Finance Minister Arun Jaitley on Tuesday said in the Lok Sabha that criminal proceedings will be carried out in cases arising out of the Panama Papers disclosures, and the tax department will go into claims about people claiming NRI status to avoid scrutiny.
“I want properties from 1988 to be covered under the Benami Act. The money in foreign countries was reported from four sources, including HSBC, International Consortium of Journalists and Panama Papers. These details need documents. Otherwise there is no proof.
Arun JaitleyIn cases where we are receiving details, we send notices, assess their income tax details and raise tax demand. According to the law, criminal proceedings are also carried out. In HSBC and now in Panama Papers, the proceedings will be carried out. In some cases, details are received, in some, it is not. A lot of people claim NRI status, we will see if it is valid or not. It is now a disincentive and a risky business…After input tax credit, the weighted average of tax incidence is less than what it was until 30 June. My estimate is that states’ will not run into losses under GST and if they do we will compensate them
The Finance Minister was replying to a debate on the Supplementary Demand for Grants for 2017-18 and the relevant Appropriation Bill.
He was replying to a query by an Opposition member about what the government was doing in the case of Panama Papers disclosures.
After the Minister’s reply, the House approved the first batch of Supplementary Demand for Grants for 2017-18, for an additional expenditure of Rs 11,166 crore, and three appropriations.
On the Goods and Services Tax (GST) ,which has completed one month of implementation, Jaitley said the incidence of tax will be lower than the previous indirect tax regime once the input tax credit is availed and the prices will come down.
The methodology of taxation has changed, in medium and long term, it will bring prices down because of input chain that is created. Currently cascading effect of taxation is there.
The Finance Minister said that the GST Council will meet on 5 August to finalise the details of the anti-profiteering mechanism.
Arun JaitleyWe were a non-tax compliant society. The trend is being broken. We are meeting on 5 August. We will finalise the entire mechanism of anti-profiteering soon. We need to make a few examples and everyone will fall in line…The Council will meet once a month. We did rate revisions when required. More the revenues, the more the states will get. States know this. More revenue for states means more money for infrastructure, education, health, etc.
He said the switch-over to GST was smooth overall and minor glitches are rectifiable.
Jaitley also dismissed the contention by some members that GST would lead to payment of more tax by consumers.
Referring to apprehensions by Congress member from Kerala, who said that the state was dependant on tourism for its economy and the houseboat industry would be affected, Jaitley said that any levy of tax would be passed on to the consumer and the houseboat owner would not pay it. If somebody can afford to stay at Rs 10,000, he can as well pay Rs 1,000-2,000 more.
Arun JaitleyIt is the consumer who pays the tax. Up to Rs 20 lakh turnover, there is no tax. If turnover is up to Rs 75 lakh, and if you are a trader then you have to pay 1 percent under composition scheme. Manufacturers will have to pay 2 percent, restaurants will have to pay 5 percent. There is no tax on prasad and langar…Fiscal deficit has reached 3.2 percent. Going ahead we will bring it to 3 percent
Touching upon the economy, Jaitley said that this is the first year in which the world economy is showing signs of slight improvement.
He said that exports have improved in India.
(This story was published in an arrangement with IANS)
(Would you like to contribute to our Independence Day campaign to celebrate the mother tongue? Here’s your chance! This Independence Day, khul ke bol with BOL – Love your Bhasha. Sing, write, perform, spew poetry – whatever you like – in your mother tongue. Send us your BOL at firstname.lastname@example.org or WhatsApp it to 9910181818.)
. Read more on India by The Quint.QWrap: Top LeT Chief Gunned Down; Boxer Vijender Singh Gets CandidLashkar’s Master of Masks, Kashmir Chief Abu Dujana . Read more on India by The Quint.