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99% of banned notes returned after demonetisation: RBI annual report The Reserve Bank of India (RBI) on Wednesday said it estimated that people had returned  almost 99 per cent of the scrapped Rs 1,000 and Rs 500 notes after demonetisation,  effectively putting a question mark over the government gaining handsomely by the  unreturned money turning into a special dividend by the central bank. In its annual report, the RBI also said the face value of fake high-value notes was  minuscule at Rs 41 crore. The central bank said people had returned Rs 15.28 lakh crore of the Rs 15.44 lakh banned  currency, or 98.96 per cent of the scrapped Rs 500 and Rs 1,000 notes, to the banking  system. “Subject to future corrections based on the verification process when completed, the  estimated value of Specified Bank Notes received as on June 30, 2017, is Rs 15.28 lakh  crore,” the annual report said.  The old notes came to the RBI either directly...

Green light for 25% GST cess makes automakers see red Bigger sedans and sports utility vehicles (SUVs) will cost more now, as the Cabinet on  Wednesday cleared an ordinance to increase the cess ceiling on these vehicles to 25 per  cent from 15 per cent. This cess would be over and above the peak goods and services tax (GST) rate of 28 per  cent on these vehicles. Hybrid vehicles will continue to attract a cess of 15 per cent.   Announcing this decision, Finance Minister Arun Jaitley said the objective of any  taxation policy cannot be that luxury goods become cheaper and essential items become  costlier. “If at all relief is to be given, it has to be given to a common man’s item  rather than a luxury item. So a person who can afford Rs 1 crore for a vehicle can also  afford Rs 1.20 crore.” The exact increase in the cess will be taken up by the GST Council, which will meet on  September 9 in Hyderabad. It is widely speculated that a ...

Delisted firms to contest BSE order The promoters of at least two dozen of the 200 companies that have been compulsorily delisted by the BSE plan to file a writ petition against the Securities and Exchange Board of India (Sebi) and the stock exchange. Their contention is that they are under liquidation and therefore not liable to follow the delisting process, which entails payout to minority shareholders. Around 45 companies in the list of 200 are undergoing liquidation. These include Alpic Finance, Blue Bird, CFL Capital Financial Services, Dhanus Technologies, Koutons Retail India and DSQ Biotech. Official liquidators have been appointed to wind up the companies’ affairs and to sell-off assets. The assets are being used to pay shareholders followed by the claims of creditors. “BSE had gone ahead with compulsorily delisting without any prior approval from appellate tribunal. We have not been intimated about it, neither have we been given a chance of a hearing,” said the promot...

Defence ministry trims Army flab; 57,000 soldiers will shift to combat roles The Army currently deploys more soldiers on non-combat administrative and supply chain duties than in the trenches in wartime. On Wednesday, to increase what the defence ministry terms the Army’s teeth-to-tail ratio by putting a larger percentage of soldiers  on the frontline, Defence Minister Arun Jaitley ordered 65 reforms to the structure of the military. Improving the teeth-to-tail ratio involves whittling down administrative and logistic units that support combat operations, and redeploying the manpower thus saved into combat units. The defence ministry says the 65 reforms must be completed by December 31, 2019, involving “redeployment and restructuring of approximately 57,000 posts of soldiers and civilians.” These reforms are part of the 99 measures recommended by the Lieutenant General (Retired) D B Shekatkar Committee, which former defence minister Manohar Parrikar constituted in 2015. T...

GST, farm debt waivers likely to hit fiscal consolidation A day after the government released buoyant tax figures because of the goods and services  tax (GST), the Reserve Bank of India cast doubts over short-term revenue mobilisation.  Besides, farm debt waivers in some states could mar fiscal consolidation efforts there,  it said. This, the report said, could impact fiscal consolidation at both the Centre and  state levels, as this fundamental reform gains pan-India traction.  According to figures released by Finance Minister Arun Jaitley on Tuesday, the Centre and  state governments have earned Rs 92,283 crore from the GST in July, against a target of  Rs 91,000 crore. This  even as 36 per cent of assessees did not file returns. On Wednesday, the RBI warned: "Additionally, state government finances are likely to face  several challenges during 2017- 18. First, the announcement of farm loan waivers by four  state governments ...

Government may announce a new ‘outcome-oriented’ industrial policy by October Nirmala Sitharaman to hold consultations with stakeholders, including industry captains,  think tanks and states to finalise the policy. Government will announce the new industrial policy in October this year, seeking to make  India a manufacturing hub by promoting ‘Make in India’ and addressing the issue of slower  job creation. Commerce and industry minister Nirmala Sitharaman will hold talks with stakeholders,  including industry captains, think tanks and state governments in Chennai, Guwahati and  Mumbai to finalise the policy. In a press statement, Department of Industrial Policy and Promotion (DIPP) said the  government wants to formulate “an outcome oriented actionable industrial policy that  provides direction and charts a course of action for a globally competitive Indian  industry which leverages skill, scale and technology.” DIPP has floated a disc...

Govt might allow revised returns for input credit for pre-GST stocks Unavailability of the form offline made it difficult for companies to punch in details  manually In a respite for companies with big claims of input tax credit for pre-goods and services  tax (GST) stocks, the government is likely to allow rectifications of returns filed. The  revenue department is consulting the law committee on the matter. Although companies have been given 90 days to file the TRAN 1 form to claim input tax  credit for stocks bought before July 1, the last date for filing it was August 28. Unavailability of the form offline made it difficult for companies to punch in details  manually, increasing the chances of under reporting or incorrect filing. No provision for  rectification of transitional credit claims might mean companies losing credit. “We are aware of the concerns with respect to rectification of returns. We are consulting  the law committee to ...

Room rent in hospitals exempted from GST Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax  (GST), the government said today.  Issuing clarifications on levy of GST on the tariff for various accommodation services,  the Central Board of Excise and Customs (CBEC) said the tax on rooms in the hotel, guest  house or inns will be payable on the actual amount charged and not on declared or  published tariff.  "Declared or published tariff is relevant only for the determination of the tax rate  slab," the clarification issued in form of Frequently Asked Questions (FAQs) said.  No GST is applicable on room tariffs of less than Rs 1,000.  A 12 per cent tax will be levied on the tariff of more than Rs 1,000 and less than Rs  2,500 while an 18 per cent levy would come in for room rents of between Rs 2,500 and Rs  7,500.  A GST of 28 per cent will be charged on tariff greater than Rs 7...

Cabinet May Consider Ordinance On GST Cess Hike Tomorrow The Centre is all set to pass an ordinance that will increase the additional cess levied  on SUVs to 25 per cent from 15 per cent under the Goods and Service Tax (GST) regime at  present. This will be applicable to all motor cars designed to transport 13 persons seated  including the drivers, including station wagons and racing cars. Prices of most SUVs were  cut between Rs 1.1 lakh and Rs 3 lakh following the implementation of GST, which subsumed  over a dozen central and state levies like excise duty, service tax, and VAT from July 1. The GST Council, the apex tax rate setting body under the GST regime, had on August 5,  2017, approved raising cess on SUV's. But, for raising the cess requires an amendment to  the Schedule of section 8 of the GST (Compensation to a State) Act, 2017. An ordinance is issued when Parliament is not in session to approve legislation or change  in legisla...

RBI asks banks to stick to December deadline for insolvency The latest communique is a reminder of that deadline, say bankers The Reserve Bank of India (RBI), sources say, has instructed banks to maintain the December deadline for completing the bankruptcy proceedings on their largest non-performing assets (NPAs), in addition to the 12 named in June and the ones in various stages of similar operations.  Senior bankers of various banks said there was no common list as such, but separate lists for different banks, drawn up on the basis of each one’s exposure to the defaulters.  So, say, if State Bank of India (SBI) received a list of 30 accounts, Punjab National Bank had a 20-account list, IDBI Bank had a list of 15-20 names, and Bank of Maharashtra was given a list of 10 names, say bankers. Many of the accounts are common among the lists as the loans were given by consortiums of lenders.  On June 13, the RBI had said the top 12 accounts, having an exposure of a...

GST collections top govt target, 64% file returns in July: Arun Jaitley First month sees Rs 92,283 cr mop-up; Arun Jaitley says 'we have crossed the red line' The collections under the goods and services tax (GST) in July, the first month of its  roll-out, exceeded the Union and state governments’ target, even though 36 per cent of the  assessees did not file returns. The governments have earned Rs 92,283 crore, against the target of Rs 91,000 crore. Extrapolating the targets in the annual Budget, the central government’s July tax revenue  should have been Rs 48,000 crore. Assuming 14 per cent growth each in 2016-17 and 2017-18  over the 2015-16 revenues of the states, their tax kitty should have been more than Rs  43,000 crore for the month.  The growth rate is taken in accordance with a formula of compensating loss-making states. Thus, the combined kitty comes to Rs 91,000 crore. Union Finance Minister Arun Jaitley said: “We have crossed t...