Frontline
demonstration
450 Farm level
trainings
20 lakh Human
Resources
development
Infrastructure/ Basic
amenities
development in 98
SAUs, 681 existing
KVKs & 59 new KVKs
Sub-total of DARE 7800 7800
35
Ministry of Drinking Water & Sanitation
Swachh Bharat
Mission
(Gramin)
Infrastructure (a) 1.88 crore
Household toilets (b)
Employment: 16.92
crore Persondays
15343 15000 30343
Livelihood
National Rural
Drinking Water
Programme
(NRDWP)
Infrastructure Infrastructure creation
through Piped Water
Supply Schemes and
Community Water
Purification Plants –
84000 habitats
7000 7000
Livelihood Livelihood generation
– 84000
Sub-total of M/o DWS 22343 15000 37343
Ministry of Rural Development/ Department of Rural Development
Pradhan Mantri
Awaas Yojana –
Gramin (PMAY-G)
Both 49 lakh houses, 46.55
crore Mandays
21000 12000 33000
Pradhan Mantri
Gram Sadak
Yojana (PMGSY)
Both 57,000 km roads &
28.35 crore Mandays
19000 19000
Mahatma
Gandhi National
Rural
Employement
Guarantee
Programme
(MGNREGA)
Infrastructure 8552 AWC, 2.60 lakh
Kms. of Rural Roads,
1.83 lakh
Vermi/NADEP
Compost, 675 Food
Storage Godowns,
8340 GP
Bhawan/Bharat
Nirman Seva Kendra
55000 55000
Livelihood I. Cattle Shed/ Poultry
Shelter/ Piggery shed –
99648
II. Land Development –
1.65 lakh
230 cr Persondays
National
Livelihood
MissionAajeevika

NRLM
Livelihood
under NRLM
including
MKSP, SVEP,
Skill
Development
9 lakh nos. of new
SHGs to be formed
5750 5750
Number of Mahila
Kisan to be supported5
lakh
Value Chain
Development Project15
Number of SVEP
enterprises-25000
Number of Trainess to
be Skilled – 4 lakh
Sub-total of D/o Rural
Development
100750 12000 112750
36
Ministry of Rural Development/ Department of Land Resources
1. Watershed
Development
Component of
Pradhan Mantri
Krishi Sinchayee
Yojana (WDCPMKSY)
Infrastructure 1.30 lakh nos.Water
Harvesting Structures
to be
created/rejuvenated
2146 2146
1.81 lakhs ha area to
be brought under
protective irrigation
Livelihood 3. No. of farmers
benefitted -5.01 lakh
Other Schemes of D/o Land
Resources
250 250
Sub-total of D/o Land
Development
2396 2396
Ministry of Power
Deen Dayal
Upadhyaya
Gram Jyoti
Yojana
(DDUGJY)
Infrastructure (i) Intensive
electrification of
villages – 1 lakh nos.
(ii) Feeder segregation
including new 11 KV
Lines – 1 lakh Circuit
Km
(iii) Commissioning of
Substations (New &
Augmentation) – 600
nos.
3800 15000 18800
Pradhan Mantri
Sahaj Bijli Har
Ghar Yojana
(Saubhagya)
Electricity connections
to Households – 175
lakh nos.
2750 2750
Sub-total of M/o Power 6550 15000 21550
Ministry of Micro, Small & Medium Enterprises
Prime
Minister’s
Employment
Generation
Programme
(PMEGP)
Livelihood 49000 projects
294000 Employment
1260 1260
Other Schemes
of MSME
Both 1648 1648
Sub-total of MSME 2908 2908
Ministry of Panchayati Raj
Fourteenth
Finance
Commission
(FFC) Grant to
Gram
Panchayats for
the period
2015-2020
Both Works at Gram
Panchayat level in
focus areas of Health
& Sanitation, Drinking
Water, Rural
Electrification,
Maintenance of
Community Assets, etc
45069 45069
37
Other Schemes
of M/o
Panchayati Raj
Both 348 348
Sub-total of M/o Pachayati Raj 45417 45417
Ministry of Skill Development & Entrepreneurship
PMKVY 2.0 Livelihood 18 lakh beneficiaries 1171 1171
Sub-total of M/o Skill
Development
1171 1171
Department of Financial Services
Agriculture
Credit
Livelihood 1100000 1100000
Micro Irrigation
Fund
2000 2000
Rural
Infrastrucure
Development
Fund (RIDF)
Infrastructure 28000 28000
NABARD
Infrastructure
Development
Assistance
(NIDA)
3500 3500
Dairy Infra
Development
Fund (DIDF)
2000 2000
Fisheries &
Aquaculture
Infra
Development
(FIDF)
1000 1000
Agri-market
Infrastructure
2000 2000
Sub-total D/o Financial Services 1138500 1138500
Total 236127 1198190 1434317
Note: The above allocations are specific for infrastructure and livelihood
development in agri and Rural sector
38
Annexure II
(As referred in Para 70)
Schematic outlays under Education, Health and
Social Protection Sectors
(Schematic Outlays)
Ministry/Department/Scheme Name 2017-18 2018-19
Health & Family Welfare 47,353 52,800
CSS+CS in Health 34,657 39,199
of which
PMSSY 3,975 3,825
National AIDS and STD Control programmme 2,000 2,100
National Rural Health Mission 21,189 24,280
National Urban Health Mission 752 875
Human Resoruces for Health & Medical
Education
4,025 4,225
Tertiary care programme 725 750
RSBY 1,000 2,000
AYUSH 1,429 1,626
CSS+CS 509 576
of which
NAM 441 504
Health Research 1,500 1,800
School Education 46,356 50,000
CSS+CS 38,981 42,391
of which
SSA 23,500 26,129
RMSA 3,830 4,022
Mid day meal 10,000 10,500
Higher Education 33,330 35,010
CS+CSS 5,526 8,512
of which
Rashtriya Uchchatar Shiksha Abhiyan (RUSA) 1,300 1,400
Interest subsidy and contribution for guarantee 1,950 2,150
39
fund
HEFA 250 2,750
e-Shodh Sindu 240 180
Technical Education- Quality Improvement
Programme
260 275
Scholarship for College and University Students 320 340
Programme for Apprenticeship Training –
Scholarships & Stipentes
110 125
World Class Institutions 50 250
Setting up of virtual class room 75 90
Madan Mohan Malviya National Mission on
Teachers and Teaching
120 120
ABs 26,896 25,339
of which
Indian Institutes of Technology 7,856 6,326
IIM 1,030 1,036
Rural Development
National Social Assistance Program 9,500 9,975
Social Justice 6,908 7,750
CS+CSS 6,836 7,670
of which
Prematric Scholarship (SC) 50 125
Post-matric scholarship (SC) 3,348 3,000
Special Central Assistance to SC sub schemes 800 1,000
Post-matric scholarship for OBC 885 1,100
Pre-matric scholarship for OBC 142 232
National fellowship for SCs 230 300
Empowerment of Persons with Disability 855 1,070
CS+CSS 559 744
of which
Assistance to Disabled Persons for purchase/
fitting of Aids and appliances
150 220
Schemes for Implementation of Persons with
Disability Act
207 300
40
Department of Women and Child
Development
22,095 24,700
CSS 21,844 24,454
of which
Anganwadi Services 15,245 16,335
Schemes for Adolescent girls 460 500
Pradhan Mantri Matru Vandana Yojana 2,700 2,400
Nirbhaya Fund Schemes 500 500
Child Protection Scheme 648 725
National Nutrition Mission 1,500 3,000
Mission for protection and empowerment of
women (Umbrella)
1,089 1,366
Minority Affairs 4,195 4,700
CS+CSS 3,969 4,460
of which
Education Empowerment 2,054 2,453
Skill Development & Livelihood 635 602
MSDP 1,200 1,320
TOTAL of Schemes (CS+CSS) 1,22,381 1,37,981
Demand/Ministry-wise
Total featured above, except for
MoRD
1,64,020 1,79,457
41
Annexure III
(As referred in Para 114)
Capital Outlay on Infrastructure Sector
` crore
RE 2017-18 BE 2018-19
Ministry/Deptt. Scheme/CPSEs GBS IEBR GBS IEBR
1. Ministry of Coal
(10)
i) Coal India Limited 0 8500 0 9500
ii) NLC India Limited 0 4578 0 4299
iii) Singareni Colleries
Co. Ltd.
0 1400 0 2000
Total 0 14478 0 15799
2. Ministry of
Development of
North Eastern
Region (23)
i)Central Pool of
Resources for North
East and Sikkim
175 0 310 0
ii) Construction/
Improvement of Roads
of Economic
Importance
5 0 40 0
iii) North East Road
Sector Develop.
Scheme- Programme
Component
150 0 250 0
Total 330 0 600 0
3. Ministry of
New and
Renewable
Energy (67)
i) Indian Renewable
Energy Development
Agency
0 9287 0 10099
ii) Solar Energy
Corporation of India
50 179 0 217
Total 50 9466 0 10317
4. Ministry of
Petroleum and
Natural Gas (72)
i) Payment to Indian
Strategic Petroleum
Reserve Ltd. (ISPRL) for
Crude Oil Reserve
1121 0 701 0
ii) Phulpur Dhamra
Haldia Pipeline Project
400 0 1674 0
iii) National Seismic
Programme
10 0 1300 0
iv) Bharat Petroleum
Corporation Ltd.
0 7800 0 7400
v) Chennai Petroleum
Corp. Ltd.
0 865 0 1010
vi) Engineers India Ltd. 0 0 0 1356
42
vii) Gas Authority of
India Ltd.
0 3309 0 4722
viii) Hindustan
Petroleum Corp. Ltd.
0 7110 0 8425
ix) Indian Oil Corp. Ltd. 0 18849 0 22862
x) Mangalore
Refineries and
Petrochemicals Ltd.
0 1138 0 744
xi) Numaligarh Refinery
Ltd.
0 375 0 428
xii) Oil and Natural Gas
Corp. Ltd.
0 37218 0 32077
xiii) Oil India Ltd. 0 4263 0 4300
xiv) Oil Natural Gas
Corp. Videsh Ltd.
0 6393 0 5886
Total 1531 87319 3675 89210
5. Ministry of
Power (74)
i) 220 KV Transmission
line from Srinagar to
Leh via Kargil
500 0 500 0
ii) Damodar Valley
Corp. Ltd.
0 1057 0 1606
iii) National Hydro
Electric Power Corp.
Ltd.
350 3173 482 2258
iv) National Thermal
Power Corp. Ltd.
0 28000 0 22300
v) North Eastern
Electric Power Corp.
Ltd.
1 1212 267 122
vi) Power Finance Corp.
Ltd.
0 4000 0 0
vii) Power Grid Corp. of
India Ltd.
0 25000 0 25000
viii) Satluj Jal Vidyut
Nigam Ltd.
0 609 0 935
ix) Tehri Hydro
Development Corp.
Ltd.
32 1267 52 1248
Total 883 64318 1301 53469
Ministry of Civil
Aviation (9)
Airport Authority of
India
150 2543 0 4086
Total 150 2543 0 4086
Department of
Telecommunicati
on (14)
Defence Spectrum –
Optical Fibre Cable
based network for
Defence Services
3755 0 4500 0
43
Investment in CPE
(Bharat Broadband
Network Ltd.)
0 9786 0 16986
Total 3755 9786 4500 16986
Ministry of
Defence (Misc)
(19)
Works executed by
Border Roads
Development Board
2708 0 2785 0
Coast Guard
Organisation
2200 2700
Total 4908 0 5485 0
Ministry of
Railways (80)
Capital Outlay on
Indian Railways
40000 34900 53060 38500
Indian Railway Finance
Corporation
45100 54940
Total 40000 80000 53060 93440
Department of
Atomic Energy (4)
Nuclear Power
Corporation of India
Ltd.
1435 7785 1665 5656
Total 1435 7785 1665 5656
Ministry of
Housing And
Urban Affairs (56)
MRTS and Metro
Projects
17810 1477 14924 1897
Housing And Urban
Develpoment
Corporation
0 13716 0 13040
PMAY (Urban) 6043 0 6500 25000
Total 23853 15193 21424 39937
Ministry of Road
Transport and
Highways (81)
Investment in NHAI 23892 59279 29663 62000
Roads And Bridges 26967 0 29762 0
Total 50858 59279 59425 62000
Ministry of
Shipping (87)
Sagarmala 125 0 250 0
VoChidambaranar Port
Trust
163 342
Jawaharlal Nehru Port
Trust
1569 2065
Mumbai Port Trust 410 432
Deen Dayal Port Trust
Kandla
347 458
Kamarajar Port Trust 325 250
Cochin Shipyard
Limited
351 495
Total 125 3165 250 4042
44
Ministry of Steel
(93)
Ferro Scrap Nigam
limited
0 28 0 23
KIOCL 0 2024 0 1782
Manganese Ore India
Limited
0 272 0 279
MECON Limited 0 5 0 5
MSTC Limited 0 33 0 49
NMDC Limited 0 3324 0 3778
Rashtriya Ispat nigam
Limited
0 1570 0 1400
Steel Authority Of India
Limited
0 4200 0 4000
Total 0 11428 0 11294
Department of
Higher Education
(58)
HEFA 250 0 2750 28000
Total 250 0 2750 28000
Ministry of
Electronics &
Information
Technology
Digital India 1426 3073 5700
Total 1426 3073 5700
Grand Total 129554 364759 157208 439935
494313 597143
45
Annexure IV
(As referred in para 131)
E-office and E-governance initiatives in central Ministries and
Departments
1. A web-based Government Integrated Financial Management
Information System (GIFMIS), administered by Controller General of
Accounts, for budgeting, accounting, expenditure and cash
management for more effective fiscal management of Government.
2. A Non Tax Receipt Portal (NTRP) to provide one stop services for
depositing fees, fines and other non-tax dues into Government
account;
3. Project ‘e-Vidhan’ to digitize and make the functioning of all State
Legislatures paperless.
4. A Central Public Procurement Portal to provide a single point access
for all information on procurement. Around 3.5 lakh contractors and
vendors are registered on this platform. In November, 2017 alone,
electronic bids for over one lakh tenders valued at around two lakh
forty thousand crore were invited through this Portal.
5. The Government E-Marketplace (GeM) to facilitate procurement at
the right price, in right quality and quantity in a transparent and
efficient manner. Third version of the GeM platform (GeM 3.0) will
be launched on 26th January, 2018. The platform has seventy eight
thousand buyers, fifty six thousand sellers, three lakh seventy five
thousand products and twelve services. Besides facilitating
transaction of the value of `3000 crore in about two lakh
46
transactions, it could achieve savings of more than 25% over the
base price.
6. E-Courts, to bring about universal computerization of all Districts
and Subordinate Courts, use of cloud computing and availability of
e-services like e-filing and e-payments as well.
7. A National Judicial Data Grid to provide an online platform for
information relating to judicial proceedings and decisions from over
sixteen thousand computerized Courts and Subordinate Courts in
the country. An e-Courts Services App has also been launched to
provide litigant centric services.
8. e-Panchayats platform to provide a suite of core common
applications to address various aspects of panchayats functioning
from internal core functions of planning, budgeting, implementation,
accounting, monitoring and social audit to delivery of services like
issue of certificates, licenses etc.
47
Annexure V to Part B of Budget Speech
Other changes in Direct Taxes:
1. It is proposed that the provision of section 79 of the Income-tax Act (the
Act) regarding restriction on shareholding for the purpose of carry forward
loss shall not apply in case of change of shareholding pursuant to an
approved resolution plan under IBC, 2016 where an opportunity of being
heard has been given to the Principal Commissioner or Commissioner.
2. In respect of companies where an application under Insolvency and
Bankruptcy Code (IBC), 2016 has been admitted, it is proposed to provide
that for the purpose of computation of Minimum Alternative Tax (MAT) the
aggregate amount of unabsorbed depreciation and brought forward loss
shall be allowed to be reduced from the book profit.
3. It is proposed to provide that the insolvency resolution professional shall
verify the return of income in case of a company where an application under
IBC, 2016 has been admitted.
4. It is proposed to provide that provisions of MAT shall not apply in respect of
foreign companies having income solely from businesses referred to in
sections 44B, 44BB, 44BBA and 44BBB of the Act provided such income has
been offered to tax at the rates specified in these sections.
5. It is proposed to extend the benefit of exemption for withdrawal up to 40%
from National Pension System Trust (NPS) to all subscribers and not only to
employees.
6. It is proposed to provide that in a case where premium for health insurance
for multiple years has been paid in one year, the deduction shall be allowed
proportionately over the years for which the benefit of health insurance is
available.
7. In order to encourage start-ups, the definition of ‘eligible business’ for a
start-up is proposed to be aligned with the modified definition notified by
DIPP. It is further proposed to extend the incorporation date for a start-up
for availing benefit under section 80-IAC of the Act to 31st March, 2021 from
31st March, 2019 and rationalise the condition of turnover for availing the
benefit.
8. It is proposed to rationalise the provisions of section 56(2)(x) of the Act to
provide that the receipt of any property by a wholly-owned Indian
subsidiary from its holding company and by an Indian holding company from
its subsidiary shall be exempt from tax.
48
9. It is proposed to provide that trading in agricultural commodity derivatives
on a recognized stock exchange shall not be treated as a speculative
transaction even if no Commodities Transaction Tax (CTT) has been paid in
respect of those derivative transactions.
10. Considering the strategic nature of the transactions, it is proposed to
provide that income arising to a non-resident from royalty or fees for
technical services received from National Technical Research Organisation
shall be exempt from tax.
11. It is proposed to provide that the exemption of sale of leftover stock of
crude oil shall also apply in respect of termination of the contract or
arrangement in respect of a foreign company participating in a strategic oil
reserve.
12. It is proposed to provide that in addition to notifying any authority, Board,
Trust or Commission under section 10(46) of the Act, the Government can
also notify any class of such persons.
13. It is proposed to provide similar tax regime as available to equity oriented
funds to Fund of Funds investing only in exchange traded funds which only
invest in listed equity shares of domestic companies.
14. It is proposed to provide that no adjustments shall be made under section
143(1)(vi) of the Act while processing the return filed for the assessment
year 2018-2019 and subsequent assessment years.
15. It is proposed to provide that no expenditure or allowance or set off of any
loss shall be allowed in respect of undisclosed income determined by the
Assessing Officer under section 115BBE of the Act.
16. It is proposed to provide that every entity, not being an individual, which
enters into any financial transaction of an amount aggregating to Rs.2.50
Lakh or more in a financial year shall be required to apply for a permanent
account number (PAN). It is also proposed that directors, partners, principal
officers, office bearer or any person competent to act on behalf of such
entities shall also apply for PAN.
17. In view of the proposed amendment in the Customs Act creating a new
custom Authority for Advance Ruling, it is proposed to provide that the
Authority for Advance Ruling constituted under the Income-tax Act shall act as
an Appellate Authority in respect of the rulings given by the customs
Authority for Advance Ruling. It is also proposed to provide that when the
authority is dealing with an application relating to Income-tax Act, the
revenue member shall be from income-tax.
49
18. It is proposed to make the order passed by the Commissioner of Income-tax
(Appeals) under section 271J of the Act appealable before Appellate Tribunal.
19. It is proposed to enhance the penalty from `100/- to `500/- and from `500/-
to `1000/- under section 271FA of the Act.
20. It is proposed to provide that prosecution shall lie against companies for nonfiling
of return irrespective of the fact that whether any tax is payable or not.
21. It is proposed to mandate that in order to avail benefit of any deduction under
Chapter VIA-C, the persons have to file return within due date specified under
section 139(1) of the Act.
22. It is proposed to provide that if stock-in-trade is converted into capital asset,
the fair market value of the same on the date of conversion shall be taken into
account for computing business income.
23. It is proposed to rationalise the existing provision relating to investment in
capital gain bonds by providing that the exemption shall be available only in
respect of long-term capital gains arising out of sale of immoveable property
and investment in the bond shall be for a minimum period of 5 year from the
existing 3 years.
24. It is proposed to amend section 9 of the Act to align the scope of “business
connection” with the modified dependent agent permanent establishment
rule as per Multilateral Instrument signed by the Government.
25. It is proposed to amend section 9 of the Act to provide that significant
economic presence of a non-resident shall constitute “business connection”
with India. It is also proposed to define the phrase ‘significant economic
presence’.
26. It is proposed to provide that compensation received in connection with
termination or modification of business contract and employment contract
shall be taxable.
27. It is proposed to provide that in respect of heavy goods vehicles (more than
12 tonnes), the presumptive income under section 44AE of the Act shall be
computed at the rate of `1000 per tonne per month.
28. In order to provide statutory backing and certainty to Income Computation
and Disclosure Standards (ICDS), it is proposed to amend the provisions of
Chapter IV-D of the Act relating to computation of business income and
Chapter XIV of the Act.
50
29. It is proposed to provide that TDS at the applicable rate shall be made in
respect of interest exceeding `10,000 from newly introduced 7.75% GOI
Savings (Taxable) Bonds, 2018.
30. It is proposed to provide that in the case of an amalgamated company,
accumulated profits for the purpose of determining dividend shall also include
the accumulated profits of the amalgamating company on the date of
amalgamation.
31. It is proposed to provide that deemed dividend under section 2(22)(e) of the
Act shall be subject to dividend distribution tax at the rate of 30% without
grossing up.
32. It is proposed to provide that the concessional tax rate of 25% for new
domestic companies engaged in manufacturing shall be subject to the special
rates in respect of specified income provided under Chapter XII of the Act.
33. It is proposed to rationalise the provisions relating to filing of Country-byCountry
Report by providing the time-limits and the definition of ‘agreement’.
34. It is proposed to amend Finance Act, 2013 to rationalise levy of Commodities
Transaction Tax (CTT) on options in commodity futures.
35. It is proposed to amend the Black Money (Undisclosed Foreign Income and
Assets) and Imposition of Tax Act, 2015 to rationalise the designations of
authorities competent to grant approval for penalty and prosecution.
51
Annexure VI to Part B of Budget Speech
INDIRECT TAXES
1. PROPOSALS INVOLVING CHANGE IN CUSTOMS DUTY RATES:
Chapter/
heading/
subheading/

Tariff item
Commodity Rate of Duty
From To
I. Incentivizing domestic value addition, ‘Make in India’
A. Reduction in Customs duty on inputs and raw materials to
reduce costs
Food processing
1 0801 31 00 Cashew nuts in shell [Raw
cashew]
5% 2.5%
Capital goods and Electronics
2 8483 40 00,
8466 93 90,
8537 10 00
Ball screws, linear motion
guides, CNC systems for
manufacture of all types of CNC
machine tools falling under
headings 8456 to 8463
7.5% 2.5%
3 70 Solar tempered glass or solar
tempered [anti-reflective coated]
glass for manufacture of solar
cells /panels/modules
5% Nil
B. Changes in Customs duty to address the problem of duty
inversions in certain sectors
Medical Devices
4 Any
Chapter
Raw materials, parts or
accessories for the manufacture
of Cochlear Implants
2.5% Nil
C. Changes in Customs duty to provide adequate protection to
domestic industry
Food Processing
5 2009 11 00
2009 12 00
2009 19 00
Orange fruit juice 30% 35%
6 2009 21 00
to
2009 90 00
Other fruit juices and vegetable
juices
30% 50%
52
7 2009 81 00,
2009 90 00
Cranberry juice 10% 50%
8 2106 90 Miscellaneous Food
preparations (other than soya
protein)
30% 50%
Perfumes and toiletry
preparations
9 3303 Perfumes and toilet waters 10% 20%
10 3304 Beauty or make-up preparations
and preparations for the care of
the skin (other than
medicaments), including
sunscreen or suntan
preparations; manicure or
pedicure preparations
10% 20%
11 3305 Preparations for use on the hair 10% 20%
12 3306 Preparations for oral or dental
hygiene, including denture
fixative pastes and powders;
yarn used to clean between the
teeth (dental floss), in individual
retail packages
10% 20%
13 3307 Pre-shave, shaving or after-shave
preparations, personal deodorants,
bath preparations, depilatories and
other perfumery, cosmetic or toilet
preparations, not elsewhere specified
or included, prepared room
deodorizers, whether or not perfumed
or having disinfectant properties
10% 20%
Automobile and automobile
parts
14 8407, 8408,
8409,
8483 10 91,
8483 10 92,
8511, 8708,
8714 10
Specified parts/accessories of
motor vehicles, motor cars,
motor cycles
7.5% /
10%
15%
15 8702, 8703,
8704, 8711
CKD imports of motor vehicle,
motor cars, motor cycles
10% 15%
16 8702, 8704 CBU imports of motor vehicles 20% 25%
17 4011 20 10 Truck and Bus radial tyres 10% 15%
53
Textiles
18 5007 Silk Fabrics 10% 20%
Footwear
19 6401, 6402,
6403, 6404,
6405
Footwear 10% 20%
20 6406 Parts of footwear 10% 15%
Diamonds, precious stones
and jewellery
21 71 Cut and polished colored
gemstones
2.5% 5%
22 71 Diamonds including lab grown
diamonds-semi processed, halfcut
or broken; non-industrial
diamonds including lab-grown
diamonds (other than rough
diamonds), including cut and
polished diamonds
2.5% 5%
23 7117 Imitation Jewellery 15% 20%
Electronics / Hardware
24 8517 12 Cellular mobile phones 15% 20%
25 3919 90 90,
3920 99 99,
3926 90 91,
3926 90 99,
4016 99 90,
7318 15 00,
7326 90 99,
8504, 8506,
8507,
8517 70 90,
8518,
8538 90 00,
8544 19,
8544 42,
8544 49
Specified parts and accessories
of cellular mobile phones
7.5%/
10%
15%
26 8504 90 90/
3926 90 99
PCBA of charger/adapter and
moulded plastics of
charger/adapter of cellular
mobile phones
Nil 10%
54
27 Any Chapter Inputs or parts for manufacture
of:
a) PCBA, or
b) moulded plastics
of charger/adapter of cellular
mobile phones
Applicable
rate
Nil
28 8517 62 90 Smart watches/wearable devices 10% 20%
29 8529 10 99
8529 90 90
LCD/LED/OLED panels and
other parts of LCD/LED/OLED
TVs
7.5%/
10%
15%
30 8529/4016 12 specified parts for
manufacture of LCD/LED TV
panels
Nil 10%
31 70 Preform of silica for use in the
manufacture of
telecommunication grade optical
fibres or optical fibre cables
Nil 5%
Furniture
32 9401 Seats and parts of seats [except
aircraft seats and parts thereof]
10% 20%
33 9403 Other furniture and parts 10% 20%
34 9404 Mattresses supports; articles of
bedding and similar furnishing
10% 20%
35 9405 Lamps and lighting fitting,
illuminated signs, illuminated
name plates and the like [except
solar lanterns or solar lamps]
10% 20%
Watches and Clocks
36 9101, 9102 Wrist watches, pocket watches
and other watches, including
stop watches
10% 20%
37 9103 Clocks with watch movements 10% 20%
38 9105 Other clocks, including alarm
clocks
10% 20%
Toys and Games
39 9503 Tricycles, scooters, pedal cars
and similar wheeled toys; dolls’
carriages; dolls; other toys;
puzzles of all kinds
10% 20%
40 9504 Video game consoles and
machines, articles for funfair,
10% 20%
55
table or parlor games and
automatic bowling alley
equipment
41 9505 Festive, carnival or other
entertainment articles
10% 20%
42 9506
[except
9506 91]
Articles and equipment for sports
or outdoor games, swimming
pools and paddling pools [other
than articles and equipment for
general physical exercise,
gymnastics or athletics]
10% 20%
43 9507 Fishing rods, fishing-hooks and
other line fishing tackle; fish
landing nets, butter fly nets and
similar nets; decoy birds and
similar hunting or shooting
requisites
10% 20%
44 9508 Roundabouts, swings, shooting
galleries and other fairground
amusements; travelling circuses,
traveling menageries and
travelling theatres
10% 20%
Miscellaneous items
45 3406 Candles, tapers and the like 10% 25%
46 4823 90 90 Kites 10% 20%
47 9004 10 Sunglasses 10% 20%
48 9611 Date, sealing or numbering
stamps, and the like
10% 20%
49 9613 Cigarette lighters and other
lighters, whether or not
mechanical or electrical, and
parts thereof other than flints
and wicks
10% 20%
50 9616 Scent sprays and similar toilet
sprays, and mounts and heads
therefor; powder-puffs and pads
for the application of cosmetic or
toilet preparations
10% 20%
II Rationalization measures
Edible oils of vegetable origin
1 1508, 1509,
1510,1512,
Crude edible vegetable oils like
Ground nut oil, Olive oil, Cotton
seed oil, Safflower seed oil,
12.5% 30%
56
1513, 1515 Saffola oil, Coconut oil, Palm
Kernel/Babassu oil, Linseed oil,
Maize corn oil, Castor oil,
Sesame oil, other fixed
vegetable fats and oils.
2 1508, 1509,
1510,1512,
1513, 1515,
1516 20,
1517 10 21,
1517 90 10,
1518 00 11,
1518 00 21,
1518 00 31
Refined edible vegetable oils,
like Ground nut oil, Olive oil,
Cotton seed oil, Safflower seed
oil, Saffola oil, Coconut oil, Palm
Kernel/Babassu oil, Linseed oil,
Maize corn oil, Castor oil,
Sesame oil, other fixed
vegetable fats and oils, edible
margarine of vegetable origin,
Sal fat; specified goods of
heading 1518
20% 35%
Refractory Items
3 6815 91 00 Other articles of stone containing
magnesite, dolomite or chromite
10% 7.5%
4 6901 Bricks, blocks, tiles and other
ceramic goods of siliceous fossil
meals or of similar siliceous
earths
10% 7.5%
5 6902 Refractory bricks, blocks, tiles
and similar refractory ceramic
constructional goods, other than
those of siliceous fossil meals or
similar siliceous earths
5% 7.5%
6 6903 Other refractory ceramic goods 5% 7.5%
III Social Welfare Surcharge
1 Any chapter Levy of Social Welfare
Surcharge on imported goods
[other than those mentioned at
S. No. 3 to 6 below] to finance
education, housing and social
security
— 10% of
the
aggregat
e duties
of
customs
2 Any chapter Abolition of Education Cess and
Secondary and Higher
Education Cess on imported
goods
3% of the
aggregat
e duties
of
Customs
[2% + 1%]
Nil
57
3 2710 Exemption from Social Welfare
Surcharge on motor spirit
commonly known as petrol and
high speed diesel oil
— 3% of the
aggregat
e duties
of
Customs
4 7106 Silver (including silver plated
with gold or platinum),
unwrought or in semimanufactured
form, or in powder
form
— 3% of
the
aggregat
e duties
of
Customs
5 7108 Gold (including gold plated with
platinum), unwrought or in semimanufactured
form, or in powder
form
— 3% of the
aggregat
e duties
of
Customs
6 Any
Chapter
Specified goods hitherto exempt
from Education Cess and
Secondary and Higher
Education Cess on imported
goods
— Nil
IV Road and Infrastructure Cess
1 2710 Levy of Road and Infrastructure
Cess on imported motor spirit
commonly known as petrol and
high speed diesel oil
— Rs. 8
per litre
2 2710 Exemption from additional duty
of customs leviable under
section 3(1) of the Customs
Tariff Act, 1975 in lieu of the
proposed Road and
Infrastructure cess on
domestically produced motor
spirit commonly known as petrol
and high speed diesel oil
— Nil
3 2710 Abolition of Additional Duty of
Customs [Road Cess] on
imported motor spirit commonly
known as petrol and high speed
diesel oil
Rs. 6
per litre
Nil
4 Additional duty of customs under
sections 3(1) of the Customs
Tariff Act, 1975 in lieu of basic
excise duty
58
2710 (i) Motor spirit commonly
known as petrol
Rs. 6.48
per litre
Rs.
4.48
per litre
2710 (ii) High speed diesel oil Rs. 8.33
per litre
Rs.
6.33
per litre
2. AMENDMENTS TO THE CUSTOMS TARIFF ACT, 1975 WITH NO
CHANGES IN EFFECTIVE RATES OF DUTIES
S.
No
.
Amendment
A Amendment in the Customs Tariff Act, 1975
1 Amendment to the section 3 so as to insert subsections 8A and 10A to
provide for valuation of warehoused goods, which are sold to another
person before clearance for home consumption or export, for the purposes
of Integrated Tax and Goods and Services Tax Compensation Cess
B Import duty – First Schedule to the Customs Tariff Act, 1975
1 The tariff rate of customs duty for the specified medical devices is being
increased from 7.5% to 10%. The effective rate of import duty on such
medical devices will, however, remain unchanged.
2 The tariff rate of customs duty for Lithium-ion batteries is being increased
from 10% to 20%. The effective rate of import duty on Lithium-ion batteries
[other than Lithium-ion batteries for cellular mobile phones] will, however,
remain unchanged at 10%.
C Export duty – Second Schedule to the Customs Tariff Act, 1975
1 To insert a new Note to specify Nil rate of duty in respect of all other goods
which are not covered under column (2) of the Schedule.
2 Introduction of 20% Tariff rate of Export Duty on Electrodes of a kind used
for furnaces. The effective rate of Export duty on such electrodes will,
however, remain Nil.
3. MAJOR AMENDMENTS IN THE CUSTOMS ACT, 1962
S. No Amendment
A. For facilitating trade
1 Defining scope of Assessment and introducing “risk based selection”
for verifying Self-Assessment [Section 2(2), 17 of Customs Act]
59
2 Establishing single point of reference for importers, exporters and
Officers with regard to Regulatory Controls imposed by various
Ministries, Departments and Agencies [Section 11 of Customs Act]
3 Facilitating imports and exports meant for Repair, Manufacture and
further Processing with full or partial duty exemptions [Section 25A
and Section 25B of Customs Act]
4 Appointing a new Customs Advance Ruling Authority with Appellate
mechanism [Sections 28E to 28M of Customs Act]
5 Providing legal basis for clearance by Customs Automated System
[Sections 45, 47, 51, 60, 68 and 69 of Customs Act]
6 Introducing an electronic Cash ledger on the lines similar to
provisions in CGST Act [Section 51A of Customs Act ]
7 Introducing a new chapter for conduct of Audit [Section 99A of
Customs Act ]
8 Inserting a new section to provide for simplified and different
procedures as part of Trade Facilitation [Section 143AA of Customs
Act]
9 Introducing a new section for exchange of information with competent
authorities of other countries [Section 151B of Customs Act]
B. For reducing litigation
10 Providing for pre-notice consultation, issue of supplementary show
cause notices on receipt of additional information but within present
limitation period, time bound Adjudication and deemed closure of
cases [Section 28 of Customs Act]
11 Providing for closure of cases without imposition of redemption fine in
cases of voluntary payment of all dues [Section 125 of Customs Act]
C. For improving compliance
12 Expanding the scope of the Customs Act to any offence or
contravention committed under the said Act outside India [Section 1
of Customs Act]
13 Introducing provisions for controlled delivery for certain goods to be
notified [Section 109A of Customs Act]
4. PROPOSALS INVOLVING CHANGE IN EXCISE DUTY RATES:
Commodity Rate of Duty
From To
I Motor spirit commonly known as petrol and high speed diesel oil
1. Levy of Road and Infrastructure Cess on
motor spirit commonly known as petrol and
high speed diesel oil
— Rs. 8 per
litre
60
2. Abolition of Additional Duty of Excise [Road
Cess] on motor spirit commonly known as
petrol and high speed diesel oil
Rs. 6 per
litre
Nil
3. Basic excise duty on:
(i) Unbranded Petrol Rs. 6.48
per litre
Rs. 4.48
per litre
(ii) Branded petrol Rs. 7.66
per litre
Rs. 5.66
per litre
(iii) Unbranded diesel Rs. 8.33
per litre
Rs. 6.33
per litre
(iv) Branded diesel Rs. 10.69
per litre
Rs. 8.69
per litre
4. Infrastructure Cess on
(i) 5% ethanol blended petrol,
(ii) 10% ethanol blended petrol and
(iii) bio-diesel, up to 20% by volume,
subject to the condition that appropriate
excise duties have been paid on petrol or
diesel and appropriate GST has been paid
on ethanol or bio-diesel used for making
such blends
— Nil
5. Infrastructure Cess on petrol and diesel
manufactured in and cleared from 4
specified refineries located in the North-East
— Rs. 4 per
litre
Note: “Basic Excise Duty” means the excise duty set forth in the First Schedule to
the Central Excise Tariff Act, 1985.
5. MISCELLANEOUS
S. No. Amendment
A. Renaming of Central Board of Excise and Customs as the Central
Board of Indirect Taxes and Customs
Name of Central Board of Excise and Customs is being changed to
Central Board of Indirect Taxes and Customs with consequential
amendments in the following Acts: –
i. The Central Boards of Revenue Act, 1963 (54 of 1963)
ii. The Customs Act, 1962 (52 of 1962)
iii. The Central Goods and Services Tax Act, 2017 (12 of 2017)

Page 1 of 6
(To be published in Part-I, Section I of the Gazette of India Extraordinary)
F.No. 06/42/2017-DGAD
Government of India
Department of Commerce
Ministry of Commerce & Industry
(Directorate General of Anti-Dumping & Allied Duties)
4
th Floor, Jeevan Tara Building, Parliament Street
Dated 23rd January, 2018
INITIATION NOTIFICATION
Case No. OI- 45/2017
Subject: Initiation of Anti-Dumping investigation concerning imports of “Coated
Paper” originating in or exported from China PR, European Union &
USA.
No 06/42/2017-DGAD: Indian Paper Manufacturers Association on behalf of M/s
BILT Graphics Paper Products Ltd, subsidiary of M/s Ballarpur Industries Ltd.
(hereinafter referred to as ‘petitioner’ or “the applicant”) has filed an application (also
referred to as “petition”) before the Designated Authority (hereinafter referred to as
the “Authority”) in accordance with the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred to as the ‘Act’) and Customs Tariff (Identification,
Assessment and Collection of Anti-Dumping Duty on Dumped articles and for
Determination of injury) Rules, 1995 as amended from time to time (hereinafter
referred to as the “AD Rules”) for initiation of anti-dumping investigation concerning
imports of ‘Coated Paper’ (hereinafter referred to as the “subject goods”) originating
in or exported from China PR, European Union & USA, Indonesia and Korea.
2. And whereas, on finding prima facie finds that evidence of dumping of the subject
goods, originating in or exported from China PR, European Union & USA
(hereinafter as “the subject countries”), injury to the domestic industry and causal
link between the alleged dumping and injury exist to justify initiation of an antidumping
investigation; the Authority hereby initiates an investigation into the
alleged dumping, and consequent injury to the domestic industry in terms of Rule
5 of the AD Rules, to determine the existence, degree and effect of alleged
dumping and to recommend the amount of antidumping duty, which if levied, would
be adequate to remove the injury to the domestic industry.
3. The Authority has prima facie found absence of dumping on imports of subject
goods from Indonesia and Korea RP for the period of investigation. The antidumping
investigation accordingly is not being initiated concerning imports
originating in or exported from other two countries namely Indonesia and Korea
RP.
Page 2 of 6
A. Product under consideration and like articles
4. The product under consideration in the present petition is “Paper or Paper Board
coated with kaolin (china clay) or calcium carbonate or polymer or other inorganic
substance, with or without a binder; and with no other coating, either on one or
both sides; whether or not surface-coloured, surface-decorated or printed, in rolls
or rectangular (including square) sheets, of any sizes; whether or not dull,
gloss, matte or high-gloss(cast coated) finish; made generally, but not invariably or
exclusively from virgin chemical pulp, properly classifiable under Chapter 4810”.
5. Product under consideration is primarily used for printing of magazines,
catalogues, books & manuals, calendars, brochures, labels, flexible packaging etc.
The GSM for Coated Paper ranges from 40 gsm to 350 gsm.
6. Specifically excluded from the scope of this petition is multilayered board for
packaging purpose which does not form part of the product under consideration.
7. Coated Paper and Paper Board falling under customs heading 4810 is covered
under the present investigation. Customs heading is, however, indicative only and
not binding on the scope of product under investigation.
B. Domestic Industry & Standing
8. The application has been filed by Indian Paper Manufacturers Association on
behalf of domestic industry, M/s BILT Graphic Paper Products Ltd, which is
producer of the subject goods. There is one more known domestic producer of the
product under consideration, namely, JK Paper Limited. It is seen that the
production by the petitioner company constitutes ‘a major proportion’ in Indian
production of the like product produced. It is also noted that petitioner company
has neither imported the subject goods, nor is it related to an importer or exporter
of the subject goods. It is, thus, determined that the application has been filed by
and on behalf of the domestic industry and the application satisfies the
requirements of ‘standing’ under Rule 5 of the AD Rules. Further, the petitioner
company constitutes ‘Domestic Industry’ in terms of Rule 2(b) of the AD Rules.
C. Like Article
9. The applicant has claimed that there is no known difference in product produced
by the applicant and exported from the subject countries. Both products have
comparable characteristics in terms of parameters such as physical & chemical
characteristics, functions & uses, product specifications, pricing, distribution &
marketing and tariff classification, etc. The Authority considers that the subject
goods produced by the domestic industry are like article to the subject goods
imported from the subject countries, for the purpose of the present investigation.
Page 3 of 6
D. Subject Countries
10.The countries against which present investigation is initiated are China PR,
European Union & USA (referred to as “subject countries” in the present
notification).
E. Normal value
China PR
11.With regard to the submissions made by the petitioner regarding treating China
as a Non-Market Economy, it is noted by the Authority that the commitments
under para 15(a) (i) of the Accession Protocol signed by China with WTO
requires that the producers under investigation clearly shows that market
economy conditions prevail in the industry producing the like product with
regard to the manufacture, production and sale of that product. In event of this
being substantiated, the importing WTO member shall use Chinese prices or
costs for the industry under investigation in determining price comparability.
Further Article 2.2.1.1 of WTO and AD Rules of India requires that the financial
records of producer/exporter reasonably reflect the production costs.
Therefore, information and supportive evidence thereof in respect of the
following is required to be provided.
a. Decisions in regard to price, cost, input including raw material, cost of
technology and labour, output, sales and investment, are made in response to
market signal reflecting supply and demand and without significant State
interference and whether cost of major inputs substantially reflect market value.
b. Production costs and financial situation does not suffer from any distortion.
c. The producer/exporter are subject to bankruptcy and property law which
guarantees legal certainty and stability for the operation of the firms.
d. Exchange rate conversions are carried out at the market rate.

For the purpose of initiation the constructed normal value is being adopted.
EU & USA
12.The applicant has submitted that efforts were made to get information/evidence
of transaction price of subject goods in the domestic market of subject countries
but was not able to get such information. The applicant has therefore
constructed normal value for all subject countries on the basis of best estimates
of cost of production in the country origin, duly adjusted for selling, general &
administrative costs and reasonable profits. For the purpose of initiation the
normal value so constructed is being adopted.
F. Export Price
13. Export Prices have been determined considering volume and value of
imports for the proposed period of investigation as per DGCI&S Published data.
Price adjustments have been made on account of ocean freight, marine insurance,
Page 4 of 6
commission, port expenses, inland freight expenses, credit cost , non-refundable
VAT (in case of China only) and bank charges which may have been incurred by
the exporter for exporting the material to India.
G. Dumping Margin
14.Considering the normal value and export price determined, there is prima facie
evidence that the normal value of the subject goods in the subject countries are
higher than the export price.
H. Evidence of Injury and Causal Link
15.Information furnished by the applicant has been considered for assessment of
injury to the domestic industry. The applicant has furnished evidence regarding the
injury having taken place as a result of the alleged dumping in the form of increased
volume of dumped imports in absolute terms and in relation to production and
consumption in India, price undercutting, price underselling and consequent
adverse impact in terms of decline in production, sales, market share, profit, cash
flow and ROI. There is prima facie evidence of the “material injury” being suffered
by the domestic industry caused by dumped imports from subject countries to
justify initiation of an antidumping investigation.
I. Initiation of investigation
16.The Authority finds prima facie evidence of dumping of subject goods, originating
in or exported from the subject countries; injury to the domestic industry and causal
link between alleged dumping and injury, to justify initiation of anti-dumping
investigation to determine the existence, degree and effect of alleged dumping and
to recommend the amount of anti-dumping duty, which if levied, would be adequate
to remove the ‘injury’ to the domestic industry. Accordingly, the Authority hereby
initiates an investigation into the alleged dumping and consequent injury to the
domestic industry in terms of Para 5 of the Rules.
J. Period of investigation (POI)
17.The period of investigation for the present investigation is from April 2016 –June
2017 (15 Months). The injury investigation period has been considered and
proposed to cover the periods 2013-14, 2014-15 and 2015-16 and the period of
investigation.
K. Submission of Information
18.The known exporters in the subject countries, the Government of the subject
countries through their embassies in India, the importers and users in India known
to be concerned with the product are being addressed separately to submit
relevant information in the form and manner prescribed and to make their views
known to the Authority at the following address
Page 5 of 6
The Designated Authority,
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry,
Department of Commerce
4
th Floor, Jeevan Tara Building,
5 Parliament Street,
New Delhi -110001.
Dgad.india@gov.in
19.Any other interested party may also make its submissions relevant to the
investigation in the prescribed form and manner (downloadable from the website
of the authority at www.dgtr.gov.in ) within the time limit set out below.
L. Time limit
20.All interested parties are hereby advised to intimate their interest (including the
nature of interest) in the instant matter within 2 weeks of this notification and file
their questionnaire responses and offer their comments to the domestic industry’s
application within forty days (40 days) from the date of publication of this
notification. The information must be submitted in hard copies as well as soft
copies.
21.It may be noted that if no information is received from an interested party within the
prescribed time limit, or the information received is incomplete, the authority may
record its findings on the basis of the facts available on record, in accordance with
the rules.
M. Submission of Information on Confidential/Non-Confidential basis
22.In case confidentiality is claimed on any part of the questionnaire’s
response/submissions, the same must be submitted in two separate sets (a)
marked as Confidential (with title, index, number of pages, etc.) and (b) other set
marked as Non Confidential (with title, index, number of pages, etc.). All the
information supplied must be clearly marked as either “confidential” or “nonconfidential”
at the top of each page.
23.Information supplied without any confidential marking shall be treated as nonconfidential
and the Authority shall be at liberty to allow the other interested parties
to inspect any such non-confidential information. Two (2) copies of the confidential
version and of the non-confidential version must be submitted by all the interested
parties.
24.For information claimed as confidential; the supplier of the information is required
to provide a good cause statement along with the supplied information as to why
such Information cannot be disclosed and/or why summarization of such
information is not possible.
25.The non-confidential version is required to be a replica of the confidential version
with the confidential information preferably indexed or blanked out /summarized
depending upon the information on which confidentiality is claimed. The non-
Page 6 of 6
confidential summary must be in sufficient detail to permit a reasonable
understanding of the substance of the information furnished on confidential basis.
However, in exceptional circumstances, parties submitting the confidential
information may indicate that such information is not susceptible to summarization;
a statement of reasons why summarization is not possible must be provided to the
satisfaction of the Authority.
26.The Authority may accept or reject the request for confidentiality on examination of
the nature of the information submitted. If the Authority is satisfied that the request
for confidentiality is not warranted or the supplier of the information is either
unwilling to make the information public or to authorize its disclosure in generalized
or summary form, it may disregard such information.
27.Any submission made without a meaningful non-confidential version thereof or
without a good cause statement on the confidentiality claim may not be taken on
record by the Authority. The Authority on being satisfied and accepting the need
for confidentiality of the information provided; shall not disclose it to any party
without specific authorization of the party providing such information.
N. Inspection of Public File
28.In terms of rule 6(7) any interested party may inspect the public file containing nonconfidential
versions of the evidence submitted by other interested parties.
O. Non-cooperation
29.In case any interested party refuses access to and otherwise does not provide
necessary information within a reasonable period, or significantly impedes the
investigation, the Authority may declare such interested party as non-cooperative
and record its findings on the basis of the facts available to it and make such
recommendations to the Central Government as deemed fit.
(Sunil Kumar)
Additional Secretary & Designated Authority

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Income Tax department can now send communication to more addresses

The Central Board of Direct Taxes has amended the rules relating to service of notice, summons, requisition or order. The step widens the scope of addresses that the I-T department can use for delivering any form of communication with the taxpayers. The I-T can now use address of the assessee as available with the banks, post office, insurer or that available in government/local authority records. It can also include communication address provided under PAN database, which is meant for filing statement of financial transaction.

(Source: http://www.financialexpress.com/economy/income-tax- department-can- now-send-communication to- more-addresses/986555/)

 

Income Tax notices to 4-5 lakh individuals trading in bitcoins across the country

Widening its probe into bitcoin investments and trade, the Income Tax (I-T) department is set to issue notices to 4 to 5 lakh high net worth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency. The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion. The department, official sources said, found that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were & “operational” and indulging in transactions and investments.

(Source:https://timesofindia.indiatimes.com/business/india-business/it-notices-to-4-5-lakh-individualstrading-in-bitcoins-across-the country/articleshow/62121048.cms)

 

Income tax department in tough spot as investors go all tech

Crypto currencies appear to be living up to their cryptic reputation. Days after the income-tax department issued about 5 lakh notices to high net-worth individuals (HNIs) who own bitcoins or any other crypto currency, investors are drafting replies that would show they have no dues to the authorities. On its part, the income tax department may also find it difficult to figure out whether wealthy investors actually hold any bitcoins, or the income earned from these instruments.

(Source:https://economictimes.indiatimes.com/news/economy/policy/bitcoin-income-tax-department-intough-spot-as-investors-goes-all-tech/articleshow/62302684.cms)

 

Full Income Tax e-assessment from next year – CBDT forms committee

The government is set to roll out a pan-India “faceless and nameless” e-assessment procedure for income tax payers from 2018 with the CBDT constituting a high-level committee to prepare a quick roadmap for the implementation of this ambitious proposal. The Central Board of Direct Taxes (CBDT), the policy- making body for the Income Tax Department, notified a nine- member committee, headed by a Principal Chief Commissioner rank officer and has set for it a deadline of February 28, 2018, for submitting its report.

(Source:https://economictimes.indiatimes.com/news/economy/policy/faceless-and-nameless-e-assessmentprocedure-for-income-tax-payers-from-2018/articleshow/62139572.cms)

 

Mere 1.7% Indians paid income tax in AY 2015-16: Official data

Just over 2 crore Indians, or 1.7 per cent of the total population, paid income tax in the assessment year (AY) 2015- 16, according to data released by the I-T department. The number of income-tax return filers increased to 4.07 crore in the assessment year 2015-16 (FY 2014-2015) from 3.65 crores in the previous year but only 2.06 crore actually paid tax as the others claimed income below taxable limits. In the previous AY 2014-15, 1.91 crores, out of 3.65 crores who filed returns, had paid income tax.

(Source: https:// timesofindia.indiatimes.com/business/india-business/mere-1-7-indians-paid- income-tax-inay-2015- 16-official- data/articleshow/62241622.cms)

 

 

GST (Goods & Service Tax)

 

Reduction in late filing fees for delay in filing of GSTR-4

Late fees payable for delay in filing of GSTR-4 (Quarterly return for registered persons opting composition levy) reduced to fifty rupees (twenty five each for CGST and SGST) and In case of NIL return, the late fees reduced to twenty rupees (ten each for CGST and SGST).

(Notification No.73 /2017 – Central Tax dated December 29, 2017)

 

E-way Bill: The GST Council in their 24th meeting decided that the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018 and the rules for implementation of nationwide e-way bill system for inter-state movement of goods on a compulsory basis will be notified with effect from February 1, 2018. States may choose their own timings for implementation of e-way bill for intra-state movement of goods on any date before June 1, 2018.

 

Accordingly the Central Board of Excise and Customs (CBEC) has notified that the following provisions of Notification No. 27/2017 of Central Tax dated August 30, 2017 shall come in to force effective February 1, 2018:

 

Rule 138 – Information to be furnished prior to commencement of movement of goods and generation of e-way bill

Rule 138A – Documents and devices to be carried by a person-in- charge of a conveyance

(Notification No.74 /2017 – Central Tax dated December 29, 2017)

 

Due dates for furnishing of FORM GSTR-1

The CBEC has notified the following due dates for furnishing of Form GSTR-1

 

 

Sr. No. Months for which the details in FORM GSTR-1 are furnished Time period for furnishing the details in FORM GSTR-1
1. July – November 2017 10 January 2018
2. December 2017 10 February 2018
3. January 2018 10 March 2018
4. February 2018 10 April 2018
5. March 2018 10 May 2018

 

(Notification No.72 /2017 – Central Tax dated December 29, 2017)

 

 

 

 

 

 

 

 

 

International Tax

 

Payment for intranet charges and SAP software is royalty under the Income-tax Act as well as under the India Germany tax treaty

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of SMS Iron Technology Pvt Ltd (the taxpayer) held that the payment made by the taxpayer to a non-resident company for software is covered under the term ‘scientific equipment’ and therefore taxable as royalty under the Income-tax Act, 1961 as well as under the India-Germany tax treaty. The Tribunal observed that the payments were made for the use of licensed software on the internet/intranet and it is also contingent on the basis of number of user license or number of sessions for which the software is used.

 

The Tribunal held that the payment made by the taxpayer to a non-resident company for software cannot be termed as reimbursement of expenditure since the taxpayer has not produced any agreement, debit notes or working of such reimbursement. The Tribunal observed that when an Indian subsidiary company incurs expenditure or avails any service from some third party abroad and payment to such third party is routed through its holding or related company abroad, the provision for deduction of tax at source applies as if taxpayer has made payment to such independent party de hors routing of payment through the holding company.

(SMS Iron Technology Pvt Ltd v. ITO (ITA No. 4480 to 4486/Del/2014) – Taxsutra.com)

 

Since the taxpayer is incorporated and liable to tax in the UAE, it is eligible for the India-UAE tax treaty benefit

Based on the facts and in the circumstances of the case, recently, the Rajkot Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Martrade Gulf Logistics FZO-UAE (the taxpayer) held that since the taxpayer is liable to tax in UAE by virtue of its incorporation in UAE, it is eligible for India-UAE tax treaty benefit. The tie breaker rule with respect to residential status of the taxpayer comes into play when the taxpayer is a resident of both the states, i.e. India and UAE which is not the case in the instant decision. The Tribunal observed that whether the taxpayer company was formed in the UAE or in Germany, it would not have made any material difference so far as non-taxability of said income in India is concerned. Accordingly, the Limitation of Benefit Article will not apply. Accordingly, the Tribunal held that the taxpayer is eligible for India-UAE tax treaty benefit.

(ITO v. Martrade Gulf Logistics FZO-UAE (ITA Nos 7 to 9/Rjt/2011) – Taxsutra.com)

 

Taxpayer’s aggregation of IT services and ITeS provided to Associated Enterprises under a single composite contract upheld

Based on the facts and in the circumstances of the case, recently, the Kolkata Bench of Income-tax Appellate Tribunal (the Tribunal), in the case of Data Core (India) Pvt. Ltd. (the taxpayer), dismisses tax department’s appeal, upholds taxpayer’s aggregation of Information Technology services and Information Technology enabled services provided to Associated Enterprises under a single composite contract for Assessment Year 2010-11. It refers to OECD’s TP guidelines with specific reference to BEPS Action 8-10, UN TP Manual and UK Transfer Pricing Guidelines wherein due recognition has been given to contractual terms of the agreement for undertaking TP analysis and provides for aggregate analysis of transactions encapsulated under a bundled arrangement. (Data Core (India) Pvt. Ltd. v. ITO (ITA No. 387/Kol/2015)

 

 

Company Law

Condonation of Delay Scheme, 2018

Companies registered under the Companies Act, 2013 (or its predecessor Act) are inter-alia required to file their Annual Financial statements and Annual Returns with the Registrar of Companies and non-filing of such reports is an offence under the said Act.

 

Whereas, section 164(2) of the Act read with section 167 of the Companies Act,2013 [the Act], which provisions were commenced with effect from 01.04.2014, provide for disqualification of a director on account of default by a company in filing an annual return or a financial statement for a continuous period of three years.

 

Whereas, Rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014 further prescribes that every director shall inform to the company concerned about his disqualification, if any, under section 764(2), Form form DIR-8.

 

Whereas, consequent upon notification of provisions of section 164(2), Ministry of Corporate Affairs (MCA) had launched a Company Law Settlement Scheme 2014 providing an opportunity to the defaulting companies to clear their defaults within the time period specified therein and following the due process as notified.

 

Whereas, MCA in September 2017, identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of provisions of section 1.64(2) r /w 167(1)(a) of the Act and they were barred from accessing the online registry and a list of such directors was published on the website of MCA.

 

Whereas, as a result of above action, there have been a spate of representations from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalize operations.

 

Whereas, certain affected persons have also filed writ petitions before various High Courts seeking relief from the disqualification.

 

Whereas, with a view to giving an opportunity for the non-compliant, defaulting companies to rectify the default, in exercise of its powers conferred under sections 403, 459 and 460 of the Companies Act, 2013, the Central Government has decided to introduce a Scheme namely “Condonation of Delay Scheme 2018” [CODS-2018] as follows.

  1. The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018
  2. Definitions – In this scheme, unless the context otherwise requires, –
  3. “Act” means the Companies Act, 2013 and Companies Act, 1956 (where ever applicable);
  4. ‘overdue documents’ means the financial statements or the annual returns or other associated documents, as applicable, in the case of a defaulting company and refer to documents mentioned in paragraph 5 of the scheme.

iii. “Company” means a company as defined in clause 20 of section 2 of the Companies Act, 2013;

  1. “Defaulting company” means a company which has not filed its financial statements or annual returns as required under the Companies Act, 1956 or Companies Act, 201.3, as the case may be, and the Rules made there under for a continuous period of three years.
  2. “Designated authority” means the Registrar of Companies having jurisdiction over the registered office of the company.
  3. Applicability: – This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/ whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.
  4. Procedure to be followed for the purposes of the scheme:- (1) In the case of defaulting companies whose names have not been removed from register of companies,-
  5. The DINs of the concerned disqualified directors de-activated at present, shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents.
  6. ‘The defaulting company shall file the overdue documents in the respective prescribed eForms paying the statutory filing fee and additional fee payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 for filing these overdue documents.

iii. The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-CODS attached to this scheme online on the MCA21 portal. The fee for filing application eform CODS is Rs.30,000/- (Rs. Thirty Thousand only).

  1. The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the eform CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 767(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period.
  2. In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.
  3. Scheme not to apply for certain documents – This scheme shall not apply to the filing of documents other than the following overdue documents:
  4. i) Form Number 208/MGT-7- Form for filing Annual return by a company having share capital.
  5. ii) Form 21A/MGT-7- Particulars of Annual return for the company not having share capital.

iii) Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC- 4(non-XBRL) – Forms for filing Balance Sheet/Financial Statement and profit and loss account.

  1. iv) Form 66 – Form for submission of Compliance Certificate with the Registrar. v) Form 238/ADT-1- Form for intimation for Appointment of Auditors.
  2. The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s) for all documents filed under the scheme. However, this scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.
  3. At the conclusion of the Scheme, the Registrar shall take all necessary actions under the Companies Act, 1956/2013 against the companies who have not availed themselves of this Scheme and continue to be in default in filing the overdue documents.
  4. The e-Form CODS 2018 would be available from 20.02.2018 or an alternate date, which will be intimated by the ministry on www.mca.gov.in. The stakeholder should complete the necessary procedural requirements and file overdue documents without waiting for the availability of the e-CODS form.
  5. Form FORM-e- GODS 2018 can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/Generalcircular16_29122017.pdf

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Nov 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 06/11/17 Monthly Circulars Two Circulars were circulated on 06/11/2017 regular Circular giving information along with Revised Due Dates of GST Form/Return and in other circular details of Annual Get-together & Dinner –Cum-Entertainment Programme of Association were given. (Date, Time, Venue & Name of Drama etc.)
2 07/11/17 2ndMC Mtg. During the Mtg. the Minutes of 2nd MC Mtg& Audited Balance Sheet& P&L A/c. for the year ended 31/03/2017 were approved, Time-Date & Venue of Extra Ordinary Gen. Meeting was fixed, Annual Get-together Programme was finalized and with the permission One New Member was admitted, New Frame of Guide Line to be laid down while accepting the donations was discussed and Shri Shamji Karia & Shri Hiren Karia Narrated the Paper Day Celebration that took place at New Delhi on 01/11/2017 at PAPEREX 2017.
3 17/11/17 Sp. Mtg Special Meeting of Office Bearers was held to Finalize the letters of Award and discuss GST pertaining problems

 

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

Dec 2017

No. Date Name of the Activity Description
1 14/12/17 Monthly Circulars One Circular was circulated on 14/12/2017 regular Circular giving information along with Communication directory 2018 advertisement. tariff rates, Annual subscription for the year 2017-18, Advertisement through circular, Publications, D.A for the month of Dec 2017, One new member.
2 08/12/17 & 22/12/17 Sp Mtg Every Friday office bearers meet for solve PTA office problems & discuss main some points.

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

 

 

 

 

 

 

 

Madras Paper Merchants Association, Chennai

Sep 2017

Our 65th AGM was held on 30th September 2017 at our Association premises, Chennai-1. The meeting started with prayer at 7.00 p.m. about eighty members recorded their presence. Welcome Address was given by the President Mr. A. Murugan Secretary Report was given by Mr. RM. Veerappan, Treasurer Report was given & the Audited Accounts were passed for the year ended 31st march 2017.

Mr. A. Natesan, Mr. Sekar Chandak & Mr. R. Muthu Krishnan Spoke about paper trade, market conditions.

Honoured   Chief Guest Mr. A. Annamalai (Venkat) FPTA President by Mr. A. Murugan President of M.P.M.A.

The various awards given away at the AGM and their recipients were as follows:

  1. Shri Jai Kishan Gupta award for outstanding service rendered to the Association and its members was given to Mr. P. Rajesh Jain, presented by Mr. A. Annamalai (Venkat)
  2. Jeyam Annamalai award for the outstanding Managing Committee member was given away to Mr. M. Manikandan, presented by Mr. A. Natesan
  3. Thiru K.R. Ramanathan award for the outgoing President was given away to

Mr. A. Murugan, Presented by Mr. R. Muthu Krishnan

  1. Thiru S.V. Sivanadian award for the outgoing Secretary was given away to

Mr. RM. Veerappan, presented by Mr. A. Muthuraman

  1. Shri Swastik Chandak award for the outgoing Vice President of FPTA from MPMA was given away to Mr. A. Annamalai (Venkat), presented by Mr. Sekar Chandak.
  2. Shri Bharath Ravichandran award for outstanding contribution to the Association by

Mr. A. Natesan, presented by Mr. R. Ravichandran & Mr. A. Murugan

The outgoing team was honoured by the members

The New team of Office Bearers & the Members of Managing Committee were formed for year 2017-18.

Office Bearers:  Mr. P. Rajesh Jain – President

Mr. M.A. Pandiyan – Vice President

Mr. RM. Veerappan – Secretary

Mr. G. Balaji – Joint Secretary

Mr. M. Manikandan – Treasurer

The incoming team was honoured by the members.

The new President Mr. P. Rajesh Jain spoke about his activities to be done for the year 2017-18 & thanked the members for electing him as the president.

It was unanimously decided to re-appoint the present Auditors M/s. Murugapan & Associated, Chartered Accountants, Chennai for the year 2017-18.

5 Lucky Dip Prizes was sponsored by New Office Bearers (2017-18) & gifts were given.

Small mementos were given to comparers Mr. A. Prabhu & Mr. N. Annamalai (Anish) presented by Mr. P. Rajesh Jain

________________________________________________________________

 

OCT 2017

2nd Managing Committee Meeting held on Tuesday 16-10-2017 at our Association premises, following subject were discussed.

  1. Our 65th AGM was reviewed

 

  1. Eight Sub Committees were formed in consultation with members; list has been circulated and attached.

 

1.      Taxation & FPTA Interaction  :

Mr. A. Natesan

Mr. R. Muthu Krishnan

Mr. A. Muthuraman

Mr. A. Annamalai (Venkat)

2.      Mill Visit & Foreign Tours  :

Mr. Sekar Chandak

Mr. N. Annamalai (Nagappa)

Mr. L. Joseph

Mr. Ranjit Veena Batra

Mr. Ghanshyam Chandak

3.      Self Development & Training Courses :

Mr. N. Annamalai (Anish)

Mr. N. Kasinathan

Mr. Ajay Kumar Gupta

Mr. Arun Jain

Mr. Aamod Mehta

4.      Bad Debts & Arbitration  :

Mr. S. John Amalraj

Mr. A. Annamalai (Venkat)

Mr. R. Ravichandran

Mr. A. Murugan

Mr. S. Palaniappan

Mr. S. Thahir Jalal

Mr. M. Rajesh

 

5.      Public Relation Committee  :

Mr. M. Nagoor Meeran

Mr.  R. Muthu Krishnan

Mr. S.M. Akbar

Mr. N. Kasinathan

6.      Entertainment-Cultural & Sports  :

Mr. A.K. Arulraj

Mr. Ganesh Agarwal

Mr. M. Felix Ballarmin

Mr. Ajay Kumar Gupta

Mr. A. Antony samy

Mr. C. Palanisamy

Mr. P. Kumar

Mr. A. Elangovan

Mr. A. Marimuthu

Mr. N. Annamalai (Anish)

Mr. Jai chandak

7.      MPMA Digital & Website  :

Mr. Arun Jain

Mr. R. Muthu Krishnan

Mr. T.M. Imthiyaz Ahmed

Mr. K. Ramesh

8.      Membership Enrollment & Building Maintenance  :

Mr. C. Palanisamy

Mr. R. Ravichandran

Mr. M. Arulanandam

Mr. M. Abdul Gafoor

Mr. Ganesh Agarwal

 

  1. Any other matter:

GST latest development were discussed, Taxation committee convener

Mr. A. Natesan proposed to conduct GST clarification meeting.

 

Membership drive – Mr. Palani samy has enrolled eight applications for membership, prospective members were discussed and accepted all applications.

 

Diwali celebration:

We conducted Diwali celebration on Monday 16-10-2017. Chief Guest

Shri. J. Arul Prakash, T.V. Fame, Pattimandram Speaker, who delivered speech about Diwali. Members exchanged wishes for Diwali. Sweet were distributed to our members.

Nov 2017

GST Seminar:

 

GST Seminar cum Question & Answer Session was held on 15th November 2017 at YMCA Mc Connaught Hall, YMCA building, Chennai-1. Mr. A. Natesan Convener of Taxation Sub Committee has organized the meeting,

 

Mr. I. Julian Indathayalan. I (Sr. Auditor with specialization in GST) was the speaker of the day.

 

We have requested the members to forward their doubts and questions to be clarified prior to the meeting. Mr. Julian has explained the latest outcome of GST council & also clarified the doubts.

 

The meeting was well attended by the members.

 

Dec 2017

  1. CHILDREN’S DAY & FAMILY GET TOGETHER PROGRAM:

We have conducted children’s day and family get together program on Sunday the 3rd  December 2017 at  Green Meadows Resort, ECR Road ,Chennai and  more than 30 family members participated (above 100 Persons)  in the event and enjoyed the day with full of fun and events.

Chief Guest Shri. Madhu Sudan Bang, FPTA Vice President participated with his family.  Shri. A. Annamalai (Venkat), FPTA President participated with his family. Many games and events have been organized by event management.

Chief Guest Shri. Madhu Sudan Bang, Shri. A. Annamalai (Venkat) & Tamil film actor Mr. Ashok Selven distributed the Prizes to winners.

  1. 3rd Managing Committee Meeting was held on Friday 22nd December 2017 at our Association premises.

 

The following subjects were discussed.

Committee discussed about the Latest Development in GST

Members suggested some points on approaching government for allotment of Land for Ware house to Paper trade,

Committee discussed about appointment of an Auditor to clarify Doubts of Members over phone about GST & other sales tax.

Committee discussed about to conduct training program on Paper – Its properties & testing

 

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore

Activities-Achievements-Updates during this Period by the Association

 

Nov 2017

No. Date Name of the Activity Description
1 1.11.2017 Rajyotasav Day Celceberation All member were invited and the day was celebrated , Flag hosting done by Vice president and Secretary followed by Breakfast
2 1.11.2017 PaperX   PAPERX  attended by 35member along with KPMSA President
3 11.11.2017 New members three KPMSA LIFE members added
4 11.11.2017 2nd FPTA MC Discussion on 2nd FPTA MC to be held on 06.01.2018

 

Dec 2017

No. Date Name of the Activity Description
1 2.12.2017  Mc meeting Discussion on FPTA 2 MC arrangement
2 22.12.2017 Mc meeting Core teams discussion printing, travel , registration & gift food etc for 2nd FPTA mc
3 22.12.2017 Arbitation One member approached for recovery of bad Debts

 

________________________________________________________________

The Paper Merchants’ Welfare Association, Vijayawada

 

Dec 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 17-12-2017 2nd MC Meeting 1. Accepted and Approved last MC meeting minutes.

2. Accepted and Approved Financial Accounts up to the period 15-12-2017.

3. Reviwed voluntary Blood Donation Camp conducted on 2nd October 2017 on the eve of Mahatma Gandhi Jayanthi at Rotary Red Cross Blood Bank, Gandhi Nagar, Vijayawada -2. 25 persons attended but Blood was secured only from 18 persons in accordance of their health condition.

4. Reviewed Karthika Vanasamaradhana celebrated in the month of November 12th, 2017 at Mulapadu in dense forest of decent and pleasant location. Participated 198 persons with their families and children. Conducted cultural programmes. Winners were given prizes. Expenses incurred Rs. 1,99,755/- entire amount was secured by way of donations and sale of Tickets. Return Gifts were offered to the member firms attended.

5. Discussed and passed resolution to change present name of our Association i.e., The Paper Merchants Welfare Association, Vijayawada as Andhra Pradesh Paper Merchants’ Welfare Association, Regd. Office : Vijayawada. It came into force with effect from 17-12-2017.

6. Discussed to participate FPTA MC Members & FPTA Vice-President in ensuing FPTA 2nd MC Meeting to be held on 6th & 7th January 2017 in Bengaluru.

7. Discussed and resolved sale of Office Compartment through paper add or broker.

8. Decided and confirmed as per direction of FPTA every year August 1st, our Affiliated Association wants to celebrate The Paper Day at all shops of our Association in the state by displaying banners to make public awareness to drive out misconception among public regarding production of paper.

9. Regarding Anti Dumping Duty investigation the committee is of opinion to take neutral stand. 10. Committee had passed resolution to collect Rs. 500/ – from members of every firm but decided to bring it to notice of house in the 35th AGM likely to be held in the month of July or August 2018 for approval.

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

DEC 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

24.12.2017

 

 

 

 

 

T.P.M.A CRICKET CHAMPION’S TOURNAMENT 2017-18

 

 

 

 

 

 

1. T.P.M.A Secunderabad conducted its annual T.P.M.A CRICKET CHAMPION’S TOURNAMENT 2017-18 at Vijay Anand Ground. The Cricket Trophies were unveiled earlier in October at our Deepavali Sneh milan program by our FPTA President, FPTA Vice President & FPTA Hon. Secretary

 

All our Association Members attended the event with family and children which was full of fun and sport.

 

Everyone had a gala time all throughout the day.

Breakfast, lunch & Hi-Tea was served to all Guests.

2  28.12.2017 3rd  MEETING OF KAGAZ BHAVAN COMMITTEE Status and discussion on various pending works of Kagaz Bhavan was held by the Chairman.
3.  28.12.2017

 

 

 

 

 

 

 

 

 

 

2nd JOINT MEETING OF MANAGING COMMITTEE & KAGAZ BHAVAN COMMITTEE.

 

TPMA had a 2nd Joint meeting of the Kagaz Bhavan and the Managing Committee to discuss various issues pertaining to the activities of the association and Kagaz Bhavan.   

Chairman Shri B.R. Rao presented report of Kagaz Bhavan committee. He gave details of Building maintenance and other pending works.

The meeting was attended by office bearers, Past Presidents, Managing Committee Members & Kagaz Bhavan committee Members. All the members also discussed various matters about the association activities & market conditions.

Member’s suggestions were also discussed and will be implemented for the development of our association.

All the Circulars sent by you have been Circulated to all the Members.

 

 

 

Salem paper Allied Traders Association

DEC 2017

 

1) SPATA’s Executive committee meeting was held on 15/12/2017.
Resolution passed: All members must have GSTIN Number before next AGM of SPATA and those who are not having would be removed from SPATA.

2) FPTA’s President Shri. A. Venkat Annamalai and Vice-President Shri. R. Sunder visited SPATA’s Felicitation Ceremony on 15/12/2017 at Rathna Residency Salem.

3) FPTA’s President in his speech advised all members to participate Association activities actively. Also, informed members that Import will go down and market will improve.

4) FPTA’s Vice-President Shri. R. Sunder in his speech highlighten Co-operation among Members and working with good margins in Business with impressive Quotes of World Leaders.

5) Speaker Shri. Sampath spoke about “Navarathnas of Life”.

6) Those SPATA members who came in time to Felicitation Ceremony was recognized on Stage by FPTA’s President Shri. A. Venkat and appreciated by him.

 

 

TRICHY DISTRICT  KAGITHA VANIGARKAL NALA SANGAM:

 

NOVEMBER 2017:

 

For the month of NOVEMBER  we conducted management committee meeting  and discussed about G.S.T RETURN filing and  shared our views and gave clarifications for our members .

 

December 2017:

 

For the month of December we conducted  Management committee meeting and discussed about WW FORM FILING and  decided to take part in activities of   SWACHH  BHARAT  MISSION    with TRICHY CITY CORPORATION  and we contributed DUTBIN OF Rs20000/- to  the needy people .

 

The Lucknow Paper Merchants Association, Lucknow –

 

Nov 2017

No. Date Name of the Activity Description
1 14-11-2017 Executive Committee Meeting Executive Committee Meeting of LPMA was held to discuss the business prospects of Lucknow Paper Traders. As fresh tenders for supply of paper, printing with paper etc being invited by various government departments for new academic year 2018-19, if any help to fellow members are required from association or any clarification needed, Association will be pleased to extend all possible support.

It was decided to have healthy and amicable competition.

 

Paper and Allied Merchant Association

Dec 2017.

04-12-2017          Federation of Trade Association of Coimbatore (FTAC) EC Meeting Attended by Mr. Balasubramanian and Mr. R Ravi

06-12-2017          Visit to Hotel Rathna Residency by Mr. Lalchand, Mr. R. Ravi and Mr. C. Balasubramanian for fixing venue for FPTA President Mr. A. Annamalai Visit on 16-12-2017.

10-12-2017          Conference call with FPTA President, Vice President of FPTA and conveners of sub committees of FPTA. Mr. Balasubramanian participated.

11-12-2017          Governing Council Meeting of Chamber of Commerce. Mr. R. Ravi and Mr. Balasubramanian participated.

14-12-2017          EC Meeting of PAMA.

Subject discussed:

  1. FPTA MC Meeting at Bangalore on 6th and 7th Jan 2018.
  2. FPTA President visit to PAMA on 16.12.2017.
  3. PAMA family Get – to – Gather in Jan / Feb 2018.
  4. PAMA coolie Talks – settlement
  5. PAMA social service projects.

16.12.2017           As a Service towards society our Association provided Breakfast for 100 inmates of Coimbatore  Corporation “ CORPORATION NIGHT SHELTER” for orphans, disabled and under privileged people Mr. Lalchand, Mr. R. Ravi, Mr. AM. Sankar, Mr. C. Balasubramanian, other office bearers and members of PAMA joined the event at the shelter in West Arokiasamy Street R. S. Puram Coimbatore – 2.

21-12-2017          Meeting called for by GST Commissioner at his office, Chamber of Commerce, Federation of Trade Association and other Trade / Industry Association were invited to share their views on GST. Mr. Balasubramanian and Mr. R. Ravi participated.

 

Use of Paper is Good for the Environment

 

Everyone receives many email messages with the tagline “Please consider your environmental responsibilities before printing this email” or “Save paper – Think Before you Print”. A myth has been perpetuated that use of paper destroys forests by cutting trees.In recent times, media reports have appeared on some or the other organisation going ‘paperless’ and one of the reasons cited is that massive use of paper means felling of thousands of trees and harming the environment.

 

Nothing could be farther from the truth. While there may be any number of reasons to move towards digitisation in any field or organisation, it should not be linked to felling of trees and environment protection.

 

While it may be technically correct to state that the use of paper means felling of trees, it is only part of the picture, and completely distorts it.

 

Unlike in some parts of the world, the paper industry in India is not a forest based industry but is an agro / farm forestry based industry. That is, like any other crop, farmers grow trees on their lands and sell their harvest to the paper mills.

 

India’s paper industry has strong backward linkages with the farming community, from whom wood, which is a key raw material, is sourced. Of the total demand for wood by the paper industry, around 90% is sourced from industry driven agro / farm forestry, with the rest from Government and other sources. India’s paper industry is wood-positive, that is, it plants more trees then it uses.

 

Pioneering work has been carried out by the paper industry over the last three decades in producing tree saplings (e.g. Eucalyptus, Casuarina, Subabul, etc.) which are disease and drought resistant and can be grown in a variety of agro climatic conditions. A large part of this wood is grown in backward marginal / sub-marginal land, which is potentially unfit for other use.

 

Intensive efforts mounted by the paper mills over the last several years have been instrumental in influencing plantation on cumulatively 900,000 hectares approximately on an all India basis. About 125,000 hectares are being brought under agro / farm forestry on an annual basis.

 

Substantial amounts have been spent by the paper industry on plantation R&D, production of high quality clonal saplings, technical extension services to improve agro / farm forestry services, hand holding of marginal farmers over a gestation period of 4-5 years. This has generated significant employment opportunities for the local community, especially in the rural areas.

 

In India, an estimated 5 lakh farmers are gainfully employed in the growing and harvesting of trees, what is called Trees Outside Forests (TOF).

 

There is no truth in the argument that claims use less paper and save the environment. Paper industry in India is not cutting forests. As opposed to the perception, paper industry has been encouraging growing of trees at a fast pace by the farmers for sourcing wood. India is a fibre deficient country and the demand-supply gap is a major constraint in the growth of the paper industry.

 

Growing trees by paper industry is leading to absorption of carbon dioxide and helping the cause of mitigating climate change. Industry has also earned carbon credits for this agroforestry initiative. What is significant to note is that young trees grown by the paper industry absorb more carbon dioxide than the aged ones. Usage of paper is thus good for the environment. These working or managed forests are very useful for the environment, and paperindustry has demonstrated potential to enlarge the country’s green cover.

 

Paper and paperboard also provide a much more environment-friendly and better packaging material than alternate material like plastic.

 

Paper is biodegradable, renewable, recyclable and sustainable, made from planted trees. Growing and harvesting trees provides jobs for lakhs of people. Working forests support the environment, providing clean air, clean water through increased rainfall, wildlife habitat and carbon storage.

 

Hence, we say – USE PAPER, as Use of Paper is Good for the Environment.

 

 

Public Awareness Committee

Federations of Paper Traders’ Associations of India

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Fema

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

CBDT suspends Assessing Officer for converting LIMITED Scrutiny into FULL Scrutiny with mala fide intention

The CBDT has sent a strong message to all unscrupulous AOs that it will no longer tolerate their shenanigans of harassing taxpayers with a view to extort bribes. The usual modus operandi of such Ao’s is to conduct roving inquiries and threaten to make huge additions unless the hapless taxpayer agrees to pay a bribe. The CBDT has put an end to this nefarious practice by directing that all cases where a limited scrutiny is converted into a full scrutiny should be backed with an order sheet entry in which reasons are given. The approval of the Pr CIT has also been made a precondition. An officer who defied this directive has been placed under suspension as his action gave rise to a “very strong suspicion of malafide intentions“

(Source: http://www.itatonline.org)

Income Tax notices to 1.16 lakh for cash deposit of over Rs 25 lakh

The Income Tax Department has slapped notices on 1.16 lakh individuals and firms who made cash deposits of more than Rs 25 lakh in bank accounts post note ban but failed to file returns by the due date, CBDT Chairman Sushil Chandra said. Besides, large cash deposit by people who have filed I-T returns are also under close scrutiny, he said. The tax department has combed as many as 18 lakh people who had deposited junked 500 and 1000 rupee currency notes of over Rs 2.5 lakh each post demonetization.

(Source: http://www.moneycontrol.com/news/business/economy/i-t- notices-to- 1-16- lakh-for- cashdeposit-of- over-rs- 25-lakh- 2449037.html)

 

Press Release and Section 119 Order regarding extension by CBDT of due date for linking of Aadhaar with PAN

Under the provisions of recently introduced section 139AA of the Income-tax Act, 1961(’Act’) with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link it with PAN Number for filing the tax return. The said provision was relaxed by the Central Board of Direct Taxes (’CBDT’) vide its order(s) dated 31.07.2017 & 31.08.2017, in file of even number, wherein further time till 31.12.2017 was allowed to the taxpayers to link Aadhaar with PAN .

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Order-under- Section-119- Income-tax- Act-1961- MiscComm-8- 12-2017.pdf)

 

Press Release regarding suspension of Deputy Commissioner of Income Tax for demanding bribe and harassing taxpayer in scrutiny case

The Ministry of Finance has issued a press release dated 8th December 2017 stating a complaint was received making serious allegations against a Deputy Commissioner Shri D. K. Meena, Deputy Commissioner of Income Tax, posted at Surendra nagar in Gujarat Region for harassing a taxpayer in a scrutiny case with malafide intention. The officer was alleged to have demanded illegal gratification through the taxpayer’s Chartered Accountant for favorably completing the assessment. The audio recordings of conversations were also received which, inter alia, mention the bribe amount being demanded by the officers of the Department for settling the case.

 

It is stated that on examination of the case records, serious lapses and irregularities were found which led credence to the allegations made against the officer. It is stated that the Department has zero tolerance to such

malpractices and corruption and that pending investigation, the officer has since been placed under suspension.

(Source: www.itatonline.org)

 

Taxman pressing ahead with prosecution notices

As tax officials chase to meet stiff revenue targets amid sluggish growth, there is a sudden surge in prosecution notices slapped by the income tax department. Till now prosecution provision was invoked sparingly and primarily on willful tax evaders. Now, prosecution proceedings are being initiated for not filing tax returns or for short or even delayed remittance of tax deducted at source (TDS) by business entities.

 

A list of 8,000-odd non-filers (of tax return) with a past record of earnings has been compiled by the tax department. Many in that list have been issued prosecution notices. While this may come across as somewhat harsh, notices have also gone to companies which even after deducting TDS (from salaries, rent, or other heads) have failed to submit it to the government.

(Source: https://economictimes.indiatimes.com)

Income Tax department conducts surveys at Bit coin exchanges country-wide

The Income Tax Department has conducted survey operations at major Bit coin exchanges across the country on suspicion of alleged tax evasion, official sources said. They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram.

 

The survey, under section 133A of the Income Tax Act, is being conducted for “gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,” they said.

(Source: www.financialexpress.com/economy/income-tax- department-conducts- surveys-at- bitcoinexchanges-country- wide/971807/)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Reduction in late filing fees

Late fees payable for delay in filing of return for October 2017 onwards reduced to fifty rupees (twenty five each for CGST and SGST) and In case of NIL return, the late fees reduced to twenty rupees (ten each for CGST and SGST).

(Notification No.64 /2017 – Central Tax dated November 15, 2017)

 

Amendments made to CGST Rules:

Notes:

 

  • For the purpose of reversal of input tax credit under Rule 42 and 43, supply of services made to Nepal and Bhutan against payment in Indian rupees will not be considered as exempted supply

 

  • Electronic filing of an application, intimation, reply etc. shall also include manual application, intimation, reply etc. (Rule-97A & Rule-107A Inserted)

 

  • Rule 109A has been inserted which deals with appeals and revision, to appoint authority with whom a further appeal can be filed by a person aggrieved by the decision or order of the adjudicating authority.

 

  • Form GST RFD-01 has been provided for manual application for refund in specified cases

(Notification No. 55 /2017 – Central Tax dated November 15, 2017)

 

No GST liability on advances received against supply of goods

It has been specified that date of Invoice will be considered as time of supply in case of goods. Thus, there will be no GST liability on advances received in case of supply of goods.

(Notification No. 66 /2017 – Central Tax dated November 15, 2017)

 

Quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of up to Rs.1.5 crore

The Central Government, on the recommendations of the Council, notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year (in case of registrations taken in current financial year), shall follow the special procedure as detailed below for furnishing the details of outward supply of goods or services or both in Form GSTR-1.

 

Sr. No. Quarter for which the details in

FORM GSTR-1 are furnished

Time period for furnishing the

details in FORM GSTR-1

1. July – September, 2017 31st December 2017
2. October – December, 2017 15th February 2018
3. January – March, 2018 30th April 2018

 

(Notification No. 57 /2017 – Central Tax dated November 15, 2017)

 

 

 

 

 

International Tax

 

Amendment in the Income-tax Act does not affect the provisions of the tax treaties unless the

same are included in the tax treaty

Based on the facts and in the circumstances of the case, recently, the Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Bank of India (the taxpayer) held that any notification or circular cannot alter the nature of income that has been specifically included in tax treaties. The tax authorities treated the business income and house property income as one source of income for tax purposes. However, the India-Kenya tax treaty (tax treaty) contains two different Articles i.e. ‘business income’ and ‘house property income’. The Tribunal observed that even amendment in a section of the Income-tax Act, 1961 would not affect the provisions of tax treaties, unless same are not ratified by both the signatories of the tax treaty. Accordingly, it was held that under Article 6 of the tax treaty house property income should be taxed in Kenya and not in India.

(DCIT v. Bank of India (ITA No. 3082/Mum/2015) – Taxsutra.com)

Income earned abroad by a non-resident cannot be taxed in India for mere receipt of salary in

Indian bank account

For a taxpayer qualifying to be a non-resident in India, income received, deemed to be received, accrued, deemed to be accrued, arising or deemed to be arising in India would be subject to tax in India. In relation to salary income, the income earned for services rendered in India would alone be taxable in India. In this context, recently, the Delhi Bench of the Income-tax Appellate Tribunal in the case of Pramod Kumar Sapra held that income earned by a non-resident for services rendered outside India cannot be taxed in India merely since the receipt of salary is in India

(Pramod Kumar Sapra v. ITO (ITA No. 5965 of 2015) (Del))

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fema

 

RBI amends FDI Regulations

RBI vide Notification No. FEMA 20(R)/2017-RB, dated 7th November, 2017 issued Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 (hereinafter referred to as ‘Regulations, 2017’) in supersession of Notification No. FEMA 20/2000- RB and Notification No. FEMA 24/2000-RB, both dated May 3, 2000, Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (hereinafter referred to as ‘Regulations, 2000’). The Regulations, 2017 are effective from 8th November, 2017 (Date of publication in the Official gazette) except proviso (ii) to sub-regulation 1 of regulation 10 of these Regulations and proviso (ii) to sub-regulation 2 of regulation 10 of these Regulations, reproduced hereunder as Annexure 1, which will come into effect from a date to be notified.

 

Some of the key Definitions like Capital instrument, Investment, Foreign Direct Investment (FDI), Foreign Investment, Foreign Portfolio Investment, Resident Indian Citizen, Non Resident India (NRI), Overseas Citizen of India (OCI), etc. are amended / newly inserted. While some of the terms defined like Employees’ Stock Option, Start up, Startup Company, Sweat equity share, etc. are aligned with Act, 2013/DIPP notifications/Consolidated

FDI Policy. In view of the new Definitions, some of the terms defined earlier like Foreign Institutional Investor, Qualified Foreign Investor, Warrants, etc have been deleted.

 

Changes have also been made in provisions related to Downstream Investments, Transfer of Shares, etc. Further, In case of an unlisted Indian company, the valuation of capital instruments done as per any internationally accepted pricing methodology for valuation on an arm’s length basis can now be certified by even a practicing Cost Accountant.

 

While Regulations, 2000 were revisited and amended frequently to align those with other regulatory amendments, Regulations, 2017 is concise as well as comprehensive and avoids repetitive provisions as observed in Schedule of Regulations, 2000.

(RBI Notification No. FEMA 20 (R)/ 2017-RB dated November 7, 2017)

 

 

Respected Members,
 
Kindly note our new contact numbers as mentioned below:
 
022 4973 2041
022 2267 7708
 
This for your information.
 
Regards
FPTA
Hiren Karia
Hon. Secretary

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Sep 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1    01/09/17 Special Mtg. Special Meeting of Office Bearers to discuss about forth coming 76th AGM of our Association.
2 08/09/17 Monthly Circulars The monthly Circular was circulated on 08/9/2017 wherein important information about “Due Dates for GST Return for the month of 07/17 & 08/17 were given along with regular information and important information about Income Tax and Goods and Service Tax.
3 12/09/17 BDS Mtg. Discussion on cases in progress.
12/09/17 FPTA President FPTA President Shri A. Annamalai (Venkat) visited the PTA Office and interacted with all the office bearers during the meeting.
4 15/09/17 76th AGM The 76th AGM was graced by Shri Bhagwanbhai Bhura as Chief Guest & A. Annamalai (Venkat) as Guest of Honour. Both of them were introduced to the house & then shared their vast experience. FPTA Awards won by PTA office bearers & various PTA Awardees were declared. Latest edition of Red Book published by the Publication Committee was inaugurated by the Chief Guest Shri Bhurajee and Guest of HonourShriVenkatjee& on President’s request members expressed their thoughts.
5 25/09/17 1st MC Mtg. During the meeting 2 Hon Secretaries &1 Hon.Treasurer,5 additional Managing Committee members, 3 Co-opt Members & 9 Special Invitees were selected.

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

Oct 2017

No. Date Name of the Activity Description
1    10/10/17 2nd MC Mtg. During the mtg. 1)Resolutions were passed for finalizing the Signatories of various Bank Accounts & Fixed Deposits 2)Conveners of various Sub Committees were appointed 3)Two new Members were admitted 4)Discussion on proposed “Get together cum dinner followed by Entertainment Programme” and 5)Discussed Proposed Paper Day Celebrationon 01/11/17.
2 11/10/17 Monthly Circulars The monthly Circular was circulated on 11/10/2017 wherein along with regular information 76th Annual General Meeting was detailed in nutshell. 1) Introduction of Chief Guest Shri Bhagwan Bhura and Speech delivered by him 2) Introduction of Guest of HonourShri A. Annamalai (Venkat) FPTA President & Speech delivered by him. 3) During 55th AGM Awards won by PTA Mumbai. 4) PTA Awards for year 2016-17 won by PTA Members 5) Inauguration of latest edition of Red Book (Defaulter Book) by Chief guest and Guest of Honour.
3 25/10/17 Special Mtg. Special Mtg of Office Bearers was held to Finalise the programme of Get together.

 

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

 

 

________________________________________________________________

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore – Aug 2017

Activities-Achievements-Updates during this Period by the Association

 

Sep 2017

 

No. Date Name of the Activity Description
1 17.09.2017 AGM  Report send new team form
2 21.09.2017 Managing Committee meeting Monthly 1st MC meeting held to discuss regular work and trade scenario. Members also discussed about hosting 2ND FPTA managing Committee meeting in Karnataka.

All e mails received from FPTA were forwarded to all our kpmsa members.

3 21.09.2017 New members Two new KPMSA LIFE members added
       

 

 

 

Oct 2017

No. Date Name of the Activity Description
1 11.10.2017 Meeting with MLA Meeting with  MLA mr.Dinesh Gudurao told problem regarding civic amentnity in and around paper market
2 24.10.2017 Managing Committee meeting Monthly 2nd MC meeting held to discuss regular work and trade scenario. Members also discussed about hosting 2ND FPTA managing Committee meeting in Karnataka.

All e mails received from FPTA were forwarded to all our kpmsa members. 20-25member confirm to attend PAPERX along with our President.

3 24.10.2017 New members no new KPMSA LIFE members added
4 24.10.2017 2nd FPTA MC Various committee founded for management of 2nd FPTA MC to be held on 06.01.2018

________________________________________________________________

 

 

 

The Paper Merchants’ Welfare Association, Vijayawada

 

Sep 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

22-9-2017 1st M.C. Meeting 2017-18 1) Reviewed last MC Meeting Minutes and together with Emergency MC Minutes.

 

2) Acceptance and Approval of Financial Report for the year upto the period 2017-2018.

 

3) The PMWA 34th AGM held on 23rd July 2017 reviewed and the total expenses incurred for the meeting Rs. 1,34,815/- was accepted by committee.

 

4) Reviewed of FPTA 56th AGM held at Madras from 12th to 14th August 2017 hosted by The Madras Paper Merchants Association Chennai. Out of full strength of 20 delegates 19 delegates were attended from our Association. one member Mr. K. Nageswara Rao, M/s. Sree Srinivasa & Co., dropped due to his private affairs.

 

In this meeting the following members were nominated from our Association as FPTA MC members for the year 2017-2018.

1. Mr. Lalit Kumar Tarachand,

M/s. Sha Amichand Tarachand & Sons, Vijayawada-1.

2. Mr. V.V.D. Ramesh,

M/s. Sri Ravi & Co., Vijayawada-1.

3. Mr. Nilesh Solanki,

M/s. Vardhaman Paper Products, Vijayawada-3.

4. Mr. A.T. Arasu,

M/s. Arasu Papers, Vijayawada-1.

5. Mr. A. Chandrasekhar Reddy,

M/s. Divya Publications, Vijayawada-10.

6. Mr. Paharsingh Rajpurohit,

M/s. Suresh Paper Agencies, Vijayawada -3. (Co-Opted)

Mr. Madhusudan Bang,

M/s. Ram chandar Shivnarayan Sons, Vijayawada -2

was nominated as FPTA Zonal Vice-President for the year 2017-2018 as per our allotment once in every alternate year.

 

5) Reviewed the Jakkampudi Economic Township which Government of A.P. Proposed to establish industrial cluster to the paper related firms and rehabilitation to the workers at the Government Land adjoined to the Vijayawada town.

 

6) Reviewed the certain inoperated firms were decided to delete from their membership.

7) Discussed and decided present membership profile has been slightly modified as certain old colums were replaced with new colums convenient to the present digital technology.

 

8) Discussed and decided to conduct Blood Donation camp on occasion of Mahatma Gandhi 148 Birth Anniversary in October 2nd, 2017 Monday at Rotary Red Cross Blood Bank, Gandhi Nagar, Vijayawada.

 

9) The Committee resolved and decided to collect Rs. 5,516/- towards subscription for present firm title changed or on changing of title. They should be paid before31st December 2017 if failed to pay in the prescribed time they can be deleted straight way with out prejudice.

 

10) Discussed and decided to celebrate Karthika Vanasamaradhana (Diwali Garden Party) on 5-11-2017 in thick forest at Mulapadu surrounding Vijayawada.

 

11) a) The Committee with the permission of chair resolved and decided and enhanced life membership subscription for the new

members enrolment from Rs.10,000/- to Rs.15,000/- with effect from 22nd September 2017 and the admission fee Rs. 516/- remained unchanged.

b)The Committee had decided certain restrictions should be implemented on whatsapp group which the committee feel unfavorable.

c) The Committee had decided to inform the PMWA Members to participate paper expo in Delhi to be conducted on 1st and 2nd November 2017. The interested members can be participated

in this event at their own expenses and risk.

d) The Committee proposed and decided to conduct 2nd MC Meeting 2017-2018 on 15th December 2017.

 

Oct 2017

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

2.

22-10-2017

 

 

 

 

 

 

27-10-2017

SOCIAL ACTIVITY

 

 

 

 

 

 

Emergency

MC Meeting 2017-18

Blood Donation Camp was conducted by PMWA on 2nd October 2017 on the eve of Mahatma Gandhiji Birthday at Rotary Red Cross Blood Camp, Gandhi Nagar, Vijayawada -3. Totally 25 members attended. Out of them Blood was colleted from 15 members on their sound health condition as per the doctor’s report.

 

Distribution of work to the executive members of our

Association for celebration of Karthikavana samaradhana (Diwali Garden Party) fete to be performed 12-11-2017 Sunday in thick forest at pleasant and delightful location surrounding Vijayawada.

 

Formation of Committees :-

1) Food Committee :-

a) Breakfast & Lunch:

1. B. Sankar, M/s. Sai Binding Works

2.G. Murali Krishna, M/s. Murali Binding Works

b) Hi-Tea :

1. Kundanmal Gandhi, M/s. Paras Enterprises

2) Banners :-

1. Nilesh Solanki, M/s, Vardhaman Paper Products

2. D.Adinarayana Rao, M/s, Kamakshi Book Depot

3) Photographer :-

1. V.V.D. Ramesh, M/s. Sri Ravi & Co.,

4) Anchor & DJ :-

1. M. Ravi Kumar, M/s. Vishnu Binding Works

2. G. Nageswara Rao, M/s. A.S. Distributors

5) Seating Arrangments (Tents, Tables, Chairs) : –

1. Kundanmal Gandhi, M/s. Paras Enterprises

2. J. Srinivas, M/s. Rajeswari Traders

6) Gifts & Lucky Draw :-

1. M. Ravi Kumar, M/s. Vishnu Binding Works

2. Kundanmal Gandhi, M/s. Paras Enterprises

3. J. Srinivas, M/s. Rajeswari Traders

7) Sale of Tickets :-

1. Pahar Singh, M/s. Suresh Paper Agencies

2. H.C. Bhandari, M/s. Kamalsri Papers

3. M. Ravi Kumar, M/s. Vishnu Binding Works

4. D.Adinarayana Rao, M/s, Kamakshi Book Depot

 

Nov 2017

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

 

 

 

 

2.

1-11-2017

 

 

 

 

 

 

 

 

 

12-11-2017

Paper Day Celebration at Delhi

 

 

 

 

 

 

 

 

Karthika

Vanasamaradhana

(Diwali Garden Party)

From our Association nine members attended including PMWA President Mr. Lalit Kumar Tarachand and Secretary Mr. V.V.D. Ramesh. It was said to be spread awareness and make propaganda among public and especially student community about paper manufacturing which they have negative trend.

Eminent persons spoken about its mode of manufacturing of paper that which will not give any damage to environment and ecological balance.

 

Karthika Vanasamaradhana was celebrated at pleasant location in dense forest at Mulapadu Near Vijayawada. Nearly 230 members including their families and children participated in this event. Conducted musical songs, Dance and Sports all were enjoyed very lot in his fete event.

Palatable dishes were arranged. Winners in sports were provided with prizes and also conducted Lucky Dips to test their fortune and distributed prizes. Return gifts were offered to the participants.

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

Nov 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

 

 

 

2.

18.11.2017

 

3RD  Meeting of Managing Committee

 

1.  33rd meeting of managing committee of our Association was held on 18.11.2017 to discuss and implement various matters of our association.

 

2. Discussions were held about  matters  related to Kagaz Bhavan Committee & Arbitration board.

 

3. ‘’Cricket Tournament’’ a detailed discussion was held to organize the event which is going to be held on 24/12/2017.

 

All the Circulars sent by you have been Circulated to all the Members.

 

 

Salem paper Allied Traders Association

September 2017

 

15/09/2017:

1) Executive committee meeting  conducted.

2) As already decided in Executive committee meeting on 21/08/2017, We discussed about Our AGM to be held at Salem CJ PALLAZZIO on 17/09/2017.

3) Approved our Association’s Balance sheet for the year 2016-17.

 

17/09/2017

1) SPATA AGM held at CJ PALLAZZIO at11.30am.

2) Balance Sheet approved by AGM.

3) Approval received for Continuing Current Auditor for Subsequent year.

4) New Board of Members Elected and took charge.

 

New Board Members are:

 

C.Alagappan (M/s Ramsunder Papers)-  President

 

S.Balaji (Sri Vidya Book Shop, Salem-636 002) -Vice President.

 

A.Viswanathan -Saraswathi  Book Shop-  Secretary

 

D.Manimannan – Kalaimagal Book Shop- Jt.Secretary

 

A.Ramanathan -Balaji Paper -Treasurer.

 

And 7 EC members has taken charge.

 

 

 

 

Oct 2017

 

We had our Oct meeting on November 9th at Salem town Selva mess with our new team of office bearers and advisory committee member headed by our new president Mr.A. L. Alagappan.and executed by Mr. A. Viswanathan Secretary. we talked about various aspects of GST, industrial visit to TNPL unit 2,and agendas for upcoming year(i.e.) every month 2nd Friday evening meeting the person who comes first for every meeting will get a SPL gift from our President, Members who are all attending all meetings will get a silver coin as a reward, then in every 4 month  we bring all our members for a joint meeting by open discussion regarding business development, investment, motivation camps with mentor’s.

 

We plan to have family tour in the month of August 2018.

 

We are focused on each and every possible way to bring our members to make active part in all aspects of association welfare and growth.

 

REPORT OF Sivakasi Paper Merchants Assn. – October’2017:

Family entertainment on 07.10.2017:

On 07.10.2017, our Recreation Committee had arranged movie tickets for SPMA members and their family. Totally it was different experience for the members. It was great to meet all members with family.

2nd Committee meeting on 23.10.2017:

All committee members were informed of our FPTA  President, Mr. A. Venkat and Vice President, Mr. R. Sunder visit to SPMA on 17.11.2017.

Public awareness/welfare committee informed of arranging a meeting with SHN Girls in Sivakasi regarding Paper Awareness during the FPTA President’s visit and distributing pamphlets to the students.

Bulletin committee gave a detailed information and planning on the SPMA newsletter “DELIGHT” to be released during FPTA President’s visit.

Social media committee assured of support for the Bulletin committee for collection of information about Paper & related industry news.

Hence all committee members gave good support to organize a great event on the day of FPTA President’s visit.

2nd Regular meeting on 31.10.2017:

The main agenda of this meeting was preparation for FPTA President, Mr. A. Venkat’s visit.

Very solid discussion on the newsletter “DELIGHT” release was discussed. All members were happy that this newsletter will be circulated not only among SPMA members, but will be sent to FPTA and 35 affiliated associations and also to other local Paper manufacturers and Printers & related associations.

About RED BOOK, we had healthy discussion among members and it was implemented to list the bad pay masters.

Discussion on Special invitation to be printed for the FPTA President’s visit was also discussed.

 

 

TRICHY  DISTRICT  KAGITHA VANIGARKAL NALA SANGAM:

 

September 2017

 

  1. We have conducted our AGM   ON 30-9-2017 & 1-10-2017
  2. It was a family function with a special speaker of NELLAI KANNAN and health advice given by  two expert doctors.
  3. We had our management committee meeting on    10-9-2017.
  4. Market situation were discussed in our AGM
    ______________________________________________________________________________

 

Paper and Allied Merchant Association

October 2017.

4-10-2017            PAMA Sep 2017 Monthly Report sent to FPTA,

8-10-2017            Conference call with FPTA President Mr. Venkat and other conveners of sub – committees of FTA and Vice President of FPTA.

9-10-2017            Chamber of Commerce – Governing Council Meeting 6 P M Attended by Mr. R. Ravi and Mr. C. Balasubramanian.

25-10-2017          PAMA – EC Meeting 7.30pm

Subject discussed:

  1. Confirmation of PAMA AGM Minutes dt 17.09.17
  2. FPTA MC Meeting at Bangalore on 6th 7th Jan 2018
  3. Paper Day 01.11.2017
  4. FPTA Vietnam Tour from 4th – 11th Feb 2018.
  5. FPTA President visit, Guidelines for affiliated associations.
  6. PAMA September 2017 Report.
  7. PAMA Presidents proposal for office – bearers and EC Members.

26-10-2017          Chamber of Commerce- “ Insolvency and Bankruptcy Code 2016” Speaker : Dr. Navrang Saini Whole time members, Insolvency and Bankruptcy Board of India, New Delhi. Attended by Mr. C. Balasubramanian.

26-10-2017          Office bearers of Chamber of Commerce including Mr. C. Balasubramanian met Shri G Sreenivasa Rao IRS Commissionerate Coimbatore.

31-10-2017          “ RUN FOR UNITY” Organized by Central Excise Department on the Occasion of National Unity Day. Office bearers of Chamber of Commerce including Mr. C. Balasubramanian and others Trade and Industry bodies as well as Government Departments participated in the Run.

 

November 2017.

02.11.2017           The Monthly Report of activities of PAMA sent to FPTA, FPTA President – Chennai and FPTA Vice President Sivakasi.

07.11.2011           Chamber of Commerce – Meeting on GST “GST-Current Challenges and Solutions” Addressed by Mr. C.P. Rao. I.R.S Principal chief commissioner – GST Chennai.

Mr. G. Srinivasa Rao I.R.S Commissioner GST Coimbatore.

Attended by Mr. R. Ravi, Mr. C. Balasubramanian and other PAMA Members.

10.11.2017           Coolie talks with Loadman Union at PAMA office on revision of Loading/unloading charges for our Loadmen.

12.11.2017           Conference call with FPTA President and conveners of FPTA Committees. Mr. C. Balasubramanian participated.

13.11.2017           Chamber of Commerce – Governing Council Meeting. Mr. R. Ravi and Mr. C. Balasubramanian participated.

28.11.2017           Chamber of Commerce – Session on GST “150days of GST – A stake Holders Review” by Mr. S. Jaikumar Advocate Country Head swamy Associates.

Mr. R. Ravi and Mr. C. Balasubramanian Participated.

28-11-2017          PAMA – EC Meeting

The Lucknow Paper Merchants Association, Lucknow – April 2017 to Oct 2017

 

No. Date Name of the Activity Description
1 13.04.2017 Executive committee Meeting Executive Committee Meeting of LPMA was held to discuss the problems, if any, being faced by the Paper Traders regarding filing of Commercial Tax Returns & ITR as financial year 2016-17 has come to end. Also a get together function was organized being successful closure of FY 2016-17.
2 18-05-2017 Executive Committee Meeting Executive Committee Meeting was called to discuss the civic problems being faced by Trading & business community like bad road conditions, street lighting and security concern. A delegation of 02 Executive Committee Members met City Commissioner for road and street lighting problems who assured to look into the problems and will arrange to repair the roads, cleaning of drainage and provide proper lighting. The delegation also met with DGP who assured for proper policing in night and will also provide police personnel for day time security.
      3 22-06-2017 Executive Committee Meeting Executive Committee Meeting was convened to discuss the problems of Paper Trading Community and fellow Members and to take feedback for the problems raised by members for which delegation met to City Commissioner & DGP. The Executive Committee was informed for the progress made by the concerned Government Departments and satisfied. Members were asked to be cutious for surrounding activities.
4 06-07-2017 General Body Meeting General Body Meeting was called in the pretext of GST application, implemented by Government of India w.e.f 01.07.2017. In this reference members were asked to take help from the leaflets, broachers, provided by FPTA. Members were asked to carefully note the GST Act and discuss, if any problem arises in future.
5 03.08.2017 Executive Committee Meeting Meeting was called to discuss about the preparation of Indepenence Day Celebration, to be organized at H.O. of the Association. Members were asked to be active in social welfare activities and common problems of the society and make effforts for solution.
6 15-08-2017 Independece Day Celebration General Body of the Association assembled at Association’s Office to celebrate Independence day. Flag Hoisting was made by President and every member was felicitated on this auspicious occasion. Members were asked to donate books and other stationery to poor children which was being done by the Association since last many years.
7 14-09-2017 General Body Meeting LPMA General Body meeting was held at Associations’ Office to discuss the problems, being faced by Trading Community in general and Paper Traders in Particular in filing various GST Returns and it was decided that a delegation of 3-4 members of Executive Committee of LPMA will meet The Commissioner, Commercial Tax Department very soon and will apprise him the traders’ problems with request to suggest/get the solution. The result of the meeting with Commissioner, Commercial Tax, will be communicated to all LPMA Members. Members were also requested to make their presence on 2nd October, 2017 to celebrate ‘Gandhi Jayanti’ and ‘Shastri Jayanti’.
8 02-10-2017 General Body Meeting Members of LPMA assembled at Association H.O. to celebrate “Gandhi Jayanti” and “LalBahadurShastriJayanti” which was organized with much enthusiasm. Members were requested to participate in welfare schemes of poor and children which are launched by the Association as well as schemes initiated by Government or by any other Social Organization.

 

​Respected Members,
 
With reference to the 2nd Managing Committee Meeting to be hosted by Karnataka Paper Merchants’ & Stationers at Bangalore on 06th & 07th January 2018.
 
The two major points will be also be part of our meeting agenda for discussions during the meeting in any other matter as mentioned below.
 
1. On Celebrating Paper Day by Affiliated Associations
 
2. Initiation of Anti – Dumping Duty investigation concerning imports of Un-Coated Copier Paper Originating in or exported from Indonesia, Thailand and Singapore.
 
We request all our Managing Committee Members to come prepared to share your valuables views on above subjects during the M C Meeting.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary
 
Cc. All Patrons and Life Associates Members​

 

 

 

Circular No. 04/57/2017-18                                                                                Date: 06th December 2017

 

To

All the Managing Committee Members

All Affiliated Associations and Former Presidents of FPTA.

 

NOTICE – 2ND MEETING OF THE MANAGING COMMITTEE 2017-18

 

Notice is hereby given that the Second Meeting of the Managing Committee (2017-18) of the Federation of Paper Traders’ Associations of India will be held at Bangalore under the auspices of Karnataka Paper Merchants’ & Stationers Association, Bangalore.

 

The details of venue, date and timing are as under:

 

Venue                      :               Hotel Shangri La

                                    # 56-6B, Palace Road, Bangalore – 560052

Tel: 080- 4512 6100

 

Date                             :           06th & 07th January 2018

 

Timings                       :           As per tentative programme attached.

 

AGENDA

 

The following items will form the agenda for the meeting.

  1. To confirm the draft minutes of the Fourth meeting of the managing committee (2016-17) and the

First meeting of the present managing committee (2017-18) held on 12th & 14th August 2017.

  1. To consider applications for membership for Life Associate, Patron and Ordinary Member, if any.
  2. Report of Shri. A. Natesan Convener of Advisory Board.
  3. To discuss reports of Vice-Presidents and Conveners of the Sub-committees circulated.
  4. To consider report of review committee Convener on guidelines of various awards
  5. Discussion on Current Market Scenario/Grievance Committee for PAN India or Zonal.
  6. Discussion for 3rd Managing Committee Meeting to be hosted by Rajasthan Paper Merchants’ Association,

Jaipur.

  1. Any other matter with the permission of the chair.

Yours faithfully,

For Federation of the Paper Traders’ Associations of India,

 

 

 

Hiren Karia

Hon Secretary

 

Cc. All Patrons, Life & Ordinary Associate members.

 

 

IMPORTANT

Managing committee members are requested to co-operate with the hosts, while registering, attending the meetings and inform well in time regarding their schedule of arrival and departure programmes.

(Please also send copies of your correspondence to the host (Karnataka Paper Merchants’ & Stationers Association, Bangalore and copy to FPTA office to give you the necessary supporting help)

 

 

 

 

 

 

2

 

Tentative Program

Saturday, 7th January 2017

7.30 a.m. to 09.00 a.m.                       Registration and Breakfast
09.30 a.m. to 11.30 a.m.         Advisory Board Meeting
12.00 p.m. to 01.30 p.m.        Inauguration

FPTA President’s address to host Association and Interaction

01.30 p.m. to 02.30 p.m.        Lunch

03.00 p.m. to 04.30 p.m.        1st Business Session

04.30 p.m. to 05.00 p.m.        Hi-Tea
05.00 p.m. to 07.00 p.m.         2nd Business Session

07.30 p.m. to 10.00 p.m.                  Dinner & Entertainment

 

Sunday, 8th January 2017

07.30 a.m. to 09.00 a.m.                     Breakfast
09.30 a.m. to 11.00 a.m.                     3rd Business Session
11.00 a.m.                   Checkout

 

The Meeting is planned as one day event. Please send your travel details to kpmsablr@gmail.com before 15th December 2017. All Members attending the event must carry their I.D. proof for check-in.

 

Members of FPTA under Life/Patron/Observer categories who wish to participate in the meeting must inform our association (KPMSA) in advance before 15th December 2017. The fee for such participants has being fixed at Rs. 7,500 (Rupees Seven thousand Five Hundred only) each per person, plus taxes as applicable; the amount may be remitted by way of cheque/DD/NEFT in favour The Karnataka Paper Merchants and Stationers Association.

 

Participating Members are requested to send ID Proof Along with Passport Size Photo to KPMSA Bangalore address before 15th December 2017

 

Our bank details are as follows:

A/c. Name          :              “The Karnataka Paper Merchants and Stationers Association”

Bank                      :               State Bank of India

Branch                  :               Cottonpet Branch, Bangalore-380 001

A/c. No.               :               54051177943

IFSC Code            :               SBIN0040260

Looking forward to meeting you all in Bengaluru.

 

Contact Persons

Shri. Deepak Mittal, President                                 Mob: – 9844067424

Shri. Dinesh M. Jain, Secretary                               Mob: – 9845022820

Shri Ranjeet Jain. Chairman Registration Committee   Mob: – 9448476339.

Shri Ashok M. Jain Chairman Transport Committee    Mob: – 8088875152.

 

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

 

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

India adopts reporting rules to crack aggressive corporate tax planning

India has notified final rules for multinational group companies (MNCs) in India to report specifics of their global parents’ operations as part of a global initiative to end instances of aggressive corporate tax planning. Details filed by the multinational company’s local arm in India, together with the finer details of the parent’s operations in every market which Indian authorities can source from the group’s home country under tax treaties, will help the government know how businesses manage flow of funds across borders to keep tax outgo low.

(Source:http://www.livemint.com/Companies/G8PAbxMFLR0q29cUuKFTmL/India-adopts-reporting-rules-tocrack-aggressive-corporate-t.html)

 

CBDT Chief Lambastes Income Tax Department For Failure To Redress Public Grievances In Timely & Proper Manner

Sushil Chandra, the Chairman, CBDT &amp; Special Secretary to the Government of India, has addressed an irate letter dated 14th November, 2017 to all Pr. Chief Commissioners and Director Generals in which he has expressed grave dissatisfaction at the failure of the department to redress public grievances (CPGRAMs) in a namely & proper manner.

 

The learned Chairman has pointed out that redressal of public grievances is one of the primary focus areas of the Government and it is being monitored at the highest level and that he has written DO letters to all the Pr. Chief Commissioners delineating the steps to be taken for expeditious resolution of the grievances.

 

“However, in spite of all these efforts by the Board, it is a matter of concern that total pending grievances as on 13.11.2017 are as high as 1492,” the learned Chairman has observed.

 

Facts and figures to show the tardiness of the Department in the disposal of grievances have been set out.

 

“This high pendency reflects poorly on the efforts made by the field officers,” it is lamented.

 

It is also observed that the “High receipt of CPGRAMS grievances indicates that the resolution of grievances under e-Nivaran is far from satisfactory”.

 

At the end, a stern warning has been issued to the Pr. Commissioners and Directors Generals to ensure that all officers &amp; agencies are properly briefed so as to reduce the avenues of grievances. It is also emphasized that efforts should be made to strengthen the functioning of the ASK centres ensuring timely e-nivaran of grievances

so that there is little or no need for public to resort to filing grievances on CPGRAMS.

(Source: http://www.itatonline.org/info/cbdt-chief- lambastes-dept- for-failure- to-redress- public-grievancesin-timely-proper- manner/)

 

Income Tax Department to issue notices to suspicious cash depositors

The Income-Tax (I-T) Department will soon issue notices to those who have deposited “suspicious” amounts of money in banks after demonetization and have not responded to the taxman’s preliminary communication, the CBDT has said. Chairman Sushil Chandra said despite closing of the I-T returns filing time period, a number of entities and individuals failed to file their returns, as required under the ‘Operation Clean Money’ initiated by the government to check black money after demonetization..

(Source:http://www.business-standard.com/article/economy-policy/i-t-to-issue-notices-to-suspicious-cashdepositors-117111500059_1.html)

 

Supreme Court ruling lets I-T department open closed cases

Many individuals and small businesses could now find the tax office raking up old wounds and chasing tax demands they believed had been long forgiven. To minimize feuds between the income- tax (I-T) department and small taxpayers, the revenue authorities had in the past decided that for tax demands below certain limits, the department would not wage legal battles to recover dues. These limits were fixed in February 2011 and were raised in December 2015. A recent Supreme Court ruling will now change this for many. The apex court has ruled that “the Central Board of Direct Taxes (CBDT) cannot issue any circular having retrospective operation.”

(https://economic_mes.indiatimes.com/news/poltics-and-nation/supreme-court-ruling-lets-i-t-departmentopen-closed-cases/articleshow/61349694.cms)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Highlights of Recommendations made by the GST Council in the 23 rd Meeting at

Guwahati on 10th November 2017

 

(These are the recommendations yet to be notified by the authorities)

Period / Month GSTR-3B along

with payment

GSTR-1 GSTR-2 GSTR-3
Taxpayers with

annual aggregate

turnover up to Rs.

1.5 crore (Quarterly)

Taxpayers with

annual aggregate

turnover more than

Rs. 1.5 crore

(Monthly)

July 2017 25-Aug-2017 31-Dec-2017 31-Dec-2017 The time period for filing GSTR-2 andGSTR-3 for the months of July 2017 to March2018 would be worked out by a Committee of Officers
August 2017 20-Sep-2017 31-Dec-2017
September 2017 20-Oct-2017 31-Dec-2017
October 2017 20-Nov-2017 15-Feb-2017 31-Dec-2017
November 2017 20-Dec-2017 10-Jan-2018
December 2017 20-Jan-2017 10-Feb-2018
January 2018 20-Feb-2017 30-Apr-2017 10-Mar-2018
February 2018 20-Mar-2017 10-Apr-2018
March 2018 20-Apr-2017 10-May-2018

 

Notes:

1) Late fee is waived in all cases where return in FORM GSTR-3B is not filed within due date for the months of July, August and September, 2017. Where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities.

2) For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month is ‘NIL’ will be Rs. 20/- per day (Rs. 10/- per day each under CGST &amp; SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).

 

From / Period Particulars Due Date
GSTR-4

July to Sept 17

Quarterly return for registered person opting for composition levy 24-Dec-2017
GSTR-5

July 2017

Return for Non-resident taxable person 11-Dec-2017
GSTR-5A

July 2017

Details of supplies of online information and database access or

retrieval services by a person located outside India made to

non-taxable persons in India

15-Dec-2017
GSTR-6

July 2017

Return for input service distributor 31-Dec-2017
TRAN-1 Transitional Input Tax Credit / Stock Statement 31-Dec-2017
(for original as well as revised Form TRAN-1)

 

  • Manual Filing: Facility for manual filing of Advance Ruling application to be introduced

 

  • Further benefits for service providers:

Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

 

In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J &K) from obtaining registration even if they are making inter-State taxable supplies of services. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. As a result, all service providers, whether supplying intra-State, inter-State or through e- commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J &K).

 

  • Other:

Major relief in GST rates on certain goods and services Changes to Composition Scheme Benefits for Diplomatic Missions/UN organizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Tax

 

CBDT issues clarification related to guidelines for establishing ‘Place of Effective Management’ in India

 

The Finance Act, 2015 introduced the concept of ‘Place of Effective Management’ (POEM) under the provisions of Section 6(3) of the Income-tax Act, 1961 (the Act). On 24 January 2017, Central Board of Direct Taxes (CBDT) issued the guiding principles (POEM guidelines) for determination of POEM of a company. Various stakeholders

have raised concerns that as per the guidelines, POEM may be triggered in the cases of certain multinational companies with regional headquarter structure merely on the ground that certain employees having multi-country responsibility or oversight over the operations in other countries of the region are working from India and consequently, their income from operations outside India may be taxed in India.

 

Recently, the Central Board of Direct Taxes (CBDT) has issued a circular clarifying that as long as the regional headquarter operates for subsidiaries/group companies in a region within the general and objective principles of global policy of the group laid down by the parent entity in the field of payroll functions, accounting, human resource functions, IT infrastructure and network platforms, supply chain functions, routine banking operational procedures, and not being specific to any entity or group of entities per se; it would not constitute a case of Board of Directors of companies standing aside and such activities of regional headquarter in India alone will not be a basis for establishment of POEM for such subsidiaries/group companies. The CBDT has also clarified that the provisions of General Anti-Avoidance Rule may get triggered in such cases where the above clarification is found to be used for abusive/aggressive tax planning.

(CBDT Circular No. 25 of 2017 dated 23 October 2017)

 

Due date for furnishing Country by Country Report for first fiscal year in India extended to 31 March 2018

 

In keeping with India’s commitment to implement the Organization for Economic Co-operation and Development’s recommendations in Action Plan 13 of the Base Erosion and Profit Shifting project, the Finance Act, 2016 introduced Section 286 of the Income-tax Act, 1961 (the Act) providing for furnishing of Country-by-Country Report (CbCR) in respect of an International Group.

 

Sub-section (2) of section 286 of the Act provides for furnishing the CbCR by the ‘due date’ specified under section 139(1) of the Act for furnishing the return of income for the relevant accounting year i.e. 30 November.

 

Financial Year (FY) 2016-17 will be the first reporting year for furnishing of CbCR. Keeping in mind the hardships taxpayers might face in the first year of CbCR filing, Central Board of Direct Taxes vide its circular dated 25 October 2017, has extended the due date for furnishing CbCR for FY 2016-17 to 31 March 2018.

(CBDT Circular No. 26 of 2017 dated 25 October 2017)                                                        

 

Payment for granting distribution right of ‘Adwords program’ is taxable as ‘royalty’ under the Income-tax Act as well as India- Ireland tax treaty

Based on the facts and in the circumstances of the case, recently, the Bangalore Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Google India Private Limited (the taxpayer/ Google India) dealt with the issue whether payment by the taxpayer to Google Ireland Ltd. under ‘Adwords Program’ Distribution agreement is royalty. The Bangalore Tribunal held that the said payment is taxable as royalty under the provisions of the Income-tax Act, 1961 as well as under the India-Ireland tax treaty. The Tribunal observed that it is not merely an agreement to provide the advertisement space but is an agreement for facilitating the display and publishing of an advertisement to the targeted customer with the help of various patented tools and software.

 

The taxpayer is having the access to various data and it uses the information for the purposes of selecting the ad campaign and for maximising the impression and conversion of the customers to the ads of the advertisers.

(Google India Private Ltd. v. ACIT (IT(TP)A.1511 to 1518/Bang/2013) – Taxsutra.com)

 

Indian subsidiary of a foreign company providing back office support services does not constitute a PE in India under India- USA tax treaty – Supreme Court

Based on the facts and in the circumstances of the case, recently, the Supreme Court in the case of E-Funds IT Solution Inc. (the taxpayer) dealt with an issue whether the subsidiary of a US company for back office support services constitutes a Permanent Establishment (PE) in India under the India-USA tax treaty (the tax treaty). The Supreme Court relied on its own decision in case of Formula One World Championship Ltd. and observed that there must exist a fixed place of business in India, which is at the disposal of the foreign companies, through which the business has been carried on. The appellate authorities did not give any findings with respect to availability of fixed place of business at the disposal of the taxpayer. No part of the main business and revenue earning activity of the taxpayer is carried on through a fixed business place in India which has been put at its disposal. Indian company only renders support services which enable the taxpayer in turn to render services to its clients abroad. This outsourcing of work to India would not give rise to a fixed place PE in India.

 

With respect to service PE, the Supreme Court observed that the requirement of Article 5(2)(l) of the tax treaty is that an enterprise must furnish services ‘within India’ through employees or other personnel. None of the customers of the taxpayer are located in India or have received any services in India. All its customers receive services only in locations outside India. Only auxiliary operations that facilitate such services are carried out in India. The first condition provided under Article 5(2)(l) is not satisfied. Therefore, the taxpayer does not have Service PE in India.

(ADIT v. E-Funds IT Solution Inc. (Civil Appeal No. 6082 of 2015) (SC) – Taxsutra.com)

 

 

 

 

 

 

 

 

 

 

 

Company Law

Companies (Registered Valuers and Valuation) Rules, 2017

In exercise of the powers conferred by section 247 read with sections 458, 459 and 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the Companies (Registered Valuers and Valuation) Rules, 2017.

 

These rules may be called the “Companies (Registered Valuers and Valuation) Rules, 2017.”

 

They shall come into force on the date of their publication in the Official Gazette.

 

For complete text of above rules, refer

http://www.mca.gov.in/Ministry/pdf/RegisteredValues_19102017.pdf

 

Extension of Due date of filling AOC-4 and XBRL:

All Companies required to prepare or voluntarily preparing their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 for financial year 2016-2017 are required to file their statements only in XBRL format. It has been decided to extend the last date for filling of AOC-4 XBRL for such companies for the financial year 2016-2017 without additional fees till 31st March, 2018. The filling should be made by these companies accordingly when the Ind AS based XBRL taxonomy is deployed, for which a separate intimation would be given to all stakeholders.

 

For text of the notification, refer:

http://www.mca.gov.in/Ministry/pdf/GeneralCircular13_26102017.pdf

 

Also the due date for filling e-forms AOC-4 and AOC-4 (XBRL non Ind AS) and the corresponding AOC-4 CFS eforms has been extended to 28.11.2017.

http://www.mca.gov.in/Ministry/pdf/GeneralCircular14_28102017.pdf

 

Commencement of Section 247:

In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints the 18th October, 2017 as the date on which the provisions of section 247 of the said Act shall come into force.

http://www.mca.gov.in/Ministry/pdf/CommencementNotification_20102017.pdf

 

 

 

 

Dear Members,
 
With reference to the 56th AGM held at Chennai, it was decided to rest few awards from 2017-18 and to invite applications from the interested sponsors.
 
We hereby invite sponsorship for the award to be instituted for the Managing Committee Members who renders useful services for the activities of FPTA   ​(Earlier it was in the memory of Late Shri. Jayantilal S. Shah, Mumbai).
 
The application will be decided on merit basis and minimum award will be Rs. 5,00,000 non-refundable.
 
Members interested can send their application to the Secretariat office by post or email enable us to put before the Managing Committee to be held at Bengaluru on 06th & 07th January 2018 for needful.
 
Regards
For FPTA
 
Hiren Karia
Hon. Secretary​
Respected Members,
 
With reference to the 2nd Managing Committee Meeting​ on 06th & 07th January 2018 to be hosted by the Karnataka Paper Merchants and Stationers Association, Bangalore.
 
The venue and other details will be send you in due course.
 
This for your information.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary 

Dear Members,

 

With reference to our email dated 10th November 2017 on initiation of Anti – Dumping Duty investigation concerning imports of “Un Coated Copier Paper” Originating in or exported from Indonesia, Thailand and Singapore, Notification No. 6/32/2017-DGAD dated 02/11/2017 issued by Directorate General of Anti-Dumping & Allied Duties, Department of Commerce, Ministry of Commerce & Industry.

​We request All Affiliated Associations to forward the email to their member and get their comments, feedback and views on this matter.​

 

We request our members to send us feedback in this regard, latest by 15th November 2017, to send us to concern ministry if any.

 

Please do the needful and oblige.

 

Regards

For FPTA

Hiren Karia

Hon. Secretary​

Page 1 of 6
(To be published in Part-I, Section I of the Gazette of India Extraordinary)
Government of India
Department of Commerce
Ministry of Commerce & Industry
(Directorate General of Anti Dumping & Allied Duties)
4th Floor, Jeevan Tara Building, Parliament Street
Dated 02nd November 2017
INITIATION NOTIFICATION
Subject: Initiation of Anti-Dumping Duty investigation concerning imports of “Uncoated
Copier Paper” originating in or exported from Indonesia, Thailand and Singapore
F.No.6/32/2017 – DGAD: M/s JK Paper Limited, JK Paper Limited, The West Coast Paper
Mills Ltd., Tamil Nadu Newsprint and Papers Limited Ltd and Ballarpur Industries Limited
(hereinafter referred to as ‘petitioners’ or ‘applicants’) have filed an application (also referred
to as petition) along with relevant information before the Designated Authority (hereinafter
referred to as the Authority) in accordance with the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred to as the ‘Act’) and Customs Tariff (Identification,
Assessment and Collection of Anti-Dumping Duty on Dumped articles and for Determination
of injury) Rules, 1995 as amended from time to time (hereinafter referred to as the AD Rules)
for initiation of anti-dumping investigation concerning imports of ‘Uncoated Paper’
(hereinafter referred to as the subject goods) originating in or exported from Indonesia,
Thailand and Singapore (hereinafter also referred to as the subject countries).
2. AND WHEREAS, the Authority finds that sufficient prima facie evidence of dumping of the
subject goods originating in or exported from the subject countries, ‘injury’ to the domestic
industry and causal link between the dumping and ‘injury’ exists to justify initiation of an antidumping
investigation. The Authority hereby initiates an investigation into the alleged
dumping, and consequent injury to the domestic industry in terms of the Rules 5 of the AD
Rules, to determine the existence, degree and effect of any alleged dumping and to recommend
the amount of antidumping duty, which if levied, would be adequate to remove the ‘injury’ to
the domestic industry.
A. Product under consideration
3. The product under consideration for the purpose of present investigation is “uncoated paper in
rectangular sheet of following sizes, with permissible limits (a) 210mm x 297 mm also known
Page 2 of 6
as A4 size; (b) 297mmx 420mm also known as A3 size; (c) 215mm x 345mm also known as
FS or legal size.” The product under consideration practically implies “uncoated copier paper”.
The product under consideration is generally (but not exclusively) used as a photocopy or copy
paper and therefore is popularly known as “copy paper”, “copier paper”, “photocopy paper”,
“multipurpose paper”, “uncoated copier paper”, “A4 Size Paper”, “A3 Size Paper” or “FS Size
Paper”. It is in the form of finished sheets; weighing in different gsm. It can be a white paper
or a punched paper and in different smoothness of the surface. Specifically excluded from the
scope of the product under consideration are uncoated paper of a kind used for writing, printing
or other graphic purposes in reels or in large sized sheet (i.e., other than sizes specified above)
forms.
4. Product under consideration is classified under customs heading 4802. The customs
classification is indicative only and in no way it is binding upon the product` scope.
B. Like Article
5. The applicants have claimed that there is no known difference in product produced by the
applicants and exported from the subject countries. Both products have comparable
characteristics in terms of parameters such as physical & chemical characteristics, functions &
uses, product specifications, pricing, distribution & marketing and tariff classification, etc. The
two are technically and commercially substitutable and hence should be treated as ‘like article’
under the Rules. Therefore, for the purpose of the present investigation, the Authority treats
the subject goods produced by the domestic industry in India as ‘Like Article’ to the subject
goods being imported from the subject countries.
C. Domestic Industry & Standing
6. The application has been filed by JK Paper Limited, The West Coast Paper Mills Ltd., Tamil
Nadu Newsprint and Papers Limited Ltd and Ballarpur Industries Limited. There are five other
known producers of the product under consideration in the country, namely, Seshasayee Paper
and Boards Limited, Trident Group, International Paper APPM Ltd., Orient Paper & Industries
Ltd., and Century Pulp and Paper.
7. The production by the applicants constitutes ‘a major proportion’ of Indian production of the
like product produced in India. Further, the applicants have claimed that they have neither
imported the subject goods, nor are they related to any importer or exporter of the subject
goods. The applicants, therefore constitutes “domestic industry” within the meaning of Rule 2
(b) and thus satisfies the criteria of standing in terms of Rule 5 (3) of the Rules supra.
D. Subject Countries
8. The countries involved in the present investigation are Indonesia, Thailand and Singapore
(hereinafter referred to as ‘Subject Countries’).
Page 3 of 6
E. Normal value
9. The applicants have submitted that efforts were made to get information/evidence of
transaction price of subject goods in the domestic market of subject countries. However,
applicants were not able to get such information. The applicants have therefore constructed
normal value for all subject countries on the basis of cost of production in India duly adjusted.
F. Export Price
10. The export price has been claimed by the applicants as the weighted average import price from
the subject countries based on the transaction-wise import data procured from DGCI&S. Price
adjustments have been claimed on account of ocean freight, marine insurance, commission,
inland freight expenses, port expenses, bank charges to arrive at the net export price.
G. Dumping Margin
11. The comparison of normal values with the ex-factory export price has been carried out, which
shows a significant dumping margin in respect of the subject goods exported by each of the
subject countries.
H. Evidence of Injury and Causal Link
12. The applicants have furnished evidence regarding the injury having taken place as a result of
the alleged dumping in the form of increased volume of dumped imports in absolute terms and
in relation to production & consumption, price undercutting, and consequent significant
adverse impact on profitability, return on capital employed, cash flow, and deterioration in
production, capacity utilization, sales and market share of the domestic industry and low level
of profits, cash profits & return on investment. There is sufficient prima facie evidence of
‘material injury’ being suffered by the domestic industry caused by alleged dumped imports
from the subject countries to justify initiation of an anti-dumping investigation.
13. The applicants have also claimed threat of material injury on the grounds that rate of increase
in imports from the subject countries is significantly high, the subject producers have huge
surplus capacities, price undercutting is significant and the Indian market is attractive which is
likely to further increase in imports and cause supressing or depressing effects in the domestic
market.
I. Initiation of investigation
14. The authority finds sufficient prima facie evidence of dumping of subject goods, originating in
or exported from the subject countries; injury to the domestic industry and causal link between
Page 4 of 6
alleged dumping and injury, to justify initiation of anti-dumping investigation to determine the
existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping
duty, which if levied, would be adequate to remove the ‘injury’ to the domestic industry.
Accordingly, the authority hereby initiates an investigation into the alleged dumping and
consequent injury to the domestic industry in terms of Para 5 of the Rules.
J. Period of investigation (POI)
15. The petitioners proposed period of investigation as April 2016-March 2017. However, the
Authority has considered the period April 2016 – June 2017 (15 months) as the investigation
period for the purpose of present investigations. The injury investigation period shall cover the
periods April 2013- March 2014, April 2014-March 2015, April 2015-March 2016 and the
period of investigation.
K. Submission of Information
16. The known exporters in the subject countries, the Government of the subject countries through
their embassy in India, the importers and users in India known to be concerned with the product
are being addressed separately to submit relevant information in the form and manner
prescribed and to make their views known to the Authority at the following address:
The Designated Authority,
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry,
Department of Commerce
4th Floor, Jeevan Tara Building,
5 Parliament Street, New Delhi -110001.
Dgad.india@gov.in
17. Any other interested party may also make its submissions relevant to the investigation in the
prescribed form and manner (downloadable from the website of the authority at
www.dgtr.gov.in ) within the time limit set out below.
L. Time limit
18. Any information relating to the present investigation and any request for hearing should be sent
in writing so as to reach the Authority at the address mentioned above not later than forty days
(40 Days) from the date of publication of this Notification. If no information is received within
the prescribed time limit or the information received is incomplete, the Authority may record
its findings on the basis of the facts available on record in accordance with the Anti-dumping
Rules.
Page 5 of 6
19. All the interested parties are hereby advised to intimate their interest (including the nature of
interest) in the instant matter and file their questionnaire responses and offer their comments
to the domestic industry’s application regarding the need to impose the Antidumping measures
within 40 days from the date of initiation of this investigation
M. Submission of Information on Confidential/Non-Confidential basis
20. In case confidentiality is claimed on any part of the questionnaire’s response/submissions, the
same must be submitted in two separate sets (a) marked as Confidential (with title, index,
number of pages, etc.) and (b) other set marked as Non Confidential (with title, index, number
of pages, etc.). All the information supplied must be clearly marked as either “confidential” or
“non-confidential” at the top of each page.
21. Information supplied without any confidential marking shall be treated as non-confidential and
the Authority shall be at liberty to allow the other interested parties to inspect any such nonconfidential
information. Two (2) copies of the confidential version and of the non-confidential
version must be submitted by all the interested parties.
22. For information claimed as confidential; the supplier of the information is required to provide
a good cause statement along with the supplied information as to why such Information cannot
be disclosed and/or why summarization of such information is not possible.
23. The non-confidential version is required to be a replica of the confidential version with the
confidential information preferably indexed or blanked out /summarized depending upon the
information on which confidentiality is claimed. The non-confidential summary must be in
sufficient detail to permit a reasonable understanding of the substance of the information
furnished on confidential basis. However, in exceptional circumstances, parties submitting the
confidential information may indicate that such information is not susceptible to
summarization; a statement of reasons why summarization is not possible must be provided to
the satisfaction of the Authority.
24. The Authority may accept or reject the request for confidentiality on examination of the nature
of the information submitted. If the Authority is satisfied that the request for confidentiality is
not warranted or the supplier of the information is either unwilling to make the information
public or to authorize its disclosure in generalized or summary form, it may disregard such
information.
25. Any submission made without a meaningful non-confidential version thereof or without a good
cause statement on the confidentiality claim may not be taken on record by the Authority. The
Authority on being satisfied and accepting the need for confidentiality of the information
provided; shall not disclose it to any party without specific authorization of the party providing
such information.
Page 6 of 6
N. Inspection of Public File
26. In terms of rule 6(7) any interested party may inspect the public file containing non-confidential
versions of the evidence submitted by other interested parties.
O. Non-cooperation
27. In case any interested party refuses access to and otherwise does not provide necessary
information within a reasonable period, or significantly impedes the investigation, the
Authority may declare such interested party as non-cooperative and record its findings on the
basis of the facts available to it and make such recommendations to the Central Government as
deemed fit.
(Sunil Kumar)
Additional Secretary & Designated Authority

GST
QUICK REFERENCER
Abhipra Capital Ltd.
GF-58-59, World Trade Centre, Barakhamba Lane, Connaught Place, New Delhi-110001
www.abhipra.com, Mobile No.: 7428396205, Email: gst@abhipra.com, gsthelpline@abhipra.com
Suvidha
Provider
Abhipra

Abhipra GSP – Bridge between taxpayer
and the GST Network

 

 

 

 

 

 

Abhipra
• Registration
• Challan
Generation
• Invoice
uploading
• Return Filling
• Ledger
(V.D. Aggarwal)
Chartered Accountant
Mob : 9810194395
E-mail: vda@abhipra.com
Preface
It is a matter of great pleasure to me for presenting GST Quick Referencer on the Paper Day and the
business festival technical conference on pulp and paper industry strategies for sustainable growth and
competitiveness (from 01.11.2017 to 04.11.2017) which is being celebrated by Paper Merchant
Association (PMA) and Federation of Paper Traders Association of India (FPTA).
I hope this referencer will help all the members of both the Associations in discharging their obligations
arising under GST.
Goods and Services Tax Act is a new Act and is currently under its infant stage and hence almost every
day some modications / reliefs are being announced by the GST Council to adapt the system as per
market scenario.
Honorable Prime Minister Shri Narendra Modi has appealed for creating “NEW INDIA”. This calls for making money
more accountable and productive. The government’s initiative for Demonetization and GST are very important tools to
assault the shadow economy, to integrate informal economy with the formal, and to take all consequential steps in one
direction to expand India into a far, cleaner, bigger and better economy.
Latest IMF report supports Indian economy in positive side and states that after demonetization and implementation of
GST, India is likely to regain the tag of the fastest growing, emerging economies of the world in 2018.
According to the IMF, GST which promises the unication of India’s vast domestic market, is among several key structural
reforms under implementation that are expected to help push growth rate above 8 per cent.
The GST is expected to have an overall positive impact on paper manufacturers, especially in the organized sector. The
entire supply chain will become more efcient. The GST on imports will provide some relief to domestic paper
manufacturers. Exports to other countries will also get some boost, with full refund of input tax credit to the
manufacturers/merchant export
I am grateful to Federation of Paper Traders Association of India and Paper Merchant Association and their ofce
bearers namely Shri Venkat Annamlai (President), Hiren Karia (Genenral Secretary) of Federation of Paper Traders
Association of India and Shri Gyan Prakash (President), Shri Anil Gupta (General Secretary) of Paper Merchant
Association and also especially GST convener Shri Krishan Mohan Ji and organizing Convener and Co-Convener of Paper
Day Shri Satyapal Gupta Ji and Shri Ramesh Gupta Ji for providing me an opportunity to be with you on this occasion.
They have taken big initiatives and pains for arranging this technical conference for 4 days which will give awareness
about GST to the entire paper community and will give fruitful result.
Place : Delhi
Dated : 01.11.2017
Index
Sr. No. Particular Page No.
1. Registration 01
2. Registration Forms & Procedure 02
3. Returns 03
4. Transitional Provision 05
5. Time, Place and Value of Supply 06
6. Supply of Goods Under Reverse Charge Mechanism (RCM) 11
7. Services Under Reverse Charge Mechanism (RCM) 12
8. Input Tax Credit (ITC) Mechanism 14
9. Job Work 17
10. Credit Note / Debit Note 18
11. Import 19
12. Export 20
13. Audit 22
14. Offences and Penal Provision 23
15. HSN Code & Rate of Tax 25
16. E-way Bill 26
17. Some Other Important Key Points – Principal, Pure Agent, Electronic Ledger 29
18. GST Obligations – Calendar 30
Abhipra
1. Registration under GST
A) Registration is required on turnover exceeding Rs 20 lakhs in a nancial year and Rs 10 lakhs for Special
category states namely Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
B) In case of dealing in exempted items no need for registration irrespective of any volume of turnover.
C) Registration is mandatory for inter-state supply of goods.
D) Registration is also mandatory for:
• Casual Taxable Person
• Non-Resident Taxable Person
• Agents of a supplier
• Taxpayers paying tax under reverse charge mechanism
• Input Service Distributors
• E-commerce operator or aggregator and their suppliers
• Person supplying online information and database access or retrieval services from a place outside India to a
person in India, other than a registered taxable person.
E) Important to multiple business verticals houses
• A person having multiple business verticals (as dened in section 218) in one state may obtain a separate
registration for each business vertical.
F) Documents required for registration
i. Mobile number and email ID for generation of OTP.
ii. Proof of constitution of business (incorporation certicate in case of company, Partnership deed in case of
rm etc.)
iii. Principal place and additional places of business address proof as stated below
– in case of rented premises – rent agreement with electricity/telephone bill (not older than three months)
– In case of owned premises – copy of ownership proof alongwith electricity/telephone bill (not older than
three months)
iv. Details of bank accounts of the business such as account no., type of account, name and address of the
bank, IFSC code, along with proof such as a copy of rst page of passbook or relevant extract of bank
statement
Additional information in case of Companies apart from mentioned in clause F above
v. List of top ve goods with their corresponding HSN code and category of services rendered
01
vi. Copy of Form number DIR 12 in case of companies incorporated under companies 2013 and in case of old
companies incorporated under Companies Act 1956 form number 32, (proof of appointing the directors)
along with their photograph, copy of PAN, Aadhaar card/passport and mobile no.
vii. List of directors and authorized signatory.
viii. Copy of board resolution, photograph, copy of PAN, Aadhaar card/passport and mobile no. of the authorized
person.
Additional information in case of Partnership rm apart from mentioned in clause F above
ix. PAN card of partnership rm, Partnership Deed, Bank Statement, PAN of all partners and ID proof of
designated partners.
x. Digital Signature of designated partners/authorized signatory
G. Exemption from GST Registration:
The following shall not be required to obtain registration and will be allotted a UIN (Unique Identication Number)
instead.
• Any specialized agency of UNO (United Nations Organization) or any multilateral nancial institution and
organization notied under the United Nations Act, 1947
• Consulate or Embassy of foreign countries
• Any other person notied by the Board/Commissioner
• Any specic person recommended by GST council
2. GST Registration Forms and Procedure
GST Registration Forms
Form GST REG 01 Application for Registration under section 19(1) GST ACT 2017 to be led within 30 days of
liability
Form GST REG 02 Acknowledgement fromt GSTN
Form GST REG 03 Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation
Form GST REG 04 Application for ling clarication Registration / Amendment / Cancellation / Revocation of
Cancellation
Form GST REG 05 Order of Rejection of Application for Registration / Amendment / Cancellation / Revocation of
Cancellation
Form GST REG 06 Registration Certicate issued under section 19(8A) of the GST Act, 2017
Form GST REG 07 Application for Registration as TDS or TCS under section 19(1) of the GST Act, 2017
Form GST REG 08 Order of Cancellation of Application for Registration as TDS /TCS under section 21 of the GST Act
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02
Abhipra
Form GST REG 09 Application for Allotment of Unique ID to UN Bodies/ Embassies /any other person under
section 19(6) of the GST Act
Form GST REG 10 Application for Registration for Non Resident Taxable Person
Form GST REG 11 Application for Amendment in Particulars subsequent to Registration
Form GST REG 12 Order of Amendment of existing Registration
Form GST REG 13 Order of Allotment of Temporary Registration/ Suo Moto Registration
Form GST REG 14 Application for Cancellation of Registration under GST Act 2017
Form GST REG 15 Show Cause Notice for Cancellation of Registration
Form GST REG 16 Order for Cancellation of Registration
Form GST REG 17 Application for Revocation of Cancelled Registration under GST Act 2017
Form GST REG 18 Order for Approval of Application for Revocation of Cancelled Registration
Form GST REG 19 Notice for Seeking Clarication / Documents relating to Application for Revocation of
Cancellation
Form GST REG 20 Application for Enrolment of Existing Taxpayer
Form GST REG 21 Provisional Registration Certicate to existing taxpayer
Form GST REG 22 Order of cancellation of provisional certicate
Form GST REG 23 Intimation of discrepancies in Application for Enrolment of existing taxpayer
Form GST REG 24 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration
under GST Act 2017
Form GST REG 25 Application for extension of registration period by Casual / Non-Resident taxable person
Form GST REG 26 Form for Field Visit Report
3. GST Returns
A return is a document that a taxpayer is required to le as per the law with the tax administrative authorities. Under
the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly,
there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input
Service Distributor, a person liable to deduct or collect the tax (TDS/TCS).
GST Return Form
Return Form Particulars By Whom? Due Dates
GST R-1 Outward supplies (SALES) Registered Tax Supplier 10th of the next month
GST R-2 Inward supplies (Purchase) Registered Taxable
Recipient
15th of the next month
03
GST R-3 Monthly return Registered Taxable Person 20th of the next month
In case of SMEs having turnover up to Rs 1.5 crore are required to le above return on quarterly basis
GST R-4 Quarterly return for composite Taxpayer
(Turnover up to 1 Crore)
Composition Taxpayer 18th of the month succeeding
quarter
GST R-5 Non-Resident Foreign Taxpayer Non-Resident Taxable
Person
20th of the next month
GST R-6 Input Service Distributor (ISD) Input Service Distributor 13th of next month
GST R-7 Tax Deducted at Source(Notication is
still pending)
Tax Deductor 10th of the next month
GST R-8 Supplies through Ecommerce E-commerce Operator/Tax
Collector
10th of the next month
GST R-9 Annual Return Taxable Person 31st December of next nancial
year (2018-19)
GST R-10 Final Return Taxable person whose
registration has been
surrendered or cancelled.
Within three months of the date of
cancellation or date of cancellation
order, whichever is later.
GST R-11 Details of inward supplies to be
furnished by a person having UIN
Person having UIN and
claiming refund
28th of the month following the
month for which statement is led
Abhipra
Revision of GST Retuns
• There is no provision for revision of returns.
• All unreported invoices of previous tax period would be reected
in the return for the month in which they are proposed to be
included. The interest, if applicable will be auto populated.
• All under-reported invoice and ITC revision will have to be
corrected using credit/debit note and such credit / debit note
would be reected in the return for the month in which such
adjustment is carried out. The credit/debit note will have
provision to record original invoice, date etc. to enable the
system to link the same with the original invoice as also to
calculate the interest, if applicable. Its format will be like the
invoice.
• There would be separate tables in the returns for reecting
those adjustments for which credit / debit notes are not
required to be issued / issued. The interest, if applicable will be
auto populated.
Abhipra
GST Suvidha Provider
04
Abhipra
Transitional Provision for Input Tax Credit
Registered Under VAT but
not in Excise
Excise invoice
available for which
are in stock
100% Credit
Available
Availability of credit
If stock taxable as 18% or
28% in GST – 60% of CGST
If stock taxable as 5% or 12%
in GST – 40% of CGST
Registered Under VAT &
Excise
Input credit forward in
VAT/Excise return for
period ending
30/06/2017
Unavailed CENVAT credit
on capital goods
Credit available to be utilized as
VAT Credit – SGST Credit
Excise Credit – CGST Credit
Not Carried forward
in return under
Excise Law
Entitled to take in his
electronic credit
ledger
As per Current provision if any VAT credit is not carry forward in GST regime due to non submission of forms as
prescribed, it can be refunded under the existing law when the said claims are substantiated in the manner prescribed.
4. Transition Provision for Input Tax Credit
GST Transitional Forms
GST TRAN 1 Application by every registered person entitled to take credit of input tax under section 140 within
sixty days from appointed day.
GST TRAN 2 GST Transitional Provisions FORM GST TRAN 2
GST Transitional Forms
05
5. Time, Place and Value of Supply under GST
Abhipra
Time of Supply under Reverse Charge
06
Time of supply of Goods &
Services under Forward Charge
In case of Goods –
Earliest of the following
In case of Services –
Earliest of the following
Date of issue of
invoice by the
supplier or Last
Date by which he
is required to
issue the invoice
Date on which
the supplier
recieves the
payment
Date of issue of
invoice by the
supplier if invoice
issued within
prescribed period
Date of provision
of Service if
invoice is not
issued with in
prescribed
format
Date on which
the supplier
receives the
payment
Time of supply of Goods &
Services under Reverse Charge
In case of Goods –
Earliest of the following
In case of Services
The date
of the
receipt of
the goods
30 days
from the
date of
invoice
issued by
the
supplier
Associated
Enterprises –
Earliest of the
Following
Other than Associasted
Enterprises – Earliest of
the following
The date of entry
in the books of
the receipent
Date of
Payment
The date on
which
payment is
made
60 days
form the
date of
invoice
issued by
the supplier
The date
on which
payment
is made
Abhipra
Place of Supply (Other than Import & Export)
Place of Supply of Services
07
Supply of services to
registered person
Location of recipient Location of
Supplier
Where the address of
recipient on record
exist
Where the address of
recipient on record
not exist
Supply of services to
person other than
registered person
Location fo such
operson
Place of Supply of Services
Place of Supply (Other than Import & Export
Where Physical
movement of goods
Involved
Where
Physical movement
of goods not
Involved
If goods assembled
or installed at site
If goods supplied
on board or
conveyance
In any other case
Goods supplied
directly by the
supplier to the
receipient
Goods supplied to the
receiplent on the direction
of Third Person (either by
trasfer of title or
otherwise)
Place of such
installation
Location of goods
at the time of
delivery
By Law made by
the parliament
along with
suggestions by
GST Council
Location where
goods taken on
board
Location where
movement of
goods terminate
for delivery
Principal place of
business of such
person
Valuation of supply under GST
Transaction Value
Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier and the
recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, the invoice value
will be the taxable value. However, to determine value of certain specic transactions, Determination of Value of Supply
rules have been prescribed in CGST Rules.
Compulsory Inclusions
Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the
supplier, incidental expenses like commission and packing incurred by the supplier, interest or late fees or penalty for
delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already
added) to arrive at the taxable value.
Exclusion of discounts
Discounts like trade discount, quantity discount etc. are part of the normal trade and commerce. Therefore, pre-supply
discounts i.e. discounts recorded in the invoice have been allowed to be excluded while determining the taxable value.
Discounts provided after the supply can also be excluded while determining the taxable value, provided two conditions are
met, namely:
(a) Discount is established in terms of a pre supply agreement between the supplier and the recipient and such discount
is linked to relevant invoices
(b) Input tax credit attributable to the discounts is reversed by the recipient
Taxable value when consideration is not solely in terms of money
In some cases, where consideration for a supply is not solely in money, taxable value has to be determined as – prescribed
in the rules. In such cases following values have to be taken sequentially to determine the taxable value:
i. Open Market Value of such supply
ii. Total money value of the supply i.e. monetary consideration plus money value of the non-monetary consideration
iii. Value of supply of like kind and quality
iv. Value of supply based on cost i.e. cost of supply plus 10% mark-up
v. Value of supply determined by using reasonable means consistent with principles and general provisions of GST law.
(Best Judgment method)
Value of supply between related persons (excluding Agents)
A person who is under inuence of another person is called a related person like members of the same family or
subsidiaries of a group company etc. Under GST law various categories of related persons have been specied and as
relation may inuence the price between two related persons therefore special valuation rule has been framed to arrive at
Abhipra
08
Abhipra
the taxable value of transactions between related persons. In such cases following values have to be taken sequentially to
determine the taxable value: –
i. Open Market Value
ii. Value of supply of like kind and quality.
iii. Value of supply based on cost i.e. cost of supply plus 10% mark-up.
iv. Value of supply determined by using reasonable means consistent with principles and general provisions of GST law.
(Best Judgment method)
However if the recipient is eligible for full input tax credit, the invoice value will be accepted as taxable value. It has
also been provided that where the goods being supplied are intended for further supply as such by the recipient, the
value shall , at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods
of like kind and quality by the recipient to his unrelated customer.
Value of supply of goods made or received through an agent
(a) Open market value of goods being supplied, or, at the option of the supplier, 90% of the price charged for the supply
of goods of like kind and quality by the recipient to his unrelated customer.
(b) In case value cannot be determined under (a) then following values have to be taken sequentially to determine the
taxable value:
i. Value of supply based on cost i.e. cost of supply plus 10% mark-up
ii. Value of supply determined by using reasonable means consistent with principles & general provisions of GST
law. (Best Judgment method)
Value of supply of services in case of a Pure Agent
Subject to fulllment of conditions as laid down in rules, the expenditure and costs incurred by the supplier as a pure
agent of the recipient of supply of service, has to be excluded from the value of supply.
Determination of value in respect of specied supplies
Methods to determine Taxable value of specied supplies have also been prescribed under valuation Rules. These can be
used by the supplier, if he so desires.
(A) PURCHASE OR SALE OF FOREIGN CURRENCY INCLUDING MONEY CHANGING
Special provision related to determination of Value of service of purchase or sale of foreign currency including
money changing
Option-1
Case 1: Transaction where one of the currencies exchanged is Indian Rupees
Taxable value is difference between buying rate or selling rate of currency and RBI reference rate for that currency at
the time of exchange multiplied by total units of foreign currency. However if RBI reference rate for a currency is not
09
available then taxable value is 1% of the gross amount of Indian Rupees provided/ received by the person changing
the money.
Case 2: Transaction where neither of the currencies exchanged is Indian Rupees
Taxable value will be 1% of the lesser of the two amounts the person changing the money would have received by
converting (at RBI reference rate) any of the two currencies in Indian Rupees.
Option-2
The person supplying the service may also exercise the following option to ascertain the taxable value, however, once
opted then he cannot withdraw it during the remaining part of the nancial year:
• One percent of the gross amount of currency exchanged for an amount upto one lakh rupees, subject to minimum
amount of two hundred and fty rupees
• One thousand rupees and half of a percent of the gross amount of currency exchanged for an amount exceeding
one lakh rupees and up to ten lakh rupees
• Five thousand rupees and one tenth of a percent of the gross amount of currency exchanged for an amount
exceeding ten lakhs rupees subject to a maximum amount of sixty thousand rupees
Rate of exchange of currency, other than Indian rupees, for determination of value.
The rate of exchange for determination of value of taxable goods or services or both shall be the applicable RBI
reference rate for that currency on the date of time of supply as determined in terms of Section 12 or Section 13 of the
CGST Act. Value of supply will be inclusive of Integrated tax, Central tax, State tax, Union territory tax.
(B) BOOKING OF TICKETS FOR AIR TRAVEL BY AN AIR TRAVEL AGENT
Special provision related to determination of value of service of booking of tickets for air travel by an air
travel agent
Taxable value is 5% of basic fare in case of domestic travel and 10% of basic fare in case of international travel. Basic
fare means that part of the air fare on which commission is normally paid to the air travel agent by the airline.
(C) LIFE INSURANCE BUSINESS
Special provision related to determination of value of service in relation to life insurance business Taxable
value varies with nature of insurance policy. The details are as follows:
• Where policy has dual benets of risk coverage and investment – Taxable value is gross premium charged less
amount allocated for investments or savings if such allocation is intimated to the policy holder at the time of
collection of premium.
• Single premium annuity policy where allocation for investments and savings is not intimated to the policy holder –
taxable value is ten percent of the single premium charged from the policy holder.
• Other cases- Twenty ve percent of premium charged from the policy holder in the rst year and twelve and a half
percent of premium charged for subsequent years.
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However, where insurance policy has benet of risk coverage only, then taxable value is entire premium charged
from the policy holder.
(D) VALUE OF SUPPLY OF SECOND HAND GOODS
Special provision related to determination of value of second hand goods
The taxable value of supply of second hand goods i.e. used goods as such or after such minor processing which does
not change the nature of goods shall be the difference between the purchase price and the selling price, provided no
input tax credit has been availed on purchase of such goods. However, if the selling price is less than purchase price,
that negative value will be ignored. Persons who purchase second hand goods after payment of tax to supplier of such
goods will be governed by this valuation rule only when they do not avail input tax credit on such input supply. If
input tax credit is availed, then such supply will be governed by normal GST valuation.
Value of supply of goods repossessed from a defaulting borrower
If the defaulting borrower is not a registered person, the purchase value will be purchase price in the hands of such
borrower reduced by ve percentage points for every quarter or part thereof, between the date of purchase and the
date of disposal by the person making such repossession. However, if the defaulting borrower is registered, the
repossessing lender agency will discharge GST at the supply value without any reduction from actual/notional
purchase value.
(E) VALUE OF REDEEMABLE VOUCHERS/STAMPS/COUPONS/TOKENS THE SPECIAL PROVISIONS RELATED TO
DETERMINATION OF THESE SUPPLIES ARE AS BELOW:
Special provisions related to determination of value of redeemable vouchers / stamps / coupons / tokens
The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a
supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable
against such token, voucher, coupon, or stamp.
Value of taxable services provided by a notied class of service providers as referred to in Para 2 of Schedule 1 of
GST Act between the distinct persons. The taxable value is deemed to be Nil wherever input tax credit is available.
6. Supplies of goods under reverse charge mechanism:
S. No Description of supply of goods Supplier of Goods Recipient of Goods
1 Cashew nuts, not shelled or peeled Agriculturist Any registered person
2 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3 Tobacco leaves Agriculturist Any registered person
4 Supply of lottery State Government, Union Territory or
any local authority
Lottery distributor or selling agent
5 Silk yarn Any person who manufactures silk
yarn from raw silk or silk worm
cocoons for supply of silk yarn
Any registered person
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Sl.
No.
Service Provider of
service
Percentage of
service tax
payable by
service
provider
Recipient of Service Percentage of
service tax
payable by any
person other
than the
service provider
1. Taxable services provided or
agreed to be provided by any
person who is located in a nontaxable
territory and received
by any person located in the
taxable territory other than
non-assessee
online recipient (OIDAR)
Any
person who is
located in
a
non- taxable
territory
Nil Any person located in the taxable
territory other than non assessee
online recipient (Business
Recipient)
100%
2. Services provided or agreed to
be pr o v ided by a g o ods
transport agency (GTA) in
respect of transportation of
goods by road
Goods
Transport
Agency (GTA)
Nil (a) any factory registered under
or governed by the Factories
Act, 1948;
(b) any society registered under
the Societies Registration
Act, 1860 or under any other
law for the time being in
force in any part of India;
(c) any co-operative society
established by or under any
law;
(d) any person registered under
CGST/SGST/UTGST Act;
(e) a n y b o d y c o r p o r a t e
established, by or under any
law; or
(f) a n y p a r t n e r s h i p  r m
whether registered or not
under any law including
association of persons.
(g) Casual taxable person
100%
3. Services provided or agreed to
be provided by an individual
advocate or rm of advocates
by way of legal services,
directly or indirectly
An individual
advocate or
rm of
advocates
Nil Any business entity. 100%
7. Services Under Reverse Charge
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4. Services provided or agreed to
be provided by an arbitral
tribunal
An
arbitral
tribunal
Nil Any business entity. 100%
5. Sponsorship services Any person Nil Anybody corporate or
partnership rm.
100%
6. Services provided or agreed to
be provided by Government or
local authority excluding, –
(1) renting of immovable
property, and
(2) services specied below-
(i) services by the Department
of Posts by way of
speed post, express parcel
post, life insurance, and
agency services provided
to a person other than
Government;
(ii) services in relation to an
aircraft or a vessel, inside
or outside the precincts of
a port or an airport;
(iii) transport of goods or
passengers.
Government
or local
Authority
Nil Any business entity. 100%
7. Services provided or agreed to
be provided by a director of a
company or a body corporate to
the said company or the
body corporate;
A director of a
company or a
body
corporate
Nil A company or a body corporate. 100%
8. Services provided or agreed to
be provided by an insurance
agent to any person carrying
on insurance business
An insurance
agent
Nil Any person carrying
on insurance business.
100%
9. Services provided or agreed to
be provided by a recovery agent
to a banking company or a
nancial institution or a nonbanking
nancial
company
A recovery
agent
Nil A banking company or a
nancial institution or a nonbanking
nancial company.
100%
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10. Services by way of transportation
of goods by a vessel
from a place outside India up to
the customs
station of clearance in India
Person located
in non-taxable
territory
Nil Importer as dened under
clause (26) of section 2 of the
Customs Act, 1962.
100%
11. Transfer or permitting the use
or enjoyment of a copyright
covered under clause (a) of subsection
(1) of section 13 of the
Copyright Act, 1957 relating to
original literary, dramatic,
musical or artistic
works
Author or
music
composer,
photographer,
artist, etc.
NIL Publisher, Music company,
Producer
100%
12. Radio taxi or Passenger
Transport Services provided
through electronic commerce
operator
Taxi driver or
Rent a cab
operator
Nil Any person 100% by
Electronic
Commerce
Operator
8. Input Tax Credit Mechanism (ITC)
Input tax credit means credit can be taken for the GST paid at the time of procuring the inward supplies.
GST comprises of the following levies:
a) Central Goods and Services Tax (CGST) [also known as Central Tax] on intra-state or intra-union territory without
legislature supply of goods or services or both.
b) State Goods and Services Tax (SGST) [also known as State Tax] on intra-state supply of goods or services or both.
c) Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory
d) supply of goods or services or both.
e) Integrated Goods and Services Tax (IGST) [also known as Integrated Tax] on inter-state supply of goods or services or
both. In case of import of goods also, the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD)
would be replaced by integrated tax.
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Tax Liabilities Available Input Tax Credit (In the order of utilization)
IGST IGST CGST SGST
CGST IGST CGST
SGST IGST SGST
The following are important issues relating to Input Tax Credit:
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A. Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or
intended to be used in the course or furtherance of business.
B. The pre-requisites for availing credit by registered person are:
a. He is in possession of tax invoice or any other specied tax paying document.
b. He has received the goods or services. “Bill to ship” scenarios also included.
c. Tax is actually paid by the supplier.
d. He has furnished the return.
e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.
f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue
of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with
interest. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment
has been made, proportionate credit would be allowed.
C. Documents on the basis of which credit can be availed are:
a. Invoice issued by a supplier of goods or services or both
b. Invoice issued by recipient alongwith proof of payment of tax
c. A debit note issued by supplier
d. Bill of entry or similar document prescribed under Customs Act
e. Revised invoice
f. Document issued by Input Service Distributor
D. No ITC beyond September of the following Financial Year to which invoice pertains or date of ling of annual return,
whichever is earlier
E. The Input Service Distributor (ISD) may distribute the credit available for distribution in the same month in which, it is
availed. The credit of CGST, SGST, UTGST and IGST shall be distributed as per the provisions of Rule 4(1) (d) of ITC Rules.
ISD shall issue invoice in accordance with the provisions made under Rule 9(1) of Invoice Rules.
F. ITC is not available for supplies/services as laid down in section 17(5) of CGST Act, 2017. An illustrative list as under:
Negative List of ITC as per Section 17(5) of the CGST Act
1 In Case of Motor Vehicle
NATURE OF BUSINESS NATURE OF VEHICLE ITC CLAIM
Dealer of Motor Vehicle Any Vehicle Full ITC can be claimed
Passenger Transportation Vehicle used for Passenger
Transportation
Full ITC can be claimed
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Any Other vehicle ITC cannot be claimed
Training relating to driving of such
vehicle
Vehicle used for training Full ITC can be claimed
Any other Vehicle ITC cannot be claimed
Any other business Vehicle used for transportation of goods Full ITC can be claimed
Any other vehicle ITC cannot be claimed
2 In case of Other Items
NATURE ITC CLAIM EXCEPTIONS
Food & Beverages ITC cannot be claimed If engaged in similar line of business, then
Outdoor catering ITC cannot be claimed
Beauty treatment services ITC cannot be claimed
Health services ITC cannot be claimed
Cosmetic and plastic surgery ITC cannot be claimed
Rent a cab service ITC cannot be claimed If engaged in similar line of business or there is
mandatory requirement from government to provide
such services by employer to employee then full ITC
can be claimed on these items
Life Insurance service ITC cannot be claimed
Health Insurance service ITC cannot be claimed
Membership of a club, health &
tness Centre
ITC cannot be claimed No exception
LTA benet extended to employees ITC cannot be claimed No exception
Construction Contract Services for
construction of immovable property
ITC cannot be claimed If engaged in similar line of business, then
Full ITC can be claimed on these items
ITC on goods and services used for
self-construction of building cost of
which is capitalized in books
ITC Cannot be claimed No exception
Goods and Services Meant for
Personal Consumption
ITC Cannot be claim No exception
3 ITC to be Reverse
Goods lost, stolen, destroyed,
written off
ITC to be reverse No exception
Goods disposed off by way of gift or
free samples
ITC to be reverse No exception
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9. What is Job-Work?
Section 2(68) of the CGST Act, 2017 denes job-work as ‘any treatment or process undertaken by a person on goods
belonging to another registered person’. The one who does the said job would be termed as ‘jobworker’. The ownership of
the goods does not transfer to the job-worker but it rests with the principal. The jobworker is required to carry out the
process specied by the principal on the goods.
Job-work procedural:
a) A registered person (Principal) can send inputs/capital goods under intimation and subject to certain conditions
without payment of tax to a job-worker and from there to another job-worker and after completion of job-work bring
back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital
goods dispatched to job-worker.
b) Principal can send inputs or capital goods directly to the job-worker without bringing them to his premises and can
still avail the credit of tax paid on such inputs or capital goods.
c) However, inputs and/or capital goods sent to a jobworker are required to be returned to the principal within 1 year
and 3 years, respectively, from the date of sending such goods to the job-worker.
d) After processing of goods, the job-worker may clear the goods toI.
Another job-worker for further processing
II. Dispatch the goods to any of the place of business of the principal without payment of tax
III. Remove the goods on payment of tax within India or without payment of tax for export outside India on fullment
of conditions.
The facility of supply of goods by the principal to the third party directly from the premises of the jobworker on payment of
tax in India and likewise with or without payment of tax for export may be availed by the principal on declaring premise of
the job-worker as his additional place of business in registration. In case the job-worker is a registered person under GST,
even declaring the premises of the job-worker as additional place of business is not required.
Before supply of goods to the job-worker, the principal would be required to intimate the Jurisdictional Ofcer containing
the details of the description of inputs intended to be sent by the principal and the nature of processing to be carried out
by the job-worker. The said intimation shall also contain the details of the other job-workers, if any.
The inputs or capital goods shall be sent to the jobworker under the cover of a challan issued by the principal. The
challan shall be issued even for the inputs or capital goods sent directly to the job-worker. The challan shall contain the
details specied in Rule 10 of the Invoice Rules.
The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.
Input Tax credit on goods supplied to job worker
Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the jobworker) shall be
entitled to take the credit of input tax paid on inputs sent to the job-worker for the job-work. Further, the proviso also
17
provides that the principal can take the credit even when the goods have been directly supplied to the job-worker without
being brought into the premise of the principal. The principal need not wait till the inputs are rst brought to his place of
business.
10. Credit Note / Debit Note
Credit Note means Where a tax invoice has been issued for supply of any goods or services or both and the taxable value
or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where
the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be decient, the
registered person, who has supplied such goods or services or both, may issue to the recipient what is called as a credit
note containing the prescribed particulars.
Format
There is no prescribed format for credit note / debit note but must contain the following particulars, namely:
(a) name, address and Goods and Services Tax Identication Number of the supplier;
(b) nature of the document;
(c) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or
numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination
thereof, unique for a nancial year;
(d) date of issue;
(e) name, address and Goods and Services Tax Identication Number or Unique Identity Number, if registered, of the
recipient;
(f) name and address of the recipient and the address of delivery, along with the name of State and its code, if such
recipient is un-registered;
(g) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;
(h) value of taxable supply of goods or services, rate of tax and the amount of the tax credited to the recipient; and
(i) signature or digital signature of the supplier or his authorised representative.
Tax Liability
The person who issues a credit note in relation to a supply of goods or services or both must declare the details of such
credit note in the return for the month during which such credit note has been issued but not later than September
following the end of the nancial year in which such supply was made, or the date of furnishing of the relevant annual
return, whichever is earlier. In other words, the output tax liability cannot be reduced in cases where credit note has been
issued after September.
The output tax liability of the supplier gets reduced once the credit note is issued and it is matched. The details of the
credit note relating to outward supply furnished by the supplier for a tax period shall, be matched:
(a) with the corresponding reduction in the claim for input tax credit by the recipient in his valid return for the same tax
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period or any subsequent tax period; and
(b) for duplication of claims for reduction in output tax liability.
The claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in the claim
for input tax credit by the recipient shall be nally accepted and communicated to the supplier. The reduction in output
tax liability of the supplier shall not be permitted, if the incidence of tax and interest on such supply has been passed on
to any other person.
Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding reduction in the
claim for input tax credit or the corresponding credit note is not declared by the recipient in his valid returns, the
discrepancy shall be communicated to both such persons. Whereas, the duplication of claims for reduction in output tax
liability shall be communicated to the supplier.
Records
The records of the credit have to be retained until the expiry of seventy-two months from the due date of furnishing of
annual return for the year pertaining to such accounts and records. Where such accounts and documents are maintained
manually, it should be kept at every related place of business mentioned in the certicate of registration and shall be
accessible at every related place of business where such accounts and documents are maintained digitally.
Conclusion
The credit note is therefore a convenient and legal method by which the value of the goods or services in the original tax
invoice can be amended or revised. The issuance of the credit note will easily allow the supplier to decrease his tax liability
in his returns without requiring him to undertake any tedious process of refunds.
The amount in respect of which any discrepancy is communicated and which is not rectied by the recipient in his valid
return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier in his
return for the month succeeding the month in which the discrepancy is communicated.
The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall
be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated.
Debit Note means When a tax invoice has been issued for supply of any goods or services or both and the taxable value
or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the
registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing the
prescribed particulars.
The Contents and purpose of the debit is the same as stated above in relation to credit note.
11. Import
Since 2014, there has been no import duty on paper and paperboard from ASEAN countries. Under the India-Korea CEPA,
the basic customs duty has been reduced gradually with a 0% target by January 1, 2017 Between April and July this
year, the growth in imports has been more than 40%. In the writing and printing paper segment, import of coated,
uncoated, and copier papers is signicant.
19
12. Exports
Exports – Clarication on issues related to furnishing of Bond/Letter of Undertaking (LUT) for exports
To remove the difculties faced by the exporters notications has been issued which extends the facility of LUT to all
exporters.
Following issues was claried by the government:-
In view of the difculties being faced by the exporters in submission of bonds/Letter of Undertaking (LUT) for exporting
goods or services or both without payment of integrated tax
a) Eligibility to export under LUT: Extension given to all registered persons who intend to supply goods or services for
export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act
or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such
cases exceeds two hundred and fty lakh rupees.
b) Validity of LUT: The LUT shall be valid for the whole nancial year in which it is tendered.
c) Form for bond/LUT: Download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs
(www.cbec.gov.in)
d) Documents for LUT: Self-declaration by the exporters.
e) Time for acceptance of LUT/Bond: LUT/bond should be accepted within a period of three working days of its
receipt along with the self-declaration.
f) Bank Guarantee – Since the facility of export under LUT has been extended to all registered persons, bond will be
required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees
two hundred and fty lakhs.
A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount.
g) Clarication regarding running bond: The exporters shall furnish a running bond where the bond amount would
cover the amount of self-assessed estimated tax liability on the export.
h) Sealing by ofcers: Till self-sealing becomes mandatory operational, sealing of containers wherever required to be
carried out under the supervision of the ofcer.
i) Purchases from manufacturer and Form CT-1: It is claried that there is no provision for issuance of CT-1 form
which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST
regime.
j) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for
them under GST regime.
k) Realization of export proceeds in Indian Rupee: Jurisdictional ofcer: In exercise of the powers conferred by subsection
(3) of section 5 of the CGST Act, it is hereby stated that the LUT/Bond shall be accepted by the jurisdictional
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Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter.
l) Realization of export proceeds in Indian Rupee: Accordingly, it is claried that the acceptance of LUT for supplies
of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are
made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI
guidelines.
Deemed Export
Deemed exports
Deemed exports refers to supplies wherein the goods do not actually leave India but the supplies are designated as
exports.
The supply of goods or services to the following would be treated as exports under GST Act
1. Supply made to a SEZ unit/ SEZ developer
2. Supply made to an Export oriented undertaking (EOU)
Filing of returns under GST Act for the deemed export is to be done as per the general procedures provided for export
under GST Act.
Kinds of supplies are designated as deemed exports(As per recent notication)
• Supply of goods by a registered person against Advance Authorisation;
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation;
• Supply of goods by a registered person to Export Oriented Unit;
• Supply of goods by a bank or Public‐Sector Undertaking specied in the notication No.
50/2017‐Customs, dated the 30th June 2017 (as amended) against Advance Authorisation.
Benets provided for deemed exports
Refunds are allowed of the GST paid on deemed exports. Typically, application for such refund is to be led in RFD01 by
the recipient of the supply. However, supplier can also le for the refund provided: recipient does not avail of input tax
credit on such supplies; and recipient furnishes an undertaking to the effect that the supplier may claim the refund.
Supplies qualifying as deemed exports
Prescribed documents / evidences required for ling the refund claim by a supplier
For Supplies against Advance Authorisation and EPCG Scheme:
Acknowledgment from jurisdictional ofcer of Advance Authorisation holder or EPCG holder that deemed export supplies
have been received. For Supplies against EOU Scheme: Duly endorsed tax invoice (under which supply was made) by EOU
recipient that supplies have been received.
21
• Undertaking from recipient that no input tax credit on such supplies have been availed by it;
• Undertaking from recipient that it will not seek refund in respect of such supplies and the supplier may claim the
refund particulars remarks
13. Audit
A. Audit Mandation by Law
Every registered dealer whose turnover during a nancial year exceeds the Rs 1 crore has to get his accounts audited
by a Chartered Accountant or a Cost Management Accountant. The dealer have to le audited returns along with
audited accounts and reconciliation statement
B. Audit by GST Tax Authorities
• The Commissioner of CGST/SGST (or any ofcer authorized by him) may conduct audit of a taxpayer. The
frequency and manner of audit is not notied yet.
• A notice will be sent to the auditee at least 15 days before.
• The audit will be completed within 3 months from date of commencement of the audit.
• The Commissioner can extend the audit period for a further six months with reasons recorded in writing.
Obligations of the registered dealer
The taxable person will be required to:
• provide the necessary facility to verify the books of account/other documents as required
• to give information and assistance for timely completion of the audit.
Findings of Audit
On conclusion of an audit, the ofcer will inform the taxable person within 30 days of:
• the ndings,
• their reasons, and
• the taxable person’s rights and obligations
If the audit results in detection of unpaid/shortpaid tax or wrong refund or wrong input tax credit availed, then demand
and recovery actions will be initiated.
Special Audit
The department may conduct a special audit due to the complexity of case and considering interest of revenue. The
Chartered Accountant or a Cost Management Accountant will be appointed to conduct the audit.
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When can a special audit be initiated?
The Assistant Commissioner may initiate special audit, considering the nature and complexity of the case and interest of
revenue. If he is of the opinion during any stage of scrutiny/enquiry/investigation that the value has not been correctly
declared or the wrong credit has been availed then special audit can be initiated.
Special audit can be conducted even if the tax payers books have already been audited before.
Who will order and conduct special audit?
The Assistant Commissioner (with the prior approval of the Commissioner) can order for special audit (in writing). The
special audit will be carried out by a chartered accountant or a cost accountant nominated by the Commissioner.
Time limit for special audit
The auditor will have to submit the report within 90 days. This may be further extended by the tax ofcer for 90 days on
an application made by the taxable person or the auditor.
Cost
The expenses for examination and audit including the auditor’s remuneration will be determined and paid by the
Commissioner.
Findings of special audit
The taxable person will be given an opportunity of being heard in ndings of the special audit.
If the audit results in detection of unpaid/shortpaid tax or wrong refund or input tax credit wrongly availed then demand
and recovery actions will be initiated.
14. Offences and Penal Provisions
There are 21 offences under GST Act . For easy understanding, we have grouped them asFake/wrong
invoices
1. A taxable person supplies any goods/services without any invoice or issues a false invoice.
2. He issues any invoice or bill without supply of goods/services in violation of the provisions of GST Act.
3. He issues invoices using the identication number of another bonade taxable person
Fraud
4. He submits false information while registering under GST Act
5. He submits fake nancial records/documents or les fake returns to evade tax
6. Does not provide information/gives false information during any proceedings
23
Tax evasion
7. He collects any GST but does not deposit with the government within 3 months
8. Even if he collects any GST in contravention of provisions, he still has to deposit it to the government within 3
months. Failure to do so will be an offence under GST Act.
9. He obtains refund of any CGST/SGST by fraud.
10. He takes and/or utilizes input tax credit without actual receipt of goods and/or services
11. He deliberately suppresses his sales to evade tax
Supply/transport of goods
12. He transports goods without proper documents
13. Supplies/transports goods which he knows will be conscated
14. Destroys/tampers goods which have been seized
Others
15. He has not registered under GST Act although he is required to do so by law
16. He does not deduct TDS or deducts less amount where applicable.
17. He does not collect TCS or collects less amount where applicable.
18. Being an Input Service Distributor, he takes or distributes input tax credit in violation of the GST rules
19. He obstructs the proper ofcer during his duty (for example, he create hindrance in the working of the ofcer during
the audit by tax authorities)
20. He does not maintain all the books that he is required to maintain under law
21. He destroys any evidence
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Type of offence Amount of penalty
Penalty for delay in ling GSTR Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST.
Total will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.
Penalty for not ling GSTR Penalty 10% of tax due or Rs. 10,000
– whichever is higher
Penalty for committing a fraud Penalty 100% of tax due or Rs. 10,000
– whichever is higher
(High value fraud cases also have jail term)
Penalty for helping a person to
commit fraud
Penalty extending upto Rs. 25,000
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Common Offences Under GST Act And Their Penalties Penalty for opting for composition
scheme even though he is not
eligible
Demand & recovery provisions of sections 73 & 74 will apply.
· Fraud case
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
· Non-fraud case
Penalty 10% of tax due or Rs. 10,000
– whichever is higher
Penalty for wrongfully charging GST
rate— charging higher rate
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
(if the additional GST collected is not submitted with the govt)
Penalty for not issuing invoice Penalty 100% of tax due or Rs. 10,000
– whichever is higher
Penalty for not registering under
GST
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
Penalty for incorrect invoicing Penalty of Rs. 25,000
Situations where there is no penalty (but interest may apply)
GST has Capital punishments provision for high value fraud cases as followsTax
amount involved 100-200 lakhs 200-500 lakhs Above 500 lakhs
Jail term Upto 1 year Upto 3 years Upto 5 year
Fine In all three cases
Type of offence Action
Penalty for incorrect type of GST charged (IGST
instead of CGST/SGST)
No penalty. Pay the correct GST and get refund of the wrong
type of GST paid earlier
Penalty for incorrect ling of GSTR No penalty. But interest @18% on shortfall amount
Penalty for delay in payment of invoice. ITC will be reversed if not paid within 6 months.
No penalty as such
Penalty for wrongfully charging GST rate— charging
lower rate
Interest @18% applicable on the shortfall
15. HSN Code & GST Rate
Reference for HSN code and GST rate – For paper and Pulp industry kindly refer Chapter 48 & 49
CBEC Link for nding HSN code with GST rates – https://cbec- gst.gov.in/gst-goods-services-rates.html
25
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16. E-way bill
E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A
‘movement’ of goods of more than Rs 50,000 in value cannot be made by a registered person without an e-way bill.
E-way bill will also be allowed to be generated or canceled through SMS.
When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient,
and the transporter.
When should an e-way bill be generated?
E-way bill will be generated when there is movement of goods –
• In relation to a ‘supply’
• For reasons other than a ‘supply’ ( say a return)
• Due to inward ‘supply’ from an unregistered person
What is a ‘supply’ in case of an e-way bill?
For this purpose, a supply may be either of the following:
• A supply made for a consideration (payment) in the course of business
• A supply made for a consideration (payment) which may not be in the course of business
• A supply without consideration (without payment)
In simpler terms, the term ‘supply’ usually means a:
1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. Barter/Exchange – where the payment is by goods instead of in money
Therefore, e-way bills must be generated on the common portal for all these types of movements.
Who can generate an e-way bill?
• E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a
Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value
of goods is less than Rs 50,000.
• Unregistered persons or their transporters may also choose to generate an e-way bill. This means than an e-way bill
can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered
person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
26
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Who When Part Form
Every Registered person
under GST
Before movement
of goods
Fill Part A Form GST EWB-01
Registered person is
consignor or consignee
(mode of transport may be
owned or hired) OR is
recipient of goods
Before movement
of goods
Fill Part B Form GST EWB-01
Registered person is
consignor or consignee
and goods are handed
over to transporter of
goods
Before movement
of goods
Fill Part B The registered person shall furnish the information relating to
the transporter in Part B of FORM GST EWB-01
Transporter of goods Before movement
of goods
Generate e-way bill on basis of information shared by the
registered person in Part A of FORM GST EWB-01
An unregistered person
under GST and recipient
is registered
Compliance to be
done by Recipient
as if he is the
Supplier.
1. If the goods are transported for a distance of ten
kilometers or less, within the same State/Union territory
from the place of business of the consignor to the place of
business of the transporter for further transportation, the
supplier or the transporter may not furnish the details of
conveyance in Part B of FORM GST EWB-01.
2. If supply is made by air, ship or railways, then the
information in Part A of FORM GST EWB-01 has to be
lled in by the consignor or the recipient
Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a
consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not
created an e-way bill, then the transporter can do so by lling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of
supply/delivery challan given to them.
Can e-way bills be used during return ling?
Yes. The information provided in Part A of the Form GST EWB-01 can be used for preparing GSTR-1.
What is the validity of an e-way bill?
An e-way bill is valid for periods as listed below, which is based on the distance traveled by the goods. Validity is
calculated from the date and time of generation of e-way bill.
List of People Who Can Generate an E-Way Bill
27
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Distance Valid from Valid for
Up to 100km Date & time at which e-way bill is generated 1 day
For every 100 km after that Date & time at which e-way bill is generated An extra day
Nationwide E-way Bill shall come into force from 1st April 2018
28
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GST Suvidha Provider
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29
Some Other Important Key Points
A. Who is a Principal?
As per the denition provided in the GST law, the term “Principal” means a person on whose behalf an agent carries
on the business of supply or receipt of goods or services, or both. For instance, a dealership store of an automobile
company is an excellent example of Principal-Agent relationship.
B. Who is a Pure Agent?
Pure Agent means a person who:
(a) enters into a contractual agreement with the recipient of supply to act on their behalf and incur expenditure or
costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to the goods or services (or both) procured on behalf of or provided to
the recipient of supply;
(c) does not use the goods or services so procured for his own interest; and
(d) receives only the actual amount incurred to procure such goods or services.
C. Types of Electronic Ledgers
E-Cash Ledger:
This ledger will serve as an electronic wallet. Where, the taxpayer needs to make any payment such as tax, interest,
penalty etc and he does not have enough credit in his E-Credit ledger, he will have to simply add money to the wallet
and the money will be utilized to make the payment.
This ledger will basically reect all the deposit made in cash using various modes.
E-Credit Ledger:
The input tax credit that is self-assessed in the monthly returns will be reected here under three categories i.e IGST,
CGST & SGST. The taxpayer will be able to utilize the balance shown in this account only for payment of tax as per
the credit utilization rules and no other amount such as interest, penalty etc.The E-Credit ledger will show the input
credit under the three major tax heads namely IGST, CGST & SGST.
E-Liability Ledger:
This ledger will show the total tax liability of a taxpayer after netting off for the particular month. This ledger will be
auto populated.
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30
1
8
15
22
29
2
9
16
23
30
3
10
17
24
31
4
11
18
25
5
12
19
26
6
13
20
27
7
14
21
28
GST Obligations – Calendar
GSTR-1
(Outward supply details)
GSTR-7
(TDS returns)
MONTHLY
GSTR-6
(Returns by ISD)
MONTHLY
GSTR-2
(Inward supply details)
MONTHLY
GSTR-4
(Composite dealer
returns #)
MONTHLY
GSTR-3
(Periodic Returns)
MONTHLY
GSTR9
(Annual return*)
MONTHLY
* Annual return is required to be filed before 31 December of the
subsequent year.
# Quarterly return is applicable to assessees opted for compounding
scheme. The same is to be filed within 18 days of the end of the
quarter.
Important – Dates for Quarterly return for SMEs is yet to be notified
Abhipra
OUR SERVICES
GST Suvidha Provider (GSP)
Depository Participant with NSDL, CDSL
Member: National Stock Exchange, Bombay Stock Exchange
Category I SEBI Approved Registrar and Transfer Agent
Aggregator & POP with Pension Pension Fund
Regulatory and Development Authority (PFRDA), (NPS)
UIDAI Empaneled Aadhar Enrolment Agency
Corporate Business Correspondence with Bank of India,
Gramin Bank of Aryavart
Office Automation Softwares,
Customized Software Development
Investment Advisor
Contact us
Registered Office : GF-58-59, World Trade Centre,
Barakhamba Lane, Connaught Place, New Delhi-110001,
Ph. : 91-11-23414629, 23414503
Corporate Office : A-387, Dilkhush Industrial Area, G.T. Karnal Road, Azadpur,
Delhi-110033, Ph. : 91-11-41411130, 7428396205 Telefax: 91-11-42390930
• website: www.abhipra.com • e-mail: gst@abhipra.com, info@abhipra.com • CIN: U74899DL1994PLC061802
Abhipra

Dear Members,

 

With continuation our earlier email dated 23rd October 2017 inter alia enrolling members for Vietnam Tour.

 

We like to inform you, the following quota for flying has been allotted for the delegates.

 

Mumbai Airport :10 delegates

Chennai airport : 10 delegates

Delhi Airport :10 delegates

Hyderabad Airport :10 delegates

Bangalore Airport: 02 delegates

Kolkata Airport : 02 delegates

 

Please note that the other states delegates will be adjusted in the above Airport wise quota’s for e.g. if Mumbai Airport has 10 quota’s, Ahmedabad, Surat, Baroda, Rajkot delegates will adjusted in the above quota (i.e. 6+4 or 5+5 etc.) for overall state representation and same will conveyed to the respective local associations to adjust accordingly.

Final list will be send by the Convener, International Trade Committee, Shri. Shekhar Chandak.

 

This is for your information and necessary action.

 

Regards

For FPTA

Hiren Karia

Hon. Secretary

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. FEMA

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Direct Tax Collections for F.Y. 2017-2018 show Growth of 15.8% up to September, 2017

According to CBDT press release dated 17th October 2017, the provisional figures of Direct Tax collections up to September, 2017 show that net collections are at Rs. 3.86 lakh crore which is 15.8% higher than the net collections for the corresponding period of last year. Net Direct Tax collections represent 39.4% of the total Budget Estimates of Direct Taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 10.3% to Rs. 4.66 lakh crore during April to September, 2017. Refunds amounting to Rs.79,660 crore have been issued during April to September, 2017.

 

An amount of Rs. 1.77 lakh crore has been received as Advance Tax up to 30th September, 2017 reflecting a growth of 11.5% over the Advance Tax payments of the corresponding period of last year. The growth in Corporate Income Tax (CIT) Advance Tax is 8.1% and that in Personal Income Tax(PIT) Advance Tax is 30.1%.

(Source : http://www.incometaxindia.gov.in/)

 

I-T department goes after defunct companies for tax frauds

The tax office is reopening old records of many companies that have wound up and no longer exist in the books of the government — something the revenue department has rarely done in the past. Former directors of such closely-held private companies, which have received tax notices along with the official liquidators, fear they could be suddenly saddled with unforeseen liabilities. While opening new private companies and shutting down old ones have often been a ploy to move unaccounted money, some of the companies set up to carry out bona fide businesses which subsequently failed have also come under the glare of the income tax department. Till now, the department has typically stayed away from companies to which it had issued non-objection certificate prior to the winding process. But, it’s well within the law and powers of the tax office to review an old tax assessment if there is suspicion of tax fraud.

 

(Source : http://economictimes.indiatimes.com/news/economy/policy/i-t-department-goes-afterdefunct-companies-for-tax- frauds/article show/60724618.cms)

 

Tax department to engage with corporates to spur receipts

Amid slowing growth in advance tax collections; the income-tax department is exploring enhanced engagement with the top 100 companies to facilitate compliance. A committee set up under the direct tax department to review assessment and scrutiny has identified “taxpayer segmentation” to improve collections. “The idea is to provide differential treatment to big taxpayers as they make up for the bulk of the revenue collection. The tax department is, after all, a 30 per cent stakeholder in corporate sector earnings. Stepping up engagement with them will help the department and the companies,” said a government official. The idea is to have a dedicated tax officer who will act as a one-point contact, keeping a close watch on a company’s quarterly results or performance, facilitating advance tax filing and helping estimate earnings for advance tax computation.

 

(Source:http://www.business-standard.com/article/economy-policy/worried-tax-department-to-engagewith-big corporates- to-spur-collections-117100301369_1.html)

 

Income Tax department fastens belt to add 1.25 crore new ITR filers this fiscal

The Income Tax Department has been tasked to add 1.25 crore new return filers in the current financial year as part of the government’s plan to widen the tax base in the country. The Central Board of Direct Taxes (CBDT), that makes policy decisions for the I-T department, has directed the taxman to undertake “focused efforts to significantly increase the tax base in the current financial year of 2017-18.” The target, the CBDT directive accessed by said, is to add 1.25 crore new I-T return filers. A new I-T return filer is defined as a person who has not filed return in the previous years but is liable to do so under the law. The taxman has to add such entities and get them do the filing of their I-T returns.

(Source: https://economictimes.indiatimes.com/news/economy/policy/income-tax-department-fastensbelt-to-add-1-25-crore- new-tax-filers-this-fiscal/article show/60867712.cms)

 

CBDT proposes self reporting for advance tax payment:

The central board of direct taxes (CBDT) has proposed a self-reporting mechanism for reporting estimates of current income, tax payments and advance tax liability by taxpayers who are required to get their account audited under the Income Tax Act, 1961 on a voluntary compliance basis. According to the draft rules, a taxpayer needs to furnish an intimation of estimated income and payment of taxes as on September 30 of the previous year, on or before November 15 of the previous year in the newly proposed form. Further, if the income estimated as on September 30 of the previous year is less than the income of the corresponding period of the immediately preceding previous year by an amount of Rs 5 Lakh or 10%, whichever is higher, then the assessee will be required to explain the reasons for the same by January 31 of the previous year, the CBDT said.

 

(Source: http://www.financialexpress.com/economy/cbdt-proposes-self-reporting-for-advance-tax-paymentall-you-need- to-know/862557/)

 

I-T self-assessment filings under lens

The income-tax (I-T) department is suspecting that taxpayers are understating their advance tax liabilities under self-assessment in the early quarters of the year and showing them as tax on additional income or windfall gains at the end of the financial year. Tax officials have sought an explanation from several corporates and individuals who have filed their self-assessment in the last three years, according to sources.

 

(Source: http://www.business-standard.com/article/economy-policy/i-t-self-assessment-filings-underscanner-117092400570_1.html)

 

Conduct of Assessment Proceedings electronically in time barring scrutiny cases Order under section 119 of the Income-tax Act, 1961 (’Act’)

As a part of Government’s initiative towards E-governance, Income-tax Department has brought digital transformation of its business processes to a significant extent through the Income-Tax Business Application (lTBA) project which provides an integrated platform to conduct various tax proceedings electronically through the ‘e-Proceeding’ facility available on it. As a digital platform for conduct of scrutiny assessment proceedings in an end to end manner is now available, CBDT has decided to utilize it in a widespread manner for conduct of proceedings in scrutiny cases. This Order covers various aspects of conducting scrutiny assessments electronically in cases which are getting barred by limitation during the financial year 2017-2018.

 

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Instruction08-2017.pdf)

 

TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased

 

It has been brought to the notice of CBDT that in cases of deceased depositor who has made deposits under the Capital Gains Accounts Scheme, 1988; the banks are deducting TDS on the interest earned on such deposits in the hand of the deceased depositor and issuing TDS certificates in the name of the deceased depositor, which is not in accordance with the law. Ideally in such type of situations, the TDS certificate on the interest income for and up to the period of death of the depositor is required to be issued on the PAN of the deceased depositor and for the period after death of the depositor is required to be issued on the PAN of the legal heir.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/notification8_2017_tds.pdf)

 

Processing of returns in Form ITR-1 under section 143(1) of the Income-tax Act, 1961- applicability of section 143(1)(a)(vi)

 

Clause (vi) of sub-section (a) of section 143(1) of the Income-tax Act, 1961 (’Act’) as introduced vide Finance Act, 2016, w.e.f. 01.04.2017, while processing the return of income prescribes that the total income or loss shall be computed after making adjustment of addition of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which has not been included in computing the total income in the return.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Instruction-9- 11-10-2017.pdf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Clarification on issues related to furnishing of Bond / Letter of Undertaking (LUT) for exports:

A fresh Notification No. 37/2017 – Central Tax dated 4th October, 2017 has been issued which extends the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017. Further CBEC has issued a consolidated circular providing clarity on the procedure to be followed for export under bond/LUT.

Eligibility to Export under LUT:

The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.

Validity of LUT:

The LUT shall be valid for the whole financial year in which it is tendered. Withdrawal of LUT Facility: In case the goods are not exported within the time specified in sub-rule (1) of rule 96A of the CGST Rules and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn.

Restoring the LUT Facility :

If the amount mentioned in the said sub-rule is paid subsequently, the facility of export under LUT shall be restored. As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee.

Form for bond/LUT:

Till the time FORM GST RFD-11 is available on the common portal, the registered person (exporters) may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business.

Self-declaration:

Self-declaration to the effect that the conditions of LUT have been fulfilled shall be accepted unless there is specific information otherwise. That is, self-declaration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No. 37/2017- Central Tax dated 4th October, 2017. Verification, if any, may be done on post-facto basis.

Time for acceptance of LUT/Bond:

As LUT/Bond is a prior requirement for export, including exports to a SEZ developer or a SEZ unit, the LUT/bond should be processed on top most priority. It is clarified that LUT/bond should be accepted within a period of three working days of its receipt along with the self-declaration by the exporter. If the LUT / bond is not accepted within a period of three working days from the date of submission, it shall deemed to be accepted.

Bank guarantee:

Since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees two hundred and fifty lakhs. A bond, in all such cases, shall be accompanied by a bank guarantee of 15% of the bond amount.

(Notification No. 37 /2017-Central Tax and Circular No. 8/8/2017- dated 4th October, 2017)

Highlights of Recommendations made by the GST Council in the 22nd Meeting at New Delhi on 6th October 2017

 

  • The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lacs.
  • To facilitate the ease of payment and return filing for small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, it has been decided that such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the third Quarter of this Financial Year i.e. October-December, 2017 • The due dates for filing the quarterly returns for such taxpayers shall be announced in due course. Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly basis till December, 2017.
  • All taxpayers are also required to file FORM GSTR-1, 2 & 3 for the months of July, August and September, 2017.
  • The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under subsection (4) of section 5 of the IGST Act, 2017 i.e. Reverse Charge on Goods / Services received from unregistered person, shall be suspended till 31.03.2018
  • It has been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.
  • The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018
  • The last date for filing the return in FORM GSTR-4 by a taxpayer under Composition Scheme for the quarter July September, 2017 shall be extended to 15.11.2017
  • The last date for filing the return in FORM GSTR-6 by an Input Service Distributor (ISD) for the months of July, August and September, 2017 shall be extended to 15.11.2017.
  • GST rates on few goods have been recommended to be reduced.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Tax

 

Overseas taxes and Medicare would not constitute taxable salary in India

It is not uncommon to see organizations send employees outside India on a short and long term basis. In such cases, these employees could receive a salary both within and outside India. In this context, based on the facts and in the circumstances of the case, recently the Bangalore Bench of the Income-tax Appellate Tribunal in the case of Shri Sunil Shinde has held that overseas taxes and Medicare would not constitute a taxable salary in India, while offering overseas salary to tax in India.

This decision could provide relief to resident individuals who travel outside India where the foreign taxes are paid by the employer. The decision has restated that any perquisite provided by the employer, the benefit of which has not vested at the time of contribution, should be considered as exempt.

(Shri Sunil Shinde v. CIT (ITA No 2149 (Bang) 2016) – Taxsutra.com)

CBDT prescribes procedure for filing statement of income from a country or specified territory outside India and foreign tax credit

 

In 2016, Central Board of Direct Taxes (CBDT) issued Foreign Tax Credit (FTC) rules for providing mechanism/procedure to claim FTC in India. As per the Rules, the statement in Form 67 and the certificate or the statement specifying the nature of income and the amount of tax deducted shall be required to be furnished for the claim of FTC.

 

Recently, the CBDT has issued a Notification, prescribing procedure for filing a statement of income from a country or specified territory outside India and FTC. Introduction of the procedure for filing statement of income online to claim FTC is a significant step towards the use of electronic communication for paperless statements / forms. This procedure will provide a hassle free environment to claim credit on tax paid in foreign countries. (CBDT Notification No. 9/2017 dated 19 Sept 2017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEMA

Export Data Processing and Monitoring System (EDPMS) – Issuance of Electronic Bank Realization Certificate (eBRC)

The Authorized Dealer Category-I (AD Category-I) banks were earlier advised to carry out appropriate changes in their IT system / operating procedure to report subsequent export transactions in EDPMS and also capture the details of advance remittances (including old outstanding inward remittances) received for exports in EDPMS.

 

Now the AD Category-I banks are directed to update the EDPMS with data of export proceeds on “as and when realized basis” and, with effect from October 16, 2017 generate Electronic Bank Realization Certificate (eBRC) only from the data available in EDPMS, to ensure consistency of data in EDPMS and consolidated eBRC.

 

(RBI/2017-18/57 A. P. (DIR Series) Circular No. 04 dated September 15, 2017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Law

MCA circular 10/2017 dated 13th September 2017 – Clarification regarding obligation with the Indian Accounting Standards (Ind AS) and Rule 4 of Companies (Indian Accounting Standards) Rules 2015–payment banks, small finance banks which are subsidiaries of Corporates

 

MCA has clarified that where the holding company in respect of subsidiaries which are payment banks or small finance banks, shall follow Ind AS per the corporate sector roadmap. The subsidiaries which are payment banks or small finance banks shall follow the banking sector roadmap stipulated by RBI.

 

For complete text of the notification, please refer the link:

http://www.mca.gov.in/Ministry/pdf/ CompaniesIndianAccountingStandardsGSR365E_14092017. Pdf

 

MCA Notification SO 2751(E) dated 24th August 2017 – Commencement of sub-sections (8) to (10) of section 212 of Companies Act 2013

 

The Government has notified 24th day of August, 2017 as the date on which the provisions of sub- sections (8), (9) and subsection (10) of section 212 of the said Act shall come into force. These provisions deal with various provisions related to the Serious Fraud Investigation Office (SFIO).

 

For complete text of the notification,

please refer the link: http://www.mca.gov.in/Ministry/pdf/Commencementnotification_25082017.pdf

 

BRIEF REPORT OF INAUGURATION FUNCTION & DRAFT MINUTES OF 56TH AGM/CONFERENCE OF FPTA HELD AT HOTEL GRAND ITC CHOLA, CHENNAI FROM 12th TO 14th AUGUST 2017.

 

The 56th Annual General Meeting and Conference of FPTA was held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 organized and hosted by Madras Paper Merchants’ Association, Chennai. The list of delegates and the invited former Presidents who recorded their presence is given in the Annexure.

 

Inaugural ceremony – Highlights

The ceremony began at 3.00 pm on 12th August 2017. The Master of Ceremony welcomed the members.

Chief Guest, Shri Nirmala Sitharaman, Hon’ble Union Minister of Commerce and Industry, Minister of State (Independent Charge), Shri. Sanjay Singh, CEO-ITC Ltd., (Paper and Specialty Paper Division), Shri. N. Gopalaratnam, Chairman, M/s. Seshasayee Paper and Boards Ltd., Shri. Saurabh Bangur, Vice Chairman, The West Coast Paper Mills Ltd., President, IPMA, Shri Shamji Karia, President, FPTA. Shri A. Annamalai (Venkat) FPTA Nominee President, Shri. C. Balasubramanian, FPTA Immediate Former President, Shri Shekhar Chandak, Chairman Reception Committee, MPMA, Chennai, Shri. A. Murugan, President, MPMA, Chennai, Shri. RM Veerappan, Hon. Secretary, MPMA, Chennai, Shri. A. Natesan, Chairman Finance Committee MPMA, Chennai,   and other dignitaries on the dais lighted the ceremonial lamp which was followed by the recital of prayer.

 

Bouquets and mementos were presented to the Chief Guest and Guests of Honour and members present on the dais.

Shri Shekhar Chandak, Chairman Reception Committee welcomed the Delegates and Dignitaries and thanked FPTA for giving them an opportunity for hosting the meeting at Chennai. He highlighted the significance of his association MPMA, Chennai and Chennai state.

 

Shri Shamji Karia, FPTA President welcomed the Chief Guest and dignitaries on the dais, congratulated MPMA, Chennai for holding this conference and proceeded with his speech: Welcome all to the 4th largest, 36th globally state, having historic significance, the service and manufacturing hub Chennai. On 24th SEPTEMBER 2016, it became my life’s most memorable day, wherein I was bestowed with Presidentship of FPTA. The day I took over the helms and responsibilities as a President of a very prestigious and highly regarded organization. I express my hearty gratitude to ‘THE PAPER TRADERS ASSOCIATION MUMBAI to nominate me for this coveted post.

We trader’s welcome the steps taken by Govt. of India  whether it was for demonetization of currency notes of Rs 1000 & Rs 500, though this notification had a widespread adverse impact on other industries, paper industry being organized had a minimal impact. Implementation of Goods & Services tax (GST) from 1st July 2017, “ONE NATION ONE TAX this is an entirely new tax system”.  I must say we all will have to change our approach towards the business. FPTA has taken continuous efforts to minimize the tax slab for PAPER & ALLIED products. Friends this year FPTA has been able to bridge relations with IPMA, Agro & Waste Papers Manufacturers Association and News Print Manufacturer Association. This was a milestone achievement. A joint meeting was organized, wherein there were healthy discussions to increase Public Awareness on paper usage, and also to create a Paper Day. A joint committee was formed towards common goals and I hope in coming days, we move ahead on this subject. I thank Shri. Satyapal Gupataji, Shri. R. C. Guptaji for taking initiative on Paper Day and Public Awareness with Mills Associations and guiding me whenever needed. I thank my associations specially the Ahmedabad and Kanpur for hosting the 2nd & 3rd Managing committee meetings respectively, on short span of time. During the year I had opportunity to visit traders associations of Delhi, Mumbai, Ahmedabad, Hyderabad, Nagpur, Pune, Noida, Meerut, Lucknow, Kanpur, Rajkot, Baroda, Surat, Vijayawada, Kolkata, West Bengal & Ors. I wish to personally thank all members and office bearers of respective associations for inviting me. I wish to specially thank Shri. Hiren Karia for most precise management of FPTA Secretariat , I have to also appreciate the good work done in Office Secretariat by Shri. Manish Shirsat and his colleagues. I also thank the immediate former Presidents Shri C. Balasubramanian, Shri. Arvind Sharma for their valuable guidance, I wish to express my sincere thanks to the Vice Presidents, Hon. Treasurer, Conveners of Sub Committees for their utmost cooperation. I wish a grand success of the AGM & Congratulate Shri. A. Annamalai (Venkat) the president elect for  2017-2018 and I hope he continues with effective implementation of Paper Day & Public Awareness Program in conjunction with IPMA & other associated paper mills.

Shri. Sanjay Singh, CEO-ITC Ltd., (Paper and Specialty Paper Division) welcomed all the dignitaries on dais as well as the other delegates.  He said there are three sources of raw material which paper is made wood, recycle paper, agro based and all are recyclable as people say industry cut the trees but every tree we cut we are planting two more trees, creating green belt. Paper Industry is creating jobs for the farmers in rural area also stopping migration to the urban area, initiative is been taking for segregate of waste management in different part of country.

 

Shri. N. Gopalaratnam, Chairman, M/s. Seshasayee Paper and Boards Ltd., He welcomed all the dignitaries on the dais and off the dais and shared his views. He highlighted the environmental and socially sustainable nature of paper and its manufacturing process. While expansion of electronic media has hit paper use in countries such as the US, there are opportunities in rapidly growing markets such as Mexico, Colombia, South Africa and Turkey, apart from India, where a growing middle class population is driving demand for paper. With well managed plantations, the industry is wood neutral and carbon neutral.

 

Shri. Saurabh Bangur, Vice Chairman, The West Coast Paper Mills Ltd., President, IPMA. welcomed and thanked all members and delegates gathered from the trade and industry, He said it is special moment addressing for 1st time trade fraternity FPTA, Trade is very important part of any business connect, without trade entire cycle would be incomplete, trade body knows the specific performance of the Industry as they are deeply connected and linked to the ground level of the market, He addressed the audience on topic of paper industry opportunity and challenges saying growing imports have killed the industry’s enthusiasm for investments and expansion. Paper from South East Asia is made from raw material available at less than half the cost that Indian units shell out. The government should consider allocating at least 10 per cent of the estimated 29 million hectares of degraded forest land for paper manufacturers to raise pulp wood plantations. Securing raw material resources is critical for long term sustainability and encourage additional investments,

 

Shri Nirmala Sitharaman, Hon’ble Union Minister of Commerce and Industry, Minister of State (Independent Charge):  The Government is open to take an objective look at the paper industry’s demand for safeguard duty on imports and consider a viable model for allocating land for pulp wood plantations, responding to the industry’s demand for safeguard duty on imports from ASEAN countries, the Minister said while the FTA has opened up the domestic market to imports, the industry is also benefiting from cheap import of raw materials. On land for raising pulp wood plantations, she said the paper manufacturers should talk to the State governments and the Centre and come up with a model that will augment farmers’ income. The earlier practice of raising babul tree, she claimed damaged the ecology, resulting in the vanishing of birds and wondered if this had helped the farmers who raised the trees in any way. Hence, the paper manufacturers should to reformulate business models and make use of degraded land to plant trees that can be availed as raw material by the industry. “It is a very critical industry. You have to make contribution to the country. Paper manufacturers have to reformulate yourself, give farmers who hold degraded land some return and ensure you have constant supply of raw material; the industry should work out a solution on replacing plastics in packaging rather than worrying about the space taken away by electronic mode of communication

SOUVENIR

President, Shri Sanjay Bangur released the souvenir. Shri R. Muthu Krishnan, Chairman of the Souvenir Committee presented the copies of the Souvenir to the dignitaries on the dais.

 

The Rasiklal B Parikh Award was presented to Shri Shamji Karia for his meritorious service as President at the hands of Guest of Honour Shri. N. Gopalaratnam.

 

Late Shri Haresh Chand Memorial Lecture Award: Seminar on Social Media and Digital for Paper Trade Industry was organized by the MPMA, Chennai. Prominent speaker was Shri. Krupa Shankar. Later on Talk Show on Paper Trader is Partner or Financer was also arranged, Moderator Shri P. Sreedhar conducted and Shri. Kasi Vishwanathan, Shri. Sandeep Bhargava, Shri. Mohit Jain and Shri. Jayesh Savla participated in this event.

 

Shri Rajeev Agarwal, Past President presented Shri Shri P. Sreedhar with the Late Shri Hareshchand Agarwal Memorial Lecture Award (Agra) for an informative and well conducted event.

 

ANNUAL GENERAL MEETING

BUSINESS SESSION

 

President Shri Shamji Karia welcomed the delegates to the Conference. The following proceedings commenced in line with the Agenda.

 

1    To confirm the minutes of the 55th Annual General Meeting and Conference held at       Hotel Grand Hyatt, Mumbai from 23rd to 25th September 2016 (Circulated vide Circular no. 03/56/2016-17 dtd. 02/12/2016).

 

As there were no comments the house confirmed the minutes of the meeting unanimously.

      Proposed by: Shri Arun Sundariya, Howrah

Seconded by: Shri Yatin Modi, Mumbai

 

2    Approved and adopted the Audited Accounts for the year ended 31st March 2017.

As there was no further discussions the house passed audited accounts unanimously.      

Proposed by: Shri Guman Singh Rajpurohit, Bangalore

Seconded by: Shri Santi Kumar Jain, Delhi

 

  1. Approved and adopted the Annual Report for the year 2016-17.

Proposed by: Shri Anil Gupta, Delhi

Seconded by: Shri Subrata Sen, Kolkata

 

  1. Appointing auditors for Accounting year 2017-18 or up to the conclusion of the next AGM and fixing their remuneration.

            It was unanimously decided to re-appoint the present Auditors M/s. HSMP & Associates LLP, Chartered Accountants, Mumbai for the year 2017-18 empowering Mumbai Office Bearers and Managing Committee to fix the remuneration.

Proposed by: Shri Narayan Bang, Secunderabad

Seconded by: Shri Gian Prakash Gupta, Delhi

 

  1. Reports from Advisory Board, Vice Presidents and Conveners of Sub-Committees in brief.

Hon. Secretary informed that the reports have been already printed in annual report and also circulated to the members, if any member wants to ask any questions can ask to the Vice Presidents in context of the activity reports. Shri. Gopal Saha, Kolkata, Shri. A. Annamalai (Venkat), Chennai, Shri. Ramesh Chand Jain, Delhi, Shri. B. Uttamchand Jain, Bangalore, Shri. Vishnukant Rathi, Secunderabad, Shri. Sanjay Jain, Meerut, Shri. Dipesh Ladda, Vadodara. presented bullet points of their report. Shri Hari Prasad Goenka from Howrah was not present in the meeting due to avoidable circumstances was on leave.  There were no comments from members.

 

Shri. A. Natesan, Convener Industry Affairs shared his meeting details with mills association on celebrating Paper Day and also to educate the society that Paper Industry does not spoil the environment. FPTA has put forward various dates for declaring and celebrating PAPERS DAY in the meeting. Paper Day date will be discussed with the industry and to celebrate it all over the country, the date announcement will be done during the PAPEREX exhibition on 1st November at Delhi.  All Affiliated Associations should celebrate in its jurisdictions involving School and Colleges along with paper mills association. Regarding funds we have shared views that Companies are legally bound to spend a portion of their income under Corporate Social Responsibility (CSR), the funds are available every year. Paper manufacturers can contribute a portion of the CSR funds towards this initiative, without impacting their routine plans, Industrial Cess. Hence forth all contribution would be for Paper Day. Paper is unique let us share the great stories of paper.

 

Shri Satyapal Gupta, Convener of Committee of Assocham & FICCI mentioned that his report is already published in Annual Report, He told members to be ready for digital business, traders should scrutinize the customer before deal, Members were reported on meeting had with Mills association on public awareness and celebrating paper day, which will be announced during PAPEREX and invited all to participate in this event at Delhi, Mills Associations representative has been invited for further discussion on this event and planning at Paper Merchants Association (Regd.), Delhi office on 19th August 2017, the details will be shared to members.

Members suggested and requested Shri. Satyapal Gupta to discuss with industry to celebrate PAPER DAY on 1st August.

 

Shri Rajkumar Bindal, Convener of CAIT and Govt. Affairs highlighted the work carried out at CAIT. Any trade representation should be forwarded through Convener of Govt. Affairs and CAIT

 

Shri Gian Prakash Gupta, Convener, Committee for Consumer Relations and Arbitration emphasized importance of Consumer Grievances and Arbitration to the present members.

 

Shri Ravi Rathi, Committee for Public Awareness accentuated various activities carried out by his committee.

 

Shri. Nirmal Kuhad, Convener for Social Media and Website Committee highlighted the events carried out. He mentioned the website is functioning and member’s involvement is essential for its updating. Members shared few suggestions. Nirmalji positively assured to do the needful. Mobile App will be inaugurated by Chief Guest and any suggestion/query will be sorted out by the technician immediately or later on.

 

Shri. Sandeep Bhargava reported the BIS meeting carried out and its outcome. He informed the house that only authorized members should make its representation of FPTA.

 

Shri A. Venkat, Convener of Committee for GST: A GST Q&A session by a consultant is conducted later in the evening to answer the members trade problems faced.

 

Shri Arvind Sharma, Chairman, Advisory Board: He gave details of the five awards that are to be put to rest from 2017-18. He informed that the due process of sending request to the old sponsors to increase the amount to Rs. 1 Lakh is completed. Shri Arvind Sharma also informed the house that the Advisory Board has received two applications along with (non-refundable) cheques of Rs 5 Lakhs each. He put the suggestions of the Advisory Board before the house for their approval.

 

Shri D. P. Saboo Award: The name of the award henceforth- will be Shri CHANDRAKANT DHANJI ZALANI (Babu Bhai) Award and will be awarded to an affiliated association for rendering outstanding services to its members and trade.

 

Shri Rasiklal B Parikh Award: Henceforth the award- will be known as SHAMJI R KARIA M/S T. K. RUBY & Co Award and will be awarded for meritorious services rendered by the President of FPTA.

 

Shri K. C. Daga Award: The sponsor gave his consent to- increase the amount to Rs 1 Lakh. The award is to be continued.

 

Shri Badluram Gupta Award: The sponsor gave his- consent to increase the amount to Rs 1 Lakh. The award is to be continued.

 

Shri Jayantilal Shah Award: The secretary informed- that the sponsor refused to increase the amount. It was decided that if any application comes it will be decided on merit basis. The minimum amount would be Rs 5 Lakhs non-refundable.

 

It was felt that there is some ambiguity in the criteria of certain awards and some guidelines should be there for the judges who are members of the committees formed to give awards. A review committee headed by Shri Balasubramanian was formed consisting of Shri Krishnendu Bhattacharjee, Shri A Natesan, President Shri A Annamalai (Venkat), and Honorary Secretary, as members.

 

Arrangements for Delhi PaperEx and follow-up of protocols –Delhi Paper Merchants’ Association requested to take care of the same. Shri Satyapal Gupta assured of all help needed in this regard.

 

The deposit amounts of rewards that are going to be put to rest from 2017-18 may be transferred to Public Awareness promotions, if required.

 

The Advisory Board appreciated the efforts put in by Shri Nirmal Kuhad for the launch of FPTA App and suggested that the house in the AGM be requested to fix the charges for main advertisements in the app as Rs 25,000 and for the sub-category advertisements as Rs 10,000 on a trial basis for the first 6 months.

 

The Advisory Board felt that the affiliated associations should be educated to include Managing Committee members as delegates in accordance with the guidelines of FPTA. This will also avoid hardships to the host association.

 

The members unanimously approved the suggestions presented by the Advisory Board.

 

  1. To Launch FPTA Mobile APP.

The Hon’ble Minister Smt. Nirmala Sitaraman unveiled mobile application developed by Sri. Nirmal Kuhad, Convener Social Media and Website.

 

  1. To approve and finalise FPTA Mobile APP Tariff and Existence

The house was explained mobile app by the technician and its existence. The house passed the mobile app tariff for 6 months period and to be revived unanimously.

 

  1. To discuss the current situation in paper trade. Every affiliated association was requested for at most two representatives to voice their needs and recommendations.

There were discussions on all important issues burdening the traders: Compliance on GST return filling, etc. Impact after demonetization, it was felt that we all should work together and maximum care to be taken in our trading activities. Water scarcity in south region for paper production, increased of financial involvement, on positive note recovery cell in Howrah is very active, explained status on arbitration of jurisdiction is different in all states, association’s activities were shared by the members. Advise to vice presidents to scrutinize the reports of associations under its jurisdiction, before presenting their reports on associations functioning. The speakers were Shri. Mehul Mehta, Mumbai, Shri. Subhrajit Kundu, Shri Alok Trivedi, Shri. Gopal Saha, Kolkata, Shri. Gian Prakash Gupta, Shri. Anil Gupta, Delhi, Shri. Bhupendra Gandhi, Ahmedabad, Shri. Ashok Gupta, Bangalore, Shri. Lalit Kumar Tarachand, Vijayawada, Shri. C. Balasubramanian, Coimbatore, Shri. Arvind Agarwal, Kanpur, Shri. Ankit Agarwal, Meerut, Shri. Kiran Shah, Shri. Narayan Bang, Secunderabad, Shri. S. M. Tyagi, Noida, Shri. Aseem Bordia and Dinesh Khandelwal Nagpur, Shri. Vijay Karwa, Patna, Shri. Yashaswi Patel, Pune, Shri. Bhavan Shah, Surat, and ors.

 

  1. To consider the report of the Subjects Committee appointed for the purpose and approve the Resolutions recommended by them and as finalized in the Annual General Meeting.

 

      The following texts of Resolutions were passed unanimously.

 

Resolution No. 2017/1 (Adoption of Annual Report)

“This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that the annual report of the Federation for the year 1st April 2016 to 31st March 2017 be and is hereby adopted.”

Proposed by: Shri Anil Gupta, Delhi

Seconded by: Shri Subrata Sen, Kolkata

 

Resolution No. 2017/2 (Adoption of Accounts)

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that the Audited Statement of Accounts and Balance Sheet of the Federation for the year 1.4.2016 to 31.3.2017 be and is hereby adopted.”

Proposed by: Shri Guman Singh Rajpurohit, Bangalore

Seconded by: Shri Shanti Kumar Jain, Delhi

 

Resolution No. 2017/3 (Appointment of Auditors)

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 appreciates the services of M/s. HSMP & Associates LLP, Chartered Accountants and resolves that they be reappointed as auditors for 2017-18 and remuneration will be fixed by the Mumbai office bearers and Managing Committee as they deem fit.

Proposed by: Shri Narayan Bang, Secunderabad

Seconded by: Shri Gian Prakash Gupta, Delhi

 

Resolution No. 2017/4 (Operation of Bank/Securities Accounts)

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that the Union Bank of India and also State Bank of India be and are hereby authorized to honour cheques, Bills of Exchange, Promissory Notes, Safe Deposit Locker or any other documents drawn, accepted or made on behalf of the Federation by any two of the following office bearers jointly, President, Vice-President, Mumbai. Hon. Secretary, Hon. Treasurer and to act on any instruction so given relating to the current account or Fixed Deposit Account, whether the same is overdrawn or not, relating to the transactions of the Federation. Also resolved that the office bearers are authorized to obtain overdraft facility to the extent of maximum Rs.1 lakh (one lakh) maximum from the Union Bank of India, or State Bank of India as and when considered necessary, against the FDRs standing in the name of the FPTA with the said bank for the conduct of the FPTA’s transactions. It is also further resolved that in addition to the Union Bank of India, State Bank of India the office bearers are also authorized to open and operate Current / Fixed Deposit accounts and/ or overdraft A/c against our FDR only and Safe Deposit Locker in any other Nationalized Bank for the Purpose of efficient and convenient operation of its activities and may also invest in fixed deposit scheme bonds or any Government Securities or IDBI, ICICI or UTI.” This supersedes all earlier resolutions in this regard.

Proposed: Shri. Mehul Mehta, Mumbai

Seconded: Shri. B. Uttamchand Jain, Bangalore

 

Other Resolutions that were recommended by subject committees and were passed are as follows:

 

Resolution No. 2017/6

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that 4 advertisements are already received and confirmed to pay the rates, fixed by the house. The charges were fixed for 6 months of initial period and later on to review on its demand.

Rs. 25000/- + GST for home page

​​Rs. 10,000/- + GST for sub category

​In CDR format in 800 pixels (width) x 1200 pixels (height). It will be displayed for 5 seconds.​

Proposed by: Shri. Bharat Shah, Mumbai

Seconded by: Shri. R. Ravi, Coimbatore

 

Resolution No. 2017/6

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that as approved during 52nd AGM that the sponsors to raise the sponsorship amount to Rs. 1 lakh and to continue with the Award for 10 years, after which there will be a review for further continuation, If the sponsor does not accede to the request or if the sponsor no longer exists, the Award can be put to rest. To continue with these awards for another 10 years, after which there will be a review for further continuation. The sponsorship amount to be Rs. 5 Lakhs and the duration to be fixed as 10 years, after which there will be a review for further continuation to be implemented instant. The following awards were replaced and rests were continued further.

Proposed by:  Shri. Mehul Mehta, Mumbai

Seconded by: Shri. Madhusudhan Bang, Vijayawada

 

Resolution No. 2017/7

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that as decided during the 55th AGM the application for the post of Delegate, Managing Committee Members, Co-opted Members, Vice-Presidents and President should be endorsed with seal and signature by the affiliated associations

Proposed by: Shri. Nirmal Kuhad, Secunderabad

Seconded by: Shri. Piyush Fateepuria, Nagpur

 

Resolution No. 2017/8

This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that the Paper Day Should be celebrated in their area, association.

 

The house passed the resolution unanimously.

 

  1. To declare and present various awards to deserving Persons/Associations as per decision of the panel of judges appointed for the purpose.

 

  1. FPTA’s Shri Badluram Gupta Award: To the paper trader for his long time contribution to the cause of the Paper Trade.

This award was presented to Shri. Dhiraj Karia, Mumbai towards his outstanding contribution to the cause of paper trade.

 

  1. Founder President Jethmal Thakursing Lalvani Memorial Award: To a Paper Trader for his outstanding contribution for the cause of promotion of paper trade in India.
    This award was presented to Shri A. Annamalai (Venkat), Chennai towards his outstanding contribution to the cause of paper trade.
  2. Past President Shri D. P. Saboo Award. This award was given to an affiliated association for rendering outstanding services to its members and the trade.

This was awarded to the Paper Merchants Association (Regd.), Delhi.

 

  1. d. FPTA’s late Shri Jayantilal S Shah Award. To Managing Committee Member who renders useful services for the activities of FPTA

This award was presented to Shri. Ravi Rathi, Secunderabad.

  1. e. Presentation of Past President K. C. Daga Award. To affiliated associations, which host Managing Committee meetings during the year.

This award was presented to the following Associations.

 

Paper Merchants Association, Ahmedabad for hosting 2nd Managing Committee meeting.

Kanpur Paper Merchants Association, Kanpur for hosting 3rd Managing Committee meeting.

  1. FPTA Past President Shri M. Annamalai Chettiar Award: To be awarded to the Hon. Treasurer for the meritorious service rendered during the year.

It was awarded to Hon. Treasurer Shri Parish Parekh, Mumbai

 

  1. Late Smt. Kasturi Devi Rambilas Khandelwal Memorial Fund Award. Presented to the Association hosting the AGM of FPTA.

This was awarded to the Host Association, the Paper Traders Association Mumbai.

 

  1. h. Declaration and presentation of M/s Himatlal & Co., Mumbai, for Vice President Major Asscoiation,
    This year the award was presented to Vice President Vishnukant Rathi, Secunderabad.

 

  1. FPTA Jaina Shaleen Ramesh Chandak Award to convener of Subcommittee for his outstanding work.

This was awarded to Shri Nirmal Kuhad, Convener of Committee for Social Media and Website.

 

  1. FPTA Shobha Cards Awards – For On time publishing of Souvenir.

This was awarded to Shri R Muthu Krishan, Convener of Souvenir committee of the Madras Paper Merchants’ Association, Chennai.

 

  1. Mittar Sain Jain Memorial Award (Delhi): The award given to one of the Past President for useful and regular contributions towards Paper Trade.

The award this year was presented to Shri Vasudeo Goenka, Mumbai.

 

  1. Late Shri. Uggar Sain Jain Memorial Award: The Award to be given to the President from Big Association and One from the Small Association.

Shri Mehul Mehta, The Paper Traders Association, Mumbai received the award for Big Association.

Shri Sanjeev Agarwal, Kanpur Paper Merchants Association, Kanpur received the award for Small Association.

 

  1. Shri. Devji Shivji Karia Memorable Award: To be awarded to Hon. Secretary for the meritorious service rendered during the year.

It was awarded to Hon. Secretary Shri Hiren Karia, Mumbai.

 

  1. Late Shri. Hasmukh C. Shah Legacy Award awarded to Father, Son & their Company:

It was awarded to Shri. PL. Nagappan, Shri. N. Annamalai and Shri. A. Vignesh Nagappan of M/s. Nagappa Paper Company, Chennai.

 

  1. Shri. Lakhamsi Gala Reliable Award To be awarded to Vice President from 20 delegate and Small Associations.

It was awarded to Shri Dipesh Ladda, Vadodara.

 

  1. Nathmal Goenka Memorial Fund (Mumbai)

The corpus interest carried forward as no awardees

 

  1. To declare the result of the elections of Office-bearers & Managing Committee Members for the year 2017-18.

Shri A. Natesan, Chennai, Chairman of Scrutiny Committee announced the names of Office bearers and Managing Committee Members who were elected on the basis of Scrutinizers’ report and requested to fill the vacant post from delegates at earliest. The names of the following were announced for the Posts of Vice President. 1). Shri. Dhiraj Karia, Mumbai 2). Shri. Subhrajit Kundu, Kolkata 3). Shri. P. K. Jain, Delhi 4) Shri. Madhusudhan Bang, Vijayawada 5). Shri Bhupendra Gandhi, Ahmedabad 6). Shri. Vijay Bansal, Agra 7). Shri. Krishna Kumar Sharma, Jaipur. 8). Shri. R. Sunder, Sivakasi. The elected names for the Patron Constituency are 1. Shri. Hasit H. Shah, Mumbai 2. Shri. Bajranglal Agarwal, Delhi 3. Shri. Pawan Kumar Teltia, Delhi 4. Shri. Deepak Mittal, Bangalore 5. Shri. Rakesh Chand Jain, Meerut. The elected names for the Life Associates Constituency are 1. Shri. Gaurang Mehta, Mumbai 2. Shri. Nitish N Shah, Mumbai 3. Shri. Alok Kumar Gupta, Delhi 4. Shri. Ravi Kumar Rathi, Secunderabad 5. Shri Kiran H Shah, Secunderabad

The list of members of managing committee 2017-18 will be printed and circulated vide members reference book 2017-18

 

  1. Past Presidents of FPTA and MPMA Chennai were felicitated with Mementos.

 

  1. Announcement – Incoming President:

The House with prolonged standing ovation received the announcement relating to the nomination of Shri A. Annamalai (Venkat) as the President of the FPTA for the year 2017-18. He was congratulated and garlanded. Shri Shamji Karia invited him to occupy the Chair of the President. The newly elected President thanked the Madras Paper Merchants Association, Chennai. He said that he will do his best promoting the interest of all those concerned. He requested all Affiliated Associations and Members to send their suggestions for better and effective functioning of FPTA and our Trade. He further proposed enough and more opportunities should be given to youngsters to participate in FPTA activities to strengthen the organization  and advised fraternity to “challenge ourselves” and” not challenge others” when it come to increasing top line and bottom line which will make our trade healthy and encourage the next generation to join our trade. He intended as there is only one way communication i.e. from FPTA to all the members by way of circulars between 2 Managing Committee meetings, it was proposed to have a conference call on 2nd Sunday of every month between 10 and 10.30 a.m. in which all the Vice Presidents and Conveners of Various sub committees will participate.  This will help us to implement ideas generated immediately without waiting for the next MC meeting’s. The incoming Vice Presidents and Conveners are requested to follow up with the members of its jurisdiction on the trade issues. He thanked all the delegates for the enthusiasm exhibited in the deliberations of the Conference, which ultimately proved to be productive for common benefit.

 

President informed the house that an application was received for hosting the 57th AGM from Kanpur Paper Merchants Association, Kanpur, Bihar Paper Merchants Association, Patna and Calcutta Paper Traders Association, Kolkata and requested them to invite the members to the AGM.

 

Shri. Arvind Agarwal, Kanpur, Shri. Vijay Kumar Karwa, Patna and Shri. Subhrajit Kundu, Kolkata expressed how they are liable and shared their views for hosting this event, they invited members.

President declared Calcutta Paper Traders Association, Kolkata name to host the 57th AGM. Shri. Subhrajit Kundu, Kolkata thanked president for giving this opportunity.

 

The house concluded with a vote of thanks and National Anthem.

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List of Delegates recorded their presence in the 56th A.G.M. (2016–17) held at Hotel ITC GRAND CHOLA, Chennai on 12th Aug to 14th Aug 2017.

 

Paper Trader’s Association,    Mumbai

 

Paper Merchants Association, Delhi

 

 

1.       Shri Dhiraj Karia

2.       Shri Parish Parekh

3.       Shri Hiren Karia

4.       Shri Bhavesh Gala

5.       Shri Bharat Shah

6.       Shri Mehul Mehta

7.       Shri Hasmukh Shah

8.       Shri Rajen Aythora

9.       Shri Priyesh Desai

10.    Shri Nitish Shah

11.    Shri Ashok Kabra

12.    Shri Rajendra Jain

13.    Shri Gaurang Mehta

14.    Shri Devang Vora

15.    Shri Raghav Kothari

16.    Shri Ashok Java

17.    Shri Arvind Nishar

18.    Shri Yatin Mody

19.    Shri Hasit Shah

 

 

1.       Shri Gian Prakash Gupta

2.       Shri Ramesh Chand Jain

3.       Shri Vinod Kumar Jain

4.       Shri Anil Gupta

5.       Shri Namit Jain

6.       Shri Gupta Sandeep

7.       Shri P. K. Jain

8.       Shri Arun Rai Agarwal

9.       Shri Manish Mittal

10.    Shri Ashok Gupta

11.    Shri Pramod Jain

12.    Shri Chandra Dev Chaudhary

13.    Shri Ripin Jain

14.    Shri Girdhari Lal Gupta

15.    Shri Mohan Goel

16.    Shri Krishan Mohan Gupta

17.    Shri Raj Suneja

18.    Shri Shanti Kumar Jain

 

 

 

Calcutta Paper Traders’ Association, Kolkata

 

 

The Madras Paper Merchants’ Assn Chennai

 

 

1.       Shri Nawin Kumar Sarawagi

2.       Shri Rajat Bose

3.       Shri Gopal Saha

4.       Shri Vijay Shankar Modi

5.       Shri Sajjan  Kumar Goenka

6.       Shri Subrata Sen

7.       Shri S. Bhattacharjee

8.       Shri Koustab Bhattacharjee

9.       Shri Subrajit Kundu

10.    Shri R. N.Dutt

11.    Shri Rohan Gupta

12.    Shri Alok Trivedi

13.    Shri Ajay Dhurka

14.    Shri Arak Sutta

15.    Shri Saikat Saha

16.    Shri Subhash Saha

17.    Shri Malay Saha

 

1.       Shri A. Annamalai

2.       Shri A. Muthuraman

3.       Shri R. Ravichandran

4.       Shri R. Muthu Krishnan

5.       Shri L. Joseph

6.       Shri S. M. Akbar

7.       Shri M. Nagoor Meeran

8.       Shri S. Palaniappan

9.       Shri A. Murugan

10.    Shri P. Rajesh Jain

11.    Shri RM. Veerappan

12.    Shri M.Felix Ballarmin

13.    Shri G. Balaji

14.    Shri M. Arulanandam

15.    Shri M. Manikandan

16.    Shri T. M. Imthiyaz Ahmed

17.    Shri S. Thahir Jalal

18.    Shri A. K. Arulraj

19.    Shri A. Elangovan

20.    Shri P. Kumar

 

 

 

 

 

 

Paper Merchants Association, Ahmedabad

 

 

West Bengal Paper Traders Association, Kolkata

 

1.       Shri Bhupendra Gandhi

2.       Shri Jayendra N Desai

3.       Shri Shailesh Sakhidas

4.       Shri Rajkumar Agrawal

5.       Shri Samir Pujara

6.       Shri Naresh Shah

7.       Shri Bhavesh M Kothari

8.       Shri Nandkishore Sharma

9.       Shri Himanshu Shah

10.    Shri Minesh S Parikh

11.    Shri Dharendra R Doshi

12.    Shri Pranay S Parikh

13.    Shri Nilesh A. Shah

14.    Shri Hemant N Shah

15.    Shri Pragnesh N Shah

16.    Shri Jaypal A Shah

17.    Shri Mitesh P Kothari

1.       Shri Lasmi Kant Karwa

2.       Shri Basudeo Karwa

3.       Shri Arun Sundariya

4.       Shri Dulal Das

5.       Shri Vineet Bajoria

6.       Shri Narattom Vyas

7.       Shri Saurabh Jhunjhunwala

8.       Shri Hemant Khetan

 

 

 

The Karnataka Paper Merchants’ & Stationary. Assn–Bangalore

 

The Paper Merchants’ WelfareAssn., Vijayawada

 

1.       Shri Madhusudan Baldwa

2.       Shri Chunnaram Choudhary

3.       Shri Dinesh M Jain

4.       Shri Ramesh Salecha

5.       Shri B. Uttam Chand Jain

6.       Shri Gumansingh Rajpurohit

7.       Shri Kishor H Shah

8.       Shri Ranjeet Jain

9.       Shri Shantilal Jain

10.    Shri Rajendra Kumar

11.    Shri Hitesh Bhansali

12.    Shri Chetan Prakash

13.    Shri Hiralal Tated

1.       Shri Madhusudanan Bang

2.       Shri Paharsingh Rajpurohit

3.       Shri V. V. D. Ramesh

4.       Shri Harishchand Bhandari

5.       Shri Kundanmal Gandhi

6.       Shri Nilesh Solanki

7.       Shri Rakesh Jain

8.       Shri A.T. Arasu

9.       Shri Lalit Kumar Tarachand

10.    Shri G. Nageswara Rao

11.    Shri Y. S. Chakravathi

12.    Shri A. Chandrasekhar Reddy

 

 

Telangana Paper Merchants’ Association, Secunderabad The Paper Traders Association, Nagpur
1.       Shri Sanjeev Baldwa

2.       Shri VishnuKant Rathi

3.       Shri T. Kishan Singh

4.       Shri Vinay Jaiswal

5.       Shri Nirmal Kuhad

6.       Shri Narayandas Bang

7.       Shri Sandeep Karda

8.       Shri Vineet Badruka

9.       Shri Nandkishore Tapadia

10.    Shri M. Krishna

11.    Shri T. Srinath

12.    Shri Jaiprakash Tapadia

13.    Shri Sunil Jhawar

14.    Shri Vinay Baldwa

15.    Shri Sreeniwas Baldwa

1.       Shri Sanjay N Kaushik

2.       Shri Manoj Jejani

3.       Shri Vijay R Khandelwal

4.       Shri Allahad Shastry

5.       Shri Lalit R Sood

6.       Shri Sudhir Jain

7.       Shri Rajesh Khandelwal

 

 

 

 

 

 

 

 

Paper and Allied Merchants  Assn, Coimbatore

 

 

The Lucknow Paper Merchants Association, Lucknow

 

1.       Shri R. Ravi

2.       Shri Lal Chand Jain

3.       Shri C. K. Venkatesh

4.       Shri C. Vijayakumar

5.       Shri V. Sri Sailesh

6.       Shri N. Appadurai

7.       Shri N. Valliappan

8.       Shri K. M. Narayanasamy

9.       Shri Ananda Ramakrishnan

 

1.       Shri Dinesh Chandra Mittal

2.       Shri Raj Kumar Agarwal

 

 

 

Kanpur Paper Merchants’ Assn,  Kanpur

 

Sivakasi Paper Merchants’ Association, Sivakasi

 

 

1.       Shri Vijay Kumar Sultania

2.       Shri Sanjeev Kumar Agarwal

3.       Shri Arvind Agarwal

4.       Shri Saurabh Agarwal

5.       Shri Manish Agarwal

6.       Shri Krishan Kumar Beriwal

 

 

1.       Shri K. Sivaraman

2.       Shri Senthil Rajan

3.       Shri Mariappan

4.       Shri P. Periyasamy

5.       Shri G. Sathieesh Kumar

6.       Shri A. Radha Sekaran

7.       Shri R. Padma Srinivasan

8.       Shri R. Sunder

9.       Shri S. Senthil Andavar

10.    Shri T. Sockalingam

 

 

Erode District Paper & Stationary Merchants Assn, Erode

 

 

Raigath Paper Traders Assn, Raigrh

 

1.       Shri M. Chhokkalingam

2.       Shri K. Senthil kumar

3.       Shri N. Nagarajan

4.       Shri N. Mohanraj

5.       Shri P. Boopathy Raja

6.       Shri V. Velmurugan

7.       Shri K. Alagesan

 

1.       Shri Vikas Agarwal

 

 

Indore Paper Traders Association, Indore

 

The Pune Paper Traders Assn, Pune

 

 

1.       Shri Asuthosh Jhawar

2.       Shri Sandeep Bhargava

3.       Shri Ashish Bandi

4.       Shri Mayank Mangal

5.       Shri Rajendra Mittal

6.       Shri Gagan Gupta

 

 

1.       Shri Dinesh Khandelwal

2.       Shri Yashaswi Patel

3.       Shri Deepak Shah

 

 

 

 

Madurai Paper Traders Association, Madurai

 

 

Paper Merchants Association, Noida

 

1.Shri Alagu

2. Shri Balaji

3. Shri Thiagarajan

4. Shri Subramanian

5. Shri Sankarnarayan

6. Shri Madhavan

 

 

1.       Shri S. M.Tyagi

2.       Shri  Rajesh Khandelwal

3.       Shri Amit Agarwal

4.       Shri Vishal Jain

 

 

 

 

Paper Merchants Association, Surat

 

 

Baroda Paper Traders Association, Vadodara

 

1.       Shri Ashok Khemka

2.       Shri Bhavan Shah

3.       Shri Fahim Kagzi

4.       Shri Mohammed Kagzi

5.       Shri Rajendra Kumar Sojitra

 

1.       Shri Dipesh Laddha

2.       Shri Himanshu Patel

 

 

 

Chhatisgarh Paper Traders Association, Raipur

 

 

 

Agra Kagaz Vyapar Mandal, Agra

1.       Shri Dilip Kodwani

2.       Shri Saurabh Agarwal

1.       Shri Mohit Garg

2.       Shri Sanjeev Verma

3.       Shri Manoj Agarwal

 

 

 

Rajasthan Paper Merchants Association, Jaipur

 

Salem Paper & Allied Traders Association, Salem

 

 

1.       Shri Umesh Sharma

2.       Shri Krishan Kumar Sharma

 

 

1.       Shri K. P Venkatesh

2.       Shri D. Sadasivam

3.       Shri R. Ravikumar

4.       Shri S. Saravanakumar

5.       Shri S. Balaji

6.       Shri A. R. Sathesh

 

 
 

Dehradun Paper Merchant Association, Dheradun

 

 

Kerala Paper Traders Association, Kochi

 

 

1.       Shri Indresh Kumar Manocha

2.       Shri Rajneesh Kumar Sharma

 

1.       Shri Vikram N. Banda

2.       Shri Balakrishnan

3.       Ms. Kirti Jain

4.       Shri Vikas N Banda

 

 

 

 

 

Meerut Paper Vikreta Sangh, Meerut

 

Bihar Paper Merchants’ Assn, Patna

 

1.       Shri Ankit Agarwal

2.       Shri Rajeev Garg

3.       Shri Piyush Tayal

4.       Shri Ashish Jain

5.       Shri Govind Goel

6.       Shri Ankur Jain

1.       Shri Lalit Kumar Sinha

2.       Shri Subhash Chandra (Anil)

3.       Shri Shyam Sunder Agrawal

4.       Shri Vikram Bajanka

5.       Shri Rajan Rastogi

6.       Shri Dindayal Goyal

 

 

Orissa Paper Dealers Association, Cuttack

 

1.       Shri Om Prakash Chapolia

2.       Shri Vishnu Kumar Joshi

3.       Shri Vijay Kumar Budhi

4.       Shri Ramavtar Bhut

 

 

 

List of FPTA’s Former Presidents

1.       Shri Satya Pal Gupta

2.       Shri Mahendra Kumar Jain

3.       Shri Mahesh Khandelwal

4.       Shri Ashok Kumar Gupta

5.       Shri Shyam Sunder Daga

6.       Shri Shyam Sunder Agarwal

7.       Shri A. Natesan

8.       Shri Vijay Kumar Karwa

9.       Shri Arvind Kumar Sharma

10.    Shri Rajeev Agarwal

11.    Shri Harshad P. Shah

12.    Shri Shekhar K Chandak

13.    Shri Manohar B. Kothari

14.    Shri Raj Kumar Bindal

15.    Shri Krishnendu Bhattacharjee

16.    Shri C. Balasubramanian

17.    Shri Shamji Karia

 

 

 

 

DRAFT MINUTES OF THE FIRST MEETING OF THE FPTA’s MANAGING COMMITTEE (2017-2018) HELD AT HOTEL GRAND ITC CHOLA, CHENNAI ON MONDAY, 14th AUGUST 2017.

 

The first meeting (2017-2018) of the newly elected members of the Federation of Paper Traders’ Associations of India was held at Hotel Grand ITC Chola, Chennai on 14th August 2017 under the auspices of the Madras Paper Merchants’ Association, Chennai.  The meeting presided by the newly nominated President Shri. A. Annamalai, Chennai. The meeting commenced at 10.30 a.m. A list of members who attended the meeting is given in the Annexure.

 

  1. Preliminary observations of the President.

The Chair Person welcomed all the members. He thanked and welcomed the new managing committee members and requested work for betterment of trader’s fraternity and FPTA.

The Chair Person requested Vice Presidents to share the dais

1). Shri. Dhiraj Karia, Mumbai 2). Shri.Subrajit Kundu, Kolkata 3). Shri. P. K. Jain, Delhi 4) Shri. Madhusudhan Bang, Vijayawada 5). Shri Bhupendra Gandhi, Ahmedabad 6). Shri. Vijay Bansal, Agra 7). Shri. Krishna Kumar Sharma, Jaipur. 8). Shri. R. Sunder, Sivakasi.

 

  1. Nomination of office bearers.

The Chair Person Shri. A. Annamalai, Chennai requested Shri. Mehul Mehta, President, PTA Mumbai to announce the name of Hon. Secretary and Hon. Treasurer for the current term. He announced Shri. Hiren Karia as Hon. Secretary and Shri Parish Parekh (Mumbai) as Hon. Treasurer of FPTA. The House endorsed it with a round of applause. President invited them to the dais and requested Shri. Hiren Karia to proceed with the agenda.

 

  1. Co-option to the Managing Committee.

Shri Hiren Karia requested Shri A. Natesan, Chairman of Scrutinee Committee to announce the Co-opted Members. The following names were announced:-

 

  1. Shri. Bharat Shah, Mumbai, 2. Shri. Subrata Sen, Kolkata, 3.   Shri. Rajendra Gupta, Delhi           4.   Shri. M. Veerappan, Chennai, 5.   Shri. Kalpesh Shah, Ahmedabad            6. Shri.Ramesh Salecha, Bangalore, 7.   Shri. Sandeep Dhanuka, West Bengal, 8.   Shri. Paharsingh Rajpurohit, Vijayawada, 9.   Shri. Sriniwas Baldwa, Secunderabad, 10. Shri. Naresh Agarwal, Raigarh, 11. Shri. Shiv Kumar Rungta, Raipur 12. Shri. Vishnu Kumar Joshi, Cuttack 13. Shri. Shravan Mehta, Baroda

 

  1. Operation of Bank Accounts: The following Resolution for operating the respective Bank Accounts was approved:

 

Resolution (Operation of Bank/Securities Accounts)

 

“This 56th Annual General Meeting and Conference of the Federation of Paper Traders’ Associations of India held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 resolves that the Union Bank of India and also State Bank of India be and is hereby authorized to honour cheques, Bills of Exchange, Promissory Notes, Safe Deposit Locker or any other documents drawn, accepted or made on behalf of the Federation by any two of the following office bearers jointly, namely, Shri. A. Annamalai (Venkat), President, Shri. Dhiraj Karia, Vice-President.  Shri. Hiren Karia Hon. Secretary, Shri. Parish Parekh, Hon. Treasurer and to act on any instruction so given relating to the current account or Fixed Deposit Account, whether the same is overdrawn or not, relating to the transactions of the Federation. Also resolved that the office bearers are authorized to obtain overdraft facility to the extent of maximum Rs.1 lakh (one lakh) maximum from the Union Bank of India, or State Bank of India as and when considered necessary, against the FDRs standing in the name of the FPTA with the said bank for the conduct of the FPTA’s transactions. It is also further resolved that in addition to the Union Bank of India, State Bank of India the office bearers are also authorized to open and operate Current / Fixed Deposit accounts and/ or overdraft A/c against our FDR only and Safe Deposit Locker in any other Nationalized Bank for the Purpose of efficient and convenient operation of its activities and may also invest in fixed deposit scheme bonds or any Government Securities or IDBI, ICICI or UTI.” This supersedes all earlier resolutions in this regard

 

Proposed by: Shri. Ravi Rathi, Secunderabad

Seconded by: Shri. Gian Prakash Gupta, Delhi

 

  1. Nomination of Sub-Committees.

The following sub- committees were formed and Conveners were appointed. The names of the members of the various sub-committees would be decided and finalized with approval of the conveners. It was advised to follow the guidelines of Advisory Board approved by the house in AGM that preferably Managing Committee Members should be taken as members of Sub Committees, as they will be present during the Managing Committee Meetings to discuss and to take action on its report. In an exceptional case non managing committee member can be taken with the permission of president in consultation with the secretary. Also, no member should be a part of more than 2 committees; as far as possible membership should be restricted to one committee only. Conveners were requested to follow the decision while forming their sub-committee.

 

Convener for Chambers ASSOCHAM and FICCI: Shri. Satyapal Gupta, Delhi

Convener Committee for Consumer Relations, Grievances & Arbitration:
Shri. P. Rajesh Jain, Chennai

Convener, Committee for International Trade: Shri. Shekhar K Chandak, Chennai

Convener, Committee for GST: Shri. Krishan Mohan Gupta, Delhi

Convener of CAIT and Govt. Affairs: Shri. Rajkumar Bindal, Delhi

Convener, Committee for Website and Social Media:
Shri Nirmal Kuhad, Secunderabad

Convener, Committee for Constitution: Shri. C. Balasubramanain, Coimbatore

Convener,  Committee for Industry Affairs: Shri Deepak Mittal, Bangalore

Convener,  Committee for Public Awareness: Shri Ravi Kumar Rathi, Secunderabad

Convener,  Committee Bureau of Indian Standard: Shri Sandeep Bhargava, Indore

Convener for Advisory Board: Shri A. Natesan, Chennai

 

(The lists of names of Managing Committee Members along with the members who are nominated on the various sub-committees of the FPTA will appear in the Members Reference Book 2017-18.)

 

  1. Enrolment of New Members.

M/s. Bhagwati Traders, Howrah: Application for Life Associate Member was received and passed unanimously.

 

  1. Forthcoming meetings of the Managing Committee.

Application for hosting 2nd Managing Committee Meeting was received from KPM&SA Bangalore and for hosting the 3rd Managing Committee Meeting was received from Rajasthan PMA, Jaipur, which were accepted by the house.

 

As accepted by President, Shri. A. Annamalai the 56th Annual General Meeting will be hosted by Calcutta Paper Traders’ Association, Kolkata.

 

  1. To decide Judges for Late Shri. Haresh Chand Memorial Award.

President Appointed Shri. A. Natesan, Shri. Rajeev Agarwal and Shri. Krishnendu Bhattacharjee as judges for Late Shri. Haresh Chand Memorial Award

 

  1. Any other matter with the permission of the chair.

President requested all Affiliated Associations to give their activity report; suggestions to strengthen our organization, Vice President were requested to follow up the matter. Other Members also deliberated on various issues. There were also discussions that Industry should speak on trade/ traders by the Chief Guest, Guest of Honors or representative of mills during the meetings/AGMs.

 

President requested the affiliated associations for participation and assistance during Paperex at Delhi and Chennai, Vice Presidents were given the task to look after the exhibition with Convener, Committee of Public Awareness. As we are going to declare the Paper Day during the Paperex at Delhi huge participation of members required from all over country and all Vice President were given the task for the same.

 

Shri. Hiren Karia, Hon. Secretary informed house on inclusion of FPTA as Member–End Users/Technology Suppliers of Central Pulp & Paper Research Institute (CPPRI) an Autonomous Organization under administrative control of Ministry of Commerce & Industry, Govt. of India. The Ministry of Commerce & Industry has included our Immediate Past President Shri. Shamji Karia as Member of said council for 2 years vide Official Gazette dated 04th May 2017.

 

Adversitement in publication of Members Reference Book were agreed by Shri. A. Annamalai (Venkat), Shri. Dinesh Chand Mittal, Lucknow, Shri. A.Muthuraman, Chennai

 

  1. Vote of thanks and end of the meeting.

Since there was no other matter to be discussed, the meeting was adjourned with a vote of thanks to the host Association and singing of the National Anthem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE

 

Members recorded their presence in the 1st Managing Committee (2017-18) Held at Hotel ITC Grand Chola, Chennai on 14th Aug 2017.

 

1.    Shri A. Annamalai(Venkat), President

2.    Shri Shamji Karia, Imm. President

 

VICE PRESIDENTS’

3.    Shri Dhiraj Karia, Mumbai

4.    Shri Subrajit Kundu, Kolkata

5.    Shri P.K. Jain, Delhi

6.    Shri Bhupendra Gandhi, Ahmedabad

7.    Shri Madhusudhan Bang, Vijayawada

8.    Shri Vijay Bansal, Agra

9.    Shri Krishna Kumar Sharma, Jaipur

10.  Shri R. Sunder, Sivakasi

11.  Shri Hiren Karia, Hon. Secretary

12.  Shri Parish Parekh, Hon. Treasurer

Ahmedabad

45. Shri Mitesh Kothari

46.   Shri Bhavesh Kothari

47.  Shri Pragnesh N. Shah

48. Shri Pankaj Shah

49. Shri NandKishore Sharma

 

 

 

 

 

Mumbai

13.     Shri Rajen Aythora

14.      Shri Mehul Mehta

15.     Shri Ashok Kabra

16.     Shri Hasit Shah

17.     Shri Gaurang Mehta

18.     Shri Nitish Shah

Bangalore

50. Shri Kishore Shah

51. Shri Madhu Sudan Baldwa

52. Shri Ramesh Kumar Salecha

53. Shri Dinesh Jain

54. Shri Choonaram Chowdhry

55. Shri B. Uttam Chand Jain

 

Delhi

19.   Shri Gian Prakash Gupta

20.   Shri Krishna Mohan Gupta

21.   Shri Vinod Kumar Jain

22.   Shri Anil Gupta

23.   Shri Shanti Kumar Jain

24.   Shri Pawan Kumar Teltia

25.   Shri Bajranglal Agarwal

26.   Shri Alok Kumar Gupta

Vijayawada

56. Shri Chandra Sekhar Reddy

57. Shri A. T. Arasu

58. Shri Nilesh Solanki

59. Shri Lalit Kumar Tarachand

60. Shri Paharsingh Purohit

61. Shri V.V.D. Ramesh

Kolkata

27.   Shri Rajat Bose

28.   Shri Subhash Saha

29.   Shri Nawin Sarawgi

30.   Shri Gopal Saha

31.   Shri Sajjan Kumar Goenka

 

AGRA

62. Shri Mohit Garg

63. Shri Sanjeev Verma

64. Shri Manoj Agarwal

 

Chennai

32.      Shri R. Muthukrishnan

33.      Shri A. Muturaman

34.      Shri M. Manikandan

35.      Shri A. Murugan

36.      Shri P. Rajesh Jain

37.      Shri M. Veerappan

 

Coimbatore

65.  Shri R. Ravi

66. Shri N. Appadurai

67. Shri K. M. Narayanasamy

West Bengal

38.     Shri Basudeo Karwa

39.     Shri Arun Sundariya

40.     Shri Narottam Vyas

41.     Shri Saurabh Junjunwala

42.     Shri Dulal Das

 

NAGPUR

68. Shri Piyush fattepuria

69. Shri Sushil Keyal Agarwal

70. Shri Aseem (Manu) Barodia

71. Shri Rajesh Khandelwal

ERODE

43.      Shri K. Senthilkumar

44.      Shri M. Chokkalingam

MADURAI

72. Shri R. Balaji

73. Shri A. R. Subramanian

CHHATISGARH

74.  Shri ShivKumar

75.  Shri Shailendra Sukhija

76. Shri Saurabh Agarwal

PATNA

97. Shri Lalit Kumar Sinha

 

BARODA

77. Shri Himanshu Patel

78. Shri Dipesh Laddha

PUNE

98.  Shri Deepak Prakash Shah

99.Shri Yashaswi Patel

SALEM

79. Shri S. Balaji

 

RAJKOT

100. Shri Chamanlal Jogi

 

NOIDA

80. Shri Rajesh Khandelwal

81. Shri Amit Kumar

MEERUT

101. Shri Rajeev Garg

102. Shri Ashish Jain

DEHRADUN

82. Shri Indresh Kumar Minocha

INDORE

103. Shri Rajendra Mittal
104. Shri Sandeep Bhargava

 

SURAT

83. Shri Bhavan Shah

84. Shri Fahim Kagzi

SIVAKASI

105. Shri K. Sivaraman

106. Shri Sockalingam. T

107. Shri P. Periasamy

SECUNDERABAD

85. Shri T. Kishan Singh

86. Shri Sandeep Karda

87. Shri Nirmal Kuhad

88. Shri Jai Prakash Tapadia

89. Shri Sreeniwas Baldwa

90. Shri Kiran H Shah

91.  Shri. Ravi Kumar Rathi

 

 

 

 

LIST of  FPTA’S FORMER PRESIDENT

1)       Shri Satya Pal Gupta

2)       Shri Ashok Kumar Gupta

3)       Shri Shyam Sunder Daga

4)       Shri Shyam Sunder Agarwal

5)       Shri A. Natesan

6)       Shri Vijay Kumar Karwa

7)       Shri Manohar Kothari

8)       Shri Arvind Kumar Sharma

9)       Shri Rajeev Agarwal

10)   Shri Mahendra Kumar Jain

11)   Shri Mahesh Khandelwal

12)   Shri C. Balasubramanian

13)   Shri Shekhar K Chandak

14)   Shri Raj Kumar Bindal

15)   Shri Krishnendu Bhattcharjee

KANPUR

92. Shri Arvind Agarwal

93. Shri Saurabh Agarwal

94. Shri Manish Agarwal

 

 
LUCKNOW

95. Shri Rajkumar Agarwal

96. Shri Dinesh Chandra Mittal

 

 

 

 

 

Mahatma Gandhi has reasons to be fond of Paper, as during his
life time, he is estimated to have written more than 10 million
words for his books, journals and other publications.
The photo on the cover is of the papier mache work done by
sculptor Vanapalli Narsinga Rao of Visakhapatnam, displayed at
National Archives Museum, New Delhi, and inaugurated by Prime
Minister Narendra Modi on April 10, 2017.
He makes his papier mache works by sticking paper layer by layer
Instead of the usual practice of grounding the paper waste into
pulp and making models. He believes that one can depict
emotions perfectly on papier mache unlike in other media.
Concept, content & created by Ramesh C. Gupta
“PAPER” IS SUSTAINABLE, UNIQUE, NATURE FRIENDLY,
BIO-DEGRADABLE, COMPOSTABLE, RECYCLABLE, SAFE AND HEALTHY.
Satyapal Gupta
Convener
Ramesh C. Gupta
Co-convener
R. S. V. P. : +91 93500 74555
SUPPORTING ORGANISATIONS
dkxt+ % lk{kjrk] LokLF; vkSj LoPNrk dk izrhd
PAPER : A SYMBOL OF LITERACY, HEALTH AND HYGIENE
We cordially invite you to the launch ceremony of
PAPER DAY
on
Wednesday, the November 01, 2017 at 4.30 pm
Venue:
Hall No. 7, Conference Hall, Pragati Maidan, New Delhi.
Chief Guest:
Dr. Harsh Vardhan
Hon’ble Union Minister of Science & Technology; Earth
Sciences; Environment , Forest & Climate Change
Guest of Honours:
Shri Vijay Goel
Hon’ble Union Minister of State for Parliamentary Affairs;
Statistics and Programme Implementation
Shri Harsh Pati Singhania
Vice Chairman & Mg. Director, J.K. Paper Ltd.
A. Venkat Annamalai
President – FPTA
Saurabh Bangur
President – IPMA
Pramod Agarwal
President – IARPMA
P. S. Patwari
President – INMA
Dr. R.C. Rastogi
President – IRPMA
Pawan Agarwal
President – IPPTA

VIETNAM DELEGATION
2018
7 NTS – 8 DAYS
04th FEB – 11TH
FEB -2018
HANOI – HA LONG BAY – HO CHI MINH
Vietnam is a Southeast Asian country on the South China Sea known for its
beaches, rivers, Buddhist pagodas and bustling cities. Hanoi, the capital, pays
homage to the nation’s iconic Communist-era leader, Ho Chi Minh, via a huge
marble mausoleum. Ho Chi Minh City (formerly Saigon) has French colonial
landmarks, plus Vietnamese War history museums and the Củ Chi tunnels, used
by Viet Cong soldiers.
HANOI
HA LONG CRUISE
HO CHI MINH
MILL VISIT
AN HOA PAPER
VINA KRAFT
PAPER CO LTD –
GOJO PAPER MFG
LTD
MILLS OF SAIGON
S. BALA
CELL: 9841950894
ITINERARY IN DETAILS
DAY 1: 04 FEB 2018 – SUNDAY: HANOI ARRIVAL – HALF DAY CITY TOUR (-/L/D)
• Xin chao! Welcome to Hanoi, Vietnam. Hanoi is one of Asia’s most enchanting cities, full of culture,
history and the engaging contradictions of a rapidly developing and deeply traditional society.
• Meet & Greet at Noi Bai International airport, transfer to the Indian restaurant to have lunch. Check in
• In the afternoon, then drive to Hanoi Center, visit Hoan Kiem Lake and Ngoc Son Temple.
• Final to explore the lively Old Quarter of Hanoi by cyclo (1hour). This bustling heart of Hanoi has been
a commercial centre since King Ly Thai To built his palace there in the 11th century. Skilled craftsmen started
to migrate and artisan guilds were formed on the famous “36 Streets”. Previously, each street carried the name
of the item produced and sold there, and many still have the same names.
• Close your day by attending a wonderful performance of Water Puppet Show.
• Dinner at the Indian restaurant. Overnight in Hanoi
DAY 2: 05TH FEB 2018 – MONDAY: MEETING WITH VIETNAM PULP & PAPER ASSOCIATION – AN HOA
PAPER MILL VISIT AT HOTEL (B/L/D)
After breakfast at hotel, meeting with Vietnam Pulp & Paper Association
• Lunch from Indian restaurant
• In the afternoon, having half day • you will depart to the An Hoa Paper Mill for full day visit
Have dinner at Indian restaurant. • Overnight in Hanoi
DAY 3: 06TH FEB 2018 – TUESDAY: HANOI – HA LONG BAY CRUISE (B/L/D)
•After breakfast, Heading out to Ha Long Bay at 08:00, a UNESCO World Heritage •
At 11:30-12:00 boat for an overnight cruise amongst the more than 3,000 limestone islands rising majestically
out of the turquoise bay. You pass grand rock formations and quaint fishing towns, and sample a delicious lunch
of freshly caught fish and seafood.
•Afternoon, sight-seeing the spectacular Halong Bay. Overnight on board.
DAY 4: 07TH FEB 2018 – WEDNESDAY: HA LONG BAY – HO CHI MINH (B/L/D)
• Start the day with calming Tai Chi, often accompanied by an amazing sunrise and the quiet breathtaking
beauty of the bay’s landscape.
• Enjoy the breakfast and continue visit the bay.
• Pack your luggage and check out cabin.
• Brunch is served on board while the cruise back to habour.
• Disembark the cruise and take transfer back to the Hai Phong airport and take your flight to Ho Chi
Minh city
– Route: Hanoi – Ho Chi Minh, Date: 07 Feb 2018
– Flight: 07FEB HAN SGN Post Lunch
• Upon arrival, Our guide and driver will pick up at the airport to transfer to hotel for check – in
• Ho Chi Minh City is the largest city of Vietnam. It is the bustling economic capital and cultural
trendsetter of the country, yet holds the timeless traditions of an ancient culture.
• The rest of the day is free at leisure
• Dinner at the Indian restaurant. Overnight in Ho Chi Minh City
DAY 5: 08TH FEB 2018- THURSDAY: MILLS OF SAIGON –– GOJO PAPER MFG LTD (B/L/D)
 08:00 Breakfast at hotel,
 11:30 Depart to the Mills of Saigon And then visit Gojo Paper MFG LTD
 Packed Lunch from Indian restaurant
 Then come back to Ho Chi Minh city and have Dinner at Indian restaurant Overnight at Ho Chi Minh city
DAY 6: 09TH FEB 2018 – FRIDAY: CONSULATE MEETING + VINA KRAFT PAPER CO LTD (B/PL/D)
 08:00, Breakfast at hotel, Indian Consulate and Chamber Meeting and later
 Depart to the Vina Kraft Paper CO LTD.
 Packed Lunch from Indian restaurant
 Dinner at the Indian restaurant. Overnight in Ho Chi Minh City

DAY 7: 10TH FEB 2018- SATURDAY: HALF DAY CITY TOUR WITH SHOPPING (B/L/D)
 After breakfast, visit the Reunification Palace, the home and workplace of the President of South Vietnam
during the Vietnam War. Visit outside The nearby Notre Dame Cathedral, built between 1877 and 1883,
most materials for Saigon’s Notre Dame Cathedral were imported from France, and one of the city’s major
landmarks.
 Visit the War remnant Museum
 Next to the cathedral stands the Saigon Post Office, a classic French colonial structure, is still a functioning
post office today and features huge ceilings, a giant portrait of Uncle Ho, and many beautiful details.
 Lunch at Indian restaurant
 In the afternoon, visit Ben Thanh Market – an icon of the city, stands in the center of District 1. Packed to
the rafters with everything from fruits to nuts, from tourist kitsch to true bargains, it is a definite must-see
and you will have free time for shopping.
 Dinner at the Indian restaurant. Overnight in Ho Chi Minh.
DAY 8: 11TH FEB 2018 – SUNDAY: HO CHI MINH CITY DEPARTURE (B/-/-)
• After breakfast, Morning is free at leisure in Ho Chi Minh City for some last minute shopping before depart for your
flight.•End of service.
PRICE IN DETAILS: PERIOD: 04th FEB 2018 –11 FEB 2018 (LAST DEPARTURE DATES)
Supplement Cost of Single Room would INR 44,990 Per Person
TOUR PRICE INCLUDES
 Return Group Economy airfare in Malaysian airline
 07 nights’ shared Accommodation in twin/double room with daily breakfast at the below indicated room types
(see hotel category list below) (check in and check out around noontime)
 2 days & 1 nights cruise at Ha Long Bay
 All transfers and transportation with air-con vehicles (types of vehicles depending on the number of pax):
o 40 – 45 pax: 01 coach of 47 seats
 All entrance fees as program
 Meals (B/L/D) (Breakfast/Lunch/Dinner) as indicated in the program (Local food):
 Inter Sector Ticket – Hanoi -Ho Chi Minh – should be booked on or before 20th Oct -2017
 Complimentary Overseas Medical Insurance – for below 54 Yrs (above 54 Yrs extra)
 Complimentary WIFI in Hotels
 Cost Vietnam E-Visa
 Service of Professional Tour Manager
Remarks: These are current rates. The airfares are subject to be changed and will be updated at time of booking
and ticket issuing
TOUR PRICE EXCLUDES
– Meals (other than mentioned in the program)
– Drinks
PER PERSON ON TWIN SHARING -MIN OF 40-45 PAX TRAVELLING TOGETHER- MINIMUM 10 PAX FROM EACH HUB
HOTEL DETAILS HUB AIRLINE PACKAGE COST PER PERSON
FORTUNA HANOI MAA
MALAYSIAN AIRLINE
(MH)
FPTA – PRIVATE (CHARTER) CRUISE HYD INR 105715 + GST 5 %
PULLMAN SAIGON – 5* BOM
DEL
– Mineral water beyond that supplied
– Tips
– Early check in or late check out
– Insurances
– Optional excursions and activities
– Additional transfer required due to any emergency situation
– Items of a personal nature (Phone calls, laundry, beverage)
– Peak season surcharges if any – All not mentioned above
FLIGH DETAILS – MALAYSIAN AIRLINE
EX- CHENNAI
MH 181 04EB MAAKUL 0020 0650
MH 752 04FEB KULHAN 0940 1200
MH 759 11FEBSGNKUL 1640 1940
MH 180 11FEB KULMAA 2150 2300

EX- HYDERABAD
MH 199 04FEB HYDKUL 0015 0705
MH 752 04FEB KULHAN 0940 1200
MH 759 11FEB SGNKUL 1640 1940
MH 198 11FEB KULHYD 2140 2315
EX- MUMBAI
MH 195 03FEB BOMKUL 2325 #0705
MH 752 04FEB KULHAN 0940 1200
MH 751 11FEB SGNKUL 1100 1400
MH 194 11FEB KULBOM 2000 2225
EX- DELHI
MH 191 03FEB DELKUL 2310 #0700
MH 752 04FEB KULHAN 0940 1200
MH 751 11FEBSGNKUL 1100 1400
MH 190 11FEB KULDEL 1850 2150
TOUR COST DOESN’T INCLUDE
-Any Increase in the airfare charged by the airlines on air your air ticket (Currently Calculated Oct, 2017 rates)
-Any increase in the rate of exchange leading to an increase in the surface transportation and land arrangement
which may come into effect prior to departure.
-Cost of relevant foreign exchange to be surrendered by the passengers out of the Basic Travel
Quota Scheme.
-Entrance fees other than what is mentioned in the itinerary
-Porterage charges, Tips, Insurance, laundry, wines, Corkage, mineral water, telephone charges,
Room Service, Beverages, optional tour and al item of personal nature and also food and drink
not forming part of the group menus.
-Early Check in & Late Checkout: International Check in (1400 hrs)/Check out (1200 hrs)
-Alcohol, Conference equipment, Theme décor, Entertainment etc during Conference or Dinner
at the hotel
-Surcharge rates may be applicable on the entire package, depending upon the final date of travel.
-All Hotels do not have tea/coffee making facility in room. The same differs hotel to Hotel and
city to city
-Anything not specifically mentioned in the ―Package Tour Price Includes‖ column
TERMS & CONDITIONS
-Our tour price is subject to a minimum 40-45 Adults Full Paying Adult traveling together, In case. Min of 40-
45 Pax Travelling Together- Minimum 15 Pax from Each Hub of any changes of the number of the group
attendees; our rates will be changed accordingly
-No refund on unutilized services
-Tour cost is subject to change with respect to any increase in visa charges, airfare, taxes and/or any other cost
factor that is not within M/S. HOLIDAY PARK PVT LTD control at the time of giving this cost.
-The names/passports of all qualifiers need to be given to M/S. HOLIDAY PARK PVT LTD one month prior to
the date of departure.
-All the above is just an offer – No Reservation has been made on your behalf
-The above quote is based on current fares for both land and air applicable in market.
-In case of any increase in the Airport taxes or fuel surcharge, the difference in the cost must be paid. The proof
from the Airlines and government for the same will be submitted for your kind reference.
-We are not holding any reservations on Airlines & Hotel for the above group. And the same is subject to
availability/change on clients preferred dates, failing which there will be a supplement cost.
-All the above rates are subject to availability of hotel rooms at the time of booking.
-All Hotels do not have tea/coffee making facility in room. The same differs hotel to Hotel and city to city
-Late sitting in a restaurant for meals is totally subject to the terms & conditions of the hotel / restaurant used.
Same will be requested but cannot be guaranteed.
-If the hotel is not available, we reserve the right to offer an alternative of a similar standard
-If passengers depart or arrive separate to the group, additional charges will be levied and same will have to be
paid by the individual.
-In case of currency fluctuations of more than 3% or amendment in local Government taxes, we reserve the
right to adjust the tour price accordingly.
-Any Payments through Credit Card will attract bank charges, to be paid to directly.
-Kindly note that advance paid to the airlines / hotel to hold inventory is Non-Refundable.
-Any incidental or actual expenses to be paid over and above
-Above rates are valid only for the above group travelling during FEB 2018
-Passenger less than 12 years old is considered as child.
Grant of visa on arrival depends on sole discretion of Immigration Authority and M/S. Holiday Park Pvt Ltd is
not responsible for any non-grant of visa to traveler.
-Kindly avoid being over drunk by intake of hard drinks during the flights to avoid any inconvenience during
visa on arrival, Immigration and custom process.
-The airfare and the rate of exchange is as of Oct 2017 (1 USD = INR 65 ) and is subject to change with or
without prior notice due to frequent fluctuations in the airfare, taxes and rate of exchange.
PAYMENT & CONFIRMATION
– We request for a purchase order and Payment of INR 50,000 advance of the estimated business value at
the time confirmation to proceed with the bookings. Due to time limitation
– Balance payment before 30 days of departure
– All payments are non-refundable & final payment.
– All Payments to be made by Cheque / RTGS in favor of ―M/S. HOLIDAY PARK PVT LTD .
– Any payments through credit card will attract bank charges to be paid to M/S. HOLIDAY PARK PVT
LTD additionally.
– Any incidental or actual expenses to be paid over and above the tour price.
– All confirmation subject to final approval by FPTA- International Committee
CANCELLATION POLICY
-If circumstance make you cancel your tour, the cancellation must be intimated to us in writing.
-When a cancellation is made 60 days before departure: As charged by airlines plus
M/S. HOLIDAY PARK PVT LTD Management Fee. (Rs.1500) & Visa: As actual cost plus Rs 500 service
charge per visa and other services.
-45 – 25 days prior to commencement of service 75 % of Tour Cost
-20 days prior to commencement of service 100 % of Tour Cost
-All amendments, etc will need to conform to each airline’s policy on such matters.
BANK DETAILS : CONTACT DETAILS
M/S. HOLIDAY PARK PRIVATE LIMITED Ms. Praveena – Manager – Operation
ICICI BANK +91-9952970929
CURRENT ACCOUNT : 000905500708
NUNGAMBAKKAM BRANCH
IFSC Code: ICIC0000009
MICR Code: 600229003
GST NO : 33AADCH3180Q1ZB
Thanks & Best Regards,
S. Bala
Business Head
M/S. Holiday Park Private Limited
1F4, Metro Tower, 115, Ponamallee High Road,
Pursaiwakkam, Chennai – 600 084
Phone: +91-44-48554939
Mob : +91-9841950894
Email: bala@holidayparkindia.com

Dear Members,
 

With reference to our earlier email dated 29th September 2017 about 

​celebrating

 “PAPER DAY”​ at PAPEREX, New Delhi.

Please find the details for your information
Date and Time: 01st November 2017 at 4.00 p.m
Venue: Hall No. 7, Conference Hall,
            1st Floor, Entrance from Gate No. 7,
             Pragati Maidan, New Delhi
​More details about the program will follow in due course.​
 

​We are looking forward for your presence and whole hearted support to make this event grand Success.

​ ​
 
Regards
For FPTA
Hiren Karia
Hon. Secretary

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 03/08& 10/08/17 BDS Mtg. During the meeting the cases which are in progress, were reviewed.
2 09/08/17 Special Mtg. Special meeting of office bearers to discuss about the 56th AGM & Conference of FPTA held at Chennai on 12th, 13th & 14th August 2017.
3 12/08/17 Monthly Circulars The monthly Circular was circulated on 12/8/2017 wherein important information about “Due Dates for GST Return for the month of 07/17 & 08/17

were given along with GST dates for the month of

09/17,10/17,11/17 & 12/17and Annual Return dates, Important information about GST was also given. The Notice & Minutes of 76th AGM were also circulated along with the Circular.

4 14/08& 21/08/17 Friday Meet During the two Meetings official issues were discussed &reviewed

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of IAPMA that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of IAPMA jointly should promote the Paper as Green Product.
4) MRP & Weight Measurement Issue Paper Being Raw Material for Ptg. & publishing Industry should be exempted from MRP Labels and Act
5) GST Earliest implementation of GST required
6) Indirect Taxes Simplification of Various Indirect taxes
7) LBT Taxes Required Support for Abolition of LBT and Octroi from Maharashtra

________________________________________________________________

 

 

 

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore – Aug 2017

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

No. Date Name of the Activity Description
1 12 to 14.08.2017 FPTA AGM cum Conclave Around 40 members attended the FPTA AGM at Chennai; it was indeed a great experience to have around 600 + traders there. Traders discussed various issues related to trade and market. FPTA awarded second Managing Committee meeting to KPMSA.
2 15.08.2017 Independence Day Function Around 200 KPMSA members and their staff attended 71st Independence Day function at KPMSA office. Flag hoisting ceremony followed by members meeting and breakfast.
3 15.08.2017 Legal & Metrology (Weight & Measurement) Dept meeting Official from Weight & Measurement department addressed the gathering at Members meet on Independence Day meet. The educated our members about rules and regulation about packaged Commodity.
4. 28.08.2017 Managing Committee meeting 11th Managing committee meeting held at KPMSA office. Members discussed the upcoming 70th KPMSA AGM which is going to be held on 17.09.2017 to elect new office bearers and Managing Committee. Last date for nomination is fixed on 09.09.2017. Next MC meeting is also 09.09.2017.
5.   GST Updates Regular GST Updates as received from FPTA, FKCCI and Other reliable sources were forwarded to the Members by Way of Email & WhatsApp Messages. Our Karnataka JCCT Sri Murali Krishna is very helpful in sharing inputs related to GST. The same has been forwarded to our members by our Chairman, Taxation Committee Sri Vasant H Shah.

 

________________________________________________________________

 

 

 

 

 

 

 

 

 

The Paper Merchants’ Welfare Association, Vijayawada

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

12-8-2017 FPTA 56th AGM

Held on 12-8-2017 to 14-8-2017 at Chennai hosted by

The Madras Paper

Merchants  Association

1) Mr. Madhusudan Bang, M/s. Ramchandar Shivnarayan Sons, Vijayawada -2 was nominated as FPTA Zonal Vice-President for the year 2017-2018 from our Association as per provision of every alternate year.

2) The following PMWA members were nominated as FPTA MC members for the year 2017-2018.

a) Mr. Lalit Kumar Tarachand,

M/s. Sha Amichand Tarachand & Sons, Vijayawada-1.

b) Mr. V.V.D. Ramesh,

M/s. Sri Ravi & Co., Vijayawada -1.

c) Mr. Nilesh Solanki,

M/s. Vardhaman Paper Products, Vijayawada-3.

d) Mr. A.T. Arasu,

M/s. Arasu Papers, Vijayawada-1.

e) Mr. A. Chandrasekhar Reddy,

M/s. Divya Publications, Vijayawada-10.

 

Co-Opted :

a) Mr. Pahar Singh Rajpurohit,

M/s. Suresh Paper Agencies, Vijayawada -3.

 

The FPTA 56th AGM was well organised and conducted tremendously. Every member who attended to the AGM felt satisfaction and happiness for their accommodation and hospitality.

 

 

________________________________________________________________

 

 

 

 

 

 

 

 

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

15.08.2017 Independence Day Celebrations Our President Shri. Sandeep Karda Hoisted the national Flag at Kagaz Bhavan. After the flag hoisting members went to Home for the Disabled, Secunderabad and provided Lunch to its Inmates.
2.

 

 

20.08.2017

 

 

JANAHITA

(Member organization of Ekal Vidyalaya Movement in Telangana)

 

Members of TPMA attended function organized by Janahita to support free education to tribal children.

 

 

3.

 

 

28.08.2017

 

 

2nd  Meeting of Kagaz Bhavan Committee of 2017-18

 

We had our second meeting of Kagaz Bhavan Committee. Matters of Kagaz Bhavan were discussed.

 

4.

 

 

30.08.2017

 

 

Distribution of Note books to Schools

 

Free distribution of Note Books to children of Govt High School Park lane, Kalasiguda, Secunderabad was held. Smt. Aruna Goud (Corporator Secunderabad Division) was also invited.

 

 5.

 

 

31.08.2017

 

 

Distribution of Note books to Schools

 

Free distribution of Note Books to children of Govt High School Esamia Bazar Hyderabad was held. Smt. Mamta Gupta (Corporator Hyderabad Division) was also invited.

 

 6.

 

 

 

 

31.08.2017

 

 

 

 

1st  Joint meeting of Kagaz Bhavan Committee & Managing Committee

 

 

 

 

Our Association 1st joint meeting of managing committee & Kagaz Bhavan committee was held no 31.08.2017 to discuss and implement various matters of our Association.

 

Matters related to various activities of our Association were elaborately discussed.

 

Elaborate discussions were held related to KBC Committee.

  7. All the Circulars sent by you have been Circulated to all the Members.

 

 

 

 

 

 

 

 

 

Sep 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

11.09.2017

 

 

 

GST INTERACTIVE SESSION

 

 

TPMA conducted a Seminar cum Question Answer Session in Kagaz Bhavan at 5.30 pm followed by dinner.

We had invited a senior Chartered Accountant Shri Murli Manohar Pollod to educate our members who came with their respective accountants about various queries such as filing of returns, RCM & ITC etc.

2.

 

15.09.2017

 

 

2nd  Meeting of Arbitration Board

 

 

Chairman Shri R.G. Prasad gave details of various cases of the members and reviewed the pending cases and briefed the members.

He concluded the meeting by giving his report of Arbitration Board.

3. All the Circulars sent by you have been Circulated to all the Members.

_______________________________________________________________

Paper and Allied Merchants Association, Coimbatore. – Aug 2017

 

10-08-2017      GST outreach programme jointly by central excise and commercial taxes department at suguna kalayanamandapam on filing of GSTR1, GSTR3 – 3B return.

11-08-2017      FPTA Advisory Board Meeting at Hotel Grand Chola – Chennai at 3.30 p.m. Attended by Mr. C. Balasubramanian

12.08.2017      FPTA MC Meeting at Hotel Grand Chola – Chennai Attended by PAMA MC Members.

FPTA Inaugural Ceremony of 56th AGM, Attended by PAMA MC Members and Delegates.

13-08-2017      FPTA 56th AGM – Business sessions Attended by PAMA MC Members and Delegates.

14-08-2017      FPTA 1st MC Meeting Attended by PAMA MC Members Mr. C. Balasubramanian nominated convener of FPTA constitution committee chamber of commerce Governing Council Meeting Attended by Mr. C. Balasubramanian.

15-08-2017      Chamber of Commerce Independence Day Flag Hoisting by President of Chamber Attended by Mr. R. Ravi and Mr. C.Balasubramanian.

18-08-2017      GST Awareness programme on filling of GSTR-3-B, GSTR-1 AND GSTR – 2. 11AM chamber of commerce.

PAMA EC Meeting at 7.30 pm

Subject Discussed:

  1. Passing of Accounts for year ended 31-03-2017
  2. Fixing date of PAMA AGM
  3. -FPTA AGM at Chennai.

 

23.08.2017      FTAC –EC Meeting attended by Mr. C. Balasubramanian

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

I-T Department to focus more on e-assessment to reduce human interface:

The Income Tax Department will focus on widening of tax base and maximize e-assessment to cut down on human interface, according to an official statement. Also, efforts will be made by the Central Board of Direct Taxes (CBDT) to exceed the income tax collection target set for current fiscal by use of big-data analytics, said the statement after the end of the two-day annual retreat of central and state government tax officers.

(Source : http://www.financialexpress.com/economy/i-t- department-to- focus-more- on-e- assessmentto-reduce- human-interface/838378/)

 

I-T plans to pursue property-holders who have never filed income tax returns

Income tax authorities plan to pursue those who have properties in their name but haven’t ever filed income tax returns on the suspicion that these may be benami holdings on behalf of people looking to conceal their wealth. The exercise is part of the government’s crackdown on black money. The findings have emerged from the analysis of vast amounts of data that the government has collected. “We have alot of data from various sources including on investments in property by people who have never filed returns,” said an income tax official. This information will be verified to ascertain the source of income used for the purchase of the properties and to see if these are being held by benami owners.

(Source : http://economictimes.indiatimes.com/news/economy/policy/i-t- plans-to- pursue-propertyholders-who- have-never-filed-income- tax-returns/articleshow/60110324.cms)

 

Income tax scrutiny to remain limited despite ITR filings surge

The income tax department will maintain the number of income tax returns (ITRs) chosen for scrutiny at the current level of less than 1% of all returns, in spite of a surge in individual tax filings to keep the process nonintrusive and taxpayer-friendly. Gentle persuasion through text messages, emails and advertisements will remain the department’s main ways of interacting with taxpayers, while enforcement action will be reserved for cases where specifictip-offs regarding large-scale evasions have been received.

 

Out of the 52.8 million income-tax returns filed for the 2015-16 fiscal year, only about 300,000 cases, or around 0.6%, were scrutinized, a person privy to the deliberations within the tax department said on condition of anonymity. “Even when the numbers of assessee grow, scrutiny will be limited to this level—250,000-400,000 cases. It will always be less than 1% of returns received. We are absolutely non- intrusive to almost everyone.

Even in most of the cases scrutinized, we do not hold searches or surveys,” the person cited above said, adding that the income-tax department vests its faith in taxpayers.

(Source: http://www.livemint.com/Home-Page/qanXdX16W7Bqx87d7EkMDI/Income- tax-scrutiny- to-remainlimited-despite-ITR- filings-su.html)

 

Introduction of New Facility for verification

New Facility introduced to select the verification option before submitting the Income Tax Return. Please use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) options available in e- Filing portal to verify your Income Tax Return for faster processing.

(Source: https://incometaxindiaefiling.gov.in/)

CBDT extends the time for Linking PAN with Aadhaar from 31st August 2017 to 31st December 2017

Under the provisions of recently introduced section 139AA of the Income-tax Act, with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link it with PAN Number for filing the tax return. The said provision was relaxed by the Central Board of Direct Taxes (’CBDT’) vide its order dated 31.07.2017, in file of even number, wherein further time till 31.08.2017 was allowed to the taxpayers to link Aadhaar with PAN.

 

On consideration of the matter, CBDT, in exercise of powers conferred under section 119 of the Act, modifies para 3 of its earlier order dated 31.07.2017 and further extends the time for linking Aadhaar with PAN till 31.12.2017.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDFNews/NewsdueDatePANAadhaar.pdf)

 

CBDT has extended the due date for filing Income Tax Returns and audit reports from 30th September 2017to 31st October 2017

The Goods and Services Tax (‘GST’) has come into effect on 01.07.2017. In recent days, dates for filing various returns and forms under GST have been extended by the Government. In this backdrop, representations have been filed by various stakeholders requesting for extending the ‘due date’ for filing various reports of audit as well as tax-returns under the Income-tax Act from 30th September, 2017 so as to allow sufficient time to the assessees’ and tax professionals, and thus, facilitate their ease of compliance with statutory responsibilities

under various fiscal laws.

 

On consideration of the matter, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Act, in respect of all assessees’ covered under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, hereby extends the ‘due-date’ prescribed therein for filing the return of income as well as various reports of audit prescribed under the income-tax Act which are required to be filed by the said ‘due date’ from 30th September, 2017 to 31st October, 2017.

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDFNews/NewsTaxReturns.pdf)

Income-tax department, MCA team up against shell firms

The Income Tax department (IT) and the Ministry of Corporate Affairs (MCA) have signed a pact to regularly share data, including PAN and audit reports of firms, to crack down on shell companies, the government said. The pact aims at curbing the menace of money laundering, black money, and misuse of corporate structure by shell companies, a finance ministry statement said. It added a memorandum of understanding for Automatic and Regular Exchange of Information was signed between the MCA and the Central Board of Direct Taxes (CBDT) on September 6 and took effect the same day.

(Source:http://www.business-standard.com/article/economy-policy/tax-dept-mca-team-up-against-shellfirms)1170914017741. html)

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Waiver of the late fee payable on delay in filing of GSTR-3Bfor July 2017

The Central Government, on the recommendations of the GST Council, has waived the late fee payable under section 47 of the CGST Act, for all registered persons who failed to furnish the return in FORM GSTR-3B for the month of July, 2017 by the due date.

(Notification No.28 /2017 dated 1st September, 2017)

 

GST Council extends the timelines for compliance and amends the rate of tax for some goods

In 21st meeting of the GST Council held on 9th September 2017, it was decided to extend the due dates for submission of regular GST Returns. Also the Council extended the requirement to file the summary Return in Form 3B up to the month of December, 2017. In addition, the Government also decided to amend the rates of specified goods. The major decisions of the Council are mentioned below:

 

Extension in due dates for submission of returns:

Sr.

No.

Type of Return Type of Reporting Tax period Revised due date
1. Form GSTR 1 Monthly return for outward supplies –

for registered persons having

turnover of more than Rs. 100 Cr

July, 2017 3rd October, 2017
Monthly return for outward supplies – for others 10th October, 2017
2. Form GSTR 2 Monthly return for inward supplies July, 2017 31st October, 2017
3. Form GSTR 3 Monthly return July, 2017 10th November, 2017
4. Form GSTR 4 Quarterly return for composition

dealers

July to September,

2017

18th October, 2017

(No change)

5. Form GSTR 6 Monthly return for Input Service

Distributor (ISD)

 

July 2017 13th October, 2017
6. Form TRAN 1 Return for claiming transition related

credits

 

NA 31st October, 2017

 

  • The summary return in Form 3B will be required to be filed for the months of August to December, 2017
  • Form TRAN 1 can be revised once, after submission.
  • The timelines for submission of returns for other months will be notified separately.

 

 

 

 

Other Compliance related changes:

TDS: The registrations for the persons liable to deduct tax at source and collect tax at source will commence from 18 September, 2017. However, date from which tax has to be deducted/ collected will be notified by the Council later.

 

Composition scheme: A registered person, who could not opt for composition scheme can opt for composition scheme till 30th September, 2017. Such person will be permitted to avail composition scheme with effect from 1st October, 2017.

 

Registration for inter-state supply: Any person, making inter-State supply of handicraft goods upto aggregate turnover of INR 2 million (INR 1 million in special category States except J&K) will not be liable for registration, if he has a Permanent Account Number and the goods move under the cover of an e-way bill, irrespective of value of the consignment.

 

Inter-state Job-work: A job worker making inter-State supply of job work service to a registered person can claim threshold exemption, as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. This option will not be available for job work in relation to jewellery, goldsmiths’ and silversmiths’ wares covered under Chapter 71 (which do not require e-way bill).

 

Amendment in rate:

The Compensation cess on automobiles has been increased as under:

  • Cess on mid segment cars has been increased by 2%
  • Cess on large cars has been increased by 5%
  • Cess on SUVs has been increased by 7%.

 

The increase in cess is not applicable to hybrid cars, for whom, the rate of cess remains same as before. Further, there is no change in cess for small cars and 13 seater vehicles.

 

  • The tax rates have been proposed to be reduced on several goods, including about 30 daily use items, dried tamarind, walnut, batter for idli/ dosa, raincoat, rubber bands etc. The rate of duty credit scrips is proposed to be reduced to 5%. Khadi fabric sold through KVIC stores has been exempted.

 

  • The definition of ‘works contract’ is proposed to be amended to cover all works contracts carried out for the Government.

 

  • For food sector, the definition of branded food items is proposed to be inserted, according to which (i) goods which were sold under a registered brand name as on 15th May, 2017 under the IPR laws in India or any other country; or (ii) goods sold under a mark or a name, on which the seller is entitled to maintain an actionable claim or has exclusivity would attract GST @ 5%.

 

 

 

 

 

 

 

 

International Tax

 

Liaison and project offices do not constitute a PE in India

Based on the facts and in the circumstances of the case, recently, the Delhi High Court in the case of Mitsui & Co. Ltd. held that offices of the taxpayer and its activities cannot be regarded as its Permanent Establishment (PE) in India and the income directly or indirectly attributable to the said offices was not taxable in India. In order to constitute PE within the meaning of Article 5(2) of India-Japan tax treaty (tax treaty), it was not enough to have office, factory or a workshop etc., but it is required that such place was a fixed place of business through which the business of an enterprise is wholly or partly carried out under Article 5(1) of the tax treaty. The Liaison Office (LO) of the taxpayer was not in fact used for the purpose of business. The LO is solely for the purpose of search or display or solely for the purchases of goods or collecting information or for any other activity. Therefore, it does not constitute a PE in India.

(DIT v. Mitsui & Co. Ltd. (2017) 84 taxmann.com 3 (Del))

 

Profits from offshore and onshore services are taxable in India and it is attributable to the supervisory

PE in India

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Shanghai Electric Group Co. Ltd. (the taxpayer) held that the taxpayer is having a supervisory Permanent Establishment (PE) in India. The Tribunal observed that Indian clients contracted the taxpayer to carry out the work of supply, supervision, erection, installation and successful commissioning of plants. The taxpayer was directly involved in the entire supervisory work carried out in India and was responsible for the successful functioning of the projects in India under each and every contract.

 

The Tribunal observed that the agreements entered into by the taxpayer with its clients in India are in the nature of a composite contract since agreements are inextricably linked with each other. None of the agreements are executed exclusively for sale of equipments. The taxpayer was specialized in manufacturing of equipments required for setting up of power plant and it was also involved in supply of the same. The transfer of title to the equipments has taken place in India. Further, the contracts are negotiated and concluded in India. The expatriates come to India to provide technical support services to PEs in India. All these activities go on to establish that the taxpayer has business connection in India within the meaning of Section 9(1)(I) of the Income tax Act, 1961 (the Act). Splitting of this transaction under supply and services will be wholly artificial and neither will it have a rational basis, nor can it be recognized for the purposes of computation of profits attributable to the PE.

 

The Tribunal held that profits relating to services rendered by the taxpayer, whether rendered in India or outside India, in respect of Indian projects are taxable in India, and are attributable to the supervisory PE of the taxpayer in India since they are effectively connected with each other.

(Shanghai Electric Group Co. Ltd. v. DCIT (2017) 84 taxmann.com 44 (Del))

 

 

 

Company Law

 

Exemptions given to certain unlisted public companies under the Companies Appointment and

Qualification of Directors) Rules, 2014 from the appointment of independent directors

This Ministry, vide notification number G.S.R. 839(E) dated 5th July, 2017 issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 inter-alia amending rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014. The said amended Rule 4 inter alia provides that an unlisted public company which is a joint venture, a wholly owned subsidiary or a dormant company will not be required to appoint Independent Directors. Stakeholders have sought clarifications with regard to the meaning of joint venture for the purposes of availing exemption under Rule 4 of the aforesaid Rules as such a term is not defined in the Companies Act 2013.

 

The matter has been examined and it is hereby clarified that a joint venture, would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have rights to the net assets of the arrangement. The usage of the term is similar to that under the Accounting Standards.

http://www.mca.gov.in/Ministry/pdf/GeneralCircular_05092017.pdf

 

Obligation to comply with the Indian Accounting Standards (Ind AS) and Rule 4 of Companies (Indian

Accounting Standards)Rules, 2015 – Payment Banks, Small Finance Banks which are subsidiaries of

Corporates:

Some stakeholders have sought clarifications with regard to implementation of Ind AS wherein the holding

company has Payment Banks or Small Finance Banks as its subsidiaries (Notification GSR 365 (E)

dated 30.03.2016).

 

The matter has been examined and it is clarified that the holding company if it is covered by the corporate sector roadmap for implementation of Ind AS, shall follow the corporate sector road map and if the company has got payment bank or small finance bank as its subsidiary then subsidiary company shall follow the banking sector roadmap prescribed vide RBI circular DBR.BP.BC.No.76/ 21.07.001/2015-16 dated 11th February, 2016 on “Implementation of Indian Accounting Standards (Ind AS)” read with circular BR.NBD.No.2s/16.13.218/2016-

17 dated 6th October, 2016 on “Operating Guidelines for Payments Banks”. However, the Payment Banks or Small Finance Banks shall provide the Ind AS financial data to its holding company for the purpose of consolidation.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

 

 

Notification No.27 /2017 – Central Tax

 

New Delhi, the 30thAugust, 2017

 

G.S.R. ( )E.:- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

 

  • These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2017.

 

  • Save as otherwise provided in these rules, they shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

 

  1. In the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the principal rules), –

 

(i) for rule 138, the following shall be substituted, namely:-

 

“138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill.- (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—

 

  • in relation to a supply; or

 

  • for reasons other than supply; or

 

  • due to inward supply from an unregistered person,

 

shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.

 

  • Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.

 

  • Where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01:

 

1

Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:

 

Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:

 

Provided also that where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

 

Explanation 1.– For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

 

Explanation 2.-The information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel.

 

  • Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

 

  • Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01:

 

Provided that where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.

 

  • After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

 

  • Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.

 

2

  • The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1:

 

Provided that when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.

 

  • Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:

 

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

 

  • An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2) of the said Table:

 

Table

 

Sr. no. Distance Validity period
(1) (2) (3)
1. Upto 100 km One day
2. For every 100 km or part thereof thereafter One additional day

 

 

Provided that the Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein:

 

Provided further that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

 

Explanation.—For the purposes of this rule, the “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.

 

  • The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

 

  • Where the recipient referred to in sub-rule (11) does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

 

 

 

 

3

  • The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State shall be valid in every State and Union territory.

 

  • Notwithstanding anything contained in this rule, no e-way bill is required to be generated—

 

  • where the goods being transported are specified in Annexure;

 

  • where the goods are being transported by a non-motorised conveyance;

 

  • where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs; and

 

  • in respect of movement of goods within such areas as are notified under clause

 

  • of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State.

 

Explanation. – The facility of generation and cancellation of e-way bill may also be made available through SMS.

 

ANNEXURE
[(See rule 138 (14)]
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
1. 0101 Live asses, mules and hinnies
2. 0102 Live bovine animals
3. 0103 Live swine
4. 0104 Live sheep and goats
5. 0105 Live poultry, that is to say, fowls of the species Gallus domesticus,
ducks, geese, turkeys and guinea fowls.
6. 0106 Other live animal such as Mammals, Birds, Insects
7. 0201 Meat of bovine animals, fresh and chilled.
8. 0202 Meat of bovine animals frozen [other than frozen and put up in unit
container]
9. 0203 Meat of swine, fresh, chilled or frozen [other than frozen and put up in
unit container]
10. 0204 Meat of sheep or goats, fresh, chilled or frozen [other than frozen and
put up in unit container]
11. 0205 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen [other
than frozen and put up in unit container]
12. 0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses,
mules or hinnies, fresh, chilled or frozen [other than frozen and put up
in unit container]
13. 0207 Meat and edible offal, of the poultry of heading 0105, fresh, chilled or
frozen [other than frozen and put up in unit container]
4
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
14. 0208 Other meat and edible meat offal, fresh, chilled or frozen [other than
frozen and put up in unit container]
15. 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, fresh, chilled or frozen [other than frozen and put up in unit
container]
16. 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, salted, in brine, dried or smoked [other than put up in unit
containers]
17. 0210 Meat and edible meat offal, salted, in brine, dried or smoked; edible
flours and meals of meat or meat offal, other than put up in unit
containers
18. 3 Fish seeds, prawn / shrimp seeds whether or not processed, cured or in
frozen state [other than goods falling under Chapter 3 and attracting
2.5%]
19. 0301 Live fish.
20. 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of
heading 0304
21. 0304 Fish fillets and other fish meat (whether or not minced), fresh or
chilled.
22. 0306 Crustaceans, whether in shell or not, live, fresh or chilled; crustaceans,
in shell, cooked by steaming or by boiling in water live, fresh or
chilled.
23. 0307 Molluscs,  whether  in  shell  or  not,  live,  fresh,  chilled;  aquatic
invertebrates other than crustaceans and molluscs, live, fresh or chilled.
24. 0308 Aquatic invertebrates other than crustaceans and molluscs, live, fresh
or chilled.
25. 0401 Fresh milk and pasteurised milk, including separated milk, milk and
cream,  not  concentrated  nor  containing  added  sugar  or  other
sweetening matter, excluding Ultra High Temperature (UHT) milk
26. 0403 Curd; Lassi; Butter milk
27. 0406 Chena or paneer, other than put up in unit containers and bearing a
registered brand name;
28. 0407 Birds’ eggs, in shell, fresh, preserved or cooked
29. 0409 Natural honey, other than put up in unit container and bearing a
registered brand name
30. 0501 Human hair, unworked, whether or not washed or scoured; waste of
human hair
31. 0506 All goods i.e. Bones and horn-cores, unworked, defatted, simply
prepared (but not cut to shape), treated with acid or gelatinised; powder
and waste of these products
32. 0507 90 All goods i.e. Hoof meal; horn meal; hooves, claws, nails and beaks;
antlers; etc.
33. 0511 Semen including frozen semen
5
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
34. 6 Live trees and other plants; bulbs, roots and the like; cut flowers and
ornamental foliage
35. 0701 Potatoes, fresh or chilled.
36. 0702 Tomatoes, fresh or chilled.
37. 0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or
chilled.
38. 0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas,
fresh or chilled.
39. 0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled.
40. 0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar
edible roots, fresh or chilled.
41. 0707 Cucumbers and gherkins, fresh or chilled.
42. 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled.
43. 0709 Other vegetables, fresh or chilled.
44. 0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not
further prepared.
45. 0713 Dried leguminous vegetables, shelled, whether or not skinned or split.
46. 0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and
similar roots and tubers with high starch or inulin content, fresh or
chilled; sago pith.
47. 0801 Coconuts, fresh or dried, whether or not shelled or peeled
48. 0801 Brazil nuts, fresh, whether or not shelled or peeled
49. 0802 Other nuts, Other nuts, fresh such as Almonds, Hazelnuts or filberts
(Coryius  spp.),  walnuts,  Chestnuts  (Castanea  spp.),  Pistachios,
Macadamia nuts, Kola nuts (Cola spp.), Areca nuts, fresh, whether or
not shelled or peeled
50. 0803 Bananas, including plantains, fresh or dried
51. 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens,
fresh.
52. 0805 Citrus fruit, such as Oranges, Mandarins (including tangerines and
satsumas); clementines, wilkings and similar citrus hybrids, Grapefruit,
including pomelos, Lemons (Citrus limon, Citrus limonum) and limes
(Citrus aurantifolia, Citrus latifolia), fresh.
53. 0806 Grapes, fresh
54. 0807 Melons (including watermelons) and papaws (papayas), fresh.
55. 0808 Apples, pears and quinces, fresh.
56. 0809 Apricots, cherries, peaches (including nectarines), plums and sloes,
fresh.
57. 0810 Other fruit such as strawberries, raspberries, blackberries, mulberries
and  loganberries,  black,  white  or  red  currants  and  gooseberries,
cranberries, bilberries and other fruits of the genus vaccinium, Kiwi
fruit, Durians, Persimmons, Pomegranates, Tamarind, Sapota (chico),
Custard-apple (ata), Bore, Lichi, fresh.
6
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
58. 0814 Peel of citrus fruit or melons (including watermelons), fresh.
59. 9 All goods of seed quality
60. 0901 Coffee beans, not roasted
61. 0902 Unprocessed green leaves of tea
62. 0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper
berries [of seed quality]
63. 0910 11 10 Fresh ginger, other than in processed form
64. 0910 30 10 Fresh turmeric, other than in processed form
65. 1001 Wheat and meslin [other than those put up in unit container and
bearing a registered brand name]
66. 1002 Rye [other than those put up in unit container and bearing a registered
brand name]
67. 1003 Barley [other than those put up in unit container and bearing a
registered brand name]
68. 1004 Oats [other than those put up in unit container and bearing a registered
brand name]
69. 1005 Maize (corn) [other than those put up in unit container and bearing a
registered brand name]
70. 1006 Rice [other than those put up in unit container and bearing a registered
brand name]
71. 1007 Grain sorghum [other than those put up in unit container and bearing a
registered brand name]
72. 1008 Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra,
Ragi] [other than those put up in unit container and bearing a registered
brand name]
73. 1101 Wheat or meslin flour [other than those put up in unit container and
bearing a registered brand name].
74. 1102 Cereal flours other than of wheat or meslin, [maize (corn) flour, Rye
flour, etc.] [other than those put up in unit container and bearing a
registered brand name]
75. 1103 Cereal groats, meal and pellets [other than those put up in unit
container and bearing a registered brand name]
76. 1104 Cereal grains hulled
77. 1105 Flour, of potatoes [other than those put up in unit container and bearing
a registered brand name]
78. 1106 Flour, of the dried leguminous vegetables of heading 0713 (pulses)
[other than guar meal 1106 10 10 and guar gum refined split 1106 10
90], of sago or of roots or tubers of heading 0714 or of the products of
Chapter 8 i.e. of tamarind, of singoda, mango flour, etc. [other than
those put up in unit container and bearing a registered brand name]
79. 12 All goods of seed quality
80. 1201 Soya beans, whether or not broken, of seed quality.
81. 1202 Ground-nuts, not roasted or otherwise cooked, whether or not shelled
7
S. Chapter or Description of Goods
No