Daily News - Tuesday, 24 December 2024
‘MFN not to hit India-EFTA pact’ (The Hindu)
Switzerland has suspended the Most Favoured Nation (MFN) clause in its Double Taxation Avoidance Agreement with India, but this will not delay the ratification or implementation of the Trade and Economic Partnership Agreement (TEPA) signed between India and the EFTA bloc (Iceland, Liechtenstein, Norway, and Switzerland) in March. The agreement commits the bloc to invest $100 billion in India over 15 years and allows reduced or zero duties on products like Swiss watches and diamonds, despite India’s $19.72 billion trade deficit with Switzerland in 2023-24, stemming from $21.24 billion in imports and $1.52 billion in exports. Switzerland has invested $10.72 billion in India from April 2000 to September 2024, and the suspension of MFN status is not expected to impact trade or Swiss investments in India.
Switzerland’s TIL to invest ₹20,000 crore in Vadhvan Port (The Hindu)
The Jawaharlal Nehru Port Authority (JNPA) has signed an MoU with Switzerland-based Terminal Investment Ltd. (TIL) for developing the Vadhvan Port Project in Maharashtra, with an estimated investment of ₹20,000 crore. TIL, a global leader in container terminals, will integrate advanced technology, sustainable practices, and world-class infrastructure to enhance India’s maritime ecosystem. This partnership highlights growing international confidence in India’s maritime sector and its potential to connect key global shipping routes.
Govt panel against tax relief for EV charging stations (Financial Express)
The GST Council’s Fitment Committee has recommended maintaining the current 18% GST rate on EV charging services, rejecting industry calls for a reduction to 5% or an exemption to boost affordability and competitiveness in the electric mobility sector. While EVs are taxed at 5%, services like charging and replacement batteries are taxed at 18%, with the committee arguing that EV charging does not qualify for exemptions under existing GST provisions and electricity for charging is already subsidized in most states. Industry experts and stakeholders, such as Ficci, emphasize that reducing GST on EV charging could accelerate EV adoption and align with sustainability goals like the PM e-Drive Scheme.
West Asian share of crude imports at 9-month high (Financial Express)
India’s crude oil imports in November reached 4.7 million barrels per day (bpd), up 2.5% month-on-month, with West Asian oil hitting a nine-month high at 2.28 million bpd (48% of total imports) and Russian oil declining to 1.52 million bpd (32% of total imports). The rise in West Asian oil imports, up 10.8% from October, stemmed from refiners fulfilling annual contracts, while Russian imports dropped due to refinery maintenance in India and increased local demand in Russia. Overall, OPEC’s share in India’s crude intake rose to an eight-month high of 53%, while imports from the Commonwealth of Independent States, including Russia, fell to 35% from 40% in October.
GST on corporate sponsorships eased (mint)
The GST Council’s decision to shift the tax liability for corporate sponsorships from sponsors (reverse charge mechanism) to service providers, such as event organizers (forward charge), is set to improve tax efficiency and transparency. This change allows event organizers to claim input tax credits for taxes paid on goods and services procured for sponsored events, reducing their overall tax liability and simplifying compliance. However, while the decision eliminates complexities for recipients, it increases compliance responsibilities for providers, requiring timely filings, accurate invoicing, and proper tax reporting to ensure sponsors can claim input tax credits effectively.
