Download Compliance window for domestic black money

8 Economy & Business
THE ECHO OF I NDIA KOLKATA
Wednesday June 1, 2016
Indian economy
grows at 7.6% in
FY'16, 7.9pc in Q4
NEW DELHI:
Indian
economy grew at 7.9 per
cent in the fourth quarter of
2015-16 taking the overall
GDP growth to a five-year
high of 7.6 per cent in the
fiscal, mainly on account of
good
performance
of
manufacturing and farm
sectors. According to the
data released by the Central
Statistics Office (CSO), the
manufacturing
sector
during the fourth quarter
recorded a growth rate of 9.3
per cent while the farm
sector grew at 2.3 per cent.
The CSO has also revised
the Gross Domestic Product
(GDP) growth rate for
previous quarters of 2015-16
-- 7.5 per cent for April-June,
7.6 per cent for JulySeptember and 7.2 per cent
for October-December. The
7.6 per cent growth rate for
2015-16 is the same as
projected by the CSO in its
advance
estimates
of
national income earlier in
February this year.
Virat Diwanji, Sr. Ex ecutive Vice President and Head – Branc h Banking and
Acquisitions, Kotak Mahindra Bank Limited addressing a press conference in Jaipur
on Tuesday.
RIL exits Africa oil retail biz,
sells entire 76% GAPCO stake
NEW DELHI, MAY 31 /--/
Reliance Industries has
exited its African fuel retail
business by selling its
entire 76 per cent stake to
Total SA of France for an
undisclosed sum. Total,
which is already a leading
retailer of petroleum
products in Africa, will
acquire
Gulf
Africa
Petroleum Corporations
(GAPCO) assets in Kenya,
Uganda and Tanzania. RILs
overseas arm Reliance
Exploration & Production
DMCC owned 76 per cent
stake in GAPCO while
Fortune Oil Corp, Mauritius
held the remaining. Total is
acquiring stake of both the
firms.
"Reliance Exploration &
Production DMCC, an
indirect wholly owned
subsidiary of RIL and Total,
have executed a greements
on May 30, 2016 for the sale
of the entire 76 per cent
interest held by REPDMCC
in
the
Mauritiusincorporated Gulf Africa
Petroleum Corporation
(GAPCO)," RIL said in a
statement. The proposed
transaction is subject to
regulatory approvals and
other closing conditions that
are customary for similar
transactions. It, however, did
not disclose the deal size.
GAPCO is a holding
company incorporated in
Mauritius with affiliates in
Kenya,
Uganda
and
Tanzania
which
are
primarily engaged in
petroleum product import
and
trading,
storage,
distribution, marketing,
supply and transportation
of oil products in East
Africa.
On conclusion, Total
will get ownership of two
logistical terminals in
Mombasa in Kenya and Dar
es Salaam in Tanzania, as
well as a retail network of
over 100 service stations.
The acquisition will be
complementary to Totals
existing operations in
Kenya,
Uganda
and
Tanzania
and
will
strengthen its logistics in the
region.
RIL
had
in
September 2007 bought a
clutch of fuel stations and
storage facilities in one of
the fastest growing regions
in Africa. "Since the
acquisition of 76 per cent
equity interest in GAPCO
by REPDMCC in 2007,
GAPCO has significantly
grown and is one of leading
petroleum
marketing
companies in East Africa,
which now operates 108
retail outlets and owns
2,60,000 kilolitre of storage
capacity," the statement said.
The net proceeds for the
sale will be finalised on
completion
of
the
transaction
which
is
expected to be within the
coming months, it added.
RIL said the agreement
signed
by
Reliance
Exploration and Production
DMCC (REPDMCC) to sell
its interest in GAPCO was
part of a joint transaction,
wherein both REPDMCC
and
the
minority
shareholder have agreed to
sell their entire respective
holdings in for cash. "This
acquisition is in line with
Totals g rowth strategy for
the
distribution
of
petroleum products and
services in Africa, which
aims at expanding in fastgrowing regions while
maintaining
high
profitability," said Momar
Nguer, President, Total
Marketing & Services. (PTI)
J&K Budget: Fee waiver for
school girls; hike in VAT
SRINAGAR, MAY 31 /--/ Unveiling a Rs
64,669 crore budget for 2016-17, the Jammu
and Kashmir government on Monday
announced a slew of measures for women,
including a fee waiver for girls in
government schools, while a number of
things including mobiles, garments and
packed food would turn costlier.
Jammu and Kashmir Finance Minister
Haseeb Drabu also announced for women
four police stations across the state and a
dedicated city bus service in Srinagar and
Jammu, while reserving 10 per cent area in
industrial estates for their enterprises. On
taxation front, he proposed to hike VAT by
1 per cent on items including cell phones,
tablets and iPads, imitation jewellery,
readymade garments, hoisery goods,
packed frozen food, juices and ready-toserve food. Besides, all online purchases
would be subjected to an entry tax, as
against an earlier threshold limit of Rs
5,000, while an entertainment duty of Rs 50
per connection will be levied a month on
satellite and cable TV operators. The
aviation turbine fuel Levy will go up from
20 to 25 per cent, while the toll levied on
vehicles will also go up. At the same time,
Drabu proposed to exempt from VAT the
lodging services provided by hotels and
guest houses, as also for carpets and
agriculture produce. The budget estimates
envisage a deficit of nearly Rs 3,000 crore as
the revenue receipts are expected to be to
the tune of Rs 61,681 crore during the
current fiscal. "This fiscal the total receipts
are estimated at Rs 61,681 crore. Of these
51,460 crore are revenues and Rs 10,221
crore in the form of borrowings. The state's
own revenues are estimated to be Rs 23,737
crore while Rs 9,500 crore will come from
the state's share in central taxes.
"In addition to this Rs 27,721 crore are to
flow as other central transfers," Drabu said
in his Budget speech. The budget
presentation, which was earlier scheduled
to be held on January 18, had to be deferred
in the wake of death of the then Chief
Minister Mufti Mohammad Sayeed on
January 7. Giving details of the Budget
estimates, Drabu said Rs 19,694 crore will be
the capital expenditure while Rs 44,975
crore will be the revenue expenditure.
"What these large numbers mean is that we
are spending Rs 2.50 in order to be able to
spend Re 1.00 on development. To reduce
this ratio from 2.5:1 and at least bring it at par
with the development spend is the first big
challenge. "We have made a good beginning
in this budget. But the road ahead is difficult
as salaries and pensions...account for more
than Rs 23,000 crore which is more than the
development expenditure in the year," he
added. (PTI)
News In
Brief
Ashok Lavasa
designated
FinSecy
NEW DELHI, MAY 31 /--/
Expenditure
Secretary
Ashok Lavasa, a Haryana
cadre IAS officer, was today
designated as the Finance
Secretary. The post has been
lying vacant since his
predecessor Ratan Watal
retired in April. As per the
convention, the senior-most
among the five secretaries
in Finance Ministry is
designated as the Finance
Secretary. Lavasa is from
1980 batch, while his
batchmate Shaktikanta Das
currently
serves
as
Secretary, Depar tment of
Economic Affairs, in the
Finance Ministry.
Swamy asks ED to
expedite probe
against Vadra
BEIJING, MAY 31 /--/ BJP
MP Subramanian Swamy
Tuesday
asked
the
Enforcement Directorate
(ED) to speed up the inquiry
ag ainst Rober t Vadra over
allegations that he has
acquired
a
"benami"
property in London. "I think
the case is already under
investigation by the ED and
it is only a matter of time
before a case is registered
for summoning of Vadra",
Swamy, who is here while on
his
way
to
Kailash
Manasarovar yatra in Tibet,
said.
ISB plans to
attract students
from Africa, ASEAN
HYDERABAD, MAY 31 /-/ The Indian School of
Business (ISB) plans to
attract potential students
from Africa and the ASEAN
region, as a part of its larger
strategy to enhance the
international diversity. ISB
said it sees these countries
as an untapped talent pool
that has the potential to
contribute to the leadership
needs
of
emerging
economies and the world.
In a statement, ISB also said
competition to get into the
one-year Post Graduate
Programme in Management
(PGP) was intense this year
with the school seeing a 28
per cent increase in
applications compared to
the previous year. (PTI)
Compliance window for domestic
black money opens today
NEW DELHI, MAY 31 /--/
The 4-month disclosure
window
giving
an
opportunity to domestic
black money holders to
come clean by paying tax
and penalty of 45 per cent on
such assets will open on
Wednesday.
People who have made
money through corrupt
means will not be allowed to
take advantage of the
disclosure window. Under
the Income Declaration
Scheme, persons making
disclosure of unaccounted
assets will be given time up
to November 30 to pay taxes,
penalty and surcharge
totalling 45 per cent at the
fair market value. The
Finance Ministry officials
have also held an online
'talkathon'
to
create
awareness
a bout
the
disclosure window. Earlier
in the month, CBDT came
out with a 14-Frequently
Asked Questions (FAQs) and
a circular to explain the
provisions of the income
disclosure window. It was
clarified that the declaration
made under the scheme will
not be used against the
declarants
under
the
Income-Tax Act or Wealth
Tax (now abolished). There
will also be an immunity
from Benami Transactions
(Prohibition) Act. Finance
Minister Arun Jaitley had
said on Monday that people
with undisclosed assets
should use the limited
period income declaration
window, beginning on
Jaitley meets investors,
pitches for infra funding
TOKYO, MAY 31 /--/
Pitching for investment in
Indias first sovereign
wealth fund NIIF, Union
Finance Minister Arun
Jaitley Tuesday met global
investors and promised
them an "advantageous" tax
regime in the country. The
Rs 40,000-crore National
Investment
and
Infrastructure Fund (NIIF)
was set up in December and
is an investment vehicle for
funding
commercially
viable
greenfield,
brownfield and stalled
projects.
During his meeting with
global
investors,
the
Minister highlighted the
second-generation reform
measures undertaken by
the government by way of
opening up various sectors
to FDI as well as making
India an investor friendly
environment. According to
sources, the Minister also
pitched
for
further
infrastructure investment
saying that efforts are on to
make India the most
advantageous
tax
jurisdiction. Also, the
Minister
said
the
government has followed
fiscal discipline following
the rule book of fiscal
consolidation. During the
meeting, Japanese investors
were
positive
about
infrastructure investment,
sources said. The Minister
also highlighted various
avenues for investment,
including in the renewable
energy space, during the
hour-long meeting. The
government is in the
process of appointing a
CEO for the NIIF, in which
49 per cent is held by the
government and remaining
would be held by private
investors.
‘As China slows down, India
can be powerful driver’
TOKYO: With China slowing down, the world is now
looking for "other shoulders to rest its growth on" and India,
with planned infrastructure spending to bridge deficit, can
be a very powerful driver, Jaitley said on Tuesday.
Speaking at 'The Future of Asia' Conference organised by
Nikkei Inc, he said China shouldered almost 50 per cent of
global growth over the last few years. With its economy
slowing down, "the ability of China to shoulder that
percentage of growth may not be there and therefore the
world also is now looking for other shoulders to rest its
growth on.
"And since we have a lot of infrastructure deficit and
expenditure still to undertake and I think all that is going
to be a very powerful driver of economic growth in India,"
he said. Jaitley, who is on a six-day investor-wooing visit to
Japan, however, said no one country can really replace
another because the world has enough space for major
economies to emerge. China started growing at a much
faster pace ahead of India and therefore has maintained a
higher level of GDP. But the current slowdown has meant
it is "going through a structural transition into a more
consumption, service oriented economy", he said. And so
India's growth rate has moved higher than China. "But
China will always remain a major economy," he said.
Thai institute offers tech
for 'Clean India' campaign
BANGKOK, MAY 31 /--/ A Thai
technology institute is in talks with India to
help it in 'Clean India' campaign by
marketing its four innovative sanitation
products that reduces transportation of
sludge and fecal matter.
The sanitation products unveiled by the
Asian Institute of Technology (AIT)
recently in Bangkok are the result of a fiveyear project titled 'Reinventing the Toilet'
funded by the Bill & Melinda Gates
Foundation. The AIT's four products
include a sanitation truck that cleans all the
sludge, a cyclone toilet that uses gravity for
cleaning, a pit that treats sludge before
discharging it into the environment, and a
solar toilet. AIT said these sanitation
products would help Thailand take the lead
in improving the quality of life in both Asia
and Africa, where they will be implemented.
It is already implementing these
technologies in both Thailand and Vietnam
and said it is in an advanced stage of
negotiations for its commercialisation in
India. "The products are aimed at on-site
cleaning aimed at reducing transportation
of sludge and fecal matter to treat plants,
Thammarat
Koottatep,
Principal
Investigator of the project, said. "The idea
is to have an on-site treatment that is
decentralised so that we can avoid
transportation of fecal matter over long
distances," he said.
"We have already ordered for the
manufacture of these products for our
clients in Vietnam, and we are talking to
parties in India who wish to use them in their
Clean India campaign," he added It includes
a Hydro-Cyclone cube toilet that uses
gr avity and the concept of a cyclone to
separate liquid and solid wastes. Disinfection
is achieved by heating and the disinfected
fecal matter is used as a solid conditioner. A
complete treatment of blackwater results in
a pathogen-free byproduct which is
reusable.
Women workers in UP put at 164 lakhs: Assocham
LUCKNOW, MAY 31 /--/ Uttar
Pradesh has the highest number of
women workers at 164 lakhs,
according to a new survey
conducted in four states.
The study named 'Female
Labour Force Participation in
India', was conducted by the
Associated
Chambers
of
Commerce and Industry of India
(ASSOCHAM)
along
with
knowledge firm Thought Arbitrage
Research Institute (TARI) in
Andhra Pradesh, Himachal
Pradesh, Madhya Pradesh and
Uttar Pradesh. "UP has the highest
percentage (67.5 per cent) of selfemployed women in urban areas
among the states selected for study,
however UP has the largest gap
between urban and rural workers
among these states," said DS Rawat,
Secretary General of ASSOCHAM
while releasing the findings of the
study. "Of 33.17 lakhs women
employed in micro, small and
medium enterprises (MSMEs)
across India, UP employs over two
lakhs," Rawat said.
"UP also has the highest
absolute number of workers both
men and women --498.5 lakhs and
about 159.7 lakhs respectively,
however it also accounts for the
largest gender gap of about 338.8
lakhs people," he added. Initiatives
like Beti Bachao Beti Padhao, Make
in India, Start-up India and others
are a positive step in the direction
to improve women labour force
participation in India, the study
said. The ASSOCHAM-TARI study
suggests that promoting skill
training programmes for women,
creating
employment
opportunities across India, setting
up child care centres in large
numbers, ensuring women safety
and security in every sphere
through efforts by both the Central
and state governments are
imperative to boost women labour
force participation in India. It
analysed India's performance in
women labour force participation
(FLFP) in comparison with the rest
of the world and identified factors
that determine FLFP in India along
with barriers to its growth. It
presents a state-wise analysis of
Wednesday, if they want to
"sleep well".
"Starting from day after
tomorrow, the new window
opens and I will advise all
those w ho have any
undisclosed asset to declare
it and pay the tax and sleep
well. Otherwise, the way the
disclosures are becoming
more and more public, they
will run into serious
trouble," Jaitley had said. .
The declarants will be liable
for capital gains tax on sale
of such assets in future. The
scheme, however, will not
apply in relation to
prosecution of any offense
punishable under the
Prevention of Corruption
Act, 1988. "Therefore,
declaration
of
such
undisclosed income cannot
FLFP in four states selected on a
non-arbitrary criteria with a special
focus on UP as it is India's most
populous state.
It pointed out that though there
was a spurt in the number of
working women in India during
2000-2005, increasing from 34 per
cent to 37 per cent, the FLFP rate
declined continuously thereafter
and reached 27 per cent in 2014.
The gap between rural men and
women labour force participation
in India in 2011 stood at about 30
per cent while in urban centres gap
was more pronounced (about 40 per
cent). This can be attributed to
social and cultural curtailment and
often
the
lack
of
work
opportunities, it said. (PTI)
be made under the scheme,"
the FAQs said, adding that
such declaration will
amount
to
misrepresentation of facts
and hence void. On a
question whether a person
can declare undisclosed
income which has been
acquired from money
earned through corruption,
the CBDT in its FAQ said
"No".
If a declaration is held
as void, the provisions of
the Income-tax Act will
apply in respect of such
income as they apply in
relation to any other
undisclosed income. The
scheme for domestic black
money holders follows a
similar one for those having
undisclosed foreign assets.
‘Suzuki's
Gujarat plant
will be
operational
in 2017’
TOKYO, MAY 31 /--/
Japanese
automaker
Suzuki
Motor
Corp
Tuesday said its wholly
owned car plant in
Gujarat, where a total
investment of Rs 18,500
crore has been envisaged,
will begin operations
from ne xt year. T he
Gujarat facility is also
Suzuki Motor's first
wholly owned car plant
in India and being set up
bypassing its Indian
unit. This plant will
supply vehicles and
components exclusively
to Maruti Suzuki India
Ltd. India is its biggest
market.
"As
planned,
operations will start in
2017... Our plan is going
accordingly,"
Suzuki
Motor Corp Chairman
Osamu
Suzuki
told
reporters after meeting
Finance Minister Arun
Jaitley here. Suzuki
Motor owns 56 per cent of
Maruti Suzuki India - the
country's
biggest
automaker controlling
nearly half of the
market. It expects the
bulk of its growth to
come from India, which is
projected to over take
Japan and Germany by
2020 to become the thirdbiggest market in the
world after China and the
US. In the first phase, the
Gujarat factory will have
a capacity to make
2,50,000
vehicles
annually, and will start
operations
in
2017.
Suzuki's car production
in India will reach 2
million units by 2022
from the 1.4 million at
present. Asked about the
performance of the India
unit, 86-year- old Suzuki
said, "When it comes to
Maruti
Suzuki,
the
performance is going up
very well. I am sure
Maruti Suzuki has been
loved by the Indian
people. So I am very much
satisfied." Suzuki Motor
Corp, Japan's secondbiggest minicar maker, is
shipping India-built cars
to Japan for the first
time. Baleno hatchback,
made by its subsidiary
Maruti Suzuki India Ltd,
went on sale in Japan in
March. At that time,
Chairman Osamu Suzuki
had said the company
was looking to "dismiss
the prejudice" against
India-made cars with
Baleno,
which
is
equipped with standard
safety features including
a radar system that
mitigates collisions.
Core industry sectors
grow by 8.5%c in April
NEW DELHI, MAY 31 /--/ The production of eight core
sectors grew by 8.5 per cent in April on the back of pick up
in output of refinery products, fertilisers, steel, cement and
electricity. The eight sectors - coal, crude oil, natural g as,
refinery products, fertilisers, steel, cement and electricity
- had shrunk by (-) 0.2 per cent in April last year. Also, the
core sector's growth for April is higher than 6.4 per cent
recorded in previous month, signalling a recovery in
infrastructure segments. As per the data released by the
Commerce and Industry Ministry, output of refinery products
jumped by 17.9 per cent as against a negative growth of 2.9
per cent in April 2015. Production of fertilisers, steel, cement
and electricity grew by 7.8 per cent, 6.1 per cent, 4.4 per cent
and 14.7 per cent, respectively, during the month under
review compared to the year ago period. However, production
of coal, crude oil and natural gas declined in April this year.
While coal output dipped by 0.9 per cent, crude oil and natural
gas production declined by 2.3 per cent and 6.8 per cent
respectively. In 2015-16, the eight core sectors grew by 2.7
per cent, while it had expanded by 4.5 per cent in 2014-15.