4-tier GST structure of 5 -28% on anvil; inflation to come down

4-tier GST structure of 5-28% on anvil; inflation to come down

New Delhi, Nov 3 (PTI) A four-tier GST tax structure of 5, 12, 18 and 28 per cent that aims to lower tax incidence on most goods and keep out essential items was decided by a high-powered council today -- a major breakthrough for rollout of the Goods and Services Tax regime from April 1 next year.

Luxury items like high-end cars and demerit goods including tobacco, pan masala and aerated drinks, will be taxed at the highest rate and would also attract a cess in a way that the total incidence of tax remains at almost the current level.

With a view to safeguarding the interest of poor and keeping inflation under check, half the items in CPI basket like foodgrains, would not be taxed at all, while there would be two standard tax rates of 12 and 18 per cent.

The lowest rate of 5 per cent would be for common use items under the GST regime targetted to be rolled out from April 1, 2017.

After differences kept away a consensus on the issue at the last meeting, the all-powerful GST Council, headed by Union Finance Minister Arun Jaitley, has decided to impose an additional cess. It would be the difference between the current incidence and the 28 per cent rate, not leading to increase in the final taxation.

Tobacco currently attracts about 65 per cent total tax and for aerated drinks the current rate is about 40 per cent.

Announcing the decisions arrived at the first day of the two-day GST Council meeting, Jaitley said highest tax slab will be applicable to items which are currently taxed at 30-31 per cent (excise duty of 12.5 per cent plus VAT 14.5 pc).

"...finally the consensus is that these items, with cascading effect of 30-31 per cent, will now be taxed at 28 per cent, but with a rider. And the rider is that in this category there are several items which are now being used increasingly by a very large number of people, particularly the lower middle class. So for them 28 or 30 or 31 per cent rate will be higher, and so we are transferring them to 18 per cent," Jaitley told reporters here.

Asked if the tax impact on common man would be marginally lower, he said, "Hopefully".

The final list of items for each tax bracket will be worked out by a committee, Jaitley said, adding that soap, oil, shaving stick, toothpaste and such products will likely to move down to 18 per cent bracket.

Chief Economic Advisor Arvind Subramanian said the rate structure "should probably serve to lower inflation...and should probably bring it down."

For most items, GST will be excise duty plus VAT and that incidence will decide on which tax bracket particular goods or items fall into. .

India lodges protest with Pak Dy HC over ceasefire violations

New Delhi, Nov 2 (PTI) India today summoned Pakistan Deputy High Commissioner here and conveyed its "grave concern" as well as strong protest at the recent escalation in incidents of ceasefire violations by Pakistan on border which have resulted in several fatalities on Indian side.

Joint Secretary (incharge of Pakistan) in the External Affairs Ministry Gopal Baglay, who summoned Deputy High Commissioner Syed Haider Shah, also registered India's strong protest on the mutilation of the body of an Indian soldier by a terrorist who escaped across the Line of Control after committing the heinous crime, the MEA said.

"Deputy High Commissioner of Pakistan Syed Haider Shah was summoned to the Ministry of External Affairs (MEA) today.

"He was conveyed the government's grave concern and strong protest at the recent escalation in the incidents of ceasefire violations by the Pakistan side at the Line of Control (LoC) and International Border (IB), which have resulted into several fatalities and casualties on the Indian side among civilians and security forces personnel," the ministry said.

Shah was conveyed Government's expectation that Pakistan will not take any step inimical to peace along the LoC and IB and to the security of India.

The summoning comes amidst heightened tension between the two countries which have accused each other of violating ceasefire on the border.

Yesterday, Indian Deputy High Commissioner in Islamabad had protested to Pakistan over the unprovoked firing by Pakistani troops on the border to give cover to infiltrators when he was was summoned by the Foreign Office in Islamabad for the fourth time in just over a week over alleged "unprovoked ceasefire violations" by Indian security forces.

Mukherjee holds talks with Nepal prez to boost ties

Kathmandu, Nov 2 (PTI) President Pranab Mukherjee today held talks with his Nepalese counterpart Bidya Devi Bhandari to strengthen Indo-Nepal relations that had been strained over the issue of promulgation of the new Constitution.

Mukherjee, who arrived at the Tribhuvan International Airport, was received by President Bidya Devi Bhandari and later the two leaders had a meeting at the Rashtrapati Bhawan at Sheetal Niwas.

"The bilateral meeting was warm and cordial," Foreign Ministry officials here said.

"The Indian President also congratulated President Bhandari and the people of Nepal for the promulgation of the Constitution through the Constituent Assembly last year," Foreign Ministry spokesperson Bharat Raj Paudyal said.

The promulgation of the Constitution last year had led to a strain in ties with Madhesis, who are largely of Indian-origin, leading a nearly six-month-long protest over better representation in the Parliament and the federal structure of the new Constitution.

Their blockade had caused strain in bilateral ties, with Kathmandu accusing New Delhi of imposing an "unofficial blockade" which India had categorically denied.

The two leaders, during the meeting, focused on matters relating to bilateral relations and they stressed on the need to strengthen friendly ties between the two countries, according to Paudyal.

Nepal's Minister for Foreign Affairs Prakash Sharan Mahat, Minister for Tourism and Culture Jeeban Bahadur Shahi and Foreign Secretary Shanker Das Bairagi were also present during talks.

Meanwhile, Mukherjee also attended a reception hosted by India's Ambassador Ranjit Rae at the Indian Embassy premises.

Vice president Nanda Bahadur Pun, ministers, top leaders of various political parties, lawmakers, senior government officials, members of civil society and journalists were also present during the function.

President Mukherjee is here on a three-day visit -- the first by an Indian President in 18 years.

Before this, the then President K R Narayanan had paid a state visit in 1998.

President Mukherjee will visit Pashupatinath Temple tomorrow morning and also meet Prime Minister Pushpa Kamal Dahal "Prachanda". He will also visit Ram Janaki in Janakpur on November 4.

The Nepal government declared a national holiday today to welcome Mukherjee and stepped up security around the capital.

8 people die, 22 injured in Pak shelling on border villages

Jammu, Nov 1 (PTI) Eight people were killed and 22 injured when Pakistan troops heavily shelled border hamlets and posts with mortar bombs along the International Border (IB) and the LoC in Samba, Jammu, Poonch and Rajouri districts of Jammu and Kashmir today.

Two women were killed and 13 others injured during shelling with 82 and 120 mm mortar bombs in Rajouri, Jammu, Poonch districts.

Army sources said two Pakistani soldiers have been killed opposite to Noushera sector along the LoC in Rajouri district.

"Five people died and nine others were injured in the shelling in Ramgarh sector of Samba district today," Deputy Commissioner Samba, Sheetal Nanda told PTI.

"One persons died due to shock during shelling in the same area taking the total of those killed to six," she said.

While three of the injured were given treatment in Ramgarh hospital, the rest were shifted to GMC hospital in Jammu, she said. The casulaties took place during shelling in Jarda and Rangoor camp villages along the IB in Ramgarh sector.

Along the LOC, two women were killed in firing and shelling by Pakistani troops in Panjgrian border hamlet in Manjakote belt of Rajouri district, Deputy Commissioner Rajouri, Shabir Ahmed Bhat said.

He said three army porters suffered injuries in the shelling in Noushera sector of the district and they have been hospitalised.

Pakistani shells landed in Mendhar town of Poonch district, injuring three people, police said.

A total of 18 people, including 12 civilians, have been killed and more than 80 suffered injured in Pakistani shelling and firing along IB and LoC in Jammu since surgical strikes against terror launch pads by the Indian Army in Pakistan- occupied Kashmir.

Tata Sons board's decision in interest of group's future: Tata

Mumbai, Nov 1 (PTI) As ousted Tata Group Chairman Cyrus Mistry stepped up attack, Ratan Tata today hit back saying his removal was "absolutely necessary" for the future success of the Tata Group.

"The decision to change the leadership of Tata Sons was a well-considered and serious one for its board members. This difficult decision, made after careful and thoughtful deliberation, is one the board believes was absolutely necessary for the future success of the Tata Group," the interim chairman wrote to employees of USD 100 billion Group.

The letter came shortly after Mistry ratcheted up war of words by rebutting "insinuations" of mishandling a dispute with Japan's NTT DoCoMo, saying Ratan Tata was party to all decisions regarding the telecom venture.

Tata, 78, who retired as Tata Group Chairman nearly four years back, justified his return for "maintaining stability and continuity of leadership" and promised to give the group "a world-class leader" when a fulltime boss is appointed.

Earlier in the day, Mistry's office issued a statement saying all decisions on the telecom joint venture with DoCoMo and the following dispute were taken with unanimous approval of Board of Tata Sons as well as family patriarch Ratan Tata.

The handling of the USD 1.17 billion compensation slapped by an arbitration panel over breach of agreement with DoCoMo is said to one of the triggers for Tata Sons sacking Mistry last month.

"Insinuations that the Docomo issue was handled under the watch of Mistry in a manner inconsistent with Tata culture and values are baseless. The suggestion that Ratan Tata and the trustees would not have approved of the manner in which the litigation was conducted is contrary to what transpired," the statement said.

Responding to the statement, a Tata group spokesman said: "The insinuations are being imagined and this (DoCoMo) matter is sub-judice."

Tata in his second letter to employees after the October 24 sacking of Mistry, said the Group companies should focus on their profit margins and their market position and not compare themselves to their own past.

"The focus has to be on 'leading' rather than 'following'," he wrote

Aishwarya turns 43; to celebrate birthday with family

Mumbai, Nov 1 (PTI) Bollywood star Aishwarya Rai Bachchan, who turned 43 on Tuesday, will celebrate the day with her family and close friends.

According to sources, Aishwarya will be having an intimate dinner with family and friends. However, this time the "Sarbjit" actress will not be holding a press conference which she usually does on her birthday at her residence in suburban Juhu.

From being crowned as Miss World to becoming a top Bollywood actress, Aishwarya has achieved great success in her career. She is currently basking in the glory of her recently released movie "Ae Dil Hai Mushkil" in which she is seen alongside Ranbir Kapoor and Anushka Sharma.

The former beauty queen made her acting debut with Mani Ratnam's 1997 Tamil film "Iruvar" starring legendary versatile actor Mohanlal and her first Hindi film release was "Aur Pyaar Ho Gaya" that same year.

She is known for her memorable performances in "Hum Dil De Chuke Sanam", "Devdas", "Chokher Bali", "Raincoat", "Provoked", "Mohabbatein", "Dhoom 2", "Jodhaa Akbar", "Enthiran" and "Guzaarish" among others.

Aishwarya took a sabbatical from acting in 2010, and returned to the silver screen with thriller "Jazbaa". She was then seen in "Sarbjit" and now her latest release is Karan Johar's "Ae Dil Hai Mushkil".

Aishwarya got married to Abhishek Bachchan in 2007 and the couple have a daughter named Aaradhya.

MHA denies charges of phone tapping of judges

New Delhi, Oct 31 (PTI) Government today strongly denied allegations that telephones of some judges were being tapped saying all such reports were "baseless and unfounded".

"The Ministry of Home Affairs strongly denies media reports alleging tapping of telephones of some judges. There is no truth in these reports. These reports are baseless and unfounded," MHA spokesperson Kuldeep Singh Dhatwalia said in a statement.

The denial came after Delhi Chief Minister Arvind Kejriwal created ripples by alleging that there is a "widespread" fear that the phones of judges are being tapped and said if it is true, then it is the biggest assault on the independence of the judiciary.

Union Law Minister Ravi Shankar Prasad has also denied the allegations, saying the independence of judiciary is fundamental and uncompromising for the Modi government.

Kejriwal made the allegations while addressing the golden jubilee celebrations of Delhi High Court here in which Modi and Chief Justice of India T S Thakur were present.

The Union Home Secretary is the competent authority for sanctioning of tapping of telephones and all such orders have to be ratified later by a high-level committee headed by the Cabinet Secretary.

Military base in Cyprus not on agenda of Russian, Cypriot top diplomats talks

Russia’s military bases in Hmeymim and Tartus are enough to conduct counterterrorist operation in Syria, Sergey Lavrov says

MOSCOW, October 31. /TASS/. Moscow and Nicosia did not discuss the issue on deploying Russian military bases to Cyprus, the republic’s Foreign Minister Ioannis Kasoulides said after talks with his Russian counterpart Sergey Lavrov on Monday.

"You say that the issue on Russian military bases has been widely discussed in mass media," the minister said. "I’m afraid it was discussed only in mass media, I don’t think this was discussed by the representatives of government circles."

"Real life showed that Russia can come to Syria without any bases," Kasoulides said, answering a question how Cyprus could help Russia in the fight against international terrorism taking into account its geographic location.

Lavrov confirmed that the issue was not discussed. "We have discussed nothing of the kind. In principle, the vessels of the Russian Navy use the ports of Cyprus, but without any special services," Lavrov said. "I don’t remember that this issue has been ever discussed between the Republic of Cyprus and us."

Lavrov went on to say that Russia’s military bases in Hmeymim and Tartus are enough to conduct counterterrorist operation in Syria.

"The location of our bases in Hmeymim and Tartus is rather favorable, so we can ensure the necessary parameters of the counterterrorist operation conducted at the request of the Syrian government," the minister said.

All foreign troops must be withdrawn from Cyprus, Kasoulidis went on.

"I must brief you on the latest events that occurred in the course of the settlement of the Cyprus problem," he said. "In particular, this concerns the matter of security. It is the most important chapter for us in any solution. We know that Russia’s stance is identical to ours in that the institution of guarantees must be eliminated and all foreign troops withdrawn from Cyprus."

He added that Russia as a UN Security Council member had always adhered to high-principled positions and kept pressing for them today.

Clinton says she won't be 'knocked off course' in final week

Wilton Manors (US), Oct 31 (AP) Hillary Clinton has vowed that she would not be "knocked off course" in the election's final days, as she sought to push past a new FBI email inquiry in a sexting probe that delivered a late jolt to her race against Republican Donald Trump.

"I'm not stopping now, we're just getting warmed up," Clinton declared during a packed rally with gay and lesbian supporters in battleground Florida yesterday.

"We're not going to be distracted, no matter what our opponents throw at us." 

Trump campaigned in Las Vegas at a casino owned by billionaire GOP megadonor Sheldon Adelson and accused the Justice Department, without offering evidence, of trying to protect Clinton following the FBI's discovery of new emails that could be related to its investigation into Clinton's use of a private email server.

"Hillary has nobody but herself to blame for her mounting legal problems," Trump said during a rally.

Clinton's advisers and fellow Democrats pressured FBI Director James Comey anew to release more details about the emails, including whether Comey had even reviewed them himself. The message was aimed at gathering more information about what the bureau is seeking from a computer that appears to belong to disgraced former New York Rep Anthony Weiner, the estranged husband of Huma Abedin, one of Clinton's closest advisers.

Tim Kaine, Clinton's running mate, said Comey owed it to the public to be more forthcoming about the emails under review by the FBI with only nine days remaining before the November 8 election.

Calling Comey's announcement "extremely puzzling," Kaine said that if Comey "hasn't seen the emails, I mean they need to make that completely plain." 

Clinton's campaign chairman, John Podesta, said Comey's handling of the matter was "inappropriate." 

Clinton made unannounced stops yesterday in Florida at an early voting location, a Miami brunch spot and a soul food restaurant. She also addressed a predominantly black church, where she spoke of overcoming disappointments.

"Scripture tells us to rejoice in our sufferings, knowing that suffering produces endurance and endurance produces character," she said. "And character produces hope." 

Clinton made no direct mention of the new FBI investigation, which has created anxiety among Democrats. But while she criticised the FBI for a lack of transparency during a campaign appearance on Saturday, she tried to shift her attention back to Trump yesterday, casting him as a selfish billionaire with a striking lack of empathy.

PM dedicates Diwali to the armed forces

New Delhi, Oct 30 (PTI) Amid tension on the border with Pakistan, Prime Minister Narendra Modi today saluted the valour of the armed forces and lauded their sacrifice while dedicating the festival of Diwali to them.

He hailed the people including celebrities for sending overwhelming messages to his "Sandesh2Soldiers" campaign.

In his monthly "Mann ki Baat" programme on All India Radio, Modi also urged all citizens and state governments to find ways of forging unity across the country and working to defeat separatist tendencies and mentalities.

In the wake of ongoing troubles in the Kashmir Valley, he said, "Unity in diversity is our strength. It is the responsibility of every citizen and all governments to forge unity and curb separatist tendencies to save the country." 

In an apparent reference to tension on the Indo-Pak border, Modi credited the soldiers for maintenance of peace and security in the country and called upon everyone to remember their gallantry while celebrating Diwali.

"In the wake of recent events, our soldiers have been sacrificing their everything for the safety and security of the country. Their dedication and labour has overwhelmed me completely. Let us dedicate this Diwali to our armed forces.

"I had invited everyone to participate in the Sandesh2Soldiers campaign and I have been humbled by the response. From students, villagers and traders to political leaders and sports persons , everyone has sent a Diwali message for our soldiers," he said while referring to the jawans who are stationed in deserts and on the icy heights of the Himalayas and security personnel who are guarding our industries and airports.

"Our forces endure grave hardships for our security.

Someone is stationed in a desert, someone on the Himalayas, someone is guarding our industrial installations and someone is protecting our airports. Everyone is fulfilling a mighty responsibility. If we remember them while being in a festive mood, our remembrance will give them strength and renewed energy. I thank everyone for responding to Sandesh2Soldiers," Modi said in over half-an-hour address on the occasion of Diwali.

In a veiled reference to the unrest in Kashmir Valley, the PM also called for forces of unity to be strengthened and those of separatism to be defeated.

"Unity in diversity is the strength of our country. Every citizen and every government must work to find ways of forging unity and defeating separatist mindset and tendencies," he said as he remembered Sardar Patel who strived hard to forge unity in the country and bind it together.