ASSOCHAM, GAAR - Current Affairs Questions and Answers

ANSWER: ASSOCHAM

Explanation:
India's food processing sector has the potential to attract $33 billion investment by 2024, according to a study released here on 20^thNov 2017 by ASSOCHAM.

The country's food and retail market is expected to touch $482 billion by 2020, up from $258 billion in 2015, with recent reforms making the sector more competitive and marke-oriented, it said.

ASSOCHAM: Know More

• The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of the apex trade associations of India.
• The organisation represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives.
• The goal of this organisation is to promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India.

ANSWER: Sandeep Jajodia

Explanation:
Monnet Ispat & Energy Ltd. CMD Sandeep Jajodia has been appointed the new President of industry chamber ASSOCHAM.

Balkrishan Goenka, Chairman, Welspun Group and Kiran Kumar Grandhi, vice-chairman of GMR Infrastructure Ltd, have taken over as senior vice-president and vice-president respectively.

Jajodia took over from Sunil Kanoria, vice-chairman, Srei Infrastructure Finance Limited.

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920.

It has more than 400 Chambers and Trade Associations, serving more than 4,50,000 members from all over India.

ASSOCHAM is set to influence dynamics of growth and development in the technology driven cyber age of ‘Knowledge Based Economy’.

ASSOCHAM derives its strength from its Promoter Chambers and other Industry/ Regional Chambers/Associations spread all over the country.

ANSWER: April 1, 2017

Explanation:
The Union Finance Ministry has announced that the General Anti Avoidance Rule (GAAR) will be effective from the 1 April, 2017.

In this regard Income Tax (IT) department has issued a slew of clarifications on implementation of GAAR.

It is seeking to address concerns of foreign investors over implementation of the anti-evasion measure.

GAAR seeks to prevent companies from routing transactions through other countries. It prevent attempts to avoid taxes.

The rules are framed mainly to minimize and check avoidance of tax.

India will be the 17th nation in the world to have laws that aim to close tax loopholes.

At present, GAAR is in force in nations like Australia, Singapore, China and the UK.

GAAR seeks to give the IT department powers to scrutinize transactions structured in such a way as to deliberately avoid paying tax in India.

It will not be invoked in cases where investments are routed through tax treaties that have a sufficient limitation of benefit (LOB) clause to address tax avoidance.

LOB clause in tax treaties generally requires investors to meet certain spending and employment criteria to avail the benefits of the treaty.

All transactions or arrangements approved by courts and quasi-judicial authorities for tax

will not be subject to the GAAR test.

GAAR will not be applicable on compulsorily convertible instruments, bonus issuances or split/consolidation of holdings in respect of investments made prior to 1 April 2017 in the hands of the same investor.

Adequate safeguards also have been put in place based on which GAAR will be invoked.

The proposal to apply GAAR first will be vetted by an officer at the level of the principal commissioner.

It can also be vetted by commissioner of income tax.

At the second stage by an approving panel headed by a high court judge. GAAR will not apply on foreign portfolio investor if its jurisdiction is based on non-tax commercial considerations and the main purpose is not to obtain tax benefits.

ANSWER: National Data Bank

Explanation:
Industry body ASSOCHAM has offered to set up a National Data Bank containing information about electronic transactions, used by the government for official purposes like issuance of passports as well as protecting country’s strategic interests.

• Proposal involves creation of a Central Coordination Committee under the guidance of National Security Council Secretariat
• A clear legal framework is required to legitimise the need for creating a National Data Bank of e-information of classified and heritage documents for national archives which can be integrated with national information policy demarcating information into three board categories.
• Data which is non sensitive in nature could be used for scientific economic and development purposes
• It can be used for taking accurate and immediate decisions in large demographies for trend forecasting and recourse in case of civic decisions or exigency by numerous Ministries or Departments of Government of India.
• Industry has noted the current regime of the Big Data Management does not facilitate efficient open sharing and interoperability of government owned data with different inter and intra government agencies
• Need for creating cyber National Data Bank of e-information of classified heritage documents for National Archive with the aim to promote open data sharing and access to GoI owned data for national planning and R&D.

ANSWER: ASSOCHAM

Explanation:
This is a 67% jump over USD 23 billion revenue for 2015 as per industry body ASSOCHAM. Indian e-commerce market was worth USD 3.8 billion in 2009 and went up to USD 17 billion in 2014 nd USD 23 billion in 2015. It is expected to touch USD38 billion mark by 2016. Enhanced internet and mobile penetration as well as increased acceptability of online payments and desired demographics will provide the e-commerce sector a chance to connect with customers. ASSOCHAM predicts a 5 to 7 fold increase in revenue generated via e-commerce.

ANSWER: Sunil Kanoria

Explanation:
Sunil Kanoria on 25th November 2015 has been appointed as President of the Associated Chamber of Commerce and Industry of India, succeeding YES Bank MD and CEO Rana Kapoor. Kanoria has an amazing record as a finance expert and brought INR 34000 crore rupees of consolidated assets under SREI, one of the first NBFCs to be listed on LSE.

ANSWER: 2 year

Explanation:
GAAR are framed to minimize tax avoidance, for example by siphoning off profits to tax havens. GAAR could be termed as a general set of rules enacted to limit tax avoidance. It was proposed by the Union Budget 2012-13. The finance bill 2012 introduced chapter X-A to the income Tax Act-1961. Tax avoidance rule GAAR was proposed to be effective from April 2015 for those claiming tax benefits of over Rs 3 crore but the present Finance Minister Arun Jaitley deferred the roll out of the GAAR by two years to April 1, 2017.