Amid signs of slippage of the April 1 GST rollout target, Finance Minister Arun Jaitley today said pending resolution of &quot;turf&quot; issues, GST is a transactional levy that unlike income tax can be implemented anytime during the year.

The Goods and Services Tax (GST), he said, can be implemented anytime between April 1 and September 16, 2017, in accordance with the constitutional amendment legislation that allows a national sales tax by subsuming central and state levies.

The GST Council has resolved 10 issues and only one pertaining to administration of tax is pending, he said.

&quot;It is a transactional tax and not an income tax. Transactional tax can start in any part of the financial year and therefore, the range of timing when it has to come into force because of constitutional necessity is April 1, 2017 to September 16, 2017. Hopefully, the earlier we do, the better it is for the new taxation system,&quot; Jaitley said at the annual general meeting (AGM) of FICCI here.

After Parliament passed the landmark constitutional amendment in August and more than half of state legislatures ratified it by mid-September, several key decisions have been taken by the GST Council headed by Jaitley and comprising state representatives.

Jaitley alluded to &quot;certain kinds of turf issues&quot; that are yet to be resolved.

&quot;But the constitutional embargo is very clear. The entire amendment was notified on September 16, 2016, and it permits the old taxation regime to continue for a period of one year,&quot; he said.

&quot;So on September 16, 2017, as far as the current mode of taxation is concerned, the curtain will be down. Therefore, neither the Centre nor&nbsp;the state can go in for collection.&quot;

According to the finance minister, there are about ten important decisions that have already been taken through consensus. The legislations which have to be passed by Parliament and state legislatures are currently in the process of being drafted.

&quot;I don&#39;t see any major difficulty for these legislations being finally approved,&quot; he said.

The only issue remaining &quot;is a very small in the larger frame of things&quot; and the tax administration is under discussion of the GST Council as three major and some minor taxes are being merged into one.

Jaitley suggested there is a need that each assessee is assessed only once since central taxes like excise and service tax and state levies like VAT are being subsumed into one.

&quot;You have the pre-existing (tax) machinery of the Centre and states. (It has to be decided) how the burden of this assessment is going to be shared between the Centre and states and how we cross-empower both the Centre and states,&quot; he said further.

Saying GST will usher in a common taxation and should lead to a federal bureaucracy, Jaitley felt that both the Centre and states should figure out sharing of the tax assessment.

Ideally, he said, it should be proper for the issues to be resolved at the beginning of financial year on April 1 for the new regime to kick in. &quot;But then, in any case, nobody has the luxury of time,&quot; he cautioned.

(PTI)

The entire amendment was notified on September 16, 2016 and it permits the old taxation regime to continue for a period of one year: Jaitley

Amid signs of slippage of the April 1 GST rollout target, Finance Minister Arun Jaitley today said pending resolution of "turf" issues, GST is a transactional levy that unlike income tax can be implemented anytime during the year. The Goods and Services Tax (GST), he said, can be implemented anytime between April 1 and September 16, 2017, in accordance with the constitutional amendment legislation that allows a national sales tax by subsuming central and state levies. The GST Council has resolved 10 issues and only one pertaining to administration of tax is pending, he said. "It is a transactional tax and not an income tax. Transactional tax can start in any part of the financial year and therefore, the range of timing when it has to come into force because of constitutional necessity is April 1, 2017 to September 16, 2017. Hopefully, the earlier we do, the better it is for the new taxation system," Jaitley said at the annual general meeting (AGM) of FICCI here. After Parliament passed the landmark constitutional amendment in August and more than half of state legislatures ratified it by mid-September, several key decisions have been taken by the GST Council headed by Jaitley and comprising state representatives. Jaitley alluded to "certain kinds of turf issues" that are yet to be resolved. "But the constitutional embargo is very clear. The entire amendment was notified on September 16, 2016, and it permits the old taxation regime to continue for a period of one year," he said. "So on September 16, 2017, as far as the current mode of taxation is concerned, the curtain will be down. Therefore, neither the Centre nor the state can go in for collection." According to the finance minister, there are about ten important decisions that have already been taken through consensus. The legislations which have to be passed by Parliament and state legislatures are currently in the process of being drafted. "I don't see any major difficulty for these legislations being finally approved," he said. The only issue remaining "is a very small in the larger frame of things" and the tax administration is under discussion of the GST Council as three major and some minor taxes are being merged into one. Jaitley suggested there is a need that each assessee is assessed only once since central taxes like excise and service tax and state levies like VAT are being subsumed into one. "You have the pre-existing (tax) machinery of the Centre and states. (It has to be decided) how the burden of this assessment is going to be shared between the Centre and states and how we cross-empower both the Centre and states," he said further. Saying GST will usher in a common taxation and should lead to a federal bureaucracy, Jaitley felt that both the Centre and states should figure out sharing of the tax assessment. Ideally, he said, it should be proper for the issues to be resolved at the beginning of financial year on April 1 for the new regime to kick in. "But then, in any case, nobody has the luxury of time," he cautioned. (PTI)

GST can be rolled out anytime between April 1 and mid-September, says Indian FM

Indian finance minister today said that the Goods and Services Tax Council had reached a consensus on most issues pertaining to the new tax bill, including the contentious issue of dual control. &nbsp;

After discussions were held on central GST and integrated GST drafts in a meeting in New Delhi, Jaitley told reporters that next meeting to be held on December 11-12 will focus on completion of the drafts.&nbsp;

&quot;We have received a few suggestions on the critical issue of cross-empowerment and hope that it will lead to a positive result.&quot;

He told that a discussion was also held on the fiscal situation of states, on request from some state finance ministers and demonetisation, although it does not come under the premise of the GST Council.&nbsp;

However, Kerala finance minister Thomas Issac opposed his claims and said that there will no be consensus if the Centre does not change its stand.&nbsp;

The Centre intends to implement GST from April 1 next year.&nbsp;

Due to Constitutional compulsion, the GST has to be rolled out by September 16, 2017, as the existing indirect taxes will come to an end and it would not be possible for either the Centre or states to collect the taxes.

(WION with inputs from agencies)&nbsp;

Jaitley said the council had reached a consensus on the contentious issue of dual control & the drafts will be finalised in next meeting

Indian finance minister today said that the Goods and Services Tax Council had reached a consensus on most issues pertaining to the new tax bill, including the contentious issue of dual control. After discussions were held on central GST and integrated GST drafts in a meeting in New Delhi, Jaitley told reporters that next meeting to be held on December 11-12 will focus on completion of the drafts. "We have received a few suggestions on the critical issue of cross-empowerment and hope that it will lead to a positive result." He told that a discussion was also held on the fiscal situation of states, on request from some state finance ministers and demonetisation, although it does not come under the premise of the GST Council. However, Kerala finance minister Thomas Issac opposed his claims and said that there will no be consensus if the Centre does not change its stand. The Centre intends to implement GST from April 1 next year. Due to Constitutional compulsion, the GST has to be rolled out by September 16, 2017, as the existing indirect taxes will come to an end and it would not be possible for either the Centre or states to collect the taxes. (WION with inputs from agencies)

Indian finance minister on GST: Consensus on most issues after council meet

Indian finance minister Arun Jaitley today repudiated a call by the state government of India&#39;s West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation.

He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India&#39;s old system of indirect taxation would lapse next September.

&quot;If on September 16, 2017, there&#39;s no GST, then there&#39;s no taxation,&quot; he said. &quot;Our intention is to make sure it gets implemented from April 1, 2017.&quot;

Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December&nbsp;30 with the release of new 500 and 2,000 rupee notes.

Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November&nbsp;8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit &quot;black money&quot;.

Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India&#39;s four banknote printing presses.

Modi set a 50-day deadline that runs to December&nbsp;30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets.

&quot;Obviously, one of the advantages of this exercise is going to be that you won&#39;t have the same level of paper currency which existed,&quot; Jaitley told the Hindustan Times Leadership Summit.

(Reuters)

Jaitley repudiated a call by the Bengal government to delay the GST to avoid inflicting another economic shock

Indian finance minister Arun Jaitley today repudiated a call by the state government of India's West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation. He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India's old system of indirect taxation would lapse next September. "If on September 16, 2017, there's no GST, then there's no taxation," he said. "Our intention is to make sure it gets implemented from April 1, 2017." Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December 30 with the release of new 500 and 2,000 rupee notes. Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November 8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit "black money". Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India's four banknote printing presses. Modi set a 50-day deadline that runs to December 30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets. "Obviously, one of the advantages of this exercise is going to be that you won't have the same level of paper currency which existed," Jaitley told the Hindustan Times Leadership Summit. (Reuters)

Constitutional compulsion to roll out GST from September 2017: Indian finance minister

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive.&nbsp;

&nbsp;

Under the scheme namely,&nbsp;&lsquo;Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana,&nbsp;2016&rsquo; (PMGKY) proposed in the Bill, it said, &quot;Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (&lsquo;the Bill&rsquo;) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.&quot;

The Government said, &quot;In the wake of declaring specified bank notes &ldquo;as not legal tender&rdquo;, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy.&quot;

<table border="1" cellpadding="1" cellspacing="1" summary="Changes to Income Tax Act">
	<caption>Overview of Amendments Proposed</caption>
	<tbody>
		<tr>
			<td>PARTICULARS</td>
			<td>EXISTING PROVISIONS</td>
			<td>PROPOSED PROVISIONS</td>
		</tr>
		<tr>
			<td>General provision for penalty&nbsp;</td>
			<td>
			PENALTY (Section 270A)&nbsp;

			Under-reporting - @50% of tax&nbsp;

			Misreporting - @200% of tax

			(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
			</td>
			<td>No changes proposed</td>
		</tr>
		<tr>
			<td>Provisions for taxation &amp; penalty of unexplained credit, investment, cash and other assets</td>
			<td>
			Penalty (271AAB)

			(i) 10% of income, if admitted, returned and taxes are paid

			(ii) 20% of income, if not admitted but returned&nbsp;and taxes are paid

			(iii) 60% of income in any other case
			</td>
			<td>
			Penalty (271AAB)

			(i) 30% of income, if&nbsp;admitted, returned and taxes are paid

			(ii) 60% of income in any other case
			</td>
		</tr>
		<tr>
			<td>Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016&rsquo; (PMGKY)</td>
			<td>New Taxation&nbsp;and Investment&nbsp;Regime</td>
			<td>
			Undisclosed income in the form of cash &amp; bank deposit can be declared:

			(A)&nbsp;Tax, Surcharge, Penalty payable

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@30% of income declared

			&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Surcharge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@33% of tax

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Penalty&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@10% of income&nbsp;declared

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@50% of income (approx.)

			<a id="m_5906746394611854875__GoBack" name="m_5906746394611854875__GoBack"></a>(B) &nbsp;Deposit

			&nbsp;&nbsp;&nbsp;&nbsp; 25% of declared income to be deposited in interest &nbsp;&nbsp;&nbsp;

			&nbsp;&nbsp;&nbsp;&nbsp; free Deposit Scheme for four years.&nbsp;&nbsp;
			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
	</tbody>
</table>

&nbsp;

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called &lsquo;Pradhan Mantri Garib Kalyan Cess&rsquo; @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the &lsquo;Pradhan Mantri Garib Kalyan Deposit Scheme, 2016&rsquo;, it said.&nbsp;

&quot;This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality,&quot; it concluded. &nbsp;

The Taxation Law is expected to tax defaulting assessees at a higher rate and stringent penalty provision

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive. Under the scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill, it said, "Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision." The Government said, "In the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy." Overview of Amendments Proposed PARTICULARS EXISTING PROVISIONS PROPOSED PROVISIONS General provision for penalty PENALTY (Section 270A) Under-reporting - @50% of tax Misreporting - @200% of tax (Under-reporting/ Misreporting income is normally difference between returned income and assessed income) No changes proposed Provisions for taxation & penalty of unexplained credit, investment, cash and other assets Penalty (271AAB) (i) 10% of income, if admitted, returned and taxes are paid (ii) 20% of income, if not admitted but returned and taxes are paid (iii) 60% of income in any other case Penalty (271AAB) (i) 30% of income, if admitted, returned and taxes are paid (ii) 60% of income in any other case Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared: (A) Tax, Surcharge, Penalty payable Tax @30% of income declared Surcharge @33% of tax Penalty @10% of income declared Total @50% of income (approx.) (B) Deposit 25% of declared income to be deposited in interest free Deposit Scheme for four years. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, it said. "This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality," it concluded.

Income Tax Act: This is how the new amnesty scheme looks like

After two chief ministers threatened to hold protest and demanded the roll back of demonetisation, Indian finance minister Arun Jaitley dug his heels, slamming the two for spreading &quot;unnecessary panic&quot;.

Jaitley ruled out the roll back of the decision to scrap RS 500 and Rs 1,000 currency notes from the Indian economy. He expressed confidence in the move, saying the high value notes was &quot;very well planned&quot;.&nbsp;

Delhi chief minister Arvind Kejriwal and West Bengal chief minister Mamata Banerjee today held a protest in the capital in front of the Rserve Bank of India and gave the government a three-day ultimatum to roll back the decision.&nbsp;

Defending the government&#39;s move to fight the menace of black money, Jaitley said he expected every responsible citizen, political party, state governments to support the huge effort as it will only benefit the economy in the long run.&nbsp;

He added that the greatest beneficiaries of the move will be the people who will have greater access to banking, taxation quantum, and more banking support in terms of trade.&nbsp;

&quot;Now unnecessary panic is being spread particularly by some individuals and I didn&#39;t expect chief ministers of one or two states to join in this effort,&quot; Jaitley told ANI.

The government questioned the &quot;vested interest&quot; of the opposition parties in the Parliament. Jaitley said the opposition had developed &quot;cold feet&quot; to debate the issue of demonetisation and criticised Congress leaders for making irresponsible comments.&nbsp;

(WION with inputs from agencies) 
&nbsp;

Dismissing the possibility of a roll back, Jaitley questioned the intent of the ministers in opposing govt's effort to root out black money

After two chief ministers threatened to hold protest and demanded the roll back of demonetisation, Indian finance minister Arun Jaitley dug his heels, slamming the two for spreading "unnecessary panic". Jaitley ruled out the roll back of the decision to scrap RS 500 and Rs 1,000 currency notes from the Indian economy. He expressed confidence in the move, saying the high value notes was "very well planned". Delhi chief minister Arvind Kejriwal and West Bengal chief minister Mamata Banerjee today held a protest in the capital in front of the Rserve Bank of India and gave the government a three-day ultimatum to roll back the decision. Defending the government's move to fight the menace of black money, Jaitley said he expected every responsible citizen, political party, state governments to support the huge effort as it will only benefit the economy in the long run. He added that the greatest beneficiaries of the move will be the people who will have greater access to banking, taxation quantum, and more banking support in terms of trade. "Now unnecessary panic is being spread particularly by some individuals and I didn't expect chief ministers of one or two states to join in this effort," Jaitley told ANI. The government questioned the "vested interest" of the opposition parties in the Parliament. Jaitley said the opposition had developed "cold feet" to debate the issue of demonetisation and criticised Congress leaders for making irresponsible comments. (WION with inputs from agencies)

Chief ministers spreading unnecessary panic over demonetisation, says Indian finance minister

Facing questions, the Indian government on Wednesday insisted in the Rajya Sabha that the State Bank of India (SBI) had not&nbsp;waived off Rs 7,000 crore loan, including that of industrialist Vijay Mallya, and asserted that such cases are being pursued.

Finance Minister Arun Jaitley referred to the Mallya loan issue as a &quot;terrible legacy&quot; which the National Democratic Alliance (NDA)&nbsp;government had inherited from United Progressive Alliance (UPA).

He gave the clarification after Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury alleged during a discussion on demonetisation that the government was favouring &quot;crocodiles&quot; while &quot;small fishes&quot; were dying. In this context, he alleged that SBI had written off Rs 7,000 crore Non Performing Assets (NPAs).&nbsp;

He named Mallya as one of those whose loans had been written off. &quot;SBI has waived Rs 7,000 crore from their non-performing assets, of loans which are not being returned,&quot; Yechury said. He said a performing asset is where interest has been serviced and non-performing where interest is not serviced but you will still preserve it.

Intervening, Jaitley said, &quot;Written off does not mean waiver.... It does not mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes that is from being performing assets, it become a non-performing.&quot; The Finance Minister told the opposition, &quot;there is a little bit of malapropism involved in this. Don&#39;t go by literal meaning write-off, it does not. Write-off does not mean loan waiver. Loan still remains.&quot; He said the government continues to pursue the case.

To this Yechury retorted that the complex explanation ultimately means that &quot;in effect it is something that is not going to be realised&quot; and questioned &quot;whatever&nbsp;you do all these &#39;hera-pheri&#39; (irregularities)...Will the government do the same thing for the farmers?&quot; Jaitley further clarified that the loan (to Mallya) was sanctioned when the present government was not in power, an apparent reference to the previous UPA rule.

&quot;Again this was restructured when another government was in power. This is the only loan for which second restructure was wanted by that government. So we inherited a terrible legacy,&quot; he said.

He reiterated that written off implies that in the accounting book, the performing assets becomes non-performing and that is all. &quot;Otherwise the liability to pay and right to recover still remains,&quot; he said. Around Rs 1,200 crore in dues owed by Vijay Mallya&#39;s collapsed Kingfisher Airlines has been labelled as &quot;write off&quot;&nbsp;in the books of country&#39;s largest lender, the State Bank of India.

(PTI)

Arun Jaitley says there's a distinction between the State Bank of India 'writing off' and 'waiving off' a loan

Facing questions, the Indian government on Wednesday insisted in the Rajya Sabha that the State Bank of India (SBI) had not waived off Rs 7,000 crore loan, including that of industrialist Vijay Mallya, and asserted that such cases are being pursued. Finance Minister Arun Jaitley referred to the Mallya loan issue as a "terrible legacy" which the National Democratic Alliance (NDA) government had inherited from United Progressive Alliance (UPA). He gave the clarification after Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury alleged during a discussion on demonetisation that the government was favouring "crocodiles" while "small fishes" were dying. In this context, he alleged that SBI had written off Rs 7,000 crore Non Performing Assets (NPAs). He named Mallya as one of those whose loans had been written off. "SBI has waived Rs 7,000 crore from their non-performing assets, of loans which are not being returned," Yechury said. He said a performing asset is where interest has been serviced and non-performing where interest is not serviced but you will still preserve it. Intervening, Jaitley said, "Written off does not mean waiver.... It does not mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes that is from being performing assets, it become a non-performing." The Finance Minister told the opposition, "there is a little bit of malapropism involved in this. Don't go by literal meaning write-off, it does not. Write-off does not mean loan waiver. Loan still remains." He said the government continues to pursue the case. To this Yechury retorted that the complex explanation ultimately means that "in effect it is something that is not going to be realised" and questioned "whatever you do all these 'hera-pheri' (irregularities)...Will the government do the same thing for the farmers?" Jaitley further clarified that the loan (to Mallya) was sanctioned when the present government was not in power, an apparent reference to the previous UPA rule. "Again this was restructured when another government was in power. This is the only loan for which second restructure was wanted by that government. So we inherited a terrible legacy," he said. He reiterated that written off implies that in the accounting book, the performing assets becomes non-performing and that is all. "Otherwise the liability to pay and right to recover still remains," he said. Around Rs 1,200 crore in dues owed by Vijay Mallya's collapsed Kingfisher Airlines has been labelled as "write off" in the books of country's largest lender, the State Bank of India. (PTI)

Vijay Mallya's $1.7 billion loan not waived off, India's finance minister states

As the debate on demonetisation rages on across the nation, finance minister Arun Jaitley asserted that the government is committed to&nbsp;pursuing cases against all loan defaulters.&nbsp;

He said that the loans given to Vijay Mallya&#39;s Kingfisher Airlines, which heads the wilful defaulters&#39; list with outstanding dues of almost Rs 1,201 crore will not be written off.&nbsp;

Jaitley clarified in the Upper House of the Parliament, Rajya Sabha on Wednesday after DNA reported that the State Bank of India (SBI) had started a clean-up of its balance sheets by writing off loans worth about Rs 7,016 crore owed to it by 63 of its top 100 wilful defaulters.

After DNA broke the story, citing documents accessed by the author, several people took to social media outraging about a &#39;waiver&#39; on his loan with the cash deposits made to the banks in the wake of the demonetisation move.

They accused the banks of using the common man&#39;s cash deposits and then using that money to waver the bad loans.

Initiating the debate on demonetisation in the Rajya Sabha, Congress leader Anand Sharma said the &quot;ill-timed&quot; and &quot;ill-conceived&quot; move had unleashed &quot;economic anarchy&quot; in the country and benefited a few.

But Jaitley defended the decision, saying &quot;India cannot afford to live with black money any longer&quot; and &quot;integrity and ethical conduct are pre-requisites for the country&#39;s development.&nbsp;

While 63 accounts in the list have been fully written off, 31 have been partially written off and six have been shown as non-performing assets (NPAs), reveal documents accessed by DNA. As on June 30, 2016, SBI has written off Rs 48,000 crore worth of bad loans. The documents, however, don&#39;t specify the entry time of these &quot;write-offs&#39;&#39;.

(WION with inputs from agencies)&nbsp; 
&nbsp;

Insisting that government will continue to pursue loan defaulters, Arun Jaitley said SBI will not write off loans to Kingfisher Airlines

As the debate on demonetisation rages on across the nation, finance minister Arun Jaitley asserted that the government is committed to pursuing cases against all loan defaulters. He said that the loans given to Vijay Mallya's Kingfisher Airlines, which heads the wilful defaulters' list with outstanding dues of almost Rs 1,201 crore will not be written off. Jaitley clarified in the Upper House of the Parliament, Rajya Sabha on Wednesday after DNA reported that the State Bank of India (SBI) had started a clean-up of its balance sheets by writing off loans worth about Rs 7,016 crore owed to it by 63 of its top 100 wilful defaulters. After DNA broke the story, citing documents accessed by the author, several people took to social media outraging about a 'waiver' on his loan with the cash deposits made to the banks in the wake of the demonetisation move. They accused the banks of using the common man's cash deposits and then using that money to waver the bad loans. Initiating the debate on demonetisation in the Rajya Sabha, Congress leader Anand Sharma said the "ill-timed" and "ill-conceived" move had unleashed "economic anarchy" in the country and benefited a few. But Jaitley defended the decision, saying "India cannot afford to live with black money any longer" and "integrity and ethical conduct are pre-requisites for the country's development. While 63 accounts in the list have been fully written off, 31 have been partially written off and six have been shown as non-performing assets (NPAs), reveal documents accessed by DNA. As on June 30, 2016, SBI has written off Rs 48,000 crore worth of bad loans. The documents, however, don't specify the entry time of these "write-offs''. (WION with inputs from agencies)

Demonetisation: Finance minister clarifies Mallya's loans written off 'only in books'

As banks and ATMs across India witnessed longer queues on Saturday following demonetisation of currency, India&rsquo;s finance minister Arun Jaitley said it will take two to three weeks to recalibrate 2 lakh ATMs with new Rs.2,000 and Rs. 500 notes.&nbsp;

While addressing a press conference in New Delhi, following a meeting with the heads of three banks, Jaitley said it is a massive operation to replace &ldquo;86 per cent of currency under circulation&rdquo; and he is &ldquo;constantly monitoring&rdquo; the cash crunch following demonetisation.

&ldquo;The State Bank of India alone has done 2.28 crore transactions in the last two days after demonetisation of currency,&rdquo;&nbsp;the finance minister said, adding that the total number of banking transactions in the period would be four to five times the figure, amounting to more than $33 billion (Rs. 2-2.5 lakh crore).

Addressing claims about a GPS chip in the Rs. 2,000 note and the possibility of digital lockers, Jaitley said these were &ldquo;concocted rumours&rdquo; and appealed to stagger depositing the defunct currency and not crowd banks.

&ldquo;4000 RBI bank currency chests have enough currency stocks,&rdquo;&nbsp;Jaitley assured that the current inconvenience will only be there for the first few days but long-term benefits to the economy will be greater.&nbsp;

&ldquo;In short term, there will be some disruption cost to the economy; once currency is available the advantages will be far more.&rdquo; he said.

Jaitley added that no illegal transaction in bullion will be allowed and stock details have been sought from jewellers on reports of dealings in defunct currency.

(WION with inputs from PTI)

Defending the govt's decision, Jaitley said there will be greater long-term benefits as more than $33 bn were already deposited in banks

As banks and ATMs across India witnessed longer queues on Saturday following demonetisation of currency, India’s finance minister Arun Jaitley said it will take two to three weeks to recalibrate 2 lakh ATMs with new Rs.2,000 and Rs. 500 notes. While addressing a press conference in New Delhi, following a meeting with the heads of three banks, Jaitley said it is a massive operation to replace “86 per cent of currency under circulation” and he is “constantly monitoring” the cash crunch following demonetisation. “The State Bank of India alone has done 2.28 crore transactions in the last two days after demonetisation of currency,” the finance minister said, adding that the total number of banking transactions in the period would be four to five times the figure, amounting to more than $33 billion (Rs. 2-2.5 lakh crore). Addressing claims about a GPS chip in the Rs. 2,000 note and the possibility of digital lockers, Jaitley said these were “concocted rumours” and appealed to stagger depositing the defunct currency and not crowd banks. “4000 RBI bank currency chests have enough currency stocks,” Jaitley assured that the current inconvenience will only be there for the first few days but long-term benefits to the economy will be greater. “In short term, there will be some disruption cost to the economy; once currency is available the advantages will be far more.” he said. Jaitley added that no illegal transaction in bullion will be allowed and stock details have been sought from jewellers on reports of dealings in defunct currency. (WION with inputs from PTI)

Short-term pain, long-term gain: Indian finance minister on demonetisation

Making a strong case for expeditious adjudication of debt recovery cases, Indian finance minister Arun Jaitley today said the recovery procedures need to be made more efficient and effective by empowering banks and bringing legislative changes.&nbsp;

The minister asserted that the delay in recovering funds cannot be carried to an &quot;unnatural extent&quot; and giving endless opportunities to defaulters will only &quot;hurt the larger investment environment of the country&quot;.

&quot;It is not a usual judicial or quasi-judicial procedure when endless opportunities have to be granted to people to defend cases because if natural justice is carried on to unnatural extents, litigation will become unending. Therefore, efficiency has to be introduced into the recovery procedure as far as the defaulting parties are concerned,&quot; he said.

Close to 95,000 cases involving about $75 billion are pending before debt recovery tribunals across the country. Jaitley said money blocked by such defaulters prevent the banks from funding others who &quot;could have utilised the investment for fruitful purposes and benefitted the country&quot;.&nbsp;

He lauded the central bank&#39;s role in providing more flexibility to banks to restructure debt and change management. He said the recent time limit set by the RBI for disposal of debt recovery cases will help improve ease of doing business by ensuring speedier resolution of defaulted loans.&nbsp;

&quot;Besides making changes in the insolvency law, the government has made changes in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) law and debt laws. And we have cut short procedures in order to add efficiency to the whole system,&quot; he added.

Now, a district magistrate has to decide on applications by banks and financial institutions within a specific time limit of 30 days.&nbsp;

(WION with inputs from PTI) 
&nbsp;

Jaitley stressed that the defaulters cannot be given endless opportunities as cases involving about $75 billion are pending before tribunals

Making a strong case for expeditious adjudication of debt recovery cases, Indian finance minister Arun Jaitley today said the recovery procedures need to be made more efficient and effective by empowering banks and bringing legislative changes. The minister asserted that the delay in recovering funds cannot be carried to an "unnatural extent" and giving endless opportunities to defaulters will only "hurt the larger investment environment of the country". "It is not a usual judicial or quasi-judicial procedure when endless opportunities have to be granted to people to defend cases because if natural justice is carried on to unnatural extents, litigation will become unending. Therefore, efficiency has to be introduced into the recovery procedure as far as the defaulting parties are concerned," he said. Close to 95,000 cases involving about $75 billion are pending before debt recovery tribunals across the country. Jaitley said money blocked by such defaulters prevent the banks from funding others who "could have utilised the investment for fruitful purposes and benefitted the country". He lauded the central bank's role in providing more flexibility to banks to restructure debt and change management. He said the recent time limit set by the RBI for disposal of debt recovery cases will help improve ease of doing business by ensuring speedier resolution of defaulted loans. "Besides making changes in the insolvency law, the government has made changes in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) law and debt laws. And we have cut short procedures in order to add efficiency to the whole system," he added. Now, a district magistrate has to decide on applications by banks and financial institutions within a specific time limit of 30 days. (WION with inputs from PTI)

Defaulters stifling business growth: Indian finance minister warns tougher debt recovery laws

A council of India&#39;s federal and state governments on Thursday approved a four-tier tax structure for the proposed Goods and Services Tax (GST), finance minister Arun Jaitley told reporters.&nbsp;

The GST Council decided on slabs ranging from 5 to 28 per cent, which are steeper than the rates initially propsed by the government.&nbsp;

While there will be two standard tax rates - 12 per cent and 18 per cent - under the GST, half of the items in the consumer price index, mainly foodgrains, would not be taxed at all to safeguard the interests of the poor, Jaitley said. An additional cess will be levied on luxury cars, tobacco and aerated drinks.

The finance minister said, &quot;Considering the inflation impact of having one standard rate, there&rsquo;ll be 2 standard rates of 12 per cent and 18 per cent&quot;.

Industry expert and managing partner of PWC India, Ketan Dalal in an exclusive interview to WION said, &quot;there could be inflationary pressure on the economy initially, but it would settle down once the structure sets in.&quot;&nbsp;

He added, that it is a progressive move to transform India into one single market and will further ensure ease of doing business in India, despite the criticism it has faced.&nbsp;

The council is yet to decide on the jurisdiction of the federal and state governments&nbsp;under the tax regime. The finance minister mentioned Rs 50,000 crore requirement that would compensate states for the loss of revenue on the back of the GST rollout.&nbsp;

The state assemblies must also to approve similar bills for the tax to enter force as planned. The GST council meeting aims to clear out the remaining contentious issues to enable the Parliament to approve the legislations in the upcoming winter session beginning November 16 and pave the way for the rollout of the new indirect tax regime from April 1 next year.

(WION) 
&nbsp;

The GST panel decided on slabs ranging from 5 to 28 per cent with several items exempted to safeguard the interests of poor

A council of India's federal and state governments on Thursday approved a four-tier tax structure for the proposed Goods and Services Tax (GST), finance minister Arun Jaitley told reporters. The GST Council decided on slabs ranging from 5 to 28 per cent, which are steeper than the rates initially propsed by the government. While there will be two standard tax rates - 12 per cent and 18 per cent - under the GST, half of the items in the consumer price index, mainly foodgrains, would not be taxed at all to safeguard the interests of the poor, Jaitley said. An additional cess will be levied on luxury cars, tobacco and aerated drinks. The finance minister said, "Considering the inflation impact of having one standard rate, there’ll be 2 standard rates of 12 per cent and 18 per cent". Industry expert and managing partner of PWC India, Ketan Dalal in an exclusive interview to WION said, "there could be inflationary pressure on the economy initially, but it would settle down once the structure sets in." He added, that it is a progressive move to transform India into one single market and will further ensure ease of doing business in India, despite the criticism it has faced. The council is yet to decide on the jurisdiction of the federal and state governments under the tax regime. The finance minister mentioned Rs 50,000 crore requirement that would compensate states for the loss of revenue on the back of the GST rollout. The state assemblies must also to approve similar bills for the tax to enter force as planned. The GST council meeting aims to clear out the remaining contentious issues to enable the Parliament to approve the legislations in the upcoming winter session beginning November 16 and pave the way for the rollout of the new indirect tax regime from April 1 next year. (WION)

India's Goods and Services Tax Council approves four-tier tax structure

Indians have disclosed at least Rs 65,250 crore (roughly $10 billion) of undiclosed assets in the last four months,&nbsp;India&#39;s finance minister Arun Jaitley said on Saturday.&nbsp;

Jaitley said 64,275 people disclosed their hidden assets during a&nbsp;four-month tax evasion amnesty period provided by the Indian government.

The collections declared might increase once the online and manual filings of undisclosed assets are compiled by September 30.

The Indian government will receive 45 per cent of the declared amount in taxes and penalties. The amount roughly comes to Rs 29,362 crore.

People who have declared their hidden assets will have time till September 30, 2017, to pay their taxes and penalties.

The Narendra Modi administration had provided a one-time chance for people to declare their hidden assets.

Under the Income Declaration Scheme (IDS), a tax compliance scheme that started on June 1, the Indian government had urged people to &quot;come clean&quot; in order to avoid &quot;scrutiny and enquiry&quot;.&nbsp;

The money collected by the government will be put in the Consolidated Fund of India, Jaitley said, adding that the tax kitty will be spent for public welfare.

The declarants&#39; identity will not be revealed, the finance minister said. &nbsp;

This year&#39;s black money haul has seen a quantum jump from the previous year. Last year, under a similar amnesty, the government had managed to collect only Rs 2,428 crore ($364 million).

(WION)&nbsp;

&nbsp;

The Indian government would get 45 per cent of the recovered amount as tax and penalty

Indians have disclosed at least Rs 65,250 crore (roughly $10 billion) of undiclosed assets in the last four months, India's finance minister Arun Jaitley said on Saturday. Jaitley said 64,275 people disclosed their hidden assets during a four-month tax evasion amnesty period provided by the Indian government. The collections declared might increase once the online and manual filings of undisclosed assets are compiled by September 30. The Indian government will receive 45 per cent of the declared amount in taxes and penalties. The amount roughly comes to Rs 29,362 crore. People who have declared their hidden assets will have time till September 30, 2017, to pay their taxes and penalties. The Narendra Modi administration had provided a one-time chance for people to declare their hidden assets. Under the Income Declaration Scheme (IDS), a tax compliance scheme that started on June 1, the Indian government had urged people to "come clean" in order to avoid "scrutiny and enquiry". The money collected by the government will be put in the Consolidated Fund of India, Jaitley said, adding that the tax kitty will be spent for public welfare. The declarants' identity will not be revealed, the finance minister said. This year's black money haul has seen a quantum jump from the previous year. Last year, under a similar amnesty, the government had managed to collect only Rs 2,428 crore ($364 million). (WION)

India collects around $10 billion of black money in 4-month amnesty window

Indian finance minister Arun Jaitley on Friday pushed back calls to increase the allocation of funds to recapitalise many state-run banks.&nbsp; 
 
The asset quality review ordered by the Reserve Bank of India reported huge losses for the first quarter ended June 30 for many state-run banks, on account of a sharp rise in provisioning for NPAs (Non-Performing Assets) or bad loans. 
 
&quot;PSBs (public sector banks) have collectively made an operating profit of Rs 34,967 crore this year, but after allowing for the provisioning for bad loans, among others, net operating profit works out to Rs 222 crore,&quot; Jaitley told reporters following the review meeting with heads of state-run banks and financial institutions.&nbsp; 
 
Jaitley also pointed to the steel and infrastructure as the main sectors that provoked the asset quality review. 
 
&quot;The major contributors to the banks&#39; situation have been the steel and the infrastructure sectors. However, with the imposition of the MIP (minimum import price - to check cheap imports) the big steel companies&#39; balance sheets have started turning,&quot; the minister said. 
 
Jaitley said the highway sector has picked up and recent measures for the construction sector will ensure quicker resolution of disputes, kick-start stalled projects and make access to financing easier. 
 
He described the NPAs situation as being &quot;not static or permanent&quot;. 
 
&quot;There has been a lot of provisioning on account of NPAs. With an uptick in the sectors, a large part of these would become de-provisioned and the accounts themselves would get upgraded,&quot; he added. 
 
The government last month announced infusion of Rs 22,915 crore capital for 13 PSBs, as part of the first tranche of capital infusion for the current fiscal. 
 
(WION with inputs from agencies) 
&nbsp;

Indian finance minister Arun Jaitley said budgetary constraints have limited funds for recapitalisation of state-run banks

Indian finance minister Arun Jaitley on Friday pushed back calls to increase the allocation of funds to recapitalise many state-run banks. The asset quality review ordered by the Reserve Bank of India reported huge losses for the first quarter ended June 30 for many state-run banks, on account of a sharp rise in provisioning for NPAs (Non-Performing Assets) or bad loans. "PSBs (public sector banks) have collectively made an operating profit of Rs 34,967 crore this year, but after allowing for the provisioning for bad loans, among others, net operating profit works out to Rs 222 crore," Jaitley told reporters following the review meeting with heads of state-run banks and financial institutions. Jaitley also pointed to the steel and infrastructure as the main sectors that provoked the asset quality review. "The major contributors to the banks' situation have been the steel and the infrastructure sectors. However, with the imposition of the MIP (minimum import price - to check cheap imports) the big steel companies' balance sheets have started turning," the minister said. Jaitley said the highway sector has picked up and recent measures for the construction sector will ensure quicker resolution of disputes, kick-start stalled projects and make access to financing easier. He described the NPAs situation as being "not static or permanent". "There has been a lot of provisioning on account of NPAs. With an uptick in the sectors, a large part of these would become de-provisioned and the accounts themselves would get upgraded," he added. The government last month announced infusion of Rs 22,915 crore capital for 13 PSBs, as part of the first tranche of capital infusion for the current fiscal. (WION with inputs from agencies)

Bad loans cut down profits of Indian state banks: Finance minister Arun Jaitley

In an attempt to appease trade unions that have threatened to go on strike, Indian finance minister Arun Jaitley today announced a hike in minimum wages from the current $3.67 (246 INR) to $5.22 (350 INR)for unskilled workers per day. 
 
&quot;In the past one-and-a-half years, the inter-ministerial committee had a&nbsp;meeting with central trade unions. Trade unions placed various demands. Some were labour-related and some economic policy issues related. The government has taken some decisions with regard to those on the basis of their recommendations,&quot; added Jaitley. 
 
The decision was taken following a meeting under the chairmanship of the Indian labour minister Bandaru Dattatreya, also attended by power minister Piyush Goyal. The registration of the contract workers and their staffing agencies is mandatory and states will be advised to strictly implement the same, the finance minister said. Errant contractors will face appropriate action for any violation, he warned. 
 
Asked about the strike call, Jaitley said: &quot;I think we have responsible trade unions.&quot; 
 
Jaitley told the media that the two years worth of bonus will be paid to Indian central government employees based on revised norms. The Bonus Amendment Act will be implemented &quot;strictly&quot;. Workers employed by the state governments, however, are not covered under the Act. 
 
The likely financial implications of the bonus move translate into $286 million (Rs1,920 crore) per annum. 
 
As many as 10 central trade unions have given a call for a one-day nationwide strike on September 2, 2016, to protest against Prime Minister Modi&#39;s labour reforms. 
 
Tapan Sen, the&nbsp;general secretary of the Centre of Trade Unions, said earlier today the strike would go on despite Jaitley&#39;s promise that the government would release state employees&#39; bonuses for the last two years and increase minimum wages, Reuters reported. 
 
(WION with inputs from agencies)

Indian finance minister Arun Jaitley announced a hike from $3.67 to $5.22 per day for unskilled workers per day

In an attempt to appease trade unions that have threatened to go on strike, Indian finance minister Arun Jaitley today announced a hike in minimum wages from the current $3.67 (246 INR) to $5.22 (350 INR)for unskilled workers per day. "In the past one-and-a-half years, the inter-ministerial committee had a meeting with central trade unions. Trade unions placed various demands. Some were labour-related and some economic policy issues related. The government has taken some decisions with regard to those on the basis of their recommendations," added Jaitley. The decision was taken following a meeting under the chairmanship of the Indian labour minister Bandaru Dattatreya, also attended by power minister Piyush Goyal. The registration of the contract workers and their staffing agencies is mandatory and states will be advised to strictly implement the same, the finance minister said. Errant contractors will face appropriate action for any violation, he warned. Asked about the strike call, Jaitley said: "I think we have responsible trade unions." Jaitley told the media that the two years worth of bonus will be paid to Indian central government employees based on revised norms. The Bonus Amendment Act will be implemented "strictly". Workers employed by the state governments, however, are not covered under the Act. The likely financial implications of the bonus move translate into $286 million (Rs1,920 crore) per annum. As many as 10 central trade unions have given a call for a one-day nationwide strike on September 2, 2016, to protest against Prime Minister Modi's labour reforms. Tapan Sen, the general secretary of the Centre of Trade Unions, said earlier today the strike would go on despite Jaitley's promise that the government would release state employees' bonuses for the last two years and increase minimum wages, Reuters reported. (WION with inputs from agencies)

India hikes minimum wages with strike threat looming large

Islamabad today (August 28) said the&nbsp;absence of India&#39;s finance minister Arun Jaitley for the South Asian association for Regional Cooperation (SAARC) finance ministers&#39; conference hardly matters.&nbsp; 
 
The statement came from Pakistan&#39;s finance minister Ishaq Dar.&nbsp; 
 
&quot;India&#39;s (finance minister&#39;s) absence hardly matters,&quot; he said after the conclusion of eighth SAARC finance ministers&#39; conference.&nbsp; 
 
&quot;Individuals do not matter, countries do,&quot; he added hastily after making the statement, reported the Express Tribune. 
 
Sources on August 24 confirmed that Jaitley will skip the conference in the wake of ongoing tensions between the two neighbouring countries over the unrest in Kashmir.&nbsp; 
 
India&#39;s finance secretary Shashikant Das attended the meet. 
 
Afghanistan, Bangladesh and the Maldives also did not send their finance ministers to the eight-member countries meet. Either their deputy ministers or bureaucrats&nbsp;represented the countries instead.&nbsp; 
 
Afghanistan&#39;s finance minister cancelled his visit due to the attack on the American University in Kabul that happened on August 24.&nbsp; 
 
Kabul&#39;s ambassador in Islamabad, Dr Hazrat Omar Zakhilwal, represented his country at the conference. 
 
Indian home minister Rajnath Singh had attended the SAARC interior ministers meeting earlier in August.&nbsp; 
 
(WION with inputs from ANI)

'Individuals do not matter, countries do,' he added hastily after making the statement

Islamabad today (August 28) said the absence of India's finance minister Arun Jaitley for the South Asian association for Regional Cooperation (SAARC) finance ministers' conference hardly matters. The statement came from Pakistan's finance minister Ishaq Dar. "India's (finance minister's) absence hardly matters," he said after the conclusion of eighth SAARC finance ministers' conference. "Individuals do not matter, countries do," he added hastily after making the statement, reported the Express Tribune. Sources on August 24 confirmed that Jaitley will skip the conference in the wake of ongoing tensions between the two neighbouring countries over the unrest in Kashmir. India's finance secretary Shashikant Das attended the meet. Afghanistan, Bangladesh and the Maldives also did not send their finance ministers to the eight-member countries meet. Either their deputy ministers or bureaucrats represented the countries instead. Afghanistan's finance minister cancelled his visit due to the attack on the American University in Kabul that happened on August 24. Kabul's ambassador in Islamabad, Dr Hazrat Omar Zakhilwal, represented his country at the conference. Indian home minister Rajnath Singh had attended the SAARC interior ministers meeting earlier in August. (WION with inputs from ANI)

Arun Jaitley's absence in SAARC conference will not matter: Pakistan finance minister

India&#39;s former central bank governor Raghuram Rajan&#39;s abrupt announcement of his departure as governor of the Reserve Bank of India (RBI) came as a nasty surprise to many, especially his fans in the investment community, but the way Urjit Patel was chosen as his successor has been anything but. 
 
Aides to Indian Prime Minister Narendra Modi have sought to show that the search and selection process has been deliberate and controlled, that the nation&rsquo;s leader and the finance minister Arun Jaitley were closely involved, and that the government is fully behind the RBI&rsquo;s battle to control inflation. 
 
Critically for the stability of financial markets, Patel lent his name to the panel that drew up the blueprint for formally adopting a consumer inflation target of 4 per cent, as well as creating a new Monetary Policy Committee to steer interest rates and help India hit that goal. 
 
At the same time, the officials have stressed that no single individual should again dominate the RBI in the way that Rajan did over his three-year term. Where Rajan is known for pithy one-liners at news conferences and speeches larded with social criticism, Patel is seen as more of a backroom technocrat who avoids the limelight. 
 
Rajan&#39;s shock announcement on the afternoon of June 18, a Saturday, caught the government off-guard &ndash; Jaitley was watching a movie at home with his family and took more than two hours to issue a public statement. 
 
The recovery of composure was quick, though. A shortlist of potential successors was floated before the evening was out. Patel, the 52-year-old deputy governor who takes over from Rajan on September 4, was on it, along with a clutch of other contenders that included veterans of the RBI. 
 
On Saturday evening, exactly nine weeks later, the choice was made public. And it was done without Modi holding meetings about the job with any of the candidates, according to sources with direct knowledge of the process. 
 
While Modi may have been involved in the final decision on Patel, he wanted to &quot;keep his distance&quot; in the weeks before as the appointment committee ran the process, one aide said. 
 
&quot;Lobbying does not get you such a job - but Modi ji&#39;s confidence in Patel was a big factor,&rdquo; the official said, using the honorific Indian suffix. 
 
Patel has wide international policy experience. He worked at the IMF as an economist from 1990 to 1995, and for Boston Consulting Group and Indian conglomerate Reliance Industries. 
 
Sources said Patel had been vetted and his candidacy blessed by the Hindu-nationalist umbrella group, the Rashtriya Swayamsevak Sangh (RSS), that backs Modi&#39;s nationalist party. 
 
That marks a big change from its attitude to Rajan, who came under fire from the Rashtriya Swayamsevak Sangh&nbsp;(RSS), a right-wing ,Hindu nationalist Party and in particular from lawmaker Subramanian Swamy who demanded he be fired for being &quot;mentally not fully Indian&quot;. Rajan this month denounced the personal attacks he had faced as &quot;abominable&quot;. 
 
Patel is looked on favourably as dependable and low-key, with no ambition to upstage the government. Rajan, by contrast, drew RSS ire by straying into politically sensitive territory in high-profile speeches in which he said social tolerance was vital to a country&rsquo;s economic development. 
 
That was perceived as an implied attack on the Hindu-nationalist agenda of the RSS and other supporters of Modi. Rajan has denied criticising the government. 
 
Getting to know you 
 
Modi warmed to Patel at a face-to-face meeting earlier this year, when the central banker was given an extension to his term as deputy governor in charge of monetary policy, said a second Modi aide. 
 
&quot;Patel has a direct working equation with the Prime Minister,&quot; this aide said, using an Indian-English expression for a personal relationship, adding the Prime Minister valued Patel as a &quot;clear thinker&quot; and appreciated his &quot;direct approach&quot;. 
 
The only sign of nervousness senior officials betrayed was in their initial suggestion that the next governor would be named by the time of Rajan&#39;s final policy meeting on August 9. 
 
But, after financial markets remained calm despite Rajan&#39;s announcement that he would not seek a second term, they reverted to a timeline that would allow just enough time for an orderly handover - as was the case with Rajan&#39;s own appointment three years ago. 
 
Throughout, the Prime Minister&#39;s Office has owned the process - reflecting Modi&#39;s determination to centralise decision-making in India&#39;s sprawling and often recalcitrant bureaucracy - with cabinet secretary PK Sinha heading the selection committee. 
 
In its initial recommendations in July, the panel called for the next RBI governor to be a technocrat, and not a bureaucrat; a macroeconomist; and team player. 
 
The successful candidate needed to be an individual of stature who could also ensure continuity at the RBI, one of the panel&#39;s members said after Patel&rsquo;s appointment. 
 
Jaitley met Modi to discuss the RBI succession on Thursday. A five-strong candidate list was then submitted to the selection panel, with the field led by Patel and also featuring contenders such as India&#39;s IMF executive director Subir Gokarn and World Bank chief economist Kaushik Basu. 
 
The selection committee provided its feedback after a lengthy session on Friday. It did not recommend any name; nor did it formally interview candidates, the member said, adding the final decision to pick Patel was made by Modi and Jaitley. 
 
&nbsp;Inflation hawk 
 
The choice shows that Modi is paying more than just lip-service to the fight against inflation. 
 
Modi endorsed the inflation fight in his Independence Day speech last Monday, and that will shield Patel as he seeks to consolidate the inflation-targeting framework brought in under the leadership of Rajan. 
 
&quot;While we have embraced the idea of the MPC, it has yet to be tested,&quot; said another senior government official. &nbsp;&quot;You need a smooth transition from the current system of decision making. Patel can ensure that there are no hiccoughs.&quot; 
 
&nbsp;Also, with the inflation rate now pushing above 6 per cent, it is vital to send a clear message to investors that the government would not waver in its resolve to keep inflation in check, this official added. 
 
&nbsp;&quot;It is very important that the credibility we have acquired in managing inflation doesn&#39;t get dented,&quot; the official also said. 
 
(Reuters)

Officials stress no single individual to dominate the Reserve Bank of India, the way former governor Raghuram Rajan did

India's former central bank governor Raghuram Rajan's abrupt announcement of his departure as governor of the Reserve Bank of India (RBI) came as a nasty surprise to many, especially his fans in the investment community, but the way Urjit Patel was chosen as his successor has been anything but. Aides to Indian Prime Minister Narendra Modi have sought to show that the search and selection process has been deliberate and controlled, that the nation’s leader and the finance minister Arun Jaitley were closely involved, and that the government is fully behind the RBI’s battle to control inflation. Critically for the stability of financial markets, Patel lent his name to the panel that drew up the blueprint for formally adopting a consumer inflation target of 4 per cent, as well as creating a new Monetary Policy Committee to steer interest rates and help India hit that goal. At the same time, the officials have stressed that no single individual should again dominate the RBI in the way that Rajan did over his three-year term. Where Rajan is known for pithy one-liners at news conferences and speeches larded with social criticism, Patel is seen as more of a backroom technocrat who avoids the limelight. Rajan's shock announcement on the afternoon of June 18, a Saturday, caught the government off-guard – Jaitley was watching a movie at home with his family and took more than two hours to issue a public statement. The recovery of composure was quick, though. A shortlist of potential successors was floated before the evening was out. Patel, the 52-year-old deputy governor who takes over from Rajan on September 4, was on it, along with a clutch of other contenders that included veterans of the RBI. On Saturday evening, exactly nine weeks later, the choice was made public. And it was done without Modi holding meetings about the job with any of the candidates, according to sources with direct knowledge of the process. While Modi may have been involved in the final decision on Patel, he wanted to "keep his distance" in the weeks before as the appointment committee ran the process, one aide said. "Lobbying does not get you such a job - but Modi ji's confidence in Patel was a big factor,” the official said, using the honorific Indian suffix. Patel has wide international policy experience. He worked at the IMF as an economist from 1990 to 1995, and for Boston Consulting Group and Indian conglomerate Reliance Industries. Sources said Patel had been vetted and his candidacy blessed by the Hindu-nationalist umbrella group, the Rashtriya Swayamsevak Sangh (RSS), that backs Modi's nationalist party. That marks a big change from its attitude to Rajan, who came under fire from the Rashtriya Swayamsevak Sangh (RSS), a right-wing ,Hindu nationalist Party and in particular from lawmaker Subramanian Swamy who demanded he be fired for being "mentally not fully Indian". Rajan this month denounced the personal attacks he had faced as "abominable". Patel is looked on favourably as dependable and low-key, with no ambition to upstage the government. Rajan, by contrast, drew RSS ire by straying into politically sensitive territory in high-profile speeches in which he said social tolerance was vital to a country’s economic development. That was perceived as an implied attack on the Hindu-nationalist agenda of the RSS and other supporters of Modi. Rajan has denied criticising the government. Getting to know you Modi warmed to Patel at a face-to-face meeting earlier this year, when the central banker was given an extension to his term as deputy governor in charge of monetary policy, said a second Modi aide. "Patel has a direct working equation with the Prime Minister," this aide said, using an Indian-English expression for a personal relationship, adding the Prime Minister valued Patel as a "clear thinker" and appreciated his "direct approach". The only sign of nervousness senior officials betrayed was in their initial suggestion that the next governor would be named by the time of Rajan's final policy meeting on August 9. But, after financial markets remained calm despite Rajan's announcement that he would not seek a second term, they reverted to a timeline that would allow just enough time for an orderly handover - as was the case with Rajan's own appointment three years ago. Throughout, the Prime Minister's Office has owned the process - reflecting Modi's determination to centralise decision-making in India's sprawling and often recalcitrant bureaucracy - with cabinet secretary PK Sinha heading the selection committee. In its initial recommendations in July, the panel called for the next RBI governor to be a technocrat, and not a bureaucrat; a macroeconomist; and team player. The successful candidate needed to be an individual of stature who could also ensure continuity at the RBI, one of the panel's members said after Patel’s appointment. Jaitley met Modi to discuss the RBI succession on Thursday. A five-strong candidate list was then submitted to the selection panel, with the field led by Patel and also featuring contenders such as India's IMF executive director Subir Gokarn and World Bank chief economist Kaushik Basu. The selection committee provided its feedback after a lengthy session on Friday. It did not recommend any name; nor did it formally interview candidates, the member said, adding the final decision to pick Patel was made by Modi and Jaitley. Inflation hawk The choice shows that Modi is paying more than just lip-service to the fight against inflation. Modi endorsed the inflation fight in his Independence Day speech last Monday, and that will shield Patel as he seeks to consolidate the inflation-targeting framework brought in under the leadership of Rajan. "While we have embraced the idea of the MPC, it has yet to be tested," said another senior government official. "You need a smooth transition from the current system of decision making. Patel can ensure that there are no hiccoughs." Also, with the inflation rate now pushing above 6 per cent, it is vital to send a clear message to investors that the government would not waver in its resolve to keep inflation in check, this official added. "It is very important that the credibility we have acquired in managing inflation doesn't get dented," the official also said. (Reuters)

India: PM Modi regains composure after Rajan shock, visible in naming of new central bank chief

As unrest continues in the Kashmir valley, the Indian government on Sunday outlined its priorities. It asserted that there will be no compromise with people resorting to violence even as efforts would be made for the&nbsp;development of the state which had been &quot;denied&quot; for the last 60 years. 
 
Acknowledging that the situation in Kashmir was &quot;serious&quot;, Indian finance minister Arun Jaitley said stone pelters in Kashmir are &quot;not satyagrahis (persons who stand for truth) but aggressors&quot; who target police and security forces but that some people with limited vision cannot see that. 
 
Addressing a rally on the outskirts of Jammu city, he also slammed Pakistan for the current unrest, saying it was &quot;attacking the integrity of India&quot; in a &quot;new way&quot; after failing to snatch the state by means of waging war and fuelling trouble ever since Partition in 1947. 
 
Prime Minister Narendra Modi has three priorities for Jammu and Kashmir, said Jaitley. 
 
Outlining these priorities, he said, &quot;There will be no compromise on the security and integrity of the country and no compromise with the people who indulge in violence. 
 
&quot;Secondly, as Jammu and Kashmir has faced violence and wars, it needs development which was denied for past 60 years by National Conference and Congress governments. Thirdly, Jammu, being the support base of BJP, needs added attention.&quot; 
 
His outlining of the priorities assumes signficance as the opposition has been accusing the Modi government of having no policy with regard to dealing with the unrest. The opposition parties have been pressing for a political solution and dialogue to address the unrest. 
 
Talking in the context of ongoing 44-day unrest in Kashmir, Jaitley said, &quot;Now, this time, a serious situation has emerged in which Pakistan, separatists and religious forces have joined hands and now with a new way, they are attacking the integrity of India.&quot; 
 
Describing it as a &quot;major challenge&quot;, he said, &quot;today in such a challenge, the need of the country is that we don&#39;t compromise with the integrity and security of the nation&quot;. 
 
He asked people of Jammu and Kashmir to stand with the country in the &quot;struggle against the separatists&quot; so that &quot;this new phase of Pakistani strategy of war is defeated this time as well&quot;. 
 
He described stone-pelters as aggressors. 
 
&quot;They (stone pelters) are not satyagrahis but aggressors. If a police post manned by 10 police personnel is attacked by 2000 stone pelters, it is an attack, but some people do not realise it,&quot; he said. 
 
(PTI)

The finance minister says stone pelters are 'aggressors' but people with limited vision cannot see that

As unrest continues in the Kashmir valley, the Indian government on Sunday outlined its priorities. It asserted that there will be no compromise with people resorting to violence even as efforts would be made for the development of the state which had been "denied" for the last 60 years. Acknowledging that the situation in Kashmir was "serious", Indian finance minister Arun Jaitley said stone pelters in Kashmir are "not satyagrahis (persons who stand for truth) but aggressors" who target police and security forces but that some people with limited vision cannot see that. Addressing a rally on the outskirts of Jammu city, he also slammed Pakistan for the current unrest, saying it was "attacking the integrity of India" in a "new way" after failing to snatch the state by means of waging war and fuelling trouble ever since Partition in 1947. Prime Minister Narendra Modi has three priorities for Jammu and Kashmir, said Jaitley. Outlining these priorities, he said, "There will be no compromise on the security and integrity of the country and no compromise with the people who indulge in violence. "Secondly, as Jammu and Kashmir has faced violence and wars, it needs development which was denied for past 60 years by National Conference and Congress governments. Thirdly, Jammu, being the support base of BJP, needs added attention." His outlining of the priorities assumes signficance as the opposition has been accusing the Modi government of having no policy with regard to dealing with the unrest. The opposition parties have been pressing for a political solution and dialogue to address the unrest. Talking in the context of ongoing 44-day unrest in Kashmir, Jaitley said, "Now, this time, a serious situation has emerged in which Pakistan, separatists and religious forces have joined hands and now with a new way, they are attacking the integrity of India." Describing it as a "major challenge", he said, "today in such a challenge, the need of the country is that we don't compromise with the integrity and security of the nation". He asked people of Jammu and Kashmir to stand with the country in the "struggle against the separatists" so that "this new phase of Pakistani strategy of war is defeated this time as well". He described stone-pelters as aggressors. "They (stone pelters) are not satyagrahis but aggressors. If a police post manned by 10 police personnel is attacked by 2000 stone pelters, it is an attack, but some people do not realise it," he said. (PTI)

India on Kashmir: No compromise with those indulging in violence

No decision has yet been reached to appoint India&#39;s next central bank governor, finance minister Arun Jaitley said today, 18 days before the incumbent is due to stand down. 
 
A senior aide to Indian Prime Minister Narendra Modi said he was &quot;expected to make up his mind very soon&quot; on replacing Raghuram Rajan, the former International Monetary Fund chief economist who dropped a bombshell in June by announcing he would not seek a second term. 
 
&quot;We will let you know when we decide,&quot; Jaitley told reporters as he returned to the finance ministry from a meeting with Modi. &quot;You will come to know the conclusion, not the process.&quot; 
 
Rajan ends his three-year term as governor of the Reserve Bank of India on September 4. 
 
In that short time, he transformed the RBI into an inflation-targeting central bank, with a central goal for consumer price growth of four per cent. The government is also in the process of selecting a new, six-member Monetary Policy Committee that will decide on interest rates. 
 
Officials have suggested that Rajan&#39;s replacement would be named soon to give enough time for an orderly leadership handover at the Mumbai-based central bank. 
 
A shortlist of possible successors was floated in the immediate aftermath of Rajan&#39;s June 18 announcement that, in the ensuing weeks, has seen hopefuls drift in and out of contention. 
 
Former RBI deputy governor Subir Gokarn, now India&#39;s executive director at the IMF, has featured throughout. Also in consideration is current deputy governor Urjit Patel, according to officials with direct knowledge of the matter. 
 
World Bank Chief Economist Kaushik Basu, who is soon to retire, has edged into contention. Other names also mentioned have been State Bank of India chair-managing director Arundhati Bhattacharya; the government&#39;s chief economic adviser Arvind Subramanian; and Ashok Lahiri, who held the same role under an earlier government. 
 
One finance ministry official said a decision was likely to be announced by the Prime Minister&#39;s Office, adding it was difficult to say at this stage whether Modi would accept Jaitley&#39;s recommendation at all. He declined to comment on what was discussed at the meeting between Modi and Jaitley. 
 
(Reuters)

Officials have suggested that Rajan's replacement would be named in time enough for an orderly leadership handover

No decision has yet been reached to appoint India's next central bank governor, finance minister Arun Jaitley said today, 18 days before the incumbent is due to stand down. A senior aide to Indian Prime Minister Narendra Modi said he was "expected to make up his mind very soon" on replacing Raghuram Rajan, the former International Monetary Fund chief economist who dropped a bombshell in June by announcing he would not seek a second term. "We will let you know when we decide," Jaitley told reporters as he returned to the finance ministry from a meeting with Modi. "You will come to know the conclusion, not the process." Rajan ends his three-year term as governor of the Reserve Bank of India on September 4. In that short time, he transformed the RBI into an inflation-targeting central bank, with a central goal for consumer price growth of four per cent. The government is also in the process of selecting a new, six-member Monetary Policy Committee that will decide on interest rates. Officials have suggested that Rajan's replacement would be named soon to give enough time for an orderly leadership handover at the Mumbai-based central bank. A shortlist of possible successors was floated in the immediate aftermath of Rajan's June 18 announcement that, in the ensuing weeks, has seen hopefuls drift in and out of contention. Former RBI deputy governor Subir Gokarn, now India's executive director at the IMF, has featured throughout. Also in consideration is current deputy governor Urjit Patel, according to officials with direct knowledge of the matter. World Bank Chief Economist Kaushik Basu, who is soon to retire, has edged into contention. Other names also mentioned have been State Bank of India chair-managing director Arundhati Bhattacharya; the government's chief economic adviser Arvind Subramanian; and Ashok Lahiri, who held the same role under an earlier government. One finance ministry official said a decision was likely to be announced by the Prime Minister's Office, adding it was difficult to say at this stage whether Modi would accept Jaitley's recommendation at all. He declined to comment on what was discussed at the meeting between Modi and Jaitley. (Reuters)

India finance minister: We'll let you know on RBI governor

Pakistan has decided to play a &quot;good host&quot; and avoid a repetition of the tense atmosphere that prevailed during Indian home minister Rajnath Singh&#39;s recent visit by according a &quot;warm welcome&quot; to finance minister Arun Jaitley at the SAARC ministerial conference later this month. 
 
Jaitley is likely to attend the SAARC Finance Ministers&#39; Conference to be hosted in Islamabad on August 25 and 26 and there are chances of &quot;gracious handshakes&quot; between Pakistan finance minister Ishaq Dar and his Indian counterpart, finance ministry officials said. 
 
The government has finalised arrangements for the upcoming SAARC meet, a finance ministry statement said, adding that Dar chaired a meeting to review arrangements for the conference. 
 
Pakistan would play the role of a &quot;good host&quot; and try to keep the overall ambiance positive, the statement added. 
 
The ministerial conference comes in the shadow of home minister Singh&#39;s visit to Islamabad earlier this month where barbs were exchanged between Singh and Pakistan interior minister Chaudhry Nisar Ali Khan, who only had a tense and uneasy handshake during the SAARC meeting. 
 
The duo exchanged repartee over issues of terrorism and violence in Kashmir. 
 
&quot;The hostilities were at peak during the home ministers&#39; Conference and Dar does not wish a repetition,&quot; finance ministry officials were quoted as saying by the Express Tribune. 
 
They further said that all regional countries except Bangladesh have confirmed participation of their finance ministers. 
 
&quot;Bangladesh has so far only confirmed the participation of its deputy finance minister. Dar will personally call his Bangladeshi counterpart and urge him to attend the conference,&quot; they added. 
 
However, the ministry of finance did not comment on whether a bilateral meeting would be held between the finance ministers of India and Pakistan. 
 
The meetings are taking place ahead of the SAARC Summit to be held in November in Islamabad wherein Prime Minister Narendra Modi is also expected to participate. 
 
&quot;All SAARC countries have a lot of potential to develop together utilising each other&#39;s potentials and energies. The cooperation is necessary in promoting the welfare and improving the quality of life of the people of the region,&quot; said Dar. 
 
&quot;The upcoming conference is an important event in this regard,&quot; he added. 
 
The South Asian Association for Regional Cooperation (SAARC) is a regional intergovernmental organisation. Its member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka. PTI S 
 
(PTI)&nbsp;

The meet comes after Rajnath Singh and his Pakistan counterpart exchanged repartee over terrorism issues earlier this month

Pakistan has decided to play a "good host" and avoid a repetition of the tense atmosphere that prevailed during Indian home minister Rajnath Singh's recent visit by according a "warm welcome" to finance minister Arun Jaitley at the SAARC ministerial conference later this month. Jaitley is likely to attend the SAARC Finance Ministers' Conference to be hosted in Islamabad on August 25 and 26 and there are chances of "gracious handshakes" between Pakistan finance minister Ishaq Dar and his Indian counterpart, finance ministry officials said. The government has finalised arrangements for the upcoming SAARC meet, a finance ministry statement said, adding that Dar chaired a meeting to review arrangements for the conference. Pakistan would play the role of a "good host" and try to keep the overall ambiance positive, the statement added. The ministerial conference comes in the shadow of home minister Singh's visit to Islamabad earlier this month where barbs were exchanged between Singh and Pakistan interior minister Chaudhry Nisar Ali Khan, who only had a tense and uneasy handshake during the SAARC meeting. The duo exchanged repartee over issues of terrorism and violence in Kashmir. "The hostilities were at peak during the home ministers' Conference and Dar does not wish a repetition," finance ministry officials were quoted as saying by the Express Tribune. They further said that all regional countries except Bangladesh have confirmed participation of their finance ministers. "Bangladesh has so far only confirmed the participation of its deputy finance minister. Dar will personally call his Bangladeshi counterpart and urge him to attend the conference," they added. However, the ministry of finance did not comment on whether a bilateral meeting would be held between the finance ministers of India and Pakistan. The meetings are taking place ahead of the SAARC Summit to be held in November in Islamabad wherein Prime Minister Narendra Modi is also expected to participate. "All SAARC countries have a lot of potential to develop together utilising each other's potentials and energies. The cooperation is necessary in promoting the welfare and improving the quality of life of the people of the region," said Dar. "The upcoming conference is an important event in this regard," he added. The South Asian Association for Regional Cooperation (SAARC) is a regional intergovernmental organisation. Its member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka. PTI S (PTI)

Pakistan decides to play 'good host' to India's finance minister at SAARC meet

Indian government has circulated official amendments to the Goods and Services Tax (GST) bill to drop 1 per cent additional tax and include a definite provision in the statute for compensating states for revenue loss for five years as it gears up to discuss the long-pending bill in the upper house of parliament (Rajya Sabha) tomorrow. 
 
Under the modified provisions of GST Constitutional Amendment Bill circulated among the members today, GST Council will be required to establish a mechanism for adjudication of disputes, which could arise between the centre and states or among states themselves. 
 
The 2014 bill authorised GST Council to decide upon the modalities for resolution of disputes. 
 
With these official amendments, the government has partially met the demands of the Congress party in opposition which has been blocking the bill in the upper house. One of the three demands of the Congress was to do away with the 1 per cent additional manufacturing tax. 
 
On the demand for a Supreme Court judge-headed panel for resolving GST disputes, the official amendments say that the GST Council will establish a mechanism for solving disputes. 
 
With regard to the demand for putting a GST rate cap in the Constitution, the government has not mentioned anything in the official amendments. 
 
Finance minister Arun Jaitley, at a meeting with his state counterparts last week, promised to keep the incidence of tax low while safeguarding the revenue of the states. 
 
Jaitley has been meeting leaders of Congress and other parties, including Samajwadi Party (SP), Biju Janta Dal (BJD), Trinamool Congress (TMC) and Rashtriya Janta Dal (RJD), to build a consensus on the passage of the long-pending indirect tax reform bill in the Rajya Sabha. It was approved by the lower house of parliament, Lok Sabha, in May 2015. 
 
A look at the amendments&nbsp; 
 
The Constitution (122nd Amendment) Bill, 2014, which lays the ground for roll out of Goods and Services Tax regime that will subsume all indirect taxes including central excise duty and state sales tax and Value-added Tax (VAT), is listed for consideration and passage in the upper house tomorrow. 
 
The amendments also seek to clarify that state&#39;s share of Integrated GST (iGST) will not form part of the Consolidated Fund of India and the term iGST itself would be replaced by &#39;goods and services tax levied on supplies in the course of inter-state trade or commerce&#39; in Clause 12 dealing with apportionment of the proceeds. 
 
It was also clarified that Central GST (CGST) and the centre&#39;s share of iGST will be distributed between the centre and the states. 
 
Earlier, some members, including Naresh Agarwal of SP, raised concerns in the Rajya Sabha that they had not received copies of the GST Bill or the amendment. 
 
Jaitley told Rajya Sabha the amendments to the bill, pending in the upper house for last one year, were given to the Secretariat of the House two days ago and have been circulated to the members. 
 
The bill, which was approved by the Lok Sabha in May, provided for 1 per cent additional tax on inter-state trade and commerce for two years or more as may be decided by the GST Council. Even the Rajya Sabha Select Committee had suggested removal of this provision as it would lead to cascading of taxes. 
 
A constitution amendment requires support of two-third members present and voting. The amendment will then have to be approved by 50 per cent of all the state assemblies. 
 
Congress originally mooted GST in 2006 and a constitution amendment bill was introduced in Lok Sabha in March 2011 but it lapsed with the dissolution of the 15th Lok Sabha.&nbsp; 
 
(PTI)&nbsp;

Finance minister has been meeting opposition leaders to build consensus on passage of long-pending indirect tax reform bill in upper house

Indian government has circulated official amendments to the Goods and Services Tax (GST) bill to drop 1 per cent additional tax and include a definite provision in the statute for compensating states for revenue loss for five years as it gears up to discuss the long-pending bill in the upper house of parliament (Rajya Sabha) tomorrow. Under the modified provisions of GST Constitutional Amendment Bill circulated among the members today, GST Council will be required to establish a mechanism for adjudication of disputes, which could arise between the centre and states or among states themselves. The 2014 bill authorised GST Council to decide upon the modalities for resolution of disputes. With these official amendments, the government has partially met the demands of the Congress party in opposition which has been blocking the bill in the upper house. One of the three demands of the Congress was to do away with the 1 per cent additional manufacturing tax. On the demand for a Supreme Court judge-headed panel for resolving GST disputes, the official amendments say that the GST Council will establish a mechanism for solving disputes. With regard to the demand for putting a GST rate cap in the Constitution, the government has not mentioned anything in the official amendments. Finance minister Arun Jaitley, at a meeting with his state counterparts last week, promised to keep the incidence of tax low while safeguarding the revenue of the states. Jaitley has been meeting leaders of Congress and other parties, including Samajwadi Party (SP), Biju Janta Dal (BJD), Trinamool Congress (TMC) and Rashtriya Janta Dal (RJD), to build a consensus on the passage of the long-pending indirect tax reform bill in the Rajya Sabha. It was approved by the lower house of parliament, Lok Sabha, in May 2015. A look at the amendments The Constitution (122nd Amendment) Bill, 2014, which lays the ground for roll out of Goods and Services Tax regime that will subsume all indirect taxes including central excise duty and state sales tax and Value-added Tax (VAT), is listed for consideration and passage in the upper house tomorrow. The amendments also seek to clarify that state's share of Integrated GST (iGST) will not form part of the Consolidated Fund of India and the term iGST itself would be replaced by 'goods and services tax levied on supplies in the course of inter-state trade or commerce' in Clause 12 dealing with apportionment of the proceeds. It was also clarified that Central GST (CGST) and the centre's share of iGST will be distributed between the centre and the states. Earlier, some members, including Naresh Agarwal of SP, raised concerns in the Rajya Sabha that they had not received copies of the GST Bill or the amendment. Jaitley told Rajya Sabha the amendments to the bill, pending in the upper house for last one year, were given to the Secretariat of the House two days ago and have been circulated to the members. The bill, which was approved by the Lok Sabha in May, provided for 1 per cent additional tax on inter-state trade and commerce for two years or more as may be decided by the GST Council. Even the Rajya Sabha Select Committee had suggested removal of this provision as it would lead to cascading of taxes. A constitution amendment requires support of two-third members present and voting. The amendment will then have to be approved by 50 per cent of all the state assemblies. Congress originally mooted GST in 2006 and a constitution amendment bill was introduced in Lok Sabha in March 2011 but it lapsed with the dissolution of the 15th Lok Sabha. (PTI)

Indian government circulates amendments to GST bill, looks forward to its passage in upper house

The Indian government will introduce the long-awaited goods and services tax (GST) constitutional amendment bill in Parliament next week, a minister said on Friday, as almost all political parties have agreed on the proposed law. 
 
The GST bill will be introduced in the upper house of Indian Parliament next week, junior parliamentary affairs minister Mukhtar Abbas Naqvi told lawmakers. 
 
The proposed tax reform, the biggest since India&#39;s independence from Britain in 1947, seeks to replace a slew of federal taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. 
 
Analysts say the move could boost India&#39;s economic growth by up to 2 percentage points. 
 
The Indian government on July 27 made crucial ammendments to its goods and services tax bill in a move to enlist the support of opposition parties as well as state governments. 
 
Indian finance minister Arun Jaitley met his state counterparts on July 26 to forge a political consensus on the bill that is held up in Parliament. 
 
As part of the ammendments, the government has dropped a contentious 1 per cent additional levy on inter-state movement of goods, and has agreed to compensate states for any revenue losses for five years. 
 
While there is a broad political support for the measure, differences persist on the details, in particular pitching the tax at the right level to offset possible revenue losses. 
 
The cabinet, headed by Prime Minister Narendra Modi, decided to include in the Constitutional Amendment Bill that any dispute between states and the centre will be adjudicated by the GST Council, which will have representation from both the Centre and states. 
 
With states on board and the cabinet approving the amendments, the government is hopeful of passage of the long-pending Goods and Services Tax (GST) Bill in the ongoing monsoon session of Parliament, which ends on August 12. 
 
The GST Bill, with the changes approved by the cabinet, could come up in the upper house of Parliament, the Rajya Sabha as early as this week, but certainly by next week. 
 
By doing away with the 1 per cent inter-state tax over and above the GST rate, the government has met one of the three key demands over which the main opposition party Congress has been blocking the bill in the upper house. 
 
The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body has not been accepted. It remains to be seen if meeting of its demands halfway will persuade the Congress to support the legislation. 
 
The proposed tax reform, the biggest since India&#39;s independence from Britain in 1947, seeks to replace a slew of taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. 
 
The Bill, in its present form, provides that the centre will give 100 per cent compensation to states for first three years, 75 per cent and 50 per cent for the next two years. 
 
However, the select committee of the Rajya Sabha had in its report recommended 100 per cent compensation for probable loss of revenue for five years. 
 
As per the amendments, the centre will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction. 
 
(Agencies) 
&nbsp;

The reform seeks to replace a slew of federal taxes and levies. Analysts say the move could boost economic growth by 2 per cent

The Indian government will introduce the long-awaited goods and services tax (GST) constitutional amendment bill in Parliament next week, a minister said on Friday, as almost all political parties have agreed on the proposed law. The GST bill will be introduced in the upper house of Indian Parliament next week, junior parliamentary affairs minister Mukhtar Abbas Naqvi told lawmakers. The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of federal taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. Analysts say the move could boost India's economic growth by up to 2 percentage points. The Indian government on July 27 made crucial ammendments to its goods and services tax bill in a move to enlist the support of opposition parties as well as state governments. Indian finance minister Arun Jaitley met his state counterparts on July 26 to forge a political consensus on the bill that is held up in Parliament. As part of the ammendments, the government has dropped a contentious 1 per cent additional levy on inter-state movement of goods, and has agreed to compensate states for any revenue losses for five years. While there is a broad political support for the measure, differences persist on the details, in particular pitching the tax at the right level to offset possible revenue losses. The cabinet, headed by Prime Minister Narendra Modi, decided to include in the Constitutional Amendment Bill that any dispute between states and the centre will be adjudicated by the GST Council, which will have representation from both the Centre and states. With states on board and the cabinet approving the amendments, the government is hopeful of passage of the long-pending Goods and Services Tax (GST) Bill in the ongoing monsoon session of Parliament, which ends on August 12. The GST Bill, with the changes approved by the cabinet, could come up in the upper house of Parliament, the Rajya Sabha as early as this week, but certainly by next week. By doing away with the 1 per cent inter-state tax over and above the GST rate, the government has met one of the three key demands over which the main opposition party Congress has been blocking the bill in the upper house. The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body has not been accepted. It remains to be seen if meeting of its demands halfway will persuade the Congress to support the legislation. The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. The Bill, in its present form, provides that the centre will give 100 per cent compensation to states for first three years, 75 per cent and 50 per cent for the next two years. However, the select committee of the Rajya Sabha had in its report recommended 100 per cent compensation for probable loss of revenue for five years. As per the amendments, the centre will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction. (Agencies)

Indian government hopeful of clearing GST bill in Parliament next week, opposition promises support

The Indian government on Wednesday made crucial ammendments to its goods and services tax bill in a move to enlist the support of opposition parties as well as state governments. 
 
Indian finance minister Arun Jaitley met his state counterparts on Tuesday to forge a political consensus on the bill that is held up in parliament. 
 
As part of the ammendments, the government has dropped a contentious 1 percent additional levy on inter-state movement of goods, and has agreed to compensate states for any revenue losses for five years. 
 
While there is a broad political support for the measure, differences persist on the details, in particular pitching the tax at the right level to offset possible revenue losses. 
 
The cabinet, headed by Prime Minister Narendra Modi, decided to include in the Constitutional Amendment Bill that any dispute between states and the centre will be adjudicated by the GST Council, which will have representation from both the Centre and states. 
 
With states on board and the cabinet approving the amendments, the government is hopeful of passage of the long-pending Goods and Services Tax (GST) Bill in the ongoing monsoon session of Parliament, which ends on August 12. 
 
The GST Bill, with the changes approved by the cabinet, could come up in the upper house of Parliament, the Rajya Sabha as early as this week, but certainly by next week. 
 
By doing away with the 1 per cent inter-state tax over and above the GST rate, the government has met one of the three key demands over which the main opposition party Congress has been blocking the bill in the upper house. 
 
The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body has not been accepted. It remains to be seen if meeting of its demands halfway will persuade the Congress to support the legislation. 
 
The proposed tax reform, the biggest since India&#39;s independence from Britain in 1947, seeks to replace a slew of taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. 
 
The Bill, in its present form, provides that the centre will give 100 per cent compensation to states for first three years, 75 per cent and 50 per cent for the next two years. 
 
However, the select committee of the Rajya Sabha had in its report recommended 100 per cent compensation for probable loss of revenue for five years. 
 
As per the amendments, the centre will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction. 
 
Analysts say the goods and services levy (GST) could boost India&#39;s economic growth by up to 2 percentage points. 
 
(PTI, Reuters) 
&nbsp;

Indian finance minister Arun Jaitley met his state counterparts to forge a political consensus on the bill that is held up in parliament

The Indian government on Wednesday made crucial ammendments to its goods and services tax bill in a move to enlist the support of opposition parties as well as state governments. Indian finance minister Arun Jaitley met his state counterparts on Tuesday to forge a political consensus on the bill that is held up in parliament. As part of the ammendments, the government has dropped a contentious 1 percent additional levy on inter-state movement of goods, and has agreed to compensate states for any revenue losses for five years. While there is a broad political support for the measure, differences persist on the details, in particular pitching the tax at the right level to offset possible revenue losses. The cabinet, headed by Prime Minister Narendra Modi, decided to include in the Constitutional Amendment Bill that any dispute between states and the centre will be adjudicated by the GST Council, which will have representation from both the Centre and states. With states on board and the cabinet approving the amendments, the government is hopeful of passage of the long-pending Goods and Services Tax (GST) Bill in the ongoing monsoon session of Parliament, which ends on August 12. The GST Bill, with the changes approved by the cabinet, could come up in the upper house of Parliament, the Rajya Sabha as early as this week, but certainly by next week. By doing away with the 1 per cent inter-state tax over and above the GST rate, the government has met one of the three key demands over which the main opposition party Congress has been blocking the bill in the upper house. The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body has not been accepted. It remains to be seen if meeting of its demands halfway will persuade the Congress to support the legislation. The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union. The Bill, in its present form, provides that the centre will give 100 per cent compensation to states for first three years, 75 per cent and 50 per cent for the next two years. However, the select committee of the Rajya Sabha had in its report recommended 100 per cent compensation for probable loss of revenue for five years. As per the amendments, the centre will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction. Analysts say the goods and services levy (GST) could boost India's economic growth by up to 2 percentage points. (PTI, Reuters)

India makes crucial tweaks to push through stalled GST reform

India&#39;s finance minister Arun Jaitley&#39;s meeting with the empowered committee of state finance ministers on good and services tax (GST) on Tuesday ironed out matters relating to dual control, compensation guarantee for revenue loss to states and other key issues. 
 
The development is likely to help government pass the crucial Constitution (122nd) Amendment Bill for GST in the upper house of the Indian Parliament, the Rajya Sabha, in the ongoing monsoon session and steam roll opposition party Congress&#39; objections. 
 
West Bengal state finance minister Amit Mitra, who heads the empowered panel, said there was consensus among states that businesses with turnover of up to 1.5 crore Indian Rupees should come under their jurisdiction while those with turnover of over Rs1.5 crore would be under the dual control of the state concerned and the Centre. 
 
&quot;There was a standing issue on the question of dual control... Further, the states were also satisfied with wording (in the Constitution Amendment Bill) by which states will be guaranteed five years of compensation if there is any loss of revenue,&quot; he told the reporters after the meeting. 
 
Manufacturing states like Gujarat, Maharashtra, Tamil Nadu and others have expressed concern over loss of revenue due to GST, which is a destination tax. 
 
The Constitution Amendment Bill for GST, which will subsume all indirect taxes to create one single levy for the entire market, is stuck in the Rajya Sabha due to differences between the ruling National Democratic Alliance (NDA) and main opposition Congress over it. 
 
While the lower house (Lok Sabha), where the NDA has majority, has passed the Bill, the government failed to push it in the upper house for want of support. 
 
One of the major point of dispute is the GST rate. Congress has demanded that the rate be capped at 18 per cent and included in the Constitution. Mitra said the GST rate could be decided when the law is enacted. He said the &quot;wording&quot; for it had been &quot;worked out&quot;. 
 
&quot;The question of (GST) rate was very important. A wording has been worked out which essentially means that the incident of tax on the common man has to be significantly reduced (currently it is over 30 per cent), at the same time there should be a safeguard for existing level of revenues of the Union and states.These are the two objectives. A broad framework of words has been worked out and we hope that all political parties would be in agreement,&quot; he said. 
 
Mitra said the issue of disbursement of funds to the states from central consolidated pool was also discussed. 
 
&ldquo;When the money goes into the Central government&rsquo;s consolidated pool, it becomes difficult for that money to come out to the state. On that, there is a broad consensus and hopefully that has been resolved, which will be reflected in the Constitutional Amendment,&rdquo; he said. 
 
Mitra, however, did not say anything on the 1 per cent additional tax that is one of major bone of contention with the Congress. 
 
It has asked for the extra levy, which will imposed on goods that are moved between states, to be completely scrapped as it will have a cascading impact and push up prices of goods. The industry has also opposed it. 
 
Rajeev Dimri, leader, indirect tax, BMR &amp; Associates, said resolution of dual control issue was a small step in fine-tuning the GST Bill but it does not have to be included in the Constitution. 
 
&ldquo;It can easily be done by administrative or legislative pronouncements rather than in the Constitution,&rdquo; he said. 
 
He said any change in the language of the Constitution Amendment Bill at this stage would mean it will have to go back to the Lok Sabha for approval. 
 
(Praveena Sharma/ DNA) 
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India's finance minister Arun Jaitley irons out issues of dual control, compensation in good and services tax bill amendment

India's finance minister Arun Jaitley's meeting with the empowered committee of state finance ministers on good and services tax (GST) on Tuesday ironed out matters relating to dual control, compensation guarantee for revenue loss to states and other key issues. The development is likely to help government pass the crucial Constitution (122nd) Amendment Bill for GST in the upper house of the Indian Parliament, the Rajya Sabha, in the ongoing monsoon session and steam roll opposition party Congress' objections. West Bengal state finance minister Amit Mitra, who heads the empowered panel, said there was consensus among states that businesses with turnover of up to 1.5 crore Indian Rupees should come under their jurisdiction while those with turnover of over Rs1.5 crore would be under the dual control of the state concerned and the Centre. "There was a standing issue on the question of dual control... Further, the states were also satisfied with wording (in the Constitution Amendment Bill) by which states will be guaranteed five years of compensation if there is any loss of revenue," he told the reporters after the meeting. Manufacturing states like Gujarat, Maharashtra, Tamil Nadu and others have expressed concern over loss of revenue due to GST, which is a destination tax. The Constitution Amendment Bill for GST, which will subsume all indirect taxes to create one single levy for the entire market, is stuck in the Rajya Sabha due to differences between the ruling National Democratic Alliance (NDA) and main opposition Congress over it. While the lower house (Lok Sabha), where the NDA has majority, has passed the Bill, the government failed to push it in the upper house for want of support. One of the major point of dispute is the GST rate. Congress has demanded that the rate be capped at 18 per cent and included in the Constitution. Mitra said the GST rate could be decided when the law is enacted. He said the "wording" for it had been "worked out". "The question of (GST) rate was very important. A wording has been worked out which essentially means that the incident of tax on the common man has to be significantly reduced (currently it is over 30 per cent), at the same time there should be a safeguard for existing level of revenues of the Union and states.These are the two objectives. A broad framework of words has been worked out and we hope that all political parties would be in agreement," he said. Mitra said the issue of disbursement of funds to the states from central consolidated pool was also discussed. “When the money goes into the Central government’s consolidated pool, it becomes difficult for that money to come out to the state. On that, there is a broad consensus and hopefully that has been resolved, which will be reflected in the Constitutional Amendment,” he said. Mitra, however, did not say anything on the 1 per cent additional tax that is one of major bone of contention with the Congress. It has asked for the extra levy, which will imposed on goods that are moved between states, to be completely scrapped as it will have a cascading impact and push up prices of goods. The industry has also opposed it. Rajeev Dimri, leader, indirect tax, BMR & Associates, said resolution of dual control issue was a small step in fine-tuning the GST Bill but it does not have to be included in the Constitution. “It can easily be done by administrative or legislative pronouncements rather than in the Constitution,” he said. He said any change in the language of the Constitution Amendment Bill at this stage would mean it will have to go back to the Lok Sabha for approval. (Praveena Sharma/ DNA)

With states on board, India one step closer to passing crucial tax bill amendment

Indian finance minister Arun Jaitley will meet state ministers on Tuesday to put pressure on the opposition Congress party to back a long-delayed sales tax reform whose chances have again been thrown into doubt by a parliamentary standoff.

The proposed tax reform, the biggest since India&#39;s independence from Britain in 1947, seeks to replace a slew of central taxes and levies in its 29 states, transforming the nation of 1.3 billion people into a customs union.

The current monsoon session of parliament could be the best chance for Prime Minister Narendra Modi&#39;s government to adopt a landmark Goods and Services Tax (GST) before campaigning hots up for state elections next year.

&quot;The meeting will discuss all pending issues on GST,&quot; said finance ministry spokesman D. S. Malik. &quot;Later, the government could decide a further course of action.&quot;

Yet Congress has been angered by a central investigation launched last week against one of its former state chief ministers over a case in which party chief&nbsp;Sonia Gandhi and her son and heir apparent, Rahul Gandhi, already face trial.

Both have denied accusations of misuse of party funds, in the case brought by Subramanian Swamy, a senior politician in Modi&#39;s ruling party, over property owned by a defunct party newspaper.

&quot;I don&#39;t think the Prime Minister and his government are sincere about any constructive cooperation,&quot; Anand Sharma, a senior Congress lawmaker in the upper house of Parliament, Rajya Sabha, told the Indian Express newspaper.

&quot;And in this vitiated environment, there is no cooperation possible between the Congress and the government,&quot; Sharma said, in comments echoed by senior party sources to Reuters on Monday.

With 60 members, Congress is the single largest party in the Rajya Sabha, whose members total 245. With the support of allies and a few regional parties that oppose the bill, it reckons the government cannot muster the two-thirds majority needed for a key amendment to enact the GST.

Modi&#39;s party, which lacks a majority in the Rajya Sabha, had reached out to Congress to end its opposition to the GST bill, stalled in parliament for years.

Congress signalled until last week it could support the GST bill if the government agreed to cap the tax rate at about 18 per cent, even if this was not initially anchored in the law.

Jaitley has resisted capping the tax rate, winning backing from a growing number of state governments, and still hopes to pass the GST measure in the monsoon session that ends on August 13, and turn India into a single market for the first time. 
 
(Reuters) 
&nbsp;

Congress signalled until last week it could support the GST bill if the government agreed to cap the tax rate at about 18 per cent

Indian finance minister Arun Jaitley will meet state ministers on Tuesday to put pressure on the opposition Congress party to back a long-delayed sales tax reform whose chances have again been thrown into doubt by a parliamentary standoff. The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of central taxes and levies in its 29 states, transforming the nation of 1.3 billion people into a customs union. The current monsoon session of parliament could be the best chance for Prime Minister Narendra Modi's government to adopt a landmark Goods and Services Tax (GST) before campaigning hots up for state elections next year. "The meeting will discuss all pending issues on GST," said finance ministry spokesman D. S. Malik. "Later, the government could decide a further course of action." Yet Congress has been angered by a central investigation launched last week against one of its former state chief ministers over a case in which party chief Sonia Gandhi and her son and heir apparent, Rahul Gandhi, already face trial. Both have denied accusations of misuse of party funds, in the case brought by Subramanian Swamy, a senior politician in Modi's ruling party, over property owned by a defunct party newspaper. "I don't think the Prime Minister and his government are sincere about any constructive cooperation," Anand Sharma, a senior Congress lawmaker in the upper house of Parliament, Rajya Sabha, told the Indian Express newspaper. "And in this vitiated environment, there is no cooperation possible between the Congress and the government," Sharma said, in comments echoed by senior party sources to Reuters on Monday. With 60 members, Congress is the single largest party in the Rajya Sabha, whose members total 245. With the support of allies and a few regional parties that oppose the bill, it reckons the government cannot muster the two-thirds majority needed for a key amendment to enact the GST. Modi's party, which lacks a majority in the Rajya Sabha, had reached out to Congress to end its opposition to the GST bill, stalled in parliament for years. Congress signalled until last week it could support the GST bill if the government agreed to cap the tax rate at about 18 per cent, even if this was not initially anchored in the law. Jaitley has resisted capping the tax rate, winning backing from a growing number of state governments, and still hopes to pass the GST measure in the monsoon session that ends on August 13, and turn India into a single market for the first time. (Reuters)

India's finance minister to seek opposition support for Goods and Services Tax bill

Bharatiya Janata Party&#39;s Uttar Pradesh vice president Dayashankar Singh has been relieved of all responsibilities with immediate effect for derogatory statement against Bahujan Samaj Party supremo Mayawati, said BJP UP president Keshav Prasad Maurya. 
 
Singh stoked a major row by making derogatory remarks against BSP Chief Mayawati that drew severe condemnation from parties, while an embarrassed BJP expressed regret, but furore over the issue forced adjournment of Rajya Sabha for the day. 
 
&quot;Mayawati is breaking the dream of Kanshi Ram into pieces. Mayawati is selling tickets like...,&quot; BJP Vice President Dayashankar Singh told reporters in Mau. 
 
&quot;Mayawati gives tickets for Rs 1 crore and if there is someone who can give Rs 2 crore than she sells it for Rs 2 crore within an hour. If someone is ready to give Rs 3 crore by the evening, she gives the ticket to him,&quot; Singh alleged. 
 
&quot;She is even worse than....The BSP workers, who are in BSP since Kanshi Ram&#39;s days are deserting the party,&quot; said Singh, who was in Mau for the first time after becoming party vice president to meet party workers this morning. 
 
Singh&#39;s remarks drew severe flak from members in the Rajya Sabha, including women MPs, with Deputy Chairperson P J Kurien saying that the House wants the Government to ensure that stringent action is taken against the BJP leader, as per law, for his &quot;unforgivable&quot; comments. 
 
There was all-round condemnation of Singh for his remarks by MPs, including Leader of Opposition Ghulam Nabi Azad, Dravida Munnetra Kazhagam&#39;s Kanimozhi, Congress&#39; Kumari Selja and Renuka Chowdhury, TK Rangarajan of Communist Party of India (Marxist) and Satish Chandra Mishra of BSP and demands were made for action against him. 
 
Leader of the House Arun Jaitley got up to offer regret on behalf of the party, and said the remarks were highly condemnable. 
 
&quot;It is highly condemnable that a political leader uses such words against a prominent woman leader. I regret the use of such words and will ensure that the matter is taken up by the concerned. I personally express regret to Mayawatiji and we are with you on the issue of protecting dignity,&quot; Jaitley said. 
 
A visibly agitated Mayawati, who was present in the House, thanked Jaitley and all other members for their condemnation of Singh&#39;s remarks, but demanded that BJP leaders including Prime Minister Narendra Modi and Amit Shah discuss the matter, expel Singh from the party and take action against him. 
 
She said mere expression of regret will not suffice and added, &quot;His (Singh&#39;s) remarks apply for his sister and daughter and not for me. The whole country will not forgive BJP. People will come on the streets.&quot; 
 
Mayawati said the remarks by the BJP leader reflected the &quot;capitalistic mindset&quot; and asserted that never in her political career had she used any derogatory or personal remarks against her adversaries or questioned their character, though there could be ideological differences. 
 
The BSP chief said she represented the most oppressed and exploited people of the country and had dedicated her whole life to them. She said the BSP always collected funds from the poor to carry forward the movement started by Kanshi Ram so that it does not have to rely on capitalists. 
 
&quot;On my birthday, I have told my supporters not to give me any expensive gifts like gold and jewellery, but make economic contributions to the party,&quot; she said. 
 
Mayawati attacked the BJP, saying it was jittery, and its anti-dalit mindset has been exposed as it has still not sacked a minister who had compared dalits to dogs, an apparent reference to Minister of State V K Singh.&nbsp;As the uproar over the issue continued, the Deputy Chairperson adjourned the House till tomorrow. 
 
BSP MP S C Mishra said that the party will carry forward the issue and take legal action against Singh for his utterances under the 
SC/ST Act, as they do not expect the government to take any action in this regard. &quot;We will drag him to court,&quot; he said outside Parliament. 
 
Later in Ballia, Dayashankar Singh sought to do damage control saying it was a slip of tongue. 
 
&quot;Mayawati is a big leader and came from a small family. I did not want to hurt anyone. I regret the slip of tongue. I never meant to hurt the dignity of anyone,&quot; he said. 
 
(PTI)

Singh stoked a major row by making derogatory remarks against Bahujan Samaj Party Chief Mayawati that drew severe condemnation from parties

Bharatiya Janata Party's Uttar Pradesh vice president Dayashankar Singh has been relieved of all responsibilities with immediate effect for derogatory statement against Bahujan Samaj Party supremo Mayawati, said BJP UP president Keshav Prasad Maurya. Singh stoked a major row by making derogatory remarks against BSP Chief Mayawati that drew severe condemnation from parties, while an embarrassed BJP expressed regret, but furore over the issue forced adjournment of Rajya Sabha for the day. "Mayawati is breaking the dream of Kanshi Ram into pieces. Mayawati is selling tickets like...," BJP Vice President Dayashankar Singh told reporters in Mau. "Mayawati gives tickets for Rs 1 crore and if there is someone who can give Rs 2 crore than she sells it for Rs 2 crore within an hour. If someone is ready to give Rs 3 crore by the evening, she gives the ticket to him," Singh alleged. "She is even worse than....The BSP workers, who are in BSP since Kanshi Ram's days are deserting the party," said Singh, who was in Mau for the first time after becoming party vice president to meet party workers this morning. Singh's remarks drew severe flak from members in the Rajya Sabha, including women MPs, with Deputy Chairperson P J Kurien saying that the House wants the Government to ensure that stringent action is taken against the BJP leader, as per law, for his "unforgivable" comments. There was all-round condemnation of Singh for his remarks by MPs, including Leader of Opposition Ghulam Nabi Azad, Dravida Munnetra Kazhagam's Kanimozhi, Congress' Kumari Selja and Renuka Chowdhury, TK Rangarajan of Communist Party of India (Marxist) and Satish Chandra Mishra of BSP and demands were made for action against him. Leader of the House Arun Jaitley got up to offer regret on behalf of the party, and said the remarks were highly condemnable. "It is highly condemnable that a political leader uses such words against a prominent woman leader. I regret the use of such words and will ensure that the matter is taken up by the concerned. I personally express regret to Mayawatiji and we are with you on the issue of protecting dignity," Jaitley said. A visibly agitated Mayawati, who was present in the House, thanked Jaitley and all other members for their condemnation of Singh's remarks, but demanded that BJP leaders including Prime Minister Narendra Modi and Amit Shah discuss the matter, expel Singh from the party and take action against him. She said mere expression of regret will not suffice and added, "His (Singh's) remarks apply for his sister and daughter and not for me. The whole country will not forgive BJP. People will come on the streets." Mayawati said the remarks by the BJP leader reflected the "capitalistic mindset" and asserted that never in her political career had she used any derogatory or personal remarks against her adversaries or questioned their character, though there could be ideological differences. The BSP chief said she represented the most oppressed and exploited people of the country and had dedicated her whole life to them. She said the BSP always collected funds from the poor to carry forward the movement started by Kanshi Ram so that it does not have to rely on capitalists. "On my birthday, I have told my supporters not to give me any expensive gifts like gold and jewellery, but make economic contributions to the party," she said. Mayawati attacked the BJP, saying it was jittery, and its anti-dalit mindset has been exposed as it has still not sacked a minister who had compared dalits to dogs, an apparent reference to Minister of State V K Singh. As the uproar over the issue continued, the Deputy Chairperson adjourned the House till tomorrow. BSP MP S C Mishra said that the party will carry forward the issue and take legal action against Singh for his utterances under the SC/ST Act, as they do not expect the government to take any action in this regard. "We will drag him to court," he said outside Parliament. Later in Ballia, Dayashankar Singh sought to do damage control saying it was a slip of tongue. "Mayawati is a big leader and came from a small family. I did not want to hurt anyone. I regret the slip of tongue. I never meant to hurt the dignity of anyone," he said. (PTI)

Dayashankar Singh removed as Bharatiya Janata Party's Uttar Pradesh vice president

Indian finance minister Arun Jaitley today met his Chinese counterpart Lou Jiwei in Beijing and discussed the bilateral economic cooperation and the global macroeconomic situation. 
 
The two ministers talked about bilateral economic cooperation, G20 and BRICS (Brazil, Russia, India, China and South Africa) as well as global macroeconomic situation, a statement from the Indian embassy said. 
 
Jaitley, who arrived on June 23, is scheduled to attend the annual financial dialogue at the ministerial level with Lou on June 27. 
 
The dialogue at the level of finance secretaries has been postponed to July because of inability of India&#39;s economic affairs secretary Shaktikanta Das to travel to Beijing for the meeting. Das was asked to stay in Delhi to deal with implications of the &#39;Brexit&#39; vote for India. 
 
India and China have so for had seven rounds of financial dialogue at the level of finance secretaries, the last being held in New Delhi in 2014. 
 
Before he met Lou today, Jaitley attended the annual Board of Governors meeting of Asian Infrastructure Investment Bank (AIIB), in which India is the second-largest shareholder after China. 
 
The Beijing-based AIIB was officially established late last year. 
 
Jaitley is on a five-day visit to China. 
 
(PTI)

Arun Jaitley and Lou Jiwei discussed bilateral economic cooperation in light of 'Brexit' vote

Indian finance minister Arun Jaitley today met his Chinese counterpart Lou Jiwei in Beijing and discussed the bilateral economic cooperation and the global macroeconomic situation. The two ministers talked about bilateral economic cooperation, G20 and BRICS (Brazil, Russia, India, China and South Africa) as well as global macroeconomic situation, a statement from the Indian embassy said. Jaitley, who arrived on June 23, is scheduled to attend the annual financial dialogue at the ministerial level with Lou on June 27. The dialogue at the level of finance secretaries has been postponed to July because of inability of India's economic affairs secretary Shaktikanta Das to travel to Beijing for the meeting. Das was asked to stay in Delhi to deal with implications of the 'Brexit' vote for India. India and China have so for had seven rounds of financial dialogue at the level of finance secretaries, the last being held in New Delhi in 2014. Before he met Lou today, Jaitley attended the annual Board of Governors meeting of Asian Infrastructure Investment Bank (AIIB), in which India is the second-largest shareholder after China. The Beijing-based AIIB was officially established late last year. Jaitley is on a five-day visit to China. (PTI)

Indian finance minister scheduled to attend 'financial dialogue' in Beijing, meets Chinese counterpart

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