Morning Tidings

Tag: Nirmala

  • Nirmala Sitharaman has changed the tax provisions for EPF contribution, says states are ready to discuss GST on fuel if they want

    Nirmala Sitharaman has changed the tax provisions for EPF contribution, says states are ready to discuss GST on fuel if they want

    EPF cap increased to ₹ 5 lakhs due to non-contribution by the employer.

    The Center is ready to consider bringing fuel under the Goods and Services Tax regime if the states raised the issue in the GST Council, Finance Minister Nirmala Sitharaman said on Tuesday that all decisions related to indirect tax are governed by the Council. Not the Ministry of Finance.

    The Minister introduced 127 amendments to the Finance Bill, 2021, which was passed by the Lok Sabha. These include an income tax break for the proposed development finance institution for infrastructure financing and a change in the proposed tax provisions for the contribution of the Employees Provident Fund (EPF).

    In the budget, defending the decision to levy Cess on various items including fuel, Ms. Sitharaman said that the proceeds from the collection would be shared with the states as they were in charge of agricultural infrastructure like APMC. Marketing Yard.

    “The cess cannot be developed for the states, but will eventually be used to improve infrastructure in agriculture and agricultural yards and marketing yards, which are with the state governments and therefore the funds will go only to the states. ” FM said.

    The minister also sought to acknowledge the states’ concerns about a possible reduction in funds allocation due to the Finance Commission’s recommendation of setting up of the Non-Default Defense and Internal Security Modernization Fund. “In principle, we have agreed to it. [But] The fear that this will be imposed on the states is not at all established. We have not decided on it yet.

    “In the Finance Bill, some new proposals are being added to the nominal nature,” the minister said.

    EPF Tax

    The government has also introduced an amendment to the budget proposal for tax income on employee contributions of more than 2.5 lakhs a year in provident fund accounts.

    “There are 1% people who are also going on contribution of 5 crores also. Lakh 2.5 Lakh [cap] 92% -93% people are included, ”said FM. “Therefore, I don’t think it’s going to affect the people for whom tax-free, assured income is provided under the scheme,” she said. “Through an amendment, I intend to increase this limit to ₹ 5 lakh in those cases, and only in cases where there is no contribution by the employer to the EPF account,” Ms. Sitharaman said.

    Tax fuel

    Responding to the concerns of many MPs about higher taxes on petrol and diesel and suggestions for bringing them under the GST regime, Ms Sitharaman said that both the Center and the state were fueling and the Center taxes with the states Had to share.

    “And if it’s a concern, well, there’s a concern about fuel taxes. I honestly think, many states will be watching this, and in the next GST Council, if that discussion comes up, I would be happy that it will be put on the agenda and discussed. Let the states come and discuss it.

    “Issues related to GST, being placed before the Finance Minister, are not matters of the Finance Ministry,” he said. “They are matters of the GST Council in which all states are members. It is a collective decision and without their approval, things cannot happen, ”said Ms. Sitharaman.

    Base intimacy

    Permanent Account Number (PAN) card holders fail to notify their Aadhaar number to the Income Tax Department, or to pay Aadhaar interim default fee of up to Rs 1,000, as per the amendments made on finance, before a specified date. Will be responsible Bill.

  • Nirmala Sitharaman has changed the tax provisions for EPF contribution, says states are ready to discuss GST on fuel if they want

    Nirmala Sitharaman has changed the tax provisions for EPF contribution, says states are ready to discuss GST on fuel if they want

    EPF cap increased to ₹ 5 lakhs due to non-contribution by the employer.

    The Center is ready to consider bringing fuel under the Goods and Services Tax regime if the states raised the issue in the GST Council, Finance Minister Nirmala Sitharaman said on Tuesday that all decisions related to indirect tax are governed by the Council. Not the Ministry of Finance.

    The Minister introduced 127 amendments to the Finance Bill, 2021, which was passed by the Lok Sabha. These include an income tax break for the proposed development finance institution for infrastructure financing and a change in the proposed tax provisions for the contribution of the Employees Provident Fund (EPF).

    In the budget, defending the decision to levy Cess on various items including fuel, Ms. Sitharaman said that the proceeds from the collection would be shared with the states as they were in charge of agricultural infrastructure like APMC. Marketing Yard.

    “The cess cannot be developed for the states, but will eventually be used to improve infrastructure in agriculture and agricultural yards and marketing yards, which are with the state governments and therefore the funds will go only to the states. ” FM said.

    The minister also sought to acknowledge the states’ concerns about a possible reduction in funds allocation due to the Finance Commission’s recommendation of setting up of the Non-Default Defense and Internal Security Modernization Fund. “In principle, we have agreed to it. [But] The fear that this will be imposed on the states is not at all established. We have not decided on it yet.

    “In the Finance Bill, some new proposals are being added to the nominal nature,” the minister said.

    EPF Tax

    The government has also introduced an amendment to the budget proposal for tax income on employee contributions of more than 2.5 lakhs a year in provident fund accounts.

    “There are 1% people who are also going on contribution of 5 crores also. Lakh 2.5 Lakh [cap] 92% -93% people are included, ”said FM. “Therefore, I don’t think it’s going to affect the people for whom tax-free, assured income is provided under the scheme,” she said. “Through an amendment, I intend to increase this limit to ₹ 5 lakh in those cases, and only in cases where there is no contribution by the employer to the EPF account,” Ms. Sitharaman said.

    Tax fuel

    Responding to the concerns of many MPs about higher taxes on petrol and diesel and suggestions for bringing them under the GST regime, Ms Sitharaman said that both the Center and the state were fueling and the Center taxes with the states Had to share.

    “And if it’s a concern, well, there’s a concern about fuel taxes. I honestly think, many states will be watching this, and in the next GST Council, if that discussion comes up, I would be happy that it will be put on the agenda and discussed. Let the states come and discuss it.

    “Issues related to GST, being placed before the Finance Minister, are not matters of the Finance Ministry,” he said. “They are matters of the GST Council in which all states are members. It is a collective decision and without their approval, things cannot happen, ”said Ms. Sitharaman.

    Base intimacy

    Permanent Account Number (PAN) card holders fail to notify their Aadhaar number to the Income Tax Department, or to pay Aadhaar interim default fee of up to Rs 1,000, as per the amendments made on finance, before a specified date. Will be responsible Bill.

  • Advanced nations fail in the world on climate change: Nirmala Sitharaman

    Advanced nations fail in the world on climate change: Nirmala Sitharaman

    Finance Minister Nirmala Sitharaman on Friday called on advanced countries to fail to meet their financing commitments to help emerging economies deal with climate change, the recent Uttarakhand disaster needs to be addressed as an example of vulnerabilities .

    He said that the government is committed to building infrastructure, which will not only revive the economy, but will also prove resilient to the risks of climate change. “We’re looking at innovative systems that can certify [that] Infrastructure flexibility has been established. A global standard of certification for Resilient Infra is also something that we are thinking about, ”Ms. Sitharaman said at the International Conference on Disaster Resilient Infrastructure.

    Arguing that advanced economies had failed to meet their ‘quantitative commitment’ to provide $ 100 billion per year to help smaller countries, he pointed out that the amount itself was ‘meager’, starting with Had to do.

    “During and after the epidemic, funding for the construction of flexible infrastructure is an important issue. Emerging economies, or even worse, in the small islands and countries of Africa, have serious challenges in fulfilling the commitments of the Paris Agreement. I appeal to advanced economies that their commitment to financing climate change and transferring key technologies to achieve climate-related goals has to be met, uplifted and enhanced, ”she said.

    .

  • Cairn Arbitration Award | Nirmala says that her duty is to appeal

    Cairn Arbitration Award | Nirmala says that her duty is to appeal

    Finance Minister Nirmala Sitharaman on Friday indicated the government’s intention to appeal against an arbitration panel, stating that India would return $ 1.4 billion to the UK’s Cairn Energy plc, to say that the country’s sovereign rule would be taxed. It is his “duty” to appeal in cases.

    Last year, the government lost two high-profile arbitrations over the levy of taxes on British firms, using legislation that gives it the power to levy taxes with retrospective effect.

    While the government has already challenged an international arbitration tribunal’s decision in a Singapore court to reverse its demand of ₹ 22,100 crore in back taxes from Vodafone Group plc, it has yet to pay the value of the December 21 India award. Has not done so against returning. Shares of seized and sold, apportioned, forfeited and tax refunds to accommodate the tax demand of 7 10,247 crore on Cairn.

    “We have clarified our position on retrospective taxation. We have repeated this in 2014, 2015, 2016, 2017, 2019, 2020 so far. I do not see any lack of clarity, ”he said, referring to the Modi government’s stance of not using the 2012 law to raise any new tax demand.

    He said, “Where I have received the arbitration award, in which there is a question of imposing a tax on the sovereign authority of India … If there is a question about the right of the sovereign tax, I will appeal, it is my duty to appeal,” he said. “An arbitration award, which questions the government’s right to tax, I will appeal that.” He made no direct reference to appeal against the Cairn Award.

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  • Burden of high petrol, diesel prices on consumers; Tax deduction should be a joint call of Center, states: Nirmala Sitharaman

    Burden of high petrol, diesel prices on consumers; Tax deduction should be a joint call of Center, states: Nirmala Sitharaman

    SBI economists said in a report that if brought under the purview of GST, then the price of petrol across the country could be reduced by up to 75 liters.

    Finance Minister Nirmala Sitharaman on Friday admitted that consumers have a case for reducing the prices of petrol and diesel, but said the reduction in taxes should be a joint call of the central and state governments to do so.

    60% of the petrol retail price, which has gone above the 100-mark mark in some places in Rajasthan, Madhya Pradesh and Maharashtra and is at a higher level elsewhere in the country, is made up of central and state taxes. Taxes make up about 56 percent of the record diesel rates.

    Ms. Sitharaman, who raised the central excise duty on petrol and diesel by a record margin last year, to cut the central taxes, to reduce profits by reaching a two-decade low in international oil prices. I was noncompetitive to take the first step. Relieving consumers.

    For consumers, “it is a sufficient case to say that the fall in prices, should be its burden,” he said while interacting with reporters at the WWPC. He said that the burden on consumers was “understood”, while pricing was a serious issue.

    “This is where I use the word ‘religion’,” he said. “This is a question about which I would like to talk to the states and the Center because it is not just the Center which has a duty on petroleum products, it also has a state fee.” He said that both the states and the Center extracted revenue from taxes levied on petrol and diesel, adding that 41% of the tax collection made by the Center goes to the states.

    “So there is an issue that is layered and as a result it is the ideal thing for the Center and the states to do,” she said.

    On the issue of bringing petrol and diesel under the Goods and Services Tax (GST) regime, which would end the cascading effect of taxes and bring in uniformity, the Finance Minister said that the call has to be taken by the GST Council, which is doing it at the top level is. The body of the indirect tax system.

    Currently, the central government levies a fixed rate of excise, while states levy different rates of VAT. Under the GST, the two would merge and bring in uniformity, thereby resolving the problem of fuel rates in states with high VAT.

    “Whenever the GST Council decides to take up the issue, they are well within their interest to take it up and discuss it. This is a call the council has to take.

    Asked whether the Center would take such a proposal to the council in the next meeting this month, he said that a call would be taken closer to the date of the council meeting. Ms. Sitharaman raised the excise duty on petrol and diesel at the rate of ₹ 13 and ₹ 16 per liter on petrol and diesel respectively from March 2020 to May 2020, and now a liter price of petrol in Delhi is more than one-third from 7 91.17. Diesel cent at a rate of 81.47 per liter.

    Earlier this week, SBI economists had said in a report that if brought under the purview of GST, the price of petrol across the country could decrease by up to 75 liters.

    According to a calculation made by economists at a global crude oil price estimate of $ 60 per barrel, diesel would cost ₹ 68 per liter and revenue loss to the Center and the states would be only ₹ 1 lakh crore or 0.4% of GDP. Exchange rate. 73 per dollar.

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