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India's nationwide Goods and Services Tax (GST) was meant to unify the $2 trillion economy and make it easier for companies to transact across state borders. Nearly a month on, many are finding that doing business is more complicated than ever. Ambiguous rules under the new, multi-rate sales tax that went into effect on July 1 have left firms confused on how to price their products. The tax's complex structure - four main rates ranging from 5 to 28 per cent - has hurt sales and risks denting economic growth and government revenues in the months ahead. Airlines, for example, are uncertain whether to tax premium economy seats as economy or business class - at rates of 5 per cent or 12 per cent, respectively. Auto repair shops face a similar quandary as GST rates vary for different jobs. "People are either overcharging or undercharging for their work," said Surinder Paul, who runs one workshop in South Delhi. Even computer maker HP Inc (HPQ.N), which is marketing a laptop product to help small businesses comply with the new tax, is seeking clarity. Under the GST, desktops and laptops are taxed at 18 per cent, while multi-function printers and monitors attract a 28 per cent charge. "Monitors, CPUs and other parts of a computer are imported as a single unit," said Poonam Madan, a tax official at HP. "What rate do we charge - 18 or 28 per cent?" Billed as India's biggest tax reform since independence in 1947, the GST replaced more than a dozen federal and state levies and was meant to unify the country into a single market. While teething troubles were expected, the ensuing chaos has some officials worrying about the repercussions for Asia's third-largest economy. Annual growth slowed in the January-March quarter to 6.1 per cent, its weakest pace in more than two years. If growth slows further, federal finances would face pressure. A big test will come in September, when a grace period on filing complete monthly GST returns ends. A survey by tax software provider Tally Solutions found that more than 40 per cent of small businesses were still not up to speed on how the GST works and two-thirds hadn't yet installed compliance software. TAX CRASH COURSE New Delhi has launched an active outreach programme to educate companies and explain different provisions of the new tax. The exercise has also become a crash course for tax officials in the anomalies of the new tax structure. Officials have discovered that holiday tour operators are charging the new tax not only for services provided in India but also for those offered abroad. While vegetable seeds remain tax exempt, paddy, cereal and corn seeds now attract 5 per cent tax. This has hit sales at companies such as Monsanto (MON.N), whose local seed merchants have no experience of paying tax. "Our sales are getting hammered at a time when they would normally be booming," Arindam Lahiri, Monsanto's taxation lead in Asia & Africa, told Reuters. "This anomaly needs to be fixed urgently." Revenue Secretary Hasmukh Adhia, overseeing the GST rollout, tweeted this week that nearly 8 million businesses were enrolled to pay the tax and the transition "is going on smoothly". He did not respond to a request for comment. But for some companies it has been anything but smooth. Tobacco firms such as ITC Ltd (ITC.NS) were blindsided by further rule changes after the GST went into effect. These firms lost more than $7 billion in stock market value last week after the government suddenly hiked cigarette taxes. New Delhi's rationale for the increase was that the GST had unintentionally handed tobacco companies a windfall profit. Adding to the pain, a couple of Indian states raised local taxes or imposed new levies in a challenge to Prime Minister Narendra Modi's 'one nation, one tax' mantra. The GST was originally expected to boost India's economic growth by as much as 2 percentage points. But a convoluted structure has made many economists mark down their expectations. If anything, growth dividends are expected to accrue only over time, and not even the government's chief economic adviser, Arvind Subramanian, is daring to estimate its near-term impact. "GST in its current form fails to harmonise tax rates across products or enhance ease of doing business significantly," analysts at Jefferies said in a note.   ....

Published at: 2017-07-28 00:00:04

A Dhaka court issued on Wednesday warrants for the arrest of 39 leaders and activists of BNP in an arson case filed with Paltan Police Station, reports UNB. Dhaka Metropolitan Session's Judge M Quamrul Hossain Mollah passed the order accepting the chargesheet against them. Supreme Court Bar Association President Barrister Mahbub Uddin Khokon, BNP leaders Zainul Abedin, Maruf Kamal Khan, Shamsur Rahman Shimul Biswas, Shirin Sultana, Syeda Asifa Ashrafi Papiya and Mir Sharafat Ali Sapu were among the accused. Debi Kanta Barman, sub-inspector of Paltan Police Station and also the investigation officer of the case, submitted the chargesheet against 53 leaders and activists of BNP in the case.....

Published at: 2017-07-27 00:00:05

A BNP senior leader alleged on Wednesday the government is 'hatching a conspiracy'  centring  his party chairperson Khaleda Zia's ongoing visit to London, reports UNB. "The ministers and ruling party leaders are spreading misleading information over the BNP chairperson's visit to London only to please the Prime Minister for their personal gains. They've engaged in a conspiracy plan," BNP joint secretary general Ruhul Kabir Rizvi told  a  press conference at the party's Nayapaltan central office in the city. He said Awami League top leaders and even the Prime Minister made unnecessary remarks about Khaleda Zia's tour. "Spreading such propaganda will bring no benefit for them," he said. The BNP chairperson on July 15 last went to London for receiving medical treatment and is now staying at the residence of her eldest son and party senior vice-chairman Tarique Rahman there. Rizvi alleged that the government employed 'agencies' to fabricate false stories to malign the BNP senior leaders and spread falsehood against their party. He said Awami League is now involved in hatching a conspiracy to extend its 'misrule' by coming to power through another lopsided election. "We want to say it will be of no use. You can't get away by hatching conspiracy. The next election will definitely be held under a non-party government," he said.....

Published at: 2017-07-27 00:00:05

Awami League (AL) presidium member Mohammad Nasim said on Wednesday those who threaten to foil election by launching a movement do not believe in democracy, reports BSS. "Polls and votes are fundamental rights of all... Those who want to interfere in their (people) rights don't believe in democracy," he said, speaking at a meeting at National Medical College and Hospital (NMCH) in the city. Presided over by NMCH Chairman Kazi Firoz Rashid, MP, the meeting was also attended by NMCH Director Captain (Retd) MA Salam, National Medical College Principal M A Bashar, Awami League North City Unit Vice-President Abu Ahmed Mannaf and Organising Secretary Hedayetul Islam Swapan, among others. Nasim, also health and family welfare minister, said, "BNP could not stop the election in 2014 and the next polls will also be held on time under the supervision of Prime Minister Sheikh Hasina." Nasim said everything related to polls will take place as per the Constitution and there is no scope for violating it.....

Published at: 2017-07-27 00:00:05

CHITTAGONG, July 26: Members of the office of Superintendent of Police have started using a paddle boat to attend office in the Halishahar area of the city due to water-logging. The red-colour boat remains idle for long in a pond of the police line, but was now being used to ferry the police members to and from the office. The permanent office of the district police office is located at Sholashahar rail gate 2 in Nasirabad area, but recently has been shifted to the police line for construction of a four-storey new building in Nasirabad. Additional SP (headquarters) Rezaul Masud said the members of the police and the staffs have been suffering a lot due to the water-logging in the low-lying police line area. The ration store, armoury, police barrack and vehicles in the district's police line office also went under knee-deep water. pankajdastider@gmail.com....

Published at: 2017-07-27 00:00:05