GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

UNSTARRED QUESTION NO. 53

TO BE ANSWERED ON MONDAY, THE 29th NOVEMBER, 2021

AGRAHAYANA 8, 1943 (SAKA) 

'Tax on Multinational Companies'

53. SHRI RITESH PANDEY:

Pause

Unmute

Loaded: 100.00%

Remaining Time -2:16

Close Player

Will the Minister of Finance be pleased to state:

(a) whether the Government has presently any plans, policies and rules to levy proper share of taxation on multinational companies which derive large revenues from India via their digital presence, without having a physical one;

(b) if so, the details thereof; and

(C) If not, the measures proposed to be taken by the Government to deal with multinationals which generate substantial revenues in India but do not share a proper share of taxes with the Government?

ANSWER 

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SH. PANKAJ CHOUDHARY)

(a), (b), (c):

Yes Sir. Finance Act, 2016 introduced an Equalisation Levy on specified services provided by a non-resident not having physical presence in India. Finance Act, 2020 expanded the scope of Equalisation Levy to cover consideration received or receivable by an e-commerce operator from e-commerce supplies or services made or provided or facilitated on or after 01.04.2020. Further, Section 9(1)(i) of the Income-tax Act, 1961 was amended vide Finance Act, 2018 and subsequently vide Finance Act, 2020 to provide for the concept of "Significant Economic Presence", in addition to the existing concept of physical presence, for establishing a business connection in India of a non-resident. Shree Tax Chambers Bengaluru India

The issue of taxation of income of multinational companies arising from digital presence has been considered by G20 / Organization for Economic Co-operation and Development (OECD) Inclusive Framework of which India is a member. A statement outlining the broad features of the consensus based on a two-pillar solution was issued on 8th October 2021 by the Inclusive Framework.

Government of India Ministry of Finance Department of Revenue 

LOK SABHA UNSTARRED QUESTION NO. 119

TO BE ANSWERED ON MONDAY, NOVEMBER 29, 2021 AGRAHAYANA 8, 1943 (SAKA)

TAX EVASION

 119. SHRIMATI RANJANBEN DHANANJAY BHATT:

Will the Minister of FINANCE be pleased to state:

(a) whether the incidents of tax evasion are increasing in Delhi and other parts of the Country;

(b) if so, whether the Government has taken any step in this regard so far;

(c) if so, the details thereof; and

(d) if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY) 

(a) : There is no evidence to suggest that incidents of Income tax evasion are increasing in Delhi and other parts of the Shree Tax Chambers Bengaluru India

In terms of cases detected under Goods & Service Tax (GST) and Customs, there is no increasing trend in such evasion noticed in Delhi, although, there is overall increase in detection of GST and Customs evasion cases in the country.

(a) to (d): The Income Tax Department (ITD) takes suitable steps against the persons indulging in tax evasion such as conducting search and seizure actions, surveys, summons, assessment and reassessment of income, levy of penalties and filing of prosecution complaints before criminal courts, wherever

In recent times, various measures have been initiated to prevent tax evasion which, inter-alia, includes:

(i ) Enactment of 'The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 which has come into force w.e.f.  01.07.2015  to  specifically and more effectively deal with the issue of black money stashed away abroad.

(ii) Developing a wide range of non–intrusive methods for detecting tax evasion. They include measures like Computer Assisted Scrutiny  Selection  (CASS)  of  cases  for Scrutiny; Non-filers Monitoring System (NMS) to prioritize action on non-filers; Income Tax Business Application (ITBA)  to  help in curbing  tax  evasion by putting  in  place end to end processes for all verticals of the Department

(iii) Collecting information on Specified Financial Transactions (SFT), above notified thresholds, relating to cash deposits, credit card payments, purchase and sale of properties, purchase of shares and mutual funds etc. Such information is collected, collated and analyzed for computer aided scrutiny and risk profiling of taxpayers, identification of non-filers and stop filers

(iv) A large number of legislative provisions have been made in the Income Tax Act, 1961 (the Act) to effectively tackle tax evasion such as mandatory quoting of PAN for various cash transactions, restrictions on cash transaction of Rs. 2 lakh or more, levy of TDS @ 2% to 5% on the amount of cash withdrawal by a person exceeding Rs. 20 lakhs in aggregate from one or more accounts maintained by the recipient with a banking company or a co-operative society engaged in the business of banking or post office during a financial year, prohibiting taxpayers from taking/accepting loans or deposits or a sum of more than Rs.20,000/- in cash or repayment of loans or deposits of a sum of more than Rs. 20,000/- in cash. No deductions under section 80G of the Act is allowed if cash donations exceed 2,000/-.

(v) To bring transparency in the source of funding to political parties, suitable amendments have been made with effect from 04.2018 to provide that no donations of Rs.2,000/- or more shall be received otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through electoral bonds.Shree Tax Chambers Bengaluru India

(vi) Introduction of measures to incentivize digital transactions by allowing for transactions through other prescribed electronic modes (apart from account payee cheque or account payee bank draft) such as payment by credit cards, debit cards, net banking, UPI, RTGS, NEFT, IMPS and BHIM Aadhaar

(vii) Proactively engaging with foreign governments with a view to facilitate and enhance the exchange of information under Double Taxation Avoidance Agreements (DTAAs)/Tax Information Exchange Agreements (TIEAs)/Multilateral

(Viii) Taking effective and timely enforcement actions including expeditious investigation in foreign assets

(ix) Mandatory linking of Aadhaar with PAN, to aid in de-duplication of PAN and also prevent potential tax

Further, several measures have been taken to check tax evasion in GST such as detection of issuance of fake invoices, data analysis based interventions, introduction of e-way bills & e-invoices, aadhaar based authentication for new applicants. The Directorate General of GST Intelligence and Central GST formations keep constant vigil & take action in accordance with law wherever GST evasion is noticed.

Besides this, several measures have also been taken to check Custom Duty evasion such as risk profiling, targeting, data analytics based intelligence gathering and non- intrusive inspection of cargo. The Directorate of Revenue Intelligence and Customs field formations keep constant vigil and take action in accordance with law wherever Customs duty evasion is noticed.

******

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

***** LOK SABHA

UNSTARRED QUESTION NO.104

TO BE ANSWERED ON MONDAY THE 29TH NOVEMBER, 2021

AGRAHAYANA 8, 1943 (SAKA)

COLLECTION OF EXCISE DUTY

 104. SHRI ADHIKARI DEEPAK (DEV): 

Will the Minister of FINANCE be pleased to state:

(a) the total collection of excise duty from fuel in last five years; and

(b) the total amount of excise duty collected from Petrol and Diesel shared with States in these last five years?

ANSWER 

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY) 

(a) : The total Central Excise Duty, including cesses, collected from fuel, from April, 2016 to March, 2021 is about Rs. 74 lakh crores.Shree Tax Chambers

(b) : Tax-wise share in Central Taxes and Duties to State Government is released every month in accordance with approved recommendations made by the Finance Product-wise devolution of taxes and duties is not made.

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

LOK SABHA UNSTARRED QUESTION NO. 92

ANSWERED ON MONDAY, NOVEMBER 29, 2021/ AGRAHAYANA 8, 1943 (SAKA)

CGST, SGST and IGST Collections

 92. SHRI D.M. KATHIR ANAND:

Dr. T. SUMATHY (a) THAMIZHACHI THANGAPANDIAN:

Will the Minister of FINANCE be pleased to state:

(a) whether the GST collections for the last two years have increased;

(b) if so, the details of CGST, SGST and IGST collections made during the last three years, State wise;

(c) the details of the pending dues to be paid to the State Government of Tamil Nadu and its breakup; and Shree Tax Chambers Bengaluru India

(d) the effective steps taken by the Union Government for the timely payment of GST dues and funds to the State Government of Tamil Nadu in the future?

ANSWER 

THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): The details of CGST, SGST and IGST collections (State-wise) during the last three years are as per Annexure I

(c) & (d): As per the provisions of the GST (Compensation to States) Act, 2017, GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to all States including Tamil Nadu. The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. GST compensation of Rs. 9845.4278 crore has been released to Tamil Nadu to partly meet the compensation payable for the period April'20 to March'21 as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement.

The issue of GST Compensation to States has been deliberated in the 41st and 42nd GST Council meetings. Accordingly, in FY 20-21, Centre had borrowed Rs. 1.1 lakh crore under a special window and passed on to the States as back-to-back loan to help the States to meet the resource gap due to short-release of compensation on account of inadequate balance in the Compensation Fund. This arrangement has been finalized after detailed deliberations with the States and all States have opted for this arrangement. Subsequent to deliberations in the 43rd GST Council meeting, Centre has borrowed Rs. 1.59 lakh crores from the market through special window in current FY and passed it to the States/ UTs as a back-to-back loan as was done in last year. The quantum of funds released to Tamil Nadu State as loan is Rs.6241 crore for FY 2020-21 and Rs. 8095.25 crore for FY 2021-22. In addition, depending on the amount available in the Compensation Fund, Centre has also been releasing the regular GST compensation to States to make up for GST revenue shortfall. Taking into account, the GST Compensation released from Compensation Fund as well as back-to-back loan released in FY 2020-21 and FY 2021-22, GST compensation of Rs. 2894 crore and Rs. 2049 crore is pending to Tamil Nadu for period April'20 to March'21 and April-September, 2021 respectively as per provisional figures.

Annexure I 

Details of CGST, SGST and IGST Collections (State-wise)

(Rs. In Crores)

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

UNSTARRED QUESTION No. 79

TO BE ANSWERED ON MONDAY, NOVEMBER 29, 2021/ AGRAHAYANA 8, 1943 (SAKA)

FACELESS ASSESSMENTS AND APPEALS

 79. SHRI VISHNU DATT SHARMA:

Will the Minister of FINANCE be pleased to state:

(a) Whether the Government is considering to introduce 'faceless assessments and faceless appeals' in the central GST to make adjudication and scrutiny by the tax authorities more transparent;Shree Tax Chambers Bengaluru India

(b) if so, the details thereof; and

(C) if not, the reasons therefor?

ANSWER

MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) 

(a) to (c) In respect of GST, laws and rules made thereunder, already provide for online procedures relating to assessment and appeals on the common Further, changes in GST laws and rules are made on the recommendations of the GST Council.

GOVERNMENT OF INDIA MINISTRY OF FINANCE

DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA 

UNSTARRED QUESTION NO. 76

TO BE ANSWERED ON MONDAY 29thNOVEMBER, 2021 [8AGRAHAYANA, 1943 (SAKA)]

No. 76.  SHRI NALIN KUMAR KATEEL:

SHRI D.K. SURESH: 

Will the Minister of Finance be pleased to state:

(a) whether it is a fact that the Government proposes for monetary disbursement to States from the shareable pool of taxes;

if so, the details thereof;

(b) the details of total dues pending for disbursement to various states from the shareable pool of taxes during the last three years, year wise and state wise with special reference to Karnataka; and

(C) the total amount disbursed by the Union Government to the States including Karnataka?

ANSWER 

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

–

Tax Devolution to State Governments

Annex I (Rs. in Crore)

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

***** LOK SABHA 

UNSTARRED QUESTION NO.48 

TO BE ANSWERED ON MONDAY THE 29TH NOVEMBER, 2021

AGRAHAYANA 8, 1943 (SAKA) 

EXCISE DUTY ON PETROL AND DIESEL

48. SHRIMATI MALA ROY: 

Will the Minister of FINANCE  be pleased to state:

(a) the amount of central excise duty on per litre petrol and diesel;

(b) the break-up of this excise duty in terms of basic duty, road and infrastructure cess and agricultural cess; and Shree Tax Chambers Bengaluru India

(c) the amount of central excise duty which is going to divisible pool?

ANSWER 

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) 

(a) : The amount of central excise duty collected on petrol and diesel per litre as on date, is as under:

(b) : The break-up of present excise duty on Petrol and Diesel is as follows:

(Rs. /litre)

(c) : The "Basic Excise Duty" per litre as indicated in the table above, goes to the divisible pool

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

UNSTARRED QUESTION NO-30

ANSWERED ON- 29/11/2021

GST COMPENSATION 

30. SHRI TALARI RANGAIAH:

SHRI KURUVA GORANTLA MADHAV:

SHRI P.V. MIDHUN REDDY:

SHRI POCHA BRAHMANANDA REDDY:

SHRI MAGUNTA SREENIVASULU REDDY:

Dr. BEESETTI VENKATA SATYAVATHI:

SHRIMATI CHINTA ANURADHA:

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government has released the Goods and Services Tax (GST) compensation to the States recently;

(b) if so, the details thereof;

(c) whether any back to back loan amount has been released in view of the shortfall in GST compensation during the current financial year; and

(d) if so, the details thereof?

ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

Shree Tax Chambers Bengaluru India

(a) to b):- Yes Sir. Recently, Centre released Rs. 17,000 crore on 03.11.2021 towards GST compensation to States from the Compensation Fund. Details of GST compensation released to States/ UTs is as per details in Annexure-I. This is in addition to GST compensation of Rs. 43,303 crore released to States and Rs. 1.59 lakh crore as back to back assistance during the current financial year. During 2020-21, Centre had released compensation of Rs. 1,36,988 crore and back to back assistance of Rs. 1.1 lakh crore.

(c) to (d):- Yes Sir, as per decision in 43rd GST Council meeting, Centre has borrowed Rs.

1.59 lakh crores from the market through special window and passed on to the States/UTs as back-to-back loan to help the States/UTs to meet the resource gap due to shortfall in release of GST compensation as per details in Annexure-II.

Annexure-I

Details of GST compensation released to States/ UTs on 03.11.2021

• Revenue collected by State of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim is more than the revenue protected as per GST (Compensation to States) Act, Therefore, no GST compensation is admissible to these States.

Annexure-II 

Details of Back to back loan released to States/ UTs in FY 2021-22 

• Revenue collected by State of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim is more than the revenue protected as per GST (Compensation to States) Act, 2017 and therefore, these States are not eligible for back to back loan under Special Window Scheme.

GOVERNMENT OF INDIA MINISTRY OF FINANCE

LOK SABHA UNSTARRED QUESTION NO. 173 TO BE ANSWERED ON 29.11.2021

Cryptocurrency

173. SHRI THIRUMAAVALAVAN THOL Will the Minister of FINANCE be pleased to state:

(a) whether the Government is aware of the cryptocurrencies that are traded in India;

(b) if so, whether trading in cryptocurrency is legally permitted in India and if so, the details thereof;

(c) whether the Government has allowed the cryptocurrency exchanges as a legally permitted entity in India; and

(d) if so, the details of Acts that are applicable to cryptocurrency and cryptocurrency exchanges?

ANSWER

MINISTER   OF    STATE    IN    THE    MINISTRY    OF    FINANCE   (SHRI    PANKAJ CHAUDHARY)

(a) : Government does not collect information on trading in

(b) to (d): Cryptocurrencies are unregulated in India. RBI has vide its circular dated May 31st, 2021, advised its regulated entities to continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas Shree Tax Chambers Bengaluru India

GOVERNMENT OF INDIA MINISTRY OF FINANCE

DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA STARRED QUESTION NO.12

ANSWERED ON MONDAY, NOVEMBER 29, 2021

BITCOIN TRANSACTIONS

12.SHRIMATI SUMALATHA AMBAREESH:

SHRI D.K. SURESH:

Question:

Will the Minister of Finance be pleased to state:

(a) whether the Government is aware that Bitcoin transaction is silently blooming in India in the recent years;

(b) if so, the details thereof and the response of the Government in this regard;

(c) whether the Government has any proposal to recognise Bitcoin as a currency in the country;and

(d) if so, the details thereof?

Answer:

FINANCE MINISTE

(SMT. NIRMALA SITHARAMAN)

(a)to (d): A Statement is laid on the table of the House.

STATEMENT REFFERED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 12 RAISED BY SHRIMATI SUMALATHA AMBAREESH AND SHRI D.K. SURESH, HON'BLE MEMBER OF PARLIAMENT TO BE ANSWERED ON 29.11.2021 REGARDING BITCOIN TRANSACTIONS

(a)  The Government does not collect data on Bitcoin

(b)  Does not arise in view of (a) above.

(C)  No, sir.

(d)  Does not arise in view of (c) above.