ATM Transactions - Own bank 5, others 3 in Metros and 5 + 5 in other places - RBI
ATM Transactions
As per present guidelines of Reserve Bank of India (RBI), from November 1,
2014, banks are mandated to offer minimum five free transactions per month in
own bank ATMs and three in other bank ATMs in six metro centres (Mumbai, New
Delhi, Chennai, Kolkata, Bengaluru and Hyderabad). In non-metro centres,
minimum five free transactions per month in own bank ATMs and five in other
bank ATMs are mandated. Banks are free to offer free transactions above the
mandated limit specified by RBI.
As on 24th February, 2016, Department of Posts (DoP) has
installed 550 ATMs out of a target of 1000 ATMs in various parts of the
country.
As on 31.12.2015, Scheduled Commercial Banks (SCBs) have 193434 ATMs across the
country, out of which 33249 ATMs are in Rural Centres and 51925 in semi-urban
centres. In order to expand the reach of ATMs in Tier III centres (population
between 20,000 to 49,999) to Tier VI centre (population less than 5000), RBI
has permitted non-bank entities incorporated in India. Three different schemes
are available to such While Label ATM operators for setting of While Label ATMs
(WLAs), which incentivize setting up of WLAs in Tier III to Tier VI centres,
details of which are available in RBI Circular No. DPSS.CO.PD.No. 2298.
10.002.2011-2012 dated 20.6.2012 available on RBI’s website (https://rbi.org.in).
as on 31.2.2015, 11706 WLAs have been set up.
This
was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in
written reply to a question in Lok Sabha today.
*****
Paternity Leave to Bank Employees
Grant of Paternity Leave to bank employees has been
accepted under the 10th Wage Negotiation Settlement signed between Indian
Banks’ Association (IBA) and the Unions/Associations of employees.
Male employees with less than two surviving children shall be eligible for 15 days paternity leave during his wife’s confinement and may be availed upto 15 days before or upto 6 months from the date of delivery of the child.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Male employees with less than two surviving children shall be eligible for 15 days paternity leave during his wife’s confinement and may be availed upto 15 days before or upto 6 months from the date of delivery of the child.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
*****
Online Selling of Products by Public Sector
Insurance Companies
As per the information furnished by Insurance
Regulatory and Development Authority of India (IRDAI), the price of insurance
products sold online through the Insurance Company’s website, without any
intervention of agent or intermediary, is lower in comparison to the offline
version because no commission is payable in such cases. The cost of online
products sold by the insurers gets reduced by the amount of savings due to
non-payment of commission on such products. However, any system establishment
expenses, expenses related to call centre to assist online customers etc., get
added to the price of such products. Hence, the prices may vary when the
products are sold through online and offline.
The online payment system of insurance companies are functioning properly and regularly and no instances have come to the notice of the Authority
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
The online payment system of insurance companies are functioning properly and regularly and no instances have come to the notice of the Authority
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
*****
Tax Administration Reforms Commission
The Government has received the Report of Tax Administration Reforms Commission
(TARC) headed by Dr. Parthsarathi Shome. The Report has four volumes containing
a number of tax administration reforms. The broad recommendations inter-alia
include changes in structure, improvement in taxpayers service, enhanced use of
information and communication technology, exchange of information with other
agencies, strengthening of human resource management, key internal processes,
customs capacity building, impact assessment, expansion of base, compliance
management, revenue forecasting, predictive analysis and research for tax
governance etc. These recommendations are at various stages of
examination/acceptance/implementation. The recommendations of TARC accepted and
implemented so far may be seen at Department of Revenue’s website www.dor.gov.in.
A number of steps have been taken to facilitate the direct tax payers which
inter-alia include measures aimed at reducing litigation, setting up of a
dedicated structure to deal with grievances of the taxpayers, simplification of
procedures, enhancement of e-facilities including electronic verification of
income tax return, e-sahyog etc.
Further, for the welfare of indirect tax payers the following steps have been
taken:
· Establishment of 24X7 customs clearance facility in
17 airports and 18 seaports.
· Customs Single Window Clearance Project for faster
customs clearance.
· Implementation of e-BRC (BRC-Bank Realization
Certificate) module
· Establishment of Help Desk at prominent places at
international airports for facilitating passengers including business
travelers.
· Reduction in number of export and import documents
required by customs from 5 to 3 so as to reduce transaction cost.
· Integrated customs EDI – SEZ Online system to
facilitate paper-less movement of export and import goods between SEZs and
Gateway ports.
· Customs Accredited Client Programme (ACP) reviewed
with a view to allow a graded re-entry to disqualified ACP clients to
facilitate major importers.
· Rationalization of penal provisions in Customs,
Central Excise and Service Tax.
· New Central Excise/Service Tax registrations to be
given within two days of filing of application, with post facto verification,
if required.
· E-payment of service tax and central excise made
mandatory for all assesses/taxpayers to reduce the cost of compliance for the
trade and industry.
· Acceptance of digitally signed invoices and
providing for maintenance of electronic records with duly authenticated digital
signature.
· Direct dispatch of goods allowed for job workers as
well as registered dealers and importers.
· Time limit for availing Cenvat Credit increased
from 6 months to 1 year.
· Circular issued extending facility to pay arrears
in installments extended and for amendment of Garnishee order.
· Rules amended to provide clarity regarding
valuation of goods in Central Excise when the transaction value is below the
cost of manufacture of goods.
This
was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance
in written reply to a question in Lok Sabha today.
*****
Clarification regarding taxability of consortium
members
Taxation of consortium of contractors
formed to implement Engineering, Procurement and Construction (EPC)
contracts/turn key projects has been a subject matter of dispute between
Income-tax Department and the consortium. This has been particularly so in
cases where each member of the consortium has a clear and district role in
scope of work, responsibilities and liability of the consortium even though
each member is jointly and severally liable to the contractee.
To bring about consistency in approach
while handling cases of consortium, the Central Board of Direct taxes has
issued Circular No. 7/2016 clarifying the attributes of a consortium
arrangement which may not be treated as an Association of Persons(AOP).
The list of attributes is not exhaustive. There may be additional factors which
may justify not treating a consortium asan AOP depending on specific facts and
circumstances.
The Circular will not apply to cases
where all or some of the members of the consortium are Associated Enterprises
as defined in section-92A of the Income-tax Act.
This Circular is expected to reduce
litigation with consortium of contractors implementing EPC contracts/turnkey
projects.
Circular No.7/2016 is available on the
website of the Department www.incometaxindia.gov.in.
*****
Issue of clarification on contentious TDS issues on
payments made by Television channels, Broadcasters and Newspapers
With
a view to bring about clarity in the interpretation of certain contentious
issues relating to Tax Deduction at Source (TDS) on payments made by television
channels, broadcasters and newspapers, Central Board of Direct Taxes has issued
two Circulars.
Circular
No.4/2016 dated 29.02.2016 deals with TDS on payments by broadcasters
or television channels to production houses for production of content or
programme for telecasting. It has been clarified in the Circular that in a
situation where the content/programme is produced as per the specifications
provided by the broadcaster/telecaster and the copyright of the content/
programme also gets transferred to the telecaster/broadcaster, such contract is
covered by the definition of the term ‘work’ in section 194C of the Income-tax
Act and, therefore, subject to TDS under section 194C at 2%, rather than
at a rate of 10% under section 194J as payment for ‘professional or technical
services’.
Circular No.5/2016 dated 29.02.2016
deals with TDS on payments by television channels and publishing
houses to advertisement companies for procuring or canvassing for
advertisements. It has been clarified through the Circular that no TDS is
attracted on payments made by television channels/newspaper companies to the
advertising agency for booking or procuring of or canvassing for
advertisements. This clarification puts at rest the litigious issue as to
whether such payments/discounts are in the nature of ‘commission’ and so,
subject to TDS at the rate of 10% under section 194H.
Both the Circulars are available on the
website of the Department www.incometaxindia.gov.in.
*****
Indian Economy to grow at robust pace; GDP growth
expected in the range of 7 to 7.75 per cent in coming year
As per the Advanced Estimates released by Central
Statistics Office (CSO), the growth of Gross Domestic Product (GDP) at constant
(2011-12) market prices is estimated at 7.6 per cent in 2015-16 indicates that
despite uncertainties in the global economy, Indian economy stands out as a
haven of macroeconomic stability, resilience and optimism and can be expected
to register GDP growth that could be in the range of 7 to 7.75 per cent in the
coming year. International Monetary Fund, in their World Economic Outlook
Update (January 2016) has indicated that India is projected to continue growing
at a robust pace.
As per the Budget 2016-17, the fiscal deficit as a ratio of GDP at current market prices is estimated at 3.9 per cent for the year 2015-16 (revised estimates). As per the Advanced Estimates released by Central Statistics Office (CSO), the growth of GDP at constant (2011-12) market prices is estimated at 7.6 per cent in 2015-16. This estimation has been done in accordance with the international best practices.
The fixed investment (measured by Gross Fixed Capital Formation) by the private corporate sector increased from 11.7 per cent of the GDP at current market prices in 2013-14 to 12.3 per cent in 2014-15 (the latest year for which data is available), despite indications of constraints like stressed assets. Investment depends on various factors that, interalia, include: expectations of demand viz-a-vis the available capacity, expected profit, business climate and interest rate. The Government has taken a number of steps to improve the business climate and boost investment n the economy which, among other, include: the “Make in India” initiative along with the attendant facilitatory measures for a more conducive environment for investment; Start-up India initiative to boost entrepreneurship and creation of jobs; opening up of specified sectors for foreign direct investment; and investment-augmenting tax measures. The Reserve Bank of India reduced the policy repo rates by 125 basis points during 2015.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
As per the Budget 2016-17, the fiscal deficit as a ratio of GDP at current market prices is estimated at 3.9 per cent for the year 2015-16 (revised estimates). As per the Advanced Estimates released by Central Statistics Office (CSO), the growth of GDP at constant (2011-12) market prices is estimated at 7.6 per cent in 2015-16. This estimation has been done in accordance with the international best practices.
The fixed investment (measured by Gross Fixed Capital Formation) by the private corporate sector increased from 11.7 per cent of the GDP at current market prices in 2013-14 to 12.3 per cent in 2014-15 (the latest year for which data is available), despite indications of constraints like stressed assets. Investment depends on various factors that, interalia, include: expectations of demand viz-a-vis the available capacity, expected profit, business climate and interest rate. The Government has taken a number of steps to improve the business climate and boost investment n the economy which, among other, include: the “Make in India” initiative along with the attendant facilitatory measures for a more conducive environment for investment; Start-up India initiative to boost entrepreneurship and creation of jobs; opening up of specified sectors for foreign direct investment; and investment-augmenting tax measures. The Reserve Bank of India reduced the policy repo rates by 125 basis points during 2015.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
*****
Investment in Infrastructure
As per the White Paper on Infrastructure Financing
brought out by CRISIL Ratings and ASSOCHAM India in December, 2015, it is
estimated that the country would need Rs. 31 lakh crores investment in
infrastructure during 2015-20. The Paper estimates that about 70 per cent o
this will be required in the power, roads and urban infrastructure sectors. The
Paper further estimates that over two-thirds of the investment (seventy per
cent) would need to be funded through debt and thirty per cent would be through
equity.
Apart from public investment, Government has taken steps to mobilize other sources of investment funds from various sources for development of basic infrastructure, including through the establishment of Infrastructure Debt Funds, Real Estate/Infrastructure Business Trusts (REITs/InvITs), relaxation in External Commercial Borrowing (ECB) and Foreign Direct Investment (FDI) norms, mainstreaming of Public Private Partnerships (PPPs), liberalization of lending norms by banks to infrastructure sector, relaxation of norms for Employees’ Provident Funds Organisation (EPFO)/pension funds investment in infrastructure sector, establishment of National Infrastructure Investment Fund (NIIF) etc.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Apart from public investment, Government has taken steps to mobilize other sources of investment funds from various sources for development of basic infrastructure, including through the establishment of Infrastructure Debt Funds, Real Estate/Infrastructure Business Trusts (REITs/InvITs), relaxation in External Commercial Borrowing (ECB) and Foreign Direct Investment (FDI) norms, mainstreaming of Public Private Partnerships (PPPs), liberalization of lending norms by banks to infrastructure sector, relaxation of norms for Employees’ Provident Funds Organisation (EPFO)/pension funds investment in infrastructure sector, establishment of National Infrastructure Investment Fund (NIIF) etc.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
*****
Subsidies on Commodities
The subsidy bill of the Central Government has remained in the range of Rs.
2.50 lakh crore to Rs. 2.58 lakh crore during the period, 2014-15 to 2016-17
(Budget Estimates). The fiscal deficit of the Central Government, which is the
difference between total expenditure and non-debt receipts, has been in the
range of Rs. 5.11 lakh crore to Rs. 5.35 lakh crore in this period. As
proportion of GDP, both subsidy bill and fiscal deficit declined during this
period.
Details of subsidies given under different heads are in table below:
Details of Subsidies (Rs. in crore)
|
Subsidy
|
2012-13
|
2013-14
|
2014-15
|
2015-16 RE
|
|
Food
|
85000
|
92000
|
117671
|
139419
|
|
Fertilizer
|
65613
|
67339
|
71076
|
72438
|
|
Petroleum
|
96880
|
85378
|
60269
|
30000
|
|
Other
|
9586
|
9915
|
9242
|
15944
|
|
Total
|
257079
|
254632
|
258258
|
257801
|
|
RE=Revised Estimates
|
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Direct Benefit Transfer (DBT) was started in 1.1.2013 and expanded across all
Central Sector/Centrally Sponsored Schemes involving cash transfers to
individual beneficiaries in February 2015. In cash transfer, the benefit is
transferred in the beneficiary’s account, preferably Aadhaar seeded. Presently,
LPG subsidy is transferred directly in to the bank accounts of beneficiaries.
Food subsidy in cash is disbursed in wo Union Territories viz, Puducherry and
Chandigarh, directly in beneficiaries’ bank accounts, in kind, after biometric
authentication, in 70000 fair price shops at present. The Union Budget 2016-17
has indicated the introduction of DBT on pilot basis for fertilizer in a few
districts across the country. Hence, it is difficult to indicate a timeframe
for completing the shift to the system of cash transfer.
This
was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance
in written reply to a question in Lok Sabha today.
*****
Stand Up India Scheme
The Cabinet has approved the “Stand Up India
Scheme” to promote entrepreneurship among Scheduled Caste/Schedule Tribe and
Women.
The schemes provides for composite loans by banks between Rs. 10 lakh and upto Rs. 100 lakh for setting up a new enterprise in the non-farm sector. These loans would be eligible for refinance and credit guarantee cover.
A credit guarantee fund of Rs. 5,000 crore for providing guarantee cover for loans under Stand Up India in next five years has been approved. Provision of initial capital of Rs. 500 crore to the corpus in FY 2016-17 has been made.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
The schemes provides for composite loans by banks between Rs. 10 lakh and upto Rs. 100 lakh for setting up a new enterprise in the non-farm sector. These loans would be eligible for refinance and credit guarantee cover.
A credit guarantee fund of Rs. 5,000 crore for providing guarantee cover for loans under Stand Up India in next five years has been approved. Provision of initial capital of Rs. 500 crore to the corpus in FY 2016-17 has been made.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
*****
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