India bans the import of power equipment from China: Is India striving to overpower China through this retaliation step?

India bans the import of power equipment from China: Is India striving to overpower China through this retaliation step?

 In the last 10 years, 22,420 MW of supercritical power plants have been chosen and of these 12,540 MW were made on Chinese stuff, including CLP India’s Jhajjar plant, Adani’s Mundra and Tirora units,  Vedanta’s Talwandi Sabo project and Reliance Sasan. Other state-run power projects where Chinese accessories have been placed are DVC’s 600 MW Raghunathpur plant in West Bengal, Tamil Nadu’s 600 MW Mettur project, and the 600 MW Kalisindh plant in Rajasthan.

In what could the greatest economic retaliation action against China among a slew of such moves practiced by New Delhi recently, including severe Customs scrutiny and the banning of different Chinese apps in the wake of a short, bloody border stand-off, power minister RK Singh on Friday announced a complete prohibition will be in place immediately on import of power equipment from the bordering country.

The minister announced all equipment imported for application in the power supply system would be examined in the country to block Trojans, installed malware, or other cyber threats. Any import of materials from “prior reference” countries will need the prior approval of the government, the minister stated, even as he repeated that such permission won’t be possible for either China or Pakistan, a perennially hostile neighbour.

China has over the last few years remained a dominant source of power equipment for India, with a portion of approximately a third of the entire imported machines in terms of value. Imports of these capital-intensive instruments have been soaring at a fast pace despite adequate, if not excess, domestic capacity and India being a serious exporter of such materials.

Chinese banks and economic organizations have liberally provided long-term loan facilities to India’s power companies to improve the business of the country’s machinery producers and this has surely served for that country. Imports from China were worth over Rs 21,000 crore in FY19 and surplus of Rs 16,000 crore in April-December FY20.

It is not instantly apparent if the Indian power producers who have previously joined up with Chinese machinery suppliers will receive a refusal or a carve-out from the latest declaration. As much as 9,570 MW of the currently under-construction power plants — all from the private sector — have contracted with Chinese firms for providing turbines, boilers, and generators. The entire under-construction volume is 15,861 MW, of which 12,245 MW is in the private sector.

A meteorite-like object has fallen from the sky in Rajasthan with a huge explosion, the locals are upset.

A meteorite-like object has fallen from the sky in Rajasthan with a huge explosion, the locals are upset

 A meteorite-like object had fallen from the sky in Rajasthan. The blast sound heard 2-km away.

The object will be handed over to the Geological Survey of India for analysis. The meteorite-like object fallen from the sky in Rajasthan's Sanchore town has left the locals disturbed. Officials established to IANS that an object measuring around 2.78 kg fell from the sky on Friday morning, ending in a one-foot deep crater in the earth.

A tremendous blast kind of sound produced by its fall reverberated in around two-kilometre range. The locals hurried to the police station and the local administration to inform them of an explosive noise. Sub Divisional Magistrate Bhupendra Yadav approached the point and was astonished to see the object which was very hot during that time. As the object was releasing heat, it was left to chill and then packed in a container and carried to the police station.

The officials concerned also got it examined in a private lab resided at the jeweller's shop in Sanchore who established that the object had metallic properties of Germanium, Platinium, Nickel and Iron (10.23 percent of nickel, 85.86 percent of iron, platinum 0.5 percent, cobbit 0.78 percent, geranium 0.02 percent, antimony 0.01 percent niobium 0.01 and other 3.02 percent).

The crews of geologists in the Geographical Survey of India's Ahmedabad and Jaipur office have been contacted for additional analysis. The object is currently at Sanchore police station, stated Yadav adding that the area where it had fallen has been sealed off.

CBIC elucidates: Salaries paid to company directors not to attract GST.

CBIC elucidates: Salaries paid to company directors not to attract GST

 The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday announced GST will not be levied on salaries paid to directors who are employees of the company. The CBIC published a clarification following a ruling by the Rajasthan Authority of Advance Ruling (AAR) in April that declared companies will have to pay GST on the payment they dole out to directors.

"The part of director's remuneration that are declared as 'salaries' in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment in terms of Schedule III of the CGST Act, 2017," the CBIC stated.

However, where the directors' payment is like professional payments and not salary, GST will be levied on a backward charge basis. 

"The part of employee director's remuneration which is declared separately other than 'salaries' in the company's accounts and subjected to TDS under Section 194J of the IT Act as 'fees' for professional or technical services shall be treated as consideration for providing services which are outside the scope of Schedule III of the CGST Act, and is, therefore, taxable...the recipient of the said services, i.e. the company, is liable to discharge the applicable GST on it on a reverse charge basis," the CBIC stated.

Concerning individualistic directors who are not the employees of the said company, the CBIC said services provided by them to the company in lieu of remuneration as the consideration for the said services will pull goods and services tax (GST).

"The recipient of the said services, i.e. the company, is liable to discharge the applicable GST on it on a reverse charge basis," it continued.

AMRG & Associates Senior Partner Rajat Mohan told this explanation from CBIC would save a tax of 18 percent on the remuneration given to executive directors of the company.

"Tax officers would be pushed to roll back tax notices issued in relation to taxation of director salary on account of divergent views expressed by advance ruling authorities," Mohan attached.

Abhishek Jain, tax partner, EY, stated, "With the clarification linking income tax and GST, businesses would need to now evaluate comprehensively treatment of remuneration of directors under income tax, GST and accounting."