Skip to main content

NITI Aayog proposes easier arbitration norms for infra firms

By
NITI Aayog has prepared a Cabinet note that proposes if arbitration awards favour infrastructure companies, the government should pay up. If the award is unanimous, no appeal should be made, it adds.
It has also suggested infrastructure ministries ease arbitration norms and release stalled payments.
“This will de- bottleneck project development and will avert loss of time and blockage of capital,” said Kameswara Rao, partner (grid), PwC.
Rao said it was not uncommon for infrastructure projects to face local implementation challenges and executing agencies should be empowered to accept reasonable variations.
“Agencies must not fear subsequent challenges to their decisions,” he added.
Bank executives said the proposal in the Cabinet note would help improve the financial health of companies.
Companies facing payment delays could start repaying interest and principal on outstanding loans, they added.
Niti Aayog’s proposal comes at a time when ? 1.65 lakh crore of banks’ ? 3.65 lakh crore exposure to the construction sector is stressed.
Project delays are largely on account of environment clearances and land acquisition.
“Definitely, this will help settle claims as capital will not be locked up,” said Vishwas Udgirkar, senior director, Deloitte India.
“Maybe 50- 70 of the arbitration award can be paid if someone is moving to appeal,” he added.
ICRA Vice- President Rohit Inamdar said if implemented, this would provide liquidity to several projects where arbitration awards had been announced.
“The pace of arbitration needs to be accelerated to ensure quick dispute resolution,” he added.
Business Standard New Delhi,26th August 2016

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more