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Private sector may get government funding to promote tourism The government plans to partly finance private sector expenditure on promoting tourism in India and may offer leading hotels, travel agencies, online travel portals and airlines as much as 50 per cent of their annual marketing budget as a fixed contribution, based on their credibility The proposal, which will be a winwin proposition for stakeholders, is aimed at pushing government initiatives such as development of tourist circuits and zones, islands and beaches. It will add to  It will add to the country's foreign exchange earnings and create much-needed jobs. Private ventures will have more funds for promotion, with a sustained contribution from the government. The government is discussing the idea with stakeholders and assessing the annual cost of the initiative, a senior government official told ET."The amount of financing to private players will depend on the star-rating and size of hotels as well as tra...

GST rate cut Restaurant body to meet govt over pricing The National Restaurant Association of India (NRAI) is likely to make a representation to the government over the next two days regarding the passing on of benefits of the lower goods and services tax (GST) rates to consumers.NRAI has the country´s top fast food chains, among others, as its members. The government on November 10 had slashed the GST on AC and nonAC restaurants —excluding fivestar hotels —to 5 per cent from the earlier 18 per cent and 12 per cent, respectively.But the input tax credit was withdrawn with the rate revision, prompting restaurant chains, including McDonald´s, to with hold passing the full benefit of the tax cut. Their argument was that the non availability of input tax credit pushed up costs by 1012 per cent, implying that the 13 per cent GST cut was taxneutral.“While we welcome the move by the government to cut GST, it may have to relook the issue pertaining to input tax credit,” said NRAI Preside...

Trigger in Banking Regulation RBI and public sector bank’s failure triggers the Banking Regulation Amendment Bill Common consumers, farmers, small traders and educated unemployed youths need credit facilities and banks are expected to provide them as per the Union and State Government schemes and policy. But while corporate giants who have tremendous influence on the banking sector are getting ample credit facilities and concessions in recovery of dues, the very principle of equity is crushed. Both the RBI and banks failed to maintain the balance with the result that they are almost compelled by the new Amendment to recover the dues by way of liquidation of the assets of the big and willful defaulters. While the Amendment in the Banking Regulation Act that went through Parliament in Monsoon Session, the ordinance was issued first on 4th May when the Parliament was not in session. The said ordinance and now the bill while stressing the need for the amendment points out that th...

Cabinet clears changes to plug loopholes in insolvency code Govt to amend insolvency and bankruptcy rules via ordinance, will block promoters deemed wilful defaulters from regaining control of firmsThe Union cabinet on Wednesday approved amendments to the Insolvency and Bankruptcy Code (IBC) to plug potential loopholes in the new corporate turn around regime and to ensure rescued companies remain in reliable hands. Finance minister Arun Jaitley said changes to the IBC have been proposed through an ordinance that’s awaiting presidential assent.One of the changes proposed is to ensure that promoters deemed wilful defaulters do not eventually end up taking control of the company again. The exact nature of the amendment and its scope will be known only after the text of the ordinance is available after the president gives his assent, a person familiar with the development said on condition of anonymity. “Some changes have been proposed in the Insolvency and Bankruptcy Code. Since t...

Lenders plan to send more companies to NCLT Tightening of the Insolvency and Bankruptcy Code (IBC) to keep willful defaulters from bidding for assets has given lenders a short in the arm.Banks, armed with the new rule, are gearing up to send more accounts to the National Company Law Tribunal (NCLT), especially those that have gone through the strategic debt restructuring (SDR) process in the past two and a half years but failed to find a resolution. Since the Reserve Bank of India (RBI) issued the SDR guidelines, banks have converted debt into equity in 20 companies but managed to divest stake only in one company— Adhunik Power.“The SDR scheme failed as there are no buyers for the stressed assets Promoters are still running the companies but with lower debt burden.Bankers have not found any takers after they converted their loans into equity,” said a lender.Of the total 26 companies, Alok Industries, Monnet Ispat and Electrosteel Steels are on the first list sent to the NCLT. ...

TASK FORCE TO DRAFT NEW DIRECT TAX LAW The government has brought back the main author of the now junked Direct Taxes Code (DTC) as a convenor of the task force to review the decade sold provisions of the IncomeTax Act and draft a replacement. The government has, however, already implemented many provisions of the draft DTC, such as the General Anti Avoidance Rules (GAAR) and on Place of Effective Management. The government has constituted a six member panel to take forward Prime Minister Narendra Modi´s call for replacing the ITAct,aweek after it notified an overhaul of the goods and services tax (GST). The panel has been asked to submit report within six months. Arbind Modi, member (legislation) of the Central Board of Direct Taxes (CBDT), is convenor of the task force. Chief Economic Advisor Arvind Subramanian will be a permanent special invitee.Rajiv Memani, chairman and regional managing partner, India region, EY, who was named member of the task force, said,"The gove...