government Flashcards
Which of the following departments come under the ambit of Union Ministry of Finance?
Department of Economic Affairs
Department of Financial Services
Department of Investment and Public Asset Management
Department of Public Enterprises
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- With reference to the recently set up National Startup Advisory Council, consider the following statements:
- It is set up by Union Finance Ministry to provide financial and legal help to start-ups.
- It will mobilize investments in the start-up sector and will provide access to the global markets.
1.e Union Ministry of Commerce and Industry has set up National Startup Advisory Council. The Council will suggest ways to
build strong start-ups in the country. India ranks 136 in World Bank’s “Starting a Business” ranking. The Council is being set up to improve India’s rank
globally. S
- Consider the following statements regarding National Anti-Profiteering Authority:
- It is a statutory body under Central Goods and Services Tax Act, 2017.
- It is empowered to cancel the registration of suppliers if it fails to pass on to consumers the benefit of lower taxes.
- It is chaired by the Minister of Finance.
1.Central Goods and Services Tax Act, 2017 (CGST Act, 2017) mandates a 3-tier structure for the investigation and adjudication of the complaints regarding profiteering.
National Anti-profiteering Authority (NAA)
Directorate General of Anti-Profiteering (DGAP)
State-level Screening Committees and Standing Committee. NAA has a chairman along with 4 Technical members. Chairman is appointed by the Appointments Committee of Cabinet chaired by the Prime Minister
In the context of the Finance Act, 2018, the concept of ‘Significant Economic Presence’, is related to:
(a) Minimum Taxation on foreign companies located in India’s Special Economic Zones.
(b) Taxation on non-resident which carries out transaction in India.
(c) Taxation on the Indian companies which are operated in tax havens.
(d) Taxation on Indians who operate their business abroad while being residents of India.
The government amended Section 9 of the Income-tax Act, 1961 by Finance Act 2018 to bring in the concept of “Significant Economic Presence” (SEP) for establishing a “business connection” in the case of a non-resident in India.
It expands the scope of income of a non-resident which accrues or arises in India which is subject to taxable.Notably, SEP can trigger irrespective of whether the agreement for transaction or activity has been entered in India, whether the non-resident has a residence or place of business in India, whether the non-resident renders services in India
Transition threshold
User Threshold
Consider the following statements regarding the Aviation sector in India:
- 100% FDI is permitted in Scheduled Air Transport Service/Domestic Scheduled Passenger Airline in India, with government approval.
- India has become the largest domestic aviation market in the world.
India has become the
third-largest domestic aviation market in the world and is expected to overtake the UK to become the third-largest air passenger market by 2024. So,
statement 2 is not correct.
The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service and domestic
scheduled passenger airlines. However, FDI over 49% would require government approval
Consider the following statements with reference to Trade Receivables and Discounting System (TReDS):
- TReDS is an institutional mechanism created for facilitating the financing of trade receivables of MSMEs.
- Only MSMEs can participate as sellers in TReDS.
- Securities and Exchange Board of India operates the TReDS platform.
rade Receivables Discounting System (TReDS) is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
Only MSMEs can participate as sellers in TReDS. Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS. Banks, NBFC - Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS
Receivables Exchange of India Ltd (RXIL) is a joint venture between Small Industries Development Bank of India (SIDBI) – the apex financial institution for promotion and financing of MSMEs in India and National Stock Exchange of India Limited (NSE).
international finance service center composition, tenure, appointed by , function
The authority will regulate financial products such as securities, deposits or contracts of insurance, financial services, and financial institutions which have been previously approved by any appropriate regulator such as Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) etc., in an IFSC.
It will also regulate any other financial products, financial services, or financial institutions in an IFSC, which may be notified by the central government.
It may also recommend to the central government any other financial products, financial services, or financial institutions, which may be permitted in an IFSC
The International Financial Services Centres Authority will consist of nine members, appointed by the central government.
They will include chairperson of the authority, a member each from the RBI, SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA); and two members from the Ministry of Finance. In addition, two other members will be appointed on the recommendation of a Selection Committee.
Term: All members of the IFSC Authority will have a term of three years, subject to reappointment.
what are international finance center
An IFSC enables bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities and overseas branches/subsidiaries of Financial Institutions (such as banks, insurance companies, etc.) to India.
It offers a business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore.
IFSCs are intended to provide Indian corporates with easier access to global financial markets, and to complement and promote further development of financial markets in India.
The first IFSC in India has been set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
Consider the following statements regarding Market Intervention Scheme (MIS):
1. It has been initiated to boost electronics manufacturing in the country.
2. It works similarly to the Minimum Support Price based procurement mechanism for food grains but is an ad-hoc mechanism.
Which of the statements given above is/are correct?
MIS is a price support mechanism implemented at the request of State Governments to procure perishable and horticultural commodities in a fall in
market prices. So, statement 1 is not correct.
It is implemented when there is at least a 10% increase in production or a 10% decrease in the ruling rates over the previous normal year. MIS works
similarly to the Minimum Support Price based procurement mechanism for food grains but is an ad-hoc mechanism. Its objective is to protect the
growers of these horticultural/agricultural commodities from making distress sales in the bumper crop. Under MIS, support can be provided in some
years, for a limited but defined period, in specified critical markets and by purchasing specified quantities. The initiative has to emerge from the
concerned state
