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The Parliament has passed Payment of Gratuity (Amendment) Bill, 2017 to empower
government to fix period of maternity leave and tax-free gratuity amount with an
executive order. The Bill seeks to amend Payment of Gratuity Act, 1972 on two issues
related to maternity leave and ceiling of gratuity payable to an employee.
The Union Cabinet has approved introduction of Fugitive Economic Offenders Bill,
2018 in Parliament. The bill proposed by Finance Ministry aims to curb practice of
evading criminal prosecution by economic offenders (wilful defaulters) who flee from
country to evade clutches Indian law by remaining outside jurisdiction of Indian
courts. The bill will be applicable in cases where the value of offences is over Rs 100
crore.
4. Lok Sabha passes Bill to hike salaries of judges
The Lok Sabha passed High Court and Supreme Court Judges (Salaries and
Conditions of Service) Amendment Bill, 2017 to hike the salaries of judges of the
Supreme Court (SC) and High Courts (HCs).
The Bill seeks to amend National Bank for Agriculture and Rural Development
(NABARD) Act, 1981. The Act establishes NABARD for providing and regulating
facilities like credit for agricultural and industrial development in the rural areas.
The Bill allows Union Government to increase capital of NABARD from Rs. 5000
crore to Rs 30,000 crore.
Further, it allows Union Government to increase the capital more than Rs 30,000
crore in consultation with the Reserve Bank of India (RBI), if necessary.
The Bill provides that Union Government alone must hold at least 51% capital share
of NABARD. Further, it transfers share capital held by RBI valued at Rs. 20 crore to
Union Government.
The Bill amends Insolvency and Bankruptcy Code (IBC), 2016, and replaces
Ordinance promulgated in November 2017 to pave way for tightening loopholes in
existing code and make resolution process more effective.
The IBC was enacted by the Parliament in 2016 to find time-bound resolution for
ailing and sick firms, either through closure or revival, while protecting interests of
creditors. Successful completion of resolution process is expected to aid in reducing
rising bad loans (NPA-non Performing assets) in the banking system.
• It will raise maternity leave for working women from 12 weeks to 26 weeks for
two surviving children.
• The Bill seeks to amend the Maternity Benefit Act, 1961. The law protects the
employment of women during the time of her maternity and entitles her of a
‘maternity benefit’
• The provisions of bill apply to every establishment employing ten or more persons
and include mines and factories.
• In this case commissioning mother is defined as a biological mother who uses her
egg to create an embryo implanted in another woman.
• However, a woman who has two or more children will continue to get only 12 weeks
maternity leave.
• With this India will be in third position in the world in terms of the number of
weeks allowed for maternity leave behind Norway (44) and Canada (50).
What is GST?
GST is single indirect tax for the whole nation, which will make India one unified
common market. It is a single tax on the supply of goods and services, right from the
manufacturer to the consumer.
GST is essentially a tax only on value addition at each stage i.e. credits of input taxes
paid at each stage will be available in the subsequent stage of value addition. Thus,
the final consumer will bear only the GST in the supply chain charged by the last
dealer with set-off benefits at all the previous stages.
At the Central level: (i) Central Excise Duty, (ii) Additional Excise Duty, (iii) Service
Tax, (iv) Additional Customs Duty (also known as Countervailing Duty) (v) Special
Additional Duty of Customs.
At the State level: (i) State Value Added Tax (VAT) or Sales Tax, (ii) Octroi and Entry
tax, (iii) Purchase Tax, (iii) Luxury tax, and (iv) Taxes on lottery, betting and
gambling (v) Entertainment Tax (other than the tax levied by the local bodies) (vi)
Central Sales Tax (levied by the Centre and collected by the States).
Lok Sabha has passed four Bills relating to the implementation of the Goods and
Services Tax (GST). It paves way for implementing a new, consolidated indirect tax
regime from July 1, 2017. The four bills passed were Central GST Bill, Integrated GST
Bill, GST Compensation Bill, and the Union Territory GST Bill, 2017.
These Bills were passed as Money Bills, thus eliminates the role of Rajya Sabha. The
fifth GST legislation, the State GST Bill, needs to be separately passed by the
respective legislative assemblies of each of the States and Union Territories with
legislature.
Key Facts
The tax rates under GST regime will be based on the recommendation GST Council.
Council has two-thirds voting by States and one-third by Centre. The GST laws
passed by Parliament will not apply to Jammu and Kashmir, as it will have to
legislate its own law and integrate with the GST regime.
There will be no single rate under GST as it will be not possible and it will be highly
regressive. So The GST Council has recommended a four-tier tax structure 5, 12, 18
and 28%.
On top of the highest slab (28%), a cess will be imposed on luxury and demerit goods
to compensate the states for revenue loss for five years. Essential food articles will not
taxed and those will continue to be zero rated under the GST. All other commodities
will be fitted into the nearest tax bracket.
• It makes child labour a cognizable offence attracting a jail term of up to two years
and penalty upto fifty thousand rupees.
• The Bill has a provision of creating Rehabilitation Fund has also been made for the
rehabilitation of children.
Mandatory for employers to inform the employee of his right to compensation under
the Act. Such information must be given in writing at the time of employing him. The
Employee’s Compensation Act, 1923
The Union Cabinet approved setting up of National Commission for Socially and
Educationally Backward Classes (NSEBC) as a constitutional body. In this regard,
constitutional amendment bill for amending Constitution mainly by insertion of
Article 338B will be soon introduced in the Parliament.
There have been demands in Parliament for grant of constitutional status to the
NCBC to enable it to hear the grievances of Other Backward Classes (OBCs) in the
same manner like that of the National Commission for Scheduled Castes (constituted
under Article 338) and National Commission for Scheduled Tribes (constituted under
Article 338A) hear complaint.
• Permits trying of juveniles between the ages of 16 and 18 years as adults for
heinous offences.
• Empowers JJB to examine the nature of crime and decide whether it was
committed as a child mind or as an adult mind.
The Lok Sabha has passed the Payment of Wages (Amendment) Bill, 2017 to enable
employers to pay wages to workers through cheque or directly crediting to their
accounts. Earlier, under the parent Act employer can pay his employee’s wages either
by cheque or by crediting it into his bank account after obtaining his written
authorisation.
Permit the employer to pay an employee’s wages: (i) by cheque; or (ii) by crediting
them into his bank account or (iii) in coin or currency notes. It removes the
requirement of obtaining prior written authorization for payment of wages by cheque
or through a bank account.
The Union Cabinet has approved the Indian Institute of Management (IIM) Bill,
2017, under which the IIMs will be declared as Institutions of National Importance. It
will also enable IIMs to grant degrees rather than diplomas to their students. At
present IIMs are not authorised to award degrees as they registered as societies.
Hence, they are awarding Post Graduate Diploma and Fellow Programme in
Management.
The special session of Tamil Nadu Assembly has unanimously passed Prevention of
Cruelty to Animals (Tamil Nadu Amendment), Act, 2017 to lift Supreme Court
imposed ban on the traditional sport of Jallikattu. The bill will now replace the
ordinance promulgated in this regard by the Governor on the recommendation of
state government.
The Real Estate Act which aims to protect the interests of homebuyers by ensuring
transparency has come into effect.
The Ministry of Housing and Urban Poverty Alleviation (HUPA) has asked all the
states and Union Territories to implement the Act with letter and spirit.
Since land is a state subject, real estate sector comes within the ambit of the state
governments.
The Real Estate (Regulation and Development) Bill, 2016 was passed by Parliament
in March last year. Partially, the act came into force on 1 May last year with 59 of 92
notified sections of the act coming into force. The remaining provisions have come
into the force now. Already the act has been notified by 13 states and Union
Territories including Andhra Pradesh, Uttar Pradesh, Bihar, Gujarat, Delhi, Daman
and Diu.
Salient Provisions
• Buyers and developers of real estate property can seek relief by approaching Real
Estate Regulatory Authorities against violation of the contractual obligations and
other provisions of the Act.
• The act provides for the mandatory registration of projects and real estate agents.
• The act mandates depositing 70% of the funds collected from buyers in a separate
bank account for construction of the project. The funds could be withdrawn only for
construction purposes.
• The act prescribes penalty on developers if the project is delayed. The project
developers are required to disclose the project details on the website of the regulator
and need to provide quarterly updates on construction progress.
• Under the act, the Regulatory authorities are required dispose of complaints in 60
days and Appellate Tribunals will be required to adjudicate cases in 60 days.
17. Parliament passes HIV and AIDS (Prevention and Control) Bill, 2017
Parliament has passed the Human Immunodeficiency Virus (HIV) and Acquired
Immune Deficiency Syndrome (AIDS) (Prevention and Control) Bill, 2017. It is the
first national HIV law in South Asia.
The Bill seeks to safeguard the rights of people living with HIV and affected by HIV.
It aims to prevent social stigma and discrimination against people living with HIV
(PLHIV).
Key Provisions
Prevention and control the spread of HIV and AIDS. It prohibits discrimination
against persons with HIV and AIDS. Privacy of PLHIV: No person will be compelled
to disclose his HIV status except with his informed consent, and if required by a court
order.
Establishments keeping records of information of PLHIV must adopt data protection
measures.
Prohibits any individual from publishing information or advocating feelings of hatred
against HIV positive persons and PLHIV.
The Lok Sabha has passed the Motor Vehicles (Amendment) Bill, 2016 by a voice vote
to give more thrust to road safety, controlling pollution and accidents.
The bill seeks to amend the Motor Vehicles Act, 1988 that provides for legal
standards for motor vehicles, grant of driving licenses, and penalties for violation of
these provisions.
Key Provisions
• MVAF will be credited with cess or tax as approved by Union government, grant or
loan made by Union government or any other source prescribed by Union
government.
• Care for road accident victims: Union government will develop a scheme for
cashless treatment of road accident victims during golden hour.
• Compensation for death: It increases the compensation for death in a hit and run
case from to Rs two lakh or more from Rs 25,000, as prescribed by the Union
government.
• Good Samaritans will not be held liable for any criminal or civil action for any injury
to or death of an accident victim. Union government may frame rules to provide for
procedures for their questioning or disclosure of personal information.
• It makes mandatory for these aggregators to obtain licenses and comply with the
Information Technology Act (IT), 2000.
• Electronic services: The Bill provides for the computerization of certain services to
improve delivery of services to the stakeholders using e-Governance.
• It enables (i) online learning licenses, (ii) increases period of driving licenses
validity, (iii) Do away with the requirements of educational qualifications for
transport licenses etc.
• It also proposes Aadhar based verification for grant of online services including
learner’s licence to ensure the integrity of the online services and stop creation of
duplicate licences.
• Offences and penalties: It increases the penalties for several offences under the
parent Act for high risk offences like drunken driving, dangerous driving,
overloading, non-adherence to safety norms by drivers.
• Offences committed Juveniles: The owner or guardian will be deemed guilty in cases
of offences by the Juveniles. Juvenile will be tried under JJ Act and the registration of
Motor Vehicle will be cancelled.