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Mobile phone manufactures have approached the finance ministry seeking continuation of the differential duty structure and the benefits that come with it, which they fear would become a casualty when the goods and services tax comes into effect.Absence of these incentives could put at risk a manufacturing industry that is worth Rs.54,000 crore now and is set to grow to Rs.94,000 crore by the end of this fiscal year. “We look forward to your kind support in establishing the proposed dispensation in GST and clearing the air on the principle of duty differential in the upcoming GST regime,“ the Indian Cellular Association wrote in a letter to Revenue Secretary Hasmukh Adhia. The association represents major handset makers including Samsung, Apple and Micromax. ET has seen a copy of its letter sent on Saturday. Mobile phone manufacturers were among the first to respond to the Prime Minister's Make in India call, making in vestments in local assembly facilities. Value of local p

The finance ministry on Tuesday promised to look into some taxation issues raised by foreign portfolio investors (FPIs) and also certain suggestions made by them such as permitting them in short- term corporate paper. Some of these suggestions could be reflected in the Budget as well. After a meeting with FPIs here, Economic Affairs Secretary Shaktikanta Das (pictured) said: “ Suggestions both in terms of process simplification as well as some new suggestions have come ... some taxation issues were raised. The Department of Revenue also participated in the meeting so we will examine and look at the suggestions they have made.” Sources said the finance ministry discussed the proposal to allow FPIs to invest in corporate paper with outstanding maturity of less than three years. To attract sticky and long term foreign money, current rules don’t permit overseas investors to invest in ultra short- term or short- term debt. The minimum maturity requirement is set at three years and there

The Union Cabinet, headed by Prime Minister Narendra Modi, might take up the matter of advancing the date of Budget presentation and merging the rail and Union Budgets. Once approved, it will set in motion the process of the biggest overhaul in the budgeting process in 15 years. A Cabinet note details the above proposals as well as elimination of Plan and nonPlan classifications of expenditure and shifting to outcomebased budgeting from input- based budgeting. It is likely to be placed for the Cabinet’s approval on Wednesday. The Modi government is likely to present the Union Budget in the last week of January or the first week of February. This will ensure the Finance Bill is passed before the start of the financial year, on April 1, so that all central government departments get their full allocations to work with right from the first day. In the existing system, the Lok Sabha passes a vote- onaccount for the April- June quarter, under which departments are provided a sixth o