India with its huge population is an attractive destination for automobile industry and became the fourth largest auto market in 2018. The automotive industry (vehicles & components) contributes approximately 7 percent to country’s GDP, employs millions of people. However, recently it has been seen that the India’s automobile sector is reeling under immense pressure with the cumulative domestic sales falling month-after month starting from September 2018 onwards. The woes of Indian automobile industry started with demonetization, fuelled by BS-IV vehicles discontinuation and aggravated and hit badly by COVID-19 pandemic. In such testing times, there is an imperative need to take certain prudent steps to relax the tax system of the auto industry to ensure the overall financial wellness of the ecosystem; and have illustrated below a few factors contributing to slow growth of the automobile industry and suggestive steps:Remission should not be linked only to the tax costs … [Read more...] about Opinion: Need of the hour is to bring Indirect tax reforms for the ailing auto industry
equalisation levy (“2% EL”) in the Finance Act, 2020. This came as a bolt from the blue for many since the 2% EL was not a part of the budget proposals or part of the Finance Bill, 2020.The 2% EL is levied on foreign e-commerce operators, who own, operate or manage a digital facility or platform for selling or facilitating sales of goods and services online to Indian residents [or persons using an Indian internet protocol (IP) address]. In some cases, EL also applies to consideration received from non-residents on (a) sale of advertisement targeting Indian residents or persons using an Indian IP address; and (b) sale of data collected from Indian residents or customers using an Indian IP address.The intent of the levy is clear – to tax non-resident e-commerce players who often escaped taxation in India even though a major chunk of their business and profitability was derived from Indian users.However, a lot of hue and cry has been made by the e-commerce industry … [Read more...] about Equalisation levy: Administrative woes making a stronger case for deferral?
By Puneet NarangThe June 2020 World Bank Global Economic Outlook predicts that 90 per cent of the countries in the world will go into recession in the coming months. The Indian economy was facing headwinds much before covid-19 and is currently looking at its fourth recession since independence, although the reasons are very different from the earlier ones.The tough question our policy makers and industry leaders are faced with is: how do we get back on the recovery path? There may be a silver lining.The decision to go into lockdown and shutdown for most production activity was a conscious one taken by the government as a precautionary move to slow down the spread of the virus. There wasn’t a structural or fundamental fault in the economy that has caused this deep and sudden decline.The most damaging and lingering effects of the covid-19 crisis will be the psychological impact, and, most importantly, the loss of human lives. There are already a few green shoots like power demand … [Read more...] about Reviving Indian economy: Does infrastructure hold the key
Scores of US lawmakers, academics, and students are pressing the Trump administration to reverse what is widely seen as a cruel and mean-spirited order that bars foreign students from staying in the United States if they do not attend in-person classes. The plea comes amid panic in the international student community about their future even as universities are mounting legal challenges to the new rules and teachers are working out ways to get around it. In separate letters to the heads of the Department of Homeland Security and of the Immigration and Customs Enforcement (ICE), a group of 136 US Democratic congressmen and 30 senators, including California’s Kamala Harris, said the latest guidance appeared motivated by "animus towards non-citizens and immigrants" and is a flagrant attempt to hold international students hostage in order to force schools to reopen even as Covid-19 cases are rising. "The ICE's announcement of their plans to force out or deport international … [Read more...] about Legal challenges, workarounds as White House digs in on foreign student squeeze
So if the SSP or DIG or IG knows that a particular SHO knows the chief minister and vice versa, that the SHO has a direct link to the chief minister, they would never dare touching him and he becomes a powerful instrument. … [Read more...] about ‘For every gang, the financier is the kingpin’