Page 37 - Finance Ministry

Govt extends date for submitting claims under Vivad se Vishwas to Dec 31

The finance ministry on Thursday extended the deadline by two months till December 31 for submitting claims to settle pending disputes relating to government contracts. The Vivad se Vishwas II scheme was launched on July 15 to settle disputes in government contracts and the last date for submitting claims by contractors was October 31. In an office memorandum, the Department of Expenditure said lt has been decided that the claims under the Vivad se Vishwas II scheme can now be submitted till December 31, 2023. The scheme is applicable to all domestic contractual disputes where one of the parties is either the government of India or government undertakings. Under the scheme, for court awards passed on or before April 30, 2023 the settlement amount offered to the contractor will be up to 85 per cent of the net amount awarded/upheld by the court. For arbitral awards passed on or before January 31, 2023, the settlement amount offered is up to 65 per cent of the net amount ...

Centre releases tax devolution to states early citing festive season

The lowest devolution for the month of November is to Goa and Sikkim at Rs 281 crore and Rs 283.10 crore

Fiscal impact of free food grain extension unlikely for next 2 years

An analysis by Nomura said the extension reflects the difficulty in withdrawing populist policies, especially ahead of elections but the near-term macro implications should be muted

FinMin launches amnesty scheme for filing appeals against GST demand orders

The finance ministry has come out with an amnesty scheme for filing appeals against Goods and Services Tax (GST) demand orders. The scheme, which will be open till January 31, 2024, will be available for entities that were unable to submit their appeals against orders issued by the tax officer on or before March 31, 2023, according to the Central Board of Indirect Taxes and Customs (CBIC). The CBIC issued a notification with respect to the scheme on Thursday. So far, the GST law allowed an assessee to file an appeal against an assessment order seeking taxes within three months of the tax officer passing such a demand order. This can be extended by one more month. In its last meeting on October 7, the GST Council had approved this amnesty scheme for filing appeals. The entities willing to avail of the scheme will have to pre-deposit 12.5 per cent of the tax demand, against 10 per cent currently. The move will facilitate a large number of taxpayers, who could not file an appeal in t

India abstained from Pakistan's loan request to IMF: Finance ministry

The arrangement provides short-term financial assistance to countries facing balance of payments problems

Finmin questions rationale for extending FAME scheme beyond current fiscal

The Heavy Industries Ministry proposed an extension to subsidies for EVs under FAME III with a higher allocation for five more years to support the growth of electric and alternate fuel vehicles

Finance ministry notifies prospective levy of GST on corporate guarantees

The finance ministry has issued a notification stating goods and services tax will be levied on guarantees provided by corporates to their subsidiaries prospectively. The Goods and Services Tax (GST) council, comprising central and state finance ministers, had earlier this month clarified on the taxability of corporate guarantee, saying it would be subject to 18 per cent GST. Tax experts had then sought clarity on GST levy on past transactions as many companies might not be able to recover the tax from subsidiaries or group companies. The finance ministry on Thursday notified amendments to Central GST rules, saying that the corporate guarantee would be taxable from the date of the notification. GST at 18 per cent will be levied on 1 per cent of the total amount guaranteed by the parent company or the actual consideration, whichever is higher, the notification said. "This prospective modification shall have no bearing on transactions executed prior to October 26, consequently ...

FinMin notifies rules for appointment of president, members in GSTAT

The finance ministry has notified the rules for the appointment of the president and members of GST appellate tribunals. Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023, defines the rule for appointment and removal of the president and members of the appellate tribunals, their salary, allowances, pension, provident fund, gratuity and leave. The GST council, chaired by the Union Finance Minister and comprising state counterparts, in its 52nd meeting on October 7 decided that the maximum age limit for the president and members of the GST Appellate Tribunal (GSTAT) would be 70 years and 67 years, respectively. In September, the finance ministry had notified 31 benches of GSTAT, which will be set up in 28 states and 8 Union Territories. Setting up state-level benches of GSTAT would help businesses by way of faster dispute resolution. Currently, taxpayers aggrieved with the ruling of tax authorities are required to

Finance ministry's expenditure management to keep space for global crises

The pre-budget discussions are expected to conclude on November 14

Fiscal position solid, retail inflation to stay within target: FinMin

Retail inflation eased to a three-month low in September on the back of softer vegetable prices, but remained above a 4% target that the central bank has signalled would be key before easing rates

Govt to ensure that debt burden not passed on to future generation: FM

Finance Minister Nirmala Sitharman on Friday said the government is mindful of the fiscal deficit management and will ensure the burden of servicing debt is not passed on to next generation. Addressing the Kautilya Economic Conclave 2023 here, she said the government is looking at the ways in which it can bring down the overall debt. "We are conscious of matters related to macro economic stability of the country and responsibility with which we deal with our fiscal and also the fiscal management and so for every decisions that we take today, we are conscious of what burden is going to leave for the next generations," she said. It is very easy to be profligate and burden the coming generations with the debt that you will be sitting with, she said. "We are conscious of the debt of government of India. Compared to many others, it might not be as high as it is, but even then, we are consciously looking at experiments in different parts of the world," she said. She said the government

Capabilities, legal systems needed for arbitration on maritime sector

Finance Minister Nirmala Sitharaman on Thursday called for developing capabilities and legal systems, so that the country can have an international arbitration centre for the maritime sector. Addressing the final day of the three-day global maritime summit here, the minister said, while there are many Indians working in international arbitration centres in London or Singapore or Dubai, they are all just helping the senior lawyers there and not leading a case. This needs to change and can change, she said. But there is a need to improve and strengthen our arbitration processes and laws so that they meet global standards, the minister said, adding that "when we have developed a system for this we can also have an arbitration centre". On the need to improve financing to the maritime sector, she admitted that despite having a strong balance sheet, banks are not very enthused about funding this sector, largely due to higher risks this sector is associated with. Sitharaman said she is i

GST intelligence detects tax evasion of Rs 1.36 trillion so far in FY24

Between Apr 2020- Sep 2023, over 6,000 fake ITC cases reported

Centre grants 30-day non-productivity linked bonus to employees for FY23

Finance ministry sets monthly emolument ceiling at Rs 7,000 for ad-hoc bonus calculation

FinMin holds meet with heads of private general insurers on sector growth

Financial Services Secretary Vivek Joshi on Tuesday chaired a meeting with CEOs of private sector general insurance companies and discussed issues related to growth and development of the sector. Several critical issues having implications for the general insurance sector were discussed in detail, including awareness building through continuous interaction with states under State Insurance Plans to increase insurance penetration and coverage, the finance ministry said in a statement. Distribution channel rationalisation in opening up of the agency channel for the general insurance industry to increase insurance penetration and coordinating with state governments and the ministry of road transport and highways to initiate a special drive to ensure compliance of Motor Vehicles' Act were also discussed. Besides, collaboration with the ministry of health for increasing cashless facility and standardisation of treatment costs to boost growth of health insurance was also one of the ...

16th Finance Commission's political challenge

There are fundamental issues to harmonious inter-governmental fiscal relations that the Centre must take into account when constituting the Commission

Govt considers easier terms for its PPP contracts with private firms

Central and state governments are expanding funding support for projects, but will need the private sector's support

An insider's tell-all tales

In his revealing memoir, former finance secretary Subhash Chandra Garg offers a glimpse into what goes on behind closed-door meetings and in the corridors of power

Retail inflation may ease by Dec owing to seasonal factors: Finance secy

Retail inflation remained above the upper end of RBI's 2%-6% tolerance band for a second consecutive month in August, though it eased from a 15-month high of 7.44% in July

FinMin seeks expenditure proposals for supplementary demands for grants

Ahead of the winter session of Parliament, the finance ministry has sought expenditure proposals for the first batch of supplementary demands for grants from various ministries and departments. The first batch of supplementary demands for grants for 2023-24 is proposed to be placed before Parliament in the ensuing session, the ministry said in an office memorandum. The month-long winter session of Parliament usually begins in the last week of November. The cases that would be eligible to be incorporated under such demands include those where advances from the contingency fund of India have been granted. Besides, payments against court decree would be included as well as cases where the finance ministry has specifically advised moving of the supplementary demand in the winter session, it said. "While processing proposals for supplementary grants, the grant controlling authority must invariably identify savings within the grant so that the infructuous or inflated supplementary deman