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Hopeful of sorting trade issues, India may scrap additional duties on 29 US goods India could withdraw the notification to levy additional duties on 29 US products from August 4, if both sides are able to resolve differences over tariffs before that date, official sources said, after three rounds of talks with representatives of the US administration in New Delhi. The two sides will also come up with a white paper at a meeting next month in Washington on issues that can be resolved over six months to 3-4 years. “We are hopeful of resolving trade issues before August 4,” said an official, adding that any country that notifies the World Trade Organization about tariffs has the right to withdraw or defer it. From the US side, assistant US Trade Representative (USTR) for South and Central Asian Affairs Mark Linscott, assistant USTR for agricultural affairs and commodity policy Sharon Bomer Lauritsen, deputy USTR Brendan Lynch and officials from the high commission attended the meetin...

RBI to the Rescue Again, Offloads Greenbacks Sells Dollar 400-500 m in onemonth futures contracts and an almost equal amount in the spot market Two weeks after South Block had decided to swap high-denomination bills in the autumn of 2016, the rupee came within touching distance of the 69 mark to the dollar. On Thursday, it breached that level, reportedly requiring the central bank to enhance supplies of the world’s reserve currency to prevent the local unit’s rout. During the day, the rupee hit a record low of 69.09, sliding past its earlier trough of 68.86, reported on November 24, 2016. In early trading Thursday, the Reserve Bank of India (RBI) is said to have sold  Dollar  400-500 million in one-month futures contracts. Later, Mint Street sold an almost equal amount in the spot market, some dealers said.  The RBI could not be contacted immediately for comments.  Such moves collectively helped the local unit erase some of its early losses. The rupee closed ...

1 NATION, 1 TAX, 1 YEAR The goods and services tax, one of India’s most significant economic reforms, was put in place on July 1 last year. To mark its first anniversary, we look at what’s been achieved, the successes, failures, what the experts think and what lies ahead HOW IT HIT BULL’S EYE, WITH A FEW MISSES One year into the goods and services tax (GST) regime, early-day jitters have given way to general acceptance that this may not be the most perfect single tax system, but it’s working. There are many issues that remain to be addressed, but the fact that some of the knotty ones have been resolved gives rise to confidence that even these will be sorted out. Here’s how the past year panned out. Inflation rate didn’t rise: GST, it was widely feared, would cause inflation to rise, as with many countries that launched a single tax regime. That hasn’t happened in India. The recent spike in consumer inflation has been due to high food and fuel prices, unrelated to GST. What he...

Steep Fall in Firms Wanting to be GST Suvidha Providers A year after GST, only 25 shortlisted GSPs are active out of the 70 A year after the roll out of the Goods and Services Tax (GST), the competition among companies to become GST Suvidha Providers (GSPs) to route invoice filings to the central system has fizzled out. According to a source in the GST Network, of the 70 shortlisted GSPs only about 25 are active, with even big names such as Tally remaining inactive.  A GSP offers a gateway to taxpayers to the GST Network by getting access to the APIs for uploading of invoices and filing returns. Some industry players have put the number of active GSPs lower at about 15. Even some of the companies who are relatively active as GSPs have made losses on their investments in the technological back-end and marketing. One such company, which is an active GSP but did not wish to be identified, has made only 10% of the Rs.25 crore revenue it was expecting from this business annually...

Indian Bank decides to withdraw dividend payment resolution Public sector lender Indian Bank has decided to withdraw a resolution related to dividend payment after the Reserve Bank of India (RBI) said, the bank can declare dividend after fully providing for mark-to-market (MTM) loss, gratuity and any other provisions. The bank's MTM losses alone is  around Rs. 5.47 billion. Indian Bank's board on may 10 had recommended for payment of dividend at Rs. 6 per share (60%) of the equity capital for 2017-18. According to Section 15(1) of the Banking Regulation Act, no bank acan pay any dividend on its shares until all its capitalised expenses, including preliminary expenses, organisation expenses, shares-selling commissions, brokerage, amounts of losses incurred and any other expenditure not represented by tangible assets have completely written off. The Business Standard, 29th June 2018, New Delhi

Individual bankruptcy rules to take more time: All you need to know The Insolvency and Bankruptcy Code is in force since 2016 for corporate entities Rules for individual bankruptcy might take still longer to come.  A key official involved in framing it, says: “While insolvency provisions for companies would not create a direct social impact, individual bankruptcy provisions will directly have social fallouts.”  The Insolvency and Bankruptcy Code (IBC) is in force since 2016 for corporate entities. The government has also issued a draft set of rules for cross-border insolvency. Norms for corporate guarantors, proprietorship and partnership firms are likely soon. Officials say bankruptcy is still seen in India in a derogatory sense and could affect families. Hence the caution in finalising rules for individual insolvency. Once all the rules are notified, the existing Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920, would be replaced. Petiti...