Page 13 - Banking Finance October 2015
P. 13
ROUNDUP
INDUSTRY
NEWS
A new guidance notes on Power generation will be doubled in seven years:
FATCA implementation: Goyal
CBDT Union Coal and Power Minister Piyush these are sought to be replaced by
Goyal is of the belief that India will be thermal, gas, nuclear and renewable
Central Board of Direct Taxes (CBDT) power and this will generate great de-
had issued guidance notes on imple- able to double its mand. I am confident that in the next
power generation seven years or so, India will be able to
mentation of in the next seven double its electricity generation from
reporting re- years. one trillion units to two trillion units."
quirements
for the US law "Very clearly, as we "This will resolve the problem… that
FATCA. Under work to provide stranded plants (do face) and will help
Foreign Account Tax Compliance Act energy access to in consuming the large amount of re-
(FATCA), foreign financial institutions every citizen of India 24X7 and as we newable energy out of 17,500 mega-
that fail to give information about their work to eliminate diesel-generation watts we are setting up" Goyal said.
American clients to US authorities power, sadly we still have several thou- He felt that the cost of generation and
would face 30 percent withholding tax. sands of crores of rupees (spent) on production should be cut down. "My
diesel-generated power, which is concern is that the cost of generation
"The provision of FATCA essentially pro- much more expensive". and transmission must come down by
vide for 30 percent with holding tax on efficiency," he added.
US source payments made to foreign "The cost is borne by the people of the
Financial Institutions (FIs) unless they country directly or indirectly. All of
enter into agreements with Internal
Revenue Service (IRS) to provide infor- New Plan to give more autonomy to state-run ports
mation about accounts held with them
by USA persons or entities controlled Government will change existing laws governing ports to make
by USA persons," CBDT said. them more profitable and efficient, according to Shipping Minis-
ter Nitin Gadkari. The government is also putting on hold a plan
The Inter-Governmental Agreement to turn the ports into corporate entities under pressure from
(IGA) between India and US, signed trade unions and political parties.
as per of FATCA implementation, re-
quires the Indian FIs to provide nec- Finance Minister Arun Jaitley earlier this year announced a plan to
essary information to Indian tax au- corporatise ports, widely seen as an attempt to raise revenues by listing them. Mr
thorities, which will then be trans- Gadkari said the government has moved to amend existing laws to make the ports'
mitted to the US automatically. management more independent and professional so that they can be efficient and
bring down turnaround times of ships at the 12 major ports in the country.
BANKING FINANCE | OCTOBER | 2015 | 13
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