Supreme Court has just lately cleared the decks and resolved all of the controversial points

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A view of the Indian Supreme Court constructing is seen in New Delhi. — REUTERS FILE

Question: When the insolvency and chapter code (IBC) was enacted, a deadline of 270 days was stipulated for resolving the dispute and recovering the debt. However, this time restrict has not been adhered to and most instances have dragged on past this deadline. Is something being completed to expedite the method as a way to fulfill the target of the IBC?

ANSWER: You are proper in stating that the time restrict of 270 days has not been adhered to usually. In reality, knowledge revealed by the Insolvency and Bankruptcy Board of India signifies that instances have dragged on for 724 days on a median. This has been attributed to extreme litigation by debtors, together with private guarantors. It has resulted in worth erosion of the corporate. However, the Supreme Court has just lately cleared the decks and resolved all of the controversial and vexatious points, offering enough readability on the interpretation of the Code. This will expedite the restoration course of significantly as private guarantors might want to present the funds primarily based on the ensures given by them. However, if the non-public guarantors submit a reimbursement plan which is permitted by the committee of collectors, they may be capable to scale back the general burden because the curiosity quantity can come down considerably. Therefore, it’s anticipated that hereafter the method of restoration can be extra expeditious and collectors might conform to take a haircut if the non-public guarantors pay up in keeping with the schedule offered by them which is accepted by the collectors.

H. P. Ranina is a practising lawyer, specialising in tax and change administration legal guidelines of India.

Question: While the community of highways has elevated dramatically within the final 5 years, the toll assortment remains to be a bottleneck and appreciable time is wasted at toll plazas. Are any steps being taken to deal with this difficulty?

ANSWER: According to the Minister in control of Roads and Highways, the community of roads in India can be as giant as within the USA, by the tip of this yr. With vehicle visitors rising each month, the toll income of the National Highway Authority of India is at present Rs400 billion, which is predicted to rise to Rs1.4 trillion within the subsequent three years. To velocity up toll assortment and scale back the ready time at toll plazas, the Ministry of Road Transport is figuring out new applied sciences together with GPS-based toll techniques which is able to substitute toll plazas all through the nation. Currently, the Ministry is conducting a pilot undertaking of computerized quantity plate recognition system to allow automated toll assortment with out autos having to cease. This will definitely velocity up the visitors in densely populated areas throughout peak hours. Even at current the common ready time for autos has come down with the introduction of FasTags. It is predicted that the GPS-based toll system can be launched regularly in India ranging from the tip of this yr.

Question: Is there sufficient scope for younger individuals to affix the service provider navy in India? If they’re engaged on a ship, would they be liable to pay tax in India on the remuneration earned by them?

ANSWER: According to latest estimates, the entire variety of Indians working within the service provider navy is 250,000. About 160,000 are professionally licensed seafarers who work on cargo ships. The remaining 90,000 are employed by cruise liners. It should be famous that India has been on the International Maritime Organisation’s White List, which identifies nations that are totally in compliance with STCW-95 Convention and Code. To be included on this checklist, the nation should have an acceptable seafarer licensing system, oversight of coaching centres, flag state management and port state management. Therefore, Indian sailors are in nice demand by international transport corporations, cargo, passenger and cruise liners. The demand for Indian sailors is predicted to develop yearly by 20 per cent over the following ten years. India at present has about 165 maritime coaching institutes. As regards the tax implications on remuneration earned by residents of India, the sailors could be handled as non-resident if they’re out of India for 182 days or extra in a monetary yr, which is from April 1 to March 31. If they fulfill this situation, they might not be liable to pay tax in India on the remuneration which they earn whereas engaged on a ship.

HP Ranina is a practising lawyer, specialising in company and tax legal guidelines of India.