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GLOBAL FIRST PM Narendra Modi launches Aadhaar Pay system allowing cash transfers using biometrics even without phones Prime Minister Narendra Modi launched the BHIM-Aadhaar platform, putting in place yet another keystone of a digital payment system that will help India make the  shift to a less-cash economy . The biometric-based indigenous payment solution will enable real-time bank-tobank money transfers even for those without a phone and at no additional cost.“This app can work even on a . 1,000-1,500 phone, you don't ` need a smartphone. If you don't have a phone you can use your thumb,“ he said, referring to fingerprint authentication. Modi was speaking in Nagpur to mark the 126th birth anniversary of BR Ambedkar, after whom the payment system has been named. Modi called the BHIM app “a game changer“ and said that despite criticism over Aadhaar being linked to bank accounts, the payment solution would set a global trend and lead to other countries taking lessons from I...

Moving goods worth more than Rs 50,000 under goods and services tax(GST) will require prior online registration of the consignment and securing an 'eway-bill´ that tax officials can inspect any time during the transit tocheck tax evasion. The Central Board of Excise and Customs has issued draft rules on Electronic Way( eway) bill that require registered entities to furnish, in a prescribed format, GST Network(GSTN) website information relating to any goods worth more than Rs 50,000 they intend to move within a state or outside.GSTN will generate eway bills that will be valid for 115 days, depending on distance to be travelled — one day being for 100 kilometres and 15 days for more than 1,000 km transit. Business Standard, New-delhi 15th April 2017

Includes those dealing in highvalue property and petrol pump owners After receiving a lukewarm response to the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the income tax (IT) department has zeroed in on 60,000 persons who deposited  “excessive” cash after the note ban.These include those dealing in highvalue property and petrol pump owners. Of the 60,000 persons, 1,300 are “high risk” ones who, along with the remaining, would be probed for possible black money generation as part of Operation Clean Money II (OCM) launched on Friday, the Central Board of Direct Taxes (CBDT) stated. More than 6,000 of highvalue property purchases and 6,600 cases of outward remittances will be investigated in detail as part of the OCM. The government had allowed people to deposit demonetised notes in banks between November 9 and December 30. Businesses reporting sales as the source of cash deposits, which are excessive compared to their past profile, will be probed.These may include petrol pumps an...

Union Revenue Secretary Hasmukh Adhia today said that more people and business units would come under tax net once GST was implemented from July 1.  "One of the objective (of GST) is to widen the tax net and it will happen once GST comes into force from July," Adhia told reporters here.  Post-GST, indirect tax collection would see a growth of 10 per cent as per government target, he said.  Taking part in a discussion with business community of Assam, Adhia urged traders of to adopt the new system as not many of them migrated to GST mode. The Business Standard New Delhi, 14th April 2017

To check any misuse of funds raised through initial public offerings (IPOs), Sebi plans to make it mandatory for all companies to appoint a monitoring agency to keep a tab on the use of the capital raised through share sale. Under the present norms, such a monitoring agency, which could beabank or public financial institution, is required to be appointed only by the companies raising more than Rs 500 crore in the public offer. Suspecting misuse of funds raised through smaller share sales of up to Rs 500 crore, the regulator is mulling making it mandatory for all companies to get the use of their IPO proceeds monitored, irrespective of the offer size, sources said. The Business Standard New Delhi, 14th April 2017

The Union commerce ministry on Thursday said it will take feedback from businesses on implementation of reforms carried out by states while ranking them on ease of   doing business this year. The ministry said Department of Industrial Policy and Promotion will carry out business to government feedback exercise this year. As part of the exercise, "feedback will be taken from businesses on the quality of implementation of the reforms claimed by the states and Union Territories (UTs)," it   said. It added feedback scores will be used to generate a ranking of states/UTs in terms of reform implementation. "Such a ranking will be different from the last year´s ranking, which was a ranking of de jure reforms," the commerce and industry ministry said. De jure is used to   indicate that something is according to law. The Business Standard New Delhi, 14th April 2017

The Reserve Bank of India’s (RBI’s) new — revised after 15 years — prompt corrective action (PCA) plan on loans going bad at banks could restrict normal business  activity for at least 15 of the stressed lenders. And, once such a PCA plan is put in place, a bank will have to do what the RBI wishes the lender to do, putting the central bank in the driver’s seat in bad debt   resolutions. Any bank with a net non-performing assets (NPA) ratio of six per cent or more, as of March 2017, will come under the scanner of the RBI. The central bank can then   direct the bank on how to go about its business. System-wide, stressed assets (gross bad debts plus restructured assets) were estimated to be at least Rs 9.5 lakh crore.  Since all existing bad debt resolution plans have largely failed, the government is devising its own grand resolution plan.  In the 2002 plan, the threshold was set at 10 per cent. Under the new norm, 17 banks have come under the RBI le...

The Supreme Court on Thursday dismissed yet another petition filed by a UP resident seeking to pay undisclosed income along with tax and penalty in old notes under the Pradhan Mantri Garib Kalyan Yojana .  Under the scheme, any citizen could deposit his old notes with a bank, provided he was willing to lock up 25%of the money in bonds for four years and pay his taxes and penalties. Besides this, the person would have to pay 30 % tax, 33 % surcharge and 10%penalty. The Uttar Pradesh resident claimed that though he had tried to deposit unaccounted amount of Rs 33 lakh, the bank had turned him away. Under the scheme any person could deposit his undisclosed income in old notes between December 17, 2016 and March 31, 2017. Those who deposit it later, would have to pay tax and surcharge and penalty up to 85%.  Those who do not disclose but are caught holding undisclosed income would have to pay tax and penalty upwards of 200 %.  Petitioner's lawyer told a bench of Chief...

The government plans to make Aadhaar compulsory for regulatory filings made by key managerial personnel and directors under the Companies Act so as to weed out bogus  entities. There are more than nine lakh active companies in the country and the proposal comes at a time when authorities have stepped up efforts to curb money  laundering activities through shell firms. Registered companies have to submit filings as mandated under the Companies Act in electronic format through the MCA21   portal. The Ministry of Corporate Affairs is “actively considering“ integration of Aadhaar for availing various MCA21 related services. The Economic Times New Delhi, 14th April 2017

Economic affairs secy says decision on report well before next Budge t Demonetisation and implementation of GST will widen the tax base leading to improvement in the tax-to-GDP ratio, and together with higher growth over next two-three   years allow the government to maintain fiscal prudence while setting aside funds for public investments, economic affairs secretary Shaktikanta Das said.  Commenting on the Fiscal Responsibility and Budget Management (FRBM) committee report, Das told ET in an interview that the panel has made the goals more focussed and   the government will take a call on the report well before the next Budget. The NK Singh-headed commit tee has suggested a new fiscal framework anchored on sustainable government debt pegged at 60% of GDP and prescribes appropriate fiscal   deficits to achieve the same by FY23.  “In the recent years, compliance (to the fiscal deficit targets) is definitely strong. Now post demonetisation and post impleme...

The Supreme Court has said the third arbitrator in any international rift involving a foreign company should always be from a neutral country for a sense of fairness and to promote India as an arbitration hub. A bench led by Chief Justice of India JS Khehar made this observation on Wednesday during a hearing in a case involving IIRF Realty XVI and Aria Hotels and Consultancy Services Pvt. The CJI said both parties should agree on some names to act as the third arbitrator, failing which the court would appoint an arbitrator. “We have always appointed neutral arbitrators,“ said Khehar, sitting alongside Justices DY Chandrachud and Sanjay Kishan Kaul. The observations may have ramifications for several cases that have been held up because both sides could not agree on a neutral third arbitrator. One such case involves Reliance Industries' row with the government of India on the KG-D6 basin, which has been held up, with RIL insisting that the third arbitrator be experienced in Indi...