Ministry of Health signs MoU with Government of West Bengal to set up Centre of Excellence in Transfusion Medicine

Ministry of Health and Family Welfare signed a memorandum of understanding (MoU) with Government of West Bengal to formalize its support to set up a state-of-the-art Centre of Excellence in Transfusion Medicine at Kolkata, here today. Government of India has approved this important initiative with an outlay of approximately Rs.200 Crores towards equipment, manpower and running costs. The land for this initiative will be provided free of cost by the State government. The move intends to strengthen the blood transfusion services in the State and the surrounding region. Shri R K Vats, Additional Secretary (Health) and Shri Anil Verma, Principal Secretary Health, Government of West Bengal signed the MoU on behalf of their respective Ministries. 

Metro Blood Bank Project is conceived to be a Central Sector Scheme of the Ministry of Health and Family Welfare to set up state-of-the-art Centres of Excellence in transfusion medicine in the four metro cities of Delhi, Mumbai, Chennai and Kolkata. These centres are high volume blood collection centres where there is state-of-the-art technology in transfusion medicine for component separation, processing of blood and quality systems. Facilities for screening of collected blood by NAT would be made available at these centres and also extended to the other blood banks of the State. 

Approval of Union Minister of Health and Family Welfare has been accorded for the first phase, wherein these facilities are to come up in Chennai and Kolkata. National Blood Transfusion Council under National AIDS Control Organization will be the implementing division of the Ministry for this project. The MoU for setting up the Metro Blood Bank in Chennai has already been signed on 14th June 2016. 

India collects near about 11 million blood units every year. Nearly 71% of these blood donations are collected through voluntary non-remunerated donors. A recently concluded assessment of licensed Blood Banks of India revealed that the average blood donation rate in India is 0.8, which is lower than many high income countries leading to a shortfall in quantum and access to safe blood in select hard-to-reach areas of the country. Rational use of blood also needs to be ensured to enhance utilization, as one unit of blood can benefit more than one beneficiary through separation into red cells, plasma, platelets. 

Gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST

It is being reported that gifts and perquisites supplied by companies to their employees will be taxed under GST. Gifts upto a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. However, gifts of value more than Rs 50,000/- made without consideration are subject to GST, when made in the course or furtherance of business. 

The question arises as to what constitutes a gift. Gift has not been defined in the GST law. In common parlance, gift is made without consideration, is voluntary in nature and is made occasionally. It cannot be demanded as a matter of right by the employee and the employee cannot move a court of law for obtaining a gift. 

Another issue is the taxation of perquisites. It is pertinent to point out here that the services by an employee to the employer in the course of or in relation to his employment is outside the scope of GST (neither supply of goods or supply of services). It follows therefrom that supply by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST. Further, the Input Tax Credit (ITC) Scheme under GST does not allow ITC of membership of a club, health and fitness centre [section 17 (5) (b) (ii)]. It follows, therefore, that if such services are provided free of charge to all the employees by the employer then the same will not be subjected to GST, provided appropriate GST was paid when procured by the employer. The same would hold true for free housing to the employees, when the same is provided in terms of the contract between the employer and employee and is part and parcel of the cost-to-company (C2C). 

The Union Finance Minister Shri Arun Jaitley to be the Chief Guest on the occasion of 36th Foundation Day

Self Help Group Bank Linkage Programme (SHG BLP), the pioneering initiative of Financial Inclusion by NABARD completed 25 years during this year and is well poised to deliver the savings and credit services at the doorstep of rural poor especially women through their self-managed institutions called SHGs. Commemorating this occasion, NABARD has dedicated its 36^th Foundation Day to celebrate the Silver Jubilee of SHG Bank Linkage Programme.  Since its pilot stage in 1992, the SHG Programme has come a long way in covering more than 10 crore rural families. As on 31^st March, 2017 these groups had savings of more than Rs 16,000 crore in banks and double of that amount in their internal lending. The Program had a catalytic effect in sourcing collateral free loans to the tune of Rs 61,000 crore to these poor women from the mainstream banking system at the normal rates of interest. With more than 8.5 crore rural women as the direct participants in this mass movement, NABARD will be celebrating the Silver Jubilee of SHG BLP at Vigyan Bhavan in national capital tomorrow i.e. 11^th July, 2017.

 The Union Finance Minister Shri Arun Jaitley has kindly consented to be the Chief Guest and the programme would be attended by Senior Officials of Central and State Governments, RBI etc. Besides, the programme is being attended by the Channel partners especially Banks, NGOs etc., who collaborated with NABARD in making SHG Bank Linkage Programme as the World’s largest.

On this occasion, NABARD is felicitating the Policy makers, Thought Leaders, Self Help Promoting Institutions, Banks and above all few leaders among women who owned this concept and made lives of their hapless sisters’ smoother by creating avenues for sustainable livelihoods.

Auction for Sale (Re-issue) of ‘Government of India Floating Rate Bonds

Government of India has announced the Sale (re-issue) of (i) “Government of India Floating Rate Bonds 2024” for a notified amount of  Rs. 3000 crore (nominal) through price based auction, (ii) “6.79 per cent Government Stock, 2027” for a notified amount of Rs. 9,000 crore (nominal) through price based auction, (iii) “7.73 per cent Government Stock  2034” for a notified amount of Rs. 3,000 crore (nominal) through price based auction, (iv) “7.06 per cent Government Stock, 2046” for a notified amount of  Rs. 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on July 14, 2017 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 14, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.   

The result of the auctions will be announced on July 14, 2017 (Friday) and payment by successful bidders will be on July 17, 2017 (Monday).   

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

y of Finance10-July, 2017 18:48 IST GST rate for Sanitary Napkins

There are some remarks made by various column writers on GST rate on sanitary napkins. It may be mentioned that the tax incidence on this item before and after GST is the same or less.

 Sanitary napkins are classifiable under heading 9619. In pre-GST, they attracted concessional excise duty of 6% and 5% VAT and, the pre-GST estimated total tax incidence on sanitary napkins was 13.68%.  Therefore, 12% GST rate had been provided for sanitary napkin.

 Major raw materials for manufacture of sanitary napkins and applicable GST rates on them are as under:

a)             18% GST rate

o    Super Absorbent Polymer

o    Poly Ethylene Film

o    Glue

o    LLDPE– Packing Cover

b)            12% GST rate

o    Thermo Bonded Non-woven

o    Release Paper

o    Wood Pulp

As raw materials for manufacture of sanitary napkins attract GST of 18% of 12%, even with 12% GST on sanitary napkins, there in an inversion in the GST structure. Though, within the existing GST law such accumulated ITC will be refunded, it will have associated financial costs [interest burden] and administrative cost, putting them at a dis-advantage vis-à-vis imports, which will also attract 12% IGST on their imports, with no additional financial costs on account of fund blockage and associated administrative cost of refunds.

 If the GST rate on sanitary napkins were to be reduced from 12% to 5%, it will further accentuate the tax inversion and result in even higher accumulated ITC, with correspondingly higher finical costs on account of fund blockage and associated administrative cost of refunds, putting domestic manufacturers at even greater dis-advantage vis-à-vis imports.

 Reducing the GST rate on sanitary napkins to Nil, will however, result in complete denial of ITC to domestic manufacturers of sanitary napkins and zero rating imports. This will make domestically manufactured sanitary napkins at a huge dis-advantage vis-à-vis imports, which will be zero rated.

Extension of NPS Fortnight from 11th July, 2017 to 21st July, 2017.

With a view to promote and create awareness about the National Pension System (NPS) and improve the quality of services provided to the subscribers, PFRDA is observing NPS fortnight from 27^th June, 2017 to 11^th July, 2017 successfully. Keeping in view the demand raised by Government Nodal Offices and also benefits to the NPS subscribers, PFRDA has decided to extend the NPS Service Fortnight from 11^th July, 2017 to 21^st July 2017. During this extended period also all the nodal offices, Pay and Account Offices and DDOs under the Central and State Governments, Points of Presence/ banks/ aggregators/ banking correspondents etc. will be involved with the acquisition, servicing of NPS subscribers and creating awareness about the National Pension System, in a proactive manner.

 NSDL has also developed an exclusive web link i.e. https://npscra.nsdl.co.in/nps.php ,which encapsulates all the information and functionalities related to NPS subscriber, including ‘NPS Mobile App’, which may be instrumental for effective & efficient use of NPS Service Fortnight.

 Benefits of downloading mobile app:

 The NPS Mobile APP gives details of Subscribers account online without approaching their respective nodal offices. The Subscriber can access latest account details as is available on the CRA web site using user ID (PRAN) and password. The APP gives better user experience and provides additional functionalities such as

 (i) View of current Holdings viz Percentage of Asset allocation among PFMs (Unit , NAV & Amount) & total value of holdings etc.

(ii) Request for Transaction Statement for the year on your email ID.

(iii) Change of contact details like Telephone, Mobile no. and email ID.

(iv) Change of Password / Secret Question

(v) View of Accounts detail viz name, address, associated nodal office and registration no. etc.

(vi) Regeneration of password using secret question.

(vii) View of last 5 contribution transactions carried out

(viii) Processing of voluntary contributions for Tier I as well as Tier II

(ix) Modification of address using Aadhaar authentication

PFRDA has also advised the Central Recordkeeping Agency (CRA/NSDL) and all the nodal offices/ PAOs/ DDOs/PoPs/ Banks etc in this matter for actively assisting the subscribers during this extended period of fortnight.

Exercise Malabar Commences in Bay of Bengal/ North Indian Oceann

Naval co-operation between India, US and Japan epitomises the strong and resilient relationship between the three democracies. The MALABAR series of exercises, initiated in 1992 between the Indian and US Navies, have steadily grown in scope, complexity and participation into a multifaceted exercise with the participation of Japanese Maritime Self Defense Force (JMSDF). 

            The 21^st edition of the exercise, MALABAR-17 will be conducted in the Bay of Bengal from 10 to 17 July 2017. The primary aim of this exercise is to increase interoperability amongst the three navies as well as develop common understanding and procedures for maritime security operations. The scope of MALABAR-17 includes wide-ranging professional interactions during the Harbour Phase at Chennai from 10 to 13 July 2017 and a diverse range of operational activities at sea during the Sea Phase from 14 to 17 July 17. The thrust of exercises at sea this year would be on Aircraft Carrier operations, Air Defence, Anti-Submarine Warfare (ASW), Surface Warfare, Visit Board Search and Seizure (VBSS), Search and Rescue, Joint Manoeuvres and Tactical procedures. In addition, officials from the three countries will be flown onboard the ships at sea on 15 July 2017.

The Indian Navy will be represented by the aircraft carrier INS Vikramaditya with its air wing, guided missile destroyer Ranvir, indigenous stealth frigates Shivalik and Sahyadri, indigenous ASW corvette Kamorta, missile corvettes Kora and Kirpan, one Sindhughosh class submarine, fleet tanker INS Jyoti and Long Range Maritime Patrol Aircraft P8I. 

           

The US Navy will be represented by the ships from the Nimitz Carrier Strike Group and other units from the US 7^th Fleet. The US Navy forces will include the Nimitz-class aircraft carrier Nimitz with its air wing, Ticonderoga-class cruiser Princeton, Arleigh Burke-class destroyers Kidd, Howard and Shoup along with integral helicopters, a Los Angeles-class attack submarine and one Long Range Maritime Patrol Aircraft P8A. The exercise will also witness a separate interaction between IN and USN Special Forces and Explosive Ordnance Disposal teams at the IN MARCOS training base INS Karna at Visakhapatnam. The JMSDF will be represented by JS Izumo, a helicopter carrier with SH 60K helicopters and JS Sazanami, a missile destroyer with SH 60K integral helicopter.

            MALABAR-17 will be another milestone with participation of 16 ships, two submarines and more than 95 aircraft, towards strengthening mutual confidence and inter-operability as well as sharing of best practices between the Indian, Japanese and US Navies. The exercise is a demonstration of the joint commitment of all three nations to address common maritime challenges across the spectrum of operations and will go a long way in enhancing maritime security in the Indo-Pacific region, for the benefit of the global maritime community.