Modi Govt allows people to deposit unaccounted cash in parts under amnesty scheme
The government has allowed people declaring unaccounted cash under the new black money amnesty scheme PMGKY to deposit in parts the mandatory 25 per cent of the total in a 4-year fund by March 31. Offering one last chance to black money holders, the government has given them time until March end to come clean by paying 50 per cent tax on bank deposits of junk currencies made post demonetisation. Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), declarants also have to park a quarter of the total sum in a non-interest bearing deposit scheme (PMGKDS) for four years.
Rs 6.78 lakh crore remonetised, Rs 9.1 lakh crore in circulation: Government
In the ongoing process of remonetisation, banknotes worth Rs 6.78 lakh crore returned to the formal banking system between November 10 and January 13, taking the total currency in circulation to Rs 9.1 lakh crore, the government said today. “Remonetisation is taking place ceaselessly at a fast pace. Between November 10, 2016 and January 13, 2017, the notes in circulation have increased by Rs 6.78 lakh crore, thereby taking the total notes in circulation to Rs 9.1 lakh crore,” Minister of State for Finance Arjun Ram Meghwal said in a written reply in Rajya Sabha.
Government draws up plan to phase out old vehicles
India’s policy on the end-of-life of vehicles is almost ready and will be announced in the next few months, the secretary at the heavy industries ministry said. “We had invited objections and suggestions from the public and now we have compiled all of them and the final version (of the policy) is almost ready,” Girish Shankar said, adding: “Very soon, it will be accepted by the government.” The government had published a policy draft two years ago, seeking public comments. The Voluntary Vehicle Fleet Modernisation Programme is aimed at encouraging people to scrap their old vehicles and replace them with modern, more fuel-efficient and less-polluting ones, by offering tax and other benefits.
Vodafone-Idea merger to create Rs 80,000 cr revenue firm: Ind-Ra
The proposed merger of telecom operators Vodafone and Idea Cellular will create an entity with revenue of around Rs 80,000 crore and the move will be credit positive for the sector, India Ratings and Research said. “The proposed merger of Vodafone India and Idea Cellular Ltd (Idea) will be credit positive for the telecom industry by eliminating duplication of spectrum and infrastructure capex. The combined entities’ revenue will be around Rs 77,500-80,000 crore and Ebitda margins of around 28 percent,” India Ratings said in a statement. However, in the near term, India Ratings said it believes that the intense competition set off by Reliance Jio’s freebies will continue to pressurise telecom companies’ financials, it said.
CAs to pay Rs 10k fine for filing incorrect info
Central Board of Direct Taxes Chairman Sushil Chandra said on Tuesdaythat filing of incorrect returns by chartered accountants would attract Rs 10,000 penalty. “Under Section 271J… we have entrusted responsibility with chartered accountants, valuers and merchant bankers who files audit, valuation reports and other things… So, if they file any incorrect information in the returns, they are also liable for a token penalty of Rs 10,000,” he said. The whole system is based on “a lot of faith on CAs and assessees and they have to be more responsible.” Despite having a low tax, non-compliance level is high, he said, adding that Indians named in various black money reports, including Panama Papers, are among the highest. He pointed to high level of tax evasion and tendency to export the black money to foreign shores in spite of having global practices and standards, which has to come down.
Central Registrar notice to Sahara multi-state cooperatives
The Central Registrar of Cooperative Societies (CRCS), under the Union Ministry of Agriculture, has issued notices to two multi-state cooperative societies associated with the Sahara group because they allegedly did not submit books of accounts and other documents sought from them after an inspection. Both societies have a significant exposure to Aamby Valley, on which the Supreme Court gave an order of attachment on Monday in connection with the group’s legal tussle with the Securities and Exchange Board of India.
Timing for demonetisation was perfect, says PM Modi
Answering criticism over demonetisation, Prime Minister Narendra Modi today asserted in Lok Sabha that the timing for the decision was perfect as the economy was doing well and hit out at Congress whose record he questioned with regard to various issues. Replying to a debate on Motion of Thanks on the President’s Address which was adopted by the House later amid walkout by Congress, he replied point-by-point to the issues raised by the Opposition, including surgical strikes and allocations for MNREGA, agriculture sector and for Scheduled Castes. Opposition had moved 190 amendments to the Motion which was negated.
ICRA board to consider share buyback proposal
In another blow to Vijay Mallya, the Karnataka high court on Tuesdayissued a so-called winding-up order on United Breweries Holdings Ltd (UBHL), the holding company through which he controlled his once sprawling business empire. The court directed that all assets of the company be taken over by the official liquidator and a status report be filed within four weeks. The order, issued in a case which includes multiple parties including a consortium of secured lenders, service providers, lessors of aircraft and suppliers of aero engines, comes days after a Central Bureau of Investigation court issued an arrest warrant against the millionaire who flew to the UK in March 2016 as creditors of his grounded Kingfisher Airlines (KFA) closed in on him.
IDFC Bank buys 5% stake in IIFL Holdings for Rs502 crore
Private sector IDFC Bank Ltd on Tuesday bought approximately 5% stake in financial services company IIFL Holdings Ltd for about Rs502 crore, stock exchange data showed. IDFC Bank bought approximately 1.58 crore shares at Rs317 each from Copthall Mauritius Investment Ltd, a JP Morgan investment vehicle. India’s youngest private-sector bank, which started banking operations in 2015, has already bought into Grama Vidiyal Microfinance, Suryoday Small Finance Bank Ltd and ASA International India Microfinance Pvt. Ltd.
Air India may be listed on exchanges with banks holding strategic stake
The government is considering inducting banks as strategic investors in Air India, followed by a listing of the national airline, said two persons familiar with the plan. Privatization of the airline isn’t on the cards, said the two, who requested anonymity. The plan is part of another attempt to turn around the airline. In the first step, the government will continue efforts to recast Rs28,000 crore of working capital debt that Air India owes a consortium of 19 banks led by State Bank of India (SBI). The lenders are being asked to convert this debt into equity.
Lok Sabha passes bill to ensure wage payments through e-transfer, cheques
Employers will soon be able to pay wages solely via cheque or bank transfer, with the Lok Sabha on Tuesday passing a bill to remove a provision in the law that requires workers’ consent for non-cash wage payments. The Payment of Wages (Amendment) Bill is part of the National Democratic Alliance (NDA) government’s ongoing drive to create a less-cash economy. Under the Payment of Wages Act 1936, employers can use cheque or bank transfers to pay wages only with written authorization from the employee. Tuesday’s amendment bill, once it becomes an Act, will replace the old legislation and allow employers to pay in cash, cheque or credit the amount directly to a bank account, even without a worker’s approval.
Grofers sets up seller structure similar to Flipkart’s to comply with FDI norms
Grofers India Pvt. Ltd has identified at least three large sellers who will sell products on its platform so as to comply with India’s foreign direct investment norms even as the grocery delivery start-up tries to move from a hyperlocal delivery model to an inventory-led one, two people aware of the development said on condition of anonymity. Grofers, which is backed by SoftBank and Tiger Global Management, has identified Commoncity Retail Pvt. Ltd, LA Super Retail Pvt. Ltd and 90Minutes Retail Pvt. Ltd as the sellers, the people mentioned above said on condition of anonymity.
Domestic M&A deals to jump nearly three times to over $49 billion by the turn of 2019, says report
The domestic deal street is expected to jump nearly three times to over $49 billion by the turn of 2019, says a report. As per global law firm Baker McKenzie, the domestic mergers and acquisitions (M&As) stood at $17.5 billion in 2016 and is likely to touch $28.5 billion in 2017. “India is predicted to be one of the global hotspots for M&As in coming years, with the total value of M&A transactions (domestic and in-bound) more than doubling to $49.3 billion in 2019,” the report said today. The estimates are based on easing of threats to the global economy going forward which will help dealmakers regain confidence in the domestic market. In number of deals, the same is expected to nearly double from 553 in 2016 to 916 in 2019. This year 786 transactions are likely to take place.
CBDT signs 4 advance pricing pacts with taxpayers
The tax department has signed four unilateral advance pricing agreements (APAs) with taxpayers as it looks to reduce litigation by providing certainty in transfer pricing. The four APAs signed on Mondaypertain to the manufacturing, financial and information technology sectors of the economy. The international transactions covered in these agreements include contract manufacturing, IT-enabled services and software development services, an official statement said. With this, the total number of APAs entered into by the Central Board of Direct Taxes (CBDT) has reached 130 which includes eight bilateral APAs and 122 unilateral APAs, it added.
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