India’s telecom service providers face an uphill battle in their quest for relief from levies on adjusted gross revenue (AGR). Despite pleas for reduction or removal of license and USO fees, the Union Finance Ministry remains hesitant due to concerns over potential revenue loss. This decision could stifle investment and innovation in the sector, with experts arguing for a more rational approach to ensure a robust telecom infrastructure.
The Comptroller and Auditor General (CAG) has raised concerns about potential tax evasion within India’s Goods and Services Tax (GST) composition scheme. The CAG’s audit found that many taxpayers are at risk of exceeding the turnover limit for the scheme, leading to potential misuse of benefits. The audit recommends that the Finance Ministry take steps to identify and remove ineligible taxpayers to prevent further tax evasion.
The Indian Finance Ministry announced the sale of government bonds worth Rs 28,000 crore through auctions to be conducted by the Reserve Bank of India on July 5th. The bonds will be sold in three lots, with varying maturities and interest rates, through a price-based auction using the multiple price method.
Prime Minister Narendra Modi’s Union government allocated portfolios to ministers on Monday, with key BJP leaders retaining their positions. Nirmala Sitharaman continues as Finance Minister for a third consecutive term, while Amit Shah remains Home Minister, Rajnath Singh as Defence Minister, S Jaishankar as External Affairs Minister, and Nitin Gadkari as Road Transport and Highways Minister. Sitharaman, who has played a significant role in economic reforms, including implementing GST and reducing corporate tax, was first inducted into Modi’s cabinet in 2014 as Industry and Commerce Minister.
The Indian government is proposing a new Central Excise law to replace the existing eight-decade-old law. The new law will focus on simplifying compliance and promoting ease of doing business. The proposed law has been released for public consultation and is expected to be introduced in the upcoming budget session.
A survey by the Finance Ministry reveals that approximately 70% of Japanese companies plan to raise their pay scales in fiscal 2024. The move is primarily driven by the need to boost employee motivation, improve working conditions, and retain staff amid rising prices.
