Current Affairs on Finance

The Centre  on 14 March 2015 has paid Rs 32,800 crore to states as compensation for phasing out of which  Tax in the run-up to roll-out of Goods and Services Tax?: Central Sales Tax

Explanation: In December 2014, government introduced the long-pending GST Bill in the Lok Sabha for roll-out of GST which would subsume various levies like entry tax and octroi. Thus the GST (Goods and Services Tax) is proposed to be rolled out from April 2016. Hence, as a part of the proposed GST regime, the CST is being phased out and its rate has been reduced to two percent from four percent. Therefore, to compensate states for losses they have incurred due to CST phase out. As per the agreement, 100 percent compensation is to be paid for 2010-11 fiscal, 75 percent for 2011-12 and 50 percent for 2012-13. The CST, a tax imposed on the inter-state movement of goods, was reduced from 4 percent to 3 percent in 2007-08 and further to 2 percent in 2008-09 after the introduction of value-added tax (VAT).

On 16 March 2015, which state in India had presented the Tax Free Budget?: Uttrakhand

Explanation: Uttrakhand minister had presented the Tax Free budget while announcing provisions for creation of a welfare fund for statehood activists and for running schemes launched last year for the elderly and the physically challenged among others. The budget also made provisions for the the 38th National Games to be held in the state in 2018, 'Rajya Andolankari Kalyan Kosh', 'Mukhya Mantri Vriddha Mahila Poshan Yojana', 'Mera Gaon Meri Sadak Yojana', 'Mere Bujurg Mere Teerth Yojana' . Budget estimates of 2015-16 show a revenue surplus which is in conformity with FRBM Act targets thus this means total revenue expenditure of the state government is estimated to be less than estimated revenue receipts. Glance to detail of the budget:

• The total expenditure in 2015-16 is estimated to be Rs 32,693.64 crore as against Rs 30,353.78 crore in 2014-15
• Total non-plan expenditure is estimated to be Rs 21,059.15 crore which is 64.41 per cent of the total expenditure. This shows an increase of 12.76 per cent against total non-plan expenditure of Rs 18,676.55 crore in 2014-015
• The total plan expenditure is estimated to be Rs 11,634.49 crore in 2015-16.
• Total receipts in 2015-16 are estimated to be Rs 32,310.07 crore. 

Stock exchange BSE on 17 March 2015 has announced the launch of which form for individual investors in the securities market?: 'Saral' or simplified account opening form

Explanation: SARAL Account Opening Form (SARAL AOF) to facilitate an easy and simplified account opening process in securities market for Individual investors. The form can be filled by submitting only one documentary proof of address, which can either be correspondence or permanent address and available on BSE website for easy access of investors. Investors who open account through Saral would also have the option to obtain other facilities like Internet trading, margin trading, derivatives trading and use of power of attorney, whenever they require, on furnishing of additional information as per prescribed guidelines.

Foreign direct investment (FDI) in India more than doubled to $4.48 billion in January, the highest inflow in last how many months?: 29 months

Explanation: Government is taking several steps to boost FDI in the country thus in the process have relaxed FDI norms in sectors including insurance, railways and medical devices. In January, the country had received $2.18 billion in FDI. It was in September 2012 that India had attracted FDI that was worth $4.67 billion. During the April-January period of the current fiscal, the foreign inflows have grown by 36 per cent, year-on-year, to $25.52 billion according to DIPP. Among the top 10 sectors, telecom received the maximum FDI of $2.83 billion in the 10-month period, followed by services ($2.64 billion), automobiles ($2.04 billion), computer software and hardware ($1.30 billion) and pharmaceuticals ($1.25 billion). 

Which Account Number is now made mandatory for private firms for getting service tax registration besides email and mobile number?: Permanent Account Number (PAN)

Explanation: Existing registrants, except government departments not having PAN shall obtain PAN and apply online for conversion of temporary registration to PAN-based registration within three months of this order. Applicants seeking registration for a single premises in service tax shall file an application online in the Automation of Central Excise and Service Tax (ACES)) website --www.Aces.Gov.In-- in form ST-1. Once the completed application form is filed in ACES, registration would be granted online within two days but before this registrants has to submit documents as prescribed within 15 days of the application filed.

Country's largest private sector lender ICICI Bank on 18 March 2015 announced that it has sold its which profit making Russian subsidiary to Sovcom bank, thus marking its exit from Russia?: ICICI Bank Eurasia Limited Liability Company (IBEL)

Explanation: ICICI Bank Eurasia LLC, one of the 150 largest Russian banks as per the Interfax data of 2008. Once ICICI Bank has exited from Russia then it will be left with operations in 18 countries including India and was selling/offering a wide range of corporate and investments finance products, as well as provides services for retail customers.

Money transfer operator Xpress Money on 19 March 2015 launched a new service to help consumers send money directly to any bank account in the country. To offer this service they had tied up with which Bank in India?: Axis Bank

Explanation: Xpress Money company offers services to the countries like UK, Greece, Belgium, Ireland, Romania, Cyprus, Italy, Spain, Denmark, Sweden, France, Malta, Turkey, Germany, Netherlands, Gibraltar and Norway. In India, they had tied up with Axis Bank to offer this money transfer service thus now all the transaction will be routed to axis Bank. In this service once the transaction has been processed, the amount would be credited to beneficiaries' accounts within 24 to 48 hours and then beneficiaries would be able to withdraw the remitted money from close to 1,50,000 ATMs in the country or from the designated bank branches.