Plan and Policy

Plan & Policy

Flood-hit Kerala traders get a GST shocker

As life limps back to normalcy in flood-ravaged Kerala, tax authorities have directed field officers to collect information on the extent of loss and damage of goods to ensure input tax credit (ITC) taken on them is reversed.

The direction has come even as trade and industry is hoping to get relief from the government after the disaster hit the coastal state.

Cab secy to chair meet today to solve NPA mess of power firms

As a last ditch effort to save 34 power projects from being pushed into bankruptcy, a high-level empowered panel, led by cabinet secretary PK Sinha, is likely to seek more time from the RBI for finding a resolution for these stressed assets.

 The committee, which is holding its first meeting on Friday, will also discuss ways of improving fuel supply to these power plants and look at ways ensuring that they get power purchase agreements (PPAs) for their smooth operations.

India remains preferred destination for FDI

India would continue to be one of the top recipients of foreign direct investment (FDI) globally with domestic consumption remaining str­o­ng, RBI has said in its annual report. The central bank said with the manufacturing sector gathering momentum, helped by both services and agriculture sectors, consumption demand remains strong in the country making it an attractive investment destination.

RBI flags farm loan waivers

The Reserve Bank of India (RBI) has warned that fiscal ri­sks from several states goi­ng to polls in 2018-19 could only add to the pressure on the banking system due to farm loan exemptions.

“With regard to the fiscal position of states, budget estimates for 2018-19 have envisaged a revenue surplus and a lower fiscal deficit. In the year, however, fiscal risks may emanate from many st­a­tes going for elections, the ad­ditional burden of farm lo­an waivers announced outside budgeted outlays and the implementation of pay/ pe­n­sion/allowances revisio­ns,” RBI said.

DeMo – all pain & no gain

Tax evaders managed to legalise their ill-gotten gains? At least this is what the numbers make us feel as 99.3 per cent of demonetised notes have returned into the system revealed the annual report of 2017-18 released by RBI on Wednesday.  The numbers have come after almost two years since the demonetisation was announced on November 8, 2016.

Shivpal floats Samajwadi Secular Morcha; Akhilesh, BJP dismissive

Sidelined Samajwadi Party leader Shivpal Yadav on Tuesday launched a new outfit —  Samajwadi Secular Morcha — and said he would try to unite smaller parties under it. However, Shivpal, the estranged uncle of Samajwadi Party president Akhilesh Yadav, refused to answer whether the Morcha will contest the 2019 Lok Sabha polls.

India expects clarity on Iran oil cut after US meeting

India will not completely halt Iranian oil imports and will finalise its strategy on crude purchases from Tehran after a meeting with top US officials next week, a senior government official said.

US Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will hold high-level talks with India’s Foreign Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman on September 6, in what is known as a 2+2 dialogue.

Widening CAD likely to increase borrowing costs

The widening current account deficit (CAD), which is projected to cross 2.6 per cent of the gross domestic product (GDP) this year, coupled with the rupee plunge, is likely to increase borrowing costs for corporates and bring down the overall volume of fresh forex loans, says a report.

By losing over 9 per cent year-to-date, the rupee is the worst performing among ma­jor emerging markets cu­r­rencies. The currency dip to a new low on Monday at 70.15 against the dollar.

Coal imports may rise to 62 mt in FY19

Higher demand for thermal power and lower-than-required growth in domestic coal output may push up coal imports to 62 million tonnes this fiscal, says India Ratings. According to the agency, imported coal requ­irement is likely to increase to 62 million tonnes this fiscal from 56 million tonnes in FY2018 to meet the incremental power generation.

RBI employees’ 2-day mass leave to hit banks

The two-day mass casual leave on September 4 and 5 called by the United Forum of Reserve Bank Officers and Employees (UFRBOE) is likely to paralyse operations of the central bank and other major lenders across the country.

“UFRBOE has called the mass casual leave on September 4 and 5, which will be participated by all officers, paralysing the central bank’s functions for two days,” forum member and All India Reserve Bank Employees Association general secretary Samir Ghosh told reporters here.