QBiz: Mental Illness Now Covered; Record Tax Collections in 17-18
Here are the top headlines from the world of business.
1. NAA Plans to Knock on Factory Gates to Enforce GST Rate Cuts
The National Anti-profiteering Authority (NAA) has moved to make sure that cuts in GST rates are enforced at the factory gate level rather than waiting for consumers to complain about businesses cornering tax benefits meant for them.
Manufacturers and wholesale dealers will now get calls from GST officials asking them to lower prices in line with tax cuts at the beginning of the supply chain so that the benefits naturally follow to consumers. NAA is also in the process of putting in place a facility for anyone to dial a number and file complaints under guidance from a tax inspector, said a person familiar with the development.
This comes in the wake of NAA noting that there has not been a single complaint of profiteering from 17 states despite several rounds of tax cuts since the GST rollout in July 2017.
(Source: Livemint)
2. Now, Mental Illness to be Covered
Mental illness will now be included in medical insurance covers, which will help patients get quality medical care without creating a financial burden.
“Every insurer shall make provision for medical insurance for the treatment of mental illness on the same basis as is available for the treatment of physical illness,” said insurance regulator Insurance Regulatory and Development Authority of India (IRDAI).
The move follows the enactment of the Mental Healthcare Act, 2017, which came into force on 29 May.
As the name suggests, the Act provides for mental healthcare and services for persons with mental illness, and also to protect, promote and fulfil the rights of such persons during the delivery of mental healthcare and services. It has mandated medical insurance for such illnesses.
At present, most medical insurance packages do not provide cover for such ailments. Some insurers have now introduced plans for unrelated conditions such as autism in children.
(Source: The Hindu Business Line)
3. Indian Economy Grew in Double Digits Twice Under UPA Govt, Says Panel
The Indian economy grew in double digits twice during the tenure of the Manmohan Singh government (2004-14), shows the back-dated data on the new series of gross domestic product (GDP) given by a panel on real sector statistics.
The data showed that GDP grew by 10.23 per cent in 2007-08 and 10.78 per cent in 2010-11 against the earlier numbers of 9.32 per cent and 8.91 per cent, respectively.
The new series has 2011-12 as the base year and the earlier series 2004-05 and 1993-94.
Officials of the Ministry of Statistics and Programme Implementation (MoSPI), which released the report, said the data provided by the panel was “indicative” and the National Accounts would work out the final numbers based on these figures in three-four weeks.
(Source: Business Standard)
4. Apex Court Vacates TDSAT Order Against Rcom on Differential Spectrum Pricing
The Supreme Court on Friday, 17 August, vacated an earlier appellate tribunal order against Reliance Communications (RCom) on differential spectrum pricing, which was upheld by the Department of Telecommunications (DoT).
The move will help in speeding up the asset monetisation deal with Reliance Jio Infocomm (RJio).
The order, which favours RCom, vacated a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) judgment passed on 3 August 2018, and communicated the same to the licensor, DoT.
When contacted, lawyers representing the parties confirmed the development, while RCom declined to comment.
RCom had moved the Supreme Court seeking to strike down or quash clause No 8 of DoT guidelines for trading of spectrum by telecom operators, including RCom. In its plea, RCom had also urged the court to direct DoT to permit trading of its spectrum without levying any differential charges.
(Source: The Hindu Business Line)
5. Income Tax Department Eyes over Rs 100 Billion from 'Struck off' Firms
The income-tax (I-T) department is estimating tax recovery of over Rs 100 billion from companies that have been struck off from records of the Registrar of Companies (RoC) last year.
The tax department is in the process of filing a petition before the National Company Law Tribunal (NCLT) for restoration of registration in as many as 50,000 such companies.
The RoCs had struck off 300,000 companies after it was found they had not filed their statutory returns.
Directors of these companies have been prohibited from holding directorships in any other company.
The move follows Central Board of Direct Taxes’ (CBDT) directive to identify, process and file petition to restore these companies by 31 August.
(Source: Business Standard)
6. Air India Pilots Threaten to Stop Operations Over Non-Payment of Dues
A section of Air India pilots have threatened to stop operations if their flying allowance dues are not paid immediately.
Alleging that while the salaries and perks of other employees are paid in full albeit with a delay, the same for the pilots and cabin crew are "ignored", despite the fact that flying allowances of these two licenced categories of employees form a major chunk of their salaries.
"We would like to inform you if the flying allowance is not paid immediately, we may not be available for flying duties," the Indian Commercial Pilots Association (ICPA) said in a communication to Air India's director of finance on Friday, 17 August.
ICPA represent over 700 pilots of the airline's Airbus 320 family fleet.
(Source: Business Standard)
7. Record! Whopping Income Tax collection – Rs 10.03 Lakh Crore During 2017-18
Income Tax collection in the country stood at a record Rs 10.03 lakh crore during 2017-18, the Central Board of Direct Taxes (CBDT) said on 17 August.
Addressing a two-day conference of Income Tax Administrators of Eastern Zone in Guwahati, Shabri Bhattasali, Member of CBDT said that during 2017-18, a record number of 6.92 crore I-T returns were filed, which was 1.31 crore more than 5.61 crore returns filed in 2016-17.
The I-T Department added 1.06 crore new return filers during 2017-18 and aims to add 1.25 crore new filers for the current year. In the Northeast region, this number was 1.89 lakh, she said.
LC Joshi Ranee, Principal Chief Commissioner of Income Tax, North Eastern Region said that Rs 7,097 crore tax was collected from the region during 2017-18. This is 16.7 percent higher than Rs 6,082 crore collected in the preceding year, Ranee said.
(Source: Financial Express)
8. GAAR and GST Reporting in Tax Audit Deferred Till 31 March
The income tax department has deferred the implementation of a proposal that required tax audit to include reporting on goods and services tax and general anti-avoidance rules.
The proposed measure has been kept in abeyance till 31 March, said a circular issued by the income tax department on Friday.
So all tax audits to be furnished between 20 August 2018 and 1 April 2019 will not require the additional reporting. The income tax department last month through a notification had introduced additional reporting requirements effective 20 August.
However, stakeholders found these reporting requirements onerous and made representations to the Central Bureau of Direct Taxes seeking relaxation in the form 3CD that has to be filled by auditable companies. All firms that have a turnover of more than Rs 1 crore have to fill this form.
(Source: Livemint)
9. Delhi High Court Dismisses PIL Against Cap on Free Withdrawals from ATMs
The Delhi High Court, on 17 August, dismissed a PIL against the cap on free-of-charge withdrawals by banking customers from own bank ATMs, saying it was a policy decision.
A bench of Chief Justice Rajendra Menon and Justice VK Rao on Thursday said the ATM facility provided by banks have lot of overhead costs, like salary of guards and power consumption charges, and therefore, there cannot be unlimited free ATM transactions.
"They have to maintain the ATMs and there would be establishment costs," the court said, adding that it would be "disastrous" if banks close the ATMs due to its interference in the issue.
The court said Rs 20 for every additional transaction in a month can be afforded by a banking customer and dismissed the petition.
(Source: Business Standard)
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