PM to ‘clarify’ Pranab’s tax measures

June 29, 2012

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New Delhi, June 29: Taking charge of the Finance portfolio after the resignation of Pranab Mukherjee, Prime Minister Manmohan Singh has kindled hopes of a rethink on the controversial tax measures the departing Minister leaves behind.

While the Finance Ministry maintained on Thursday that there were no plans to defer the roll-out of the General Anti-Avoidance Rules (GAAR) beyond April 1, 2013, it said it was committed to providing “clarifications” to the PMO within two or three weeks on tax matters, which have raised the hackles of industry ever since the budget was presented.

Besides transfer pricing issues, the clarifications, in particular, would pertain to the retrospective amendment of Section 9 of the Income Tax Act — now popularly known as the Vodafone tax — which now forms apart of the Finance Act, 2012, on enactment of the Finance Bill.

Speaking to journalists, after another meeting with the Prime Minister a day after Dr. Singh in his review meeting with top Finance Ministry officials referred to “problems on the tax front which need to be addressed” as they were among the “many factors that have contributed to this general negative mood,” Finance Secretary R.S. Gujral said: “The Prime Minister’s Office sought clarifications on taxation issues and Section 9 of the Income Tax Act [related to tax on indirect transfer of assets]... We asked them to give us two-three weeks’ time.”

Under the amended provisions of Section 9 of the I-T Act, 1961, with retrospective effect, Vodafone would now be liable to pay about Rs. 20,000 crore (including interest), if and when a tax demand is raised by the authorities, though the British telecom major had won its case in the Supreme Court under the earlier legal framework.

While not giving any indication as to whether clarifications on the retrospective tax law were likely to result in any softening of the government’s stance, compared with what obtained when Mr. Mukherjee was Finance Minister, Mr. Gujral, who also heads the Revenue Department, sought to scotch speculation on deferment of the GAAR beyond April next year, as was indicated by the Finance Minister in his reply during the debate on the budget.

There is “no deferment... the GAAR is staying,” Mr. Gujral said, pointing out that the Finance Ministry would shortly issue draft explanatory guidelines on the GAAR for public comments. “We have finalised the GAAR draft rules after three meetings with the stakeholders. The draft will have examples for what would be deemed as permissible and impermissible arrangement.”

Late at night, the Central Board of Direct Taxes (CBDT) went into fast-forward mode to clear the confusion in the minds of foreign investors and issued a 23-page draft guidelines on the implementation of the GAAR in terms of Section 101 of the I-T Act with illustrative examples of cases, in which the provisions of the law would be invoked.

“The GAAR will be applicable for income arising from April 1, 2013. Certain grey areas have been highlighted. We need to clear the legislative intent of the proposal,” Mr. Gujral said. He pointed out that stakeholders would have 15 days to offer comments on the draft rules, after which the Finance Ministry would come out with the final guidelines.


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News Network
January 22,2020

Jan 22: India's ranking in the latest global Democracy Index has dropped 10 places to the 51st spot out of 167 owing to violent protests and threats to civil liberties challenging freedoms across the country.

Prime Minister Narendra Modi's government has been criticized by rights groups and western governments after shutting off the internet and mobile phone networks and detaining opposition politicians in Kashmir.

Modi’s government has also responded harshly to ongoing protests against a controversial, religion-based citizenship law. Muslims have said their neighborhoods have been targeted, while the central government has attempted to ban protests and urged TV news channels not to broadcast “anti-national” content. Some leaders in Modi’s ruling party called for “revenge” against protesters. India’s score in 2019 was its worst ranking since the EIU’s records began in 2006, and has fallen gradually since Modi was elected in 2014.

The Economist Intelligence Unit’s 2019 Democracy Index, which provides an annual comparative analysis of political systems across 165 countries and two territories, said the past year was the bleakest for democracies since the research firm began compiling the list in 2006.

“The 2019 result is even worse than that recorded in 2010, in the wake of the global economic and financial crisis,” the research group said in releasing the report on Wednesday.

The average global score slipped to 5.44 out of a possible 10 -- from 5.48 in 2018 -- driven mainly by “sharp regressions” in Latin America, Sub-Saharan Africa, the Middle East and North Africa. Apart from coup-prone Thailand, which improved its score after holding an election last year, there were also notable declines in Asia after a tumultuous period of protests and new measures restricting freedom across the region’s democracies.

Asia Declines

Hong Kong, meanwhile, fell three places to rank 75th out of 167 as more than seven months of violent and disruptive protests rocked the Asian financial hub. An aggressive police response early in the unrest, when protests were mostly peaceful, led to a “marked decline in confidence in government -- the main factor behind the decline in the territory’s score in our 2019 index,” the group said.

In Singapore, which ranked alongside Hong Kong at 75th, a new “fake news” law led to a deteriorating score on civil liberties.

“The government claims that the law was enacted simply to prevent the dissemination of false news, but it threatens freedom of expression in Singapore, as it can be used to curtail political debate and silence critics of the government,” EIU analysts said.

China’s score fell to just 2.26 in the EIU’s ranking, placing it near the bottom of the list at 153, as discrimination against minorities, repression and surveillance of the population intensified. Still, in China “the majority of the population is unconvinced that democracy would benefit the economy, and support for democratic ideals is absent,” the EIU said.

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News Network
March 3,2020

New Delhi, Mar 3: Delhi's Tihar Prison authorities had made all necessary preparations for the hanging of four convicts in the Nirbhaya gangrape-and-murder case which was scheduled for Tuesday, officials said Monday.

However, on Monday evening, a city court deferred the hanging till further orders.

Postponing the execution, Additional Sessions Judge Dharmender Rana said the hanging cannot be carried out pending disposal of Pawan Gupta's mercy plea before the President, observing any condemned convict must not meet his "Creator" with grievance against courts for not acting fairly on the opportunity to exhaust legal remedies.

"We had made all the necessary arrangements for the execution of the four convicts which was scheduled for Tuesday at 6 AM. Now, the execution has been postponed and we are waiting for the further order by the court," a senior jail official said.

The hanging of the four men -- Mukesh Kumar Singh (32), Vinay Kumar Sharma (26), Akshay Kumar Singh (31) and Pawan -- who are lodged in Tihar jail, was fixed for March 3 in Tihar jail on a court order.

"We had checked the ropes. Hangman was called and dummy executions were carried out," another senior jail official said.

Barring Pawan, the other three had in the previous weeks moved curative petitions and mercy pleas which were all dismissed.

The first date of execution -- January 22 -- fixed on January 7 was postponed by the court to February 1. But on January 31, the court indefinitely postponed the hanging. On February 17, the court again issued fresh date for execution of death warrants for March 3 at 6 AM.

The court in its orders observed that the four convicts cannot be hanged since a mercy plea of one or the other convict was pending.

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News Network
March 9,2020

New Delhi, Mar 9: The Delhi Police Special Cell on Monday arrested a PFI member Danish from UP''s Moradabad for allegedly spreading fake propaganda during anti- CAA protests.

"Danish was the head of the Counter Intelligence Wing of PFI and has been actively participating in the anti-CAA protest across the city," sources in the Delhi Police Special Cell said.

Sources further claimed that his arrest has given clues regarding the Information war by the Popular Front of India (PFI).

The FIR related to the protest was filed by the Crime Branch but since the larger conspiracy regarding the Delhi riots is being probed by the Cell, the matter has been transferred to them.

Delhi Police Special Cell had on Sunday arrested a Kashmiri couple from Okhla for alleged links with Islamic State (IS) Khorasan module.

The couple have been identified as Jahanjeb Sami (husband) and Hinda Bashir Beg (wife). The police have seized some objectionable material from them and were interrogating them.

When asked about the couple, the sources said, "Officers of CERT-In are analysing the Eight Mobile phones and Laptop of the couple to question them further."

The couple being an active member of ISJ&K was operating from the Valley but later shifted their base to Delhi post internet clampdown.

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