Japanese automaker Nissan sues India for outstanding dues, asks for more than $770 million

As per a person who knew with the matter and documents reviewed by Reuters, the Japanese automaker Nissan Motor has started international settlement against India to seek more than $700 million in a clash over unpaid state incentives. The Nissan asked for payment of incentives due from the Tamil Nadu government as part of a 2008 agreement to create a car manufacturing plant in the southern state in a legal notice sent to Prime Minister Narendra Modi last year.

Nissan said that they requested again and again to state officials for the payment, due in 2015, were ignored and even a plea by the company’s chairman Carlos Ghosn to Modi last year in March asking federal assistance did not produce any results, as per the notice. In July 2016, the notice sent by Nissan’s lawyers was followed by more than dozen meetings between federal and state officials and Nissan executives, said the person who is aware of the matter of anonymity.  However, the federal officials from various ministries reassured Nissan that the payment would be made, and it should not bring a legal case.

Nissan, on the other hand, gave India an ultimatum in August to appoint a negotiator, the person said, adding the first arbitration hearing will be in mid-December. However, a Nissan spokesperson said the company was “committed to working with the government of India toward a resolution,” but not described much. The official told Reuters that “There is no discrepancy with regard to the amount due, and we are trying hard to resolve the issue”.

From 15th November, 178 items and Restaurant bills to get Cheaper, GST rates reworked

Scores of mass consumption things like detergent, shampoo, and chocolates can become cheaper because the panel on product and Services Tax (GST) selected Fri that solely alleged sin product ought to be taxed the foremost below the new multi-rate system.

The GST Council suggested that the government prune by nearly three-quarters a number of things below the very best twenty-eighth block, yet as move some things below different tax classes to lower brackets.

Friday’s meeting conjointly in agreement to cut back tax on eating house bills, however providing these eateries won’t get any input diminution — a facility to line off tax paid on inputs with final tax— feeding out may not become considerably cheaper.

All changes get impact from November fifteen.

The council conjointly set to bring a lot of units inside the scope of a special tax payment window for tiny and medium enterprises (SMEs) known as the composition theme and halved the rate allowed under that to a quarter. The eligibility threshold for the theme too has been raised to Rs one.5 large integer from Rs one large integer currently.

The latest feel-good tweaks to what’s India’s biggest tax overhaul ought to facilitate ease the pressure the government faces over economic disruptions from the rollout of the new tax and last year’s scrapping of high-value banknotes.

The decisions might conjointly facilitate scale back disquiet over compliance price for SMEs, that area unit crucial to Prime Minister Narendra Modi’s plans to form 1,000,000 jobs a month and lots of whose promoters area unit ancient voters of his Bharatiya Janata Party. The party is facing a resurgent opposition in elections in its bastion of Gujarat.

India has regarding fifty-six million tiny and medium-sized companies that account for a few a hundred and ten million jobs within the country, official knowledge show.

Prime Minister Modi took to Twitter and aforementioned, “All our selections area unit people-inspired, people-friendly and people-centric. we tend to area unit operating indefatigably for India’s economic integration through GST.” Making things cheaper might, however, set government revenues back by Rs 20,000 crore.

The GST subsumed a string of state levies and taxes, however, has round-faced a jolty ride since its July 1st launch, particularly on account of advanced monthly tax-filing processes that are mentioned to own raised the price of doing business for shopkeepers and little businesses.

Opposition Congress appeared unaffected by Friday’s selections.

“The Prime Minister and his government initial shoot, then they aim then suppose, be it on the problems of termination or GST,” party proponent Abhishek Manu Singhvi aforementioned, questioning the temporal arrangement of the choice before the Gujarat assembly elections.

But most business consultants welcome the newest changes, however, hoped it might boost client demand however not impact public finances.

“While the reduction of rates would considerably scale back the costs of variety of commodities, the govt. may have to balance the revenue issues too,” Bipin Sapra, Tax Partner, EY India, said.

Krishan Arora, partner, Grant designer India LLP, aforementioned the choice to prune the twenty eighth block would be a welcome by industries within the mass consumption area.

Eating out may get cheaper as GST rate on restaurants slashed to 5%

Eating out now will price you 5-6% cheaper as the GST Council slashed the tax on all restaurants on Friday, and coming to high-end hotels, from 18 percent to 5 percent. On the other hand, it did away with the advantage of input tax credit for restaurants with annual revenue of Rs 1 crore or more as they weren’t passing on the benefit of the lower tax rate to consumers. The Finance Minister Arun Jaitley said after the meeting that “Since they did not pass on the benefit they are not entitled to the benefit (any longer)”.

However, restaurants have condemned the move of government as they said that the menu prices will rise by 6 percent as the tax credits had been withdrawn. For an example, if a dish costs earlier Rs 500, now it will cost Rs 530 if eateries make a decision to pass on the extra burden on consumers. On the other hand, the tax burden will decline from Rs 90 (18 percent of 500) to Rs 26.50. The owner of a big restaurant explained that the bill will come down from Rs 590 to Rs 556.50, which is a decline of around 5.7 percent.

Hari Bhartia, Cochairman of Jubilant Foodworks, which runs Domino’s Pizza and Dunkin Donuts chains in India, said that “This will make eating out and ordering food at home more affordable for consumers and will lead to a significant growth in the organized restaurant segment”. While the cut in the tax was happily welcomed by the restaurateurs, they wanted the advantage of input credit tax to remain as well. Zorawar Kalra, founder and managing director of Massive Restaurants that runs popular outlets Masala Library, Farzi Cafe, and Pa Pa Ya, said that “Our margins were already constricted. Without input tax credit, it will become more expensive to run the restaurant. Overall, though, it is a good move for consumers”.

The National Restaurant Association of India vice-president and CEO of The Beer Café, Rahul Singh, said, “Denying the input tax credit benefit goes against the very grain of GST and will push up costs by 10 percent which will be added to the menu price. So, effectively the consumer will get a marginal benefit and not a big relief.”

State Bank of India has introduced the Lowest Home Loan Interest

The largest Public Bank SBI (State Bank of India) has lower the interest rate, the rates have been reduced by 5 basis points (0.05%) in all other loan brackets, other than it the State Bank of India (SBI), today is providing the major benefit to the customers, which as follows:

  • SBI has lowered home loan rate by 0.05% to 8.30%
  • It has also reduced the auto loan by a similar percentage point to 8.70%
  • The effective interest rate for all eligible salaried customers will be 8.30% per annum for loans up to Rs 30 lakh
  • For a car loan customer, interest ranges from 8.70% to 9.20% compared to the earlier 8.75-9.25%

The exact rate depends on the amount of loan and the credit score of the individual, as per SBI “With this reduction, SBI’s offering in a home loan is the lowest in the market. The new rates will come into effect from 1st November,” The reduction in the retail loan rate by SBI is expected to prompt other lenders to go for a similar move and the reduction follows a cut in marginal cost of funds based lending rate (MCLR) two days ago, which came after a gap of 10 months, The Bank last cut the rate in January.

SBI said in a statement said, “A customer who is eligible to take home loan can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme, Over and above of 8.30% rate.”

Ease of Doing Business 2018: How Modi’s India can beat China next year

A comparison between India and China is very common, especially the fact that India has beaten China to become the fastest growing economy in the world. India may perform better than China in the World Bank ‘Ease of Business Doing’ rankings next year if the Modi government gets its focus on 3 key areas in the coming year. India has performed exceptionally well in World Bank’s ‘Ease of Doing Business’ rankings this year.

In the 190-countries barometer, India jumped 30 places to bag the 100th rank in a research. Talking about China, it has maintained its 78th position from 2017. The gap between 78 and 100 may seem not too big, but it’s not easy to cover that distance. To surpass the rank of China, India not just needs to perform amazingly well in the 10 areas that World Bank assesses, but also perform better from many countries that are ahead of India.

Here are the three areas for India to focus on:-

Registering Property

In China, the total number of procedures to register a property is 4, whereas in India it doubles to 8. On an average note, it takes 19.5 days to register a property in China, while it takes 53 days in our country. India’s ranking was 138 for 2017, whereas it has witnessed a further decline to 154. It is one important aspect where Indian authorities and government needs to give attention.

Enforcing Contracts

World Bank says that “India made enforcing contracts easier by introducing the National Judicial Data Grid, which makes it possible to generate case management reports on local courts. This reform applies to both Delhi and Mumbai”. In China, on the other hand, it ranks 5 on the indicator, takes just 496 days to enforce contracts. The figure is as worse as 1,445 days in India.

Resolving Insolvency

There is no doubt in that India has made a huge jump on this list, which is impossible to ignore. “India made resolving insolvency easier by adopting a new insolvency and bankruptcy code that introduced a reorganization procedure for corporate debtors and facilitated the continuation of the debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai,” says World Bank. However, China is at 56.

 

‘Dealing with construction permits’ is another important area to work for both the countries. However, World Bank appreciated the efforts of India in improving its procedures. “India reduced the number of procedures and time required to obtain a building permit by implementing an online system that has streamlined the process at the Municipality of New Delhi and Municipality of Greater Mumbai,” says World Bank. A lot is yet to be done at this area for India as many issues faced by businesses in this area.

GST rate cut: GoM suggests tax on AC restaurants to be reduced to 12%

A group of ministers proposed on Sunday modifying the Goods and Service Tax rates for businesses eligible for the composition scheme, the PTI reported. The panel suggested that the tax rate on AC and Non-AC restaurants should be 12%. They also suggested that tax rate of 1% for traders and restaurants with an annual turnover of Rs 1 crore or less, which is 2% and 5% of their turnover as GST. By choosing the composition scheme, small taxpayers could avoid tiresome paperwork and pay GST at a fixed rate of their turnover.

The Group of Ministers (GoM) was headed by Assam’s Finance Minister Himanta Biswa Sarma. They also suggested that hotels with charges over 7,500 must be taxed 18%. These recommendations may be considered when the next GST Council meets, which is expected to be on 9-10 November. The Mint reported that the panel also recommended promoting more businesses to come under the composition scheme by increasing the yearly turnover threshold to Rs 1.5 crore. An official told PTI that “The GoM decided that tax rates under composition scheme for restaurants and manufacturers be lowered to 1 percent.  For traders, the ministerial group suggested two tax rates”. Besides Sarma, the GoM includes Jammu and Kashmir Finance Minister Haseeb Drabu, his Punjab counterpart Manpreet Singh Badal, Chhattisgarh Commercial Taxes Minister Amar Agrawal and Bihar Deputy Chief Minister Sushil Kumar Modi.

75% of the World’s new Billionaires are from India and China, According to the study

According to Swiss banking giant UBS and auditors PwC, the number of billionaires increased more than 1,500 last year, which is a 10 percent jump from 2015. They also said in an annual report that 75% of those who newly became billionaires in 2016 were from India and China. It added that last year was the first time it recorded more billionaires in Asia (637) than in the United States (563), giving credit to rise in China’s entrepreneurs.

Europe came third in the report of billionaires’ database with 342. The reports showed that three-quarters of those who newly became billionaires in 2016 were India and China. “Looking further forward, we estimate that $2.4 trillion (2.1 trillion Euros) of billionaire wealth will be transferred in the next two decades as billionaires age, with a significant amount going philanthropic causes,” the report said.