CORPO SCAN | October 2017

Innovate in order to increase revenue: CM advises Kadamba

Stating that Kadamba Transport Corporation Ltd (KTCL) has to incorporate changes and implement innovative ideas if it has to increase its revenue, Chief Minister Manohar Parrikar said that the government will implement the recommendations of the 7th Pay Commission for the KTCL employees from October 2017. Parrikar stated, at the 37th anniversary celebrations of the KTCL, that a lot can be done to bring about a change in Kadamba transport, only with proper planning from the Corporation.

The state-run transport service has been in the red for the past couple of years, suffering a loss of Rs 2 crore during the first quarter of the year 2017-18. The loss faced by the KTCL in the year 2016-17 was placed at Rs 7.6 crore.

Lauding the efforts taken by the Kadamba transport in recent years, Parrikar proposed a Europe tour for the members of the KTCL Board, to gain ideas to increase the revenue of the Corporation.

“This tour would not be for enjoyment purpose but rather to learn and implement the good ideas that are being practiced in other parts of the world. This sort of expenditure for a tour with an educative programme in mind would be an investment.”

Minister for Transport, Ramakrishna Dhavalikar, said that the KTCL can compete with the private bus services, but now needs to focus on increasing its revenue.

Vasco MLA and KTCL chairman Carlos Almeida said that the image of Kadamba has to change and it is the employees of KTCL, who can increase the brand value of the Corporation. He also spoke about various employee-related benefits and the initiative towards introducing environment friendly buses.

Derrick Pereira Neto. MD of KTCL said that the Kadamba buses ply on all days of the week including holidays. The employees of KTCL were felicitated for their outstanding work


First charter flight carrying 519 passengers arrives from Moscow

The first charter flight from Moscow arrived at the Goa International Airport, Dabolim recently, marking the beginning of the tourism season in Goa for the year 2017-18.

Minister for Tourism, Manohar Ajgaonkar said, ‘’It’s a flying start for the new tourism season with the arrival of 519 foreign tourists from Russia on the first charter flight which arrived in Goa. I am very happy that the new tourism season has begun and am confident that it will progress smoothly and satisfactorily. I received an overwhelming response  from tour operators  when  I was in Moscow  last month and both Goa Tourism and  the Russian travel and tour operators had very fruitful discussions and business  interactions which will have  positive results for Goa this season. I welcome the arrival of the first charter and wish all our tourism stakeholders and charter handling agencies a very successful season. I once again reiterate that even as Goa Tourism is very serious about  ensuring the safety and security of all its tourists, I appeal to all our foreign and  domestic guests to enjoy responsibly and to follow the laws of the land and  all the DOs and  DONTs  to avoid  risking  or endangering their lives. The Goa police, lifeguards and locals serve as our ambassadors  and one needs to pay heed to  them  at times in addition to following  signboards, warning notices and whatever awareness is created in the interest of  tourists.”

Biblio Globus in association with Concord Exotic Voyages (P) Ltd brought its first charter flight with 519 passengers from Russia on board Rossiya Airlines which arrived at Goa airport, Dabolim .

While there was a dip in charter arrivals due to recession and geo-political scenario across the globe, the year 2016-17 saw a surge in arrival of charters and passengers. This year, Goa Tourism is optimistic and confident of crossing the 1000 mark of charter flights. This year 519 passengers arrived on the first charter


EDC floats OTS scheme. Hopes to recover 4.2 cr from 174 bad loan cases

EDC has proposed a special one-time settlement (OTS) scheme to recover some of its non-performing assets (NPAs), which are on account of term loans given more than 15 years ago. S V Vernekar, managing director of EDC, said, “There are 174 cases, which were written off in our books as NPAs.”

Vernekar further confirmed that Rs 4.2 crore principal is due to EDC on account of these 174 cases. EDC has divided the pending cases into three categories. The first category is of term loans of upto Rs 15 lakh, which were disbursed more than 15 years ago and upto 20 years, which means from April 1, 1997 to March 31, 2002.

For this category, the borrower will have to pay the original principal amount less the amount received from the borrower from all sources towards principal, interest, sale proceeds and OTS down payment.

Vernekar explained, “We are not asking borrowers to repay the total loan amount they owe to EDC. The total amount includes principal as well as interest due. We are asking them to repay only the principal, which will also be reduced to the extent of all payments made by borrowers to us in the past. The idea is to encourage them to pay.”

The second category is of term loans of upto Rs 15 lakh, which were disbursed more than 20 years ago and upto 25 years, which means from April 1, 1992 to March 31, 1997. In this category, the borrower will have to pay 75% of the original principal amount less the amount received from the borrower from all sources towards principal, interest, sale proceeds and OTS down payment. The borrower saves 25% of even the principal, if he decides to go for the OTS scheme in this case.

The third category is of term loans of upto Rs 15 lakhs, which were disbursed more than 25 years ago. In this category, the borrower will have to pay 50% of the original principal amount less the amount received from the borrower from all sources towards principal, interest, sale proceeds and OTS down payment. The borrower saves 50% of even the principal, if he decides to go for the OTS scheme in this case.

The OTS scheme pertains only to term loans and not to loans given under Chief Minister Rojgar Yojana (CMRY)

Promoter Raghu Shetiye threatened for launching TaxiGo City

Threats and intimidation have not stopped a Panaji-based entrepreneur Raghu Shetye from going ahead and starting an affordable taxi service ‘Taxigo City.’

‘Taxigo City’ service was launched on in Panaji on Dussehra day at the hands of veteran freedom fighter Rohidas (Daad) Dessai in the presence of former President of Goa Chamber, Manguirish Pai Raikar.

    “People should not compare this service with Ola or Uber. This is a local service with a similar kind of technology and procedure and our aim is to reach out to each and every citizen of Goa”


This service has been launched with a basic plan of `199 wherein tourists and locals can use the taxi service for a 45 minute drive covering a maximum of nine kilometres after which an additional `20 will be charged per kilometre.

This service has been launched initially only for Panaji and for areas within a ten-kilometre radius from the city. The services are extended only during the daytime due to fear of attacks from other private taxi unions. The firm is yet to come out with an app. To use this service, one can visit the website or call on 671-1111.

Shetye, an automobile engineer by profession, initially worked at an automobile work-shop which he quit to pursue the family business of timber. He then started a business of his own- ‘’ a real-estate venture of Chandan Group, one of the popular portals for deals about property. Now, Shetye is also into construction.

Witnessing the name of Goa getting tarnished due to the attitude of the taxi operators, Shetye decided to start ‘Taxigo City’ service.

“It is definitely a business project but there is always a service behind it, as one can imagine how much profit I can get with `199. My policy is that I will not buy taxis on my own and induct them in this service. I want to give employment opportunities to my local taxi owners and provide this service to locals at affordable prices. People should not compare this service with Ola or Uber. This is a local service with a similar kind of technology and procedure and our aim is to reach each and every citizen of Goa.” said Shetye.

He has alleged that he has been receiving threat calls from other private taxi operators and has appealed to the government to provide support and security to run this business

World Tourism Day celebrated

The Department of Tourism, Govt. of  Goa and Goa Tourism Development Corporation in association with India Tourism and Travel and Tourism Association of Goa celebrated World Tourism Day with much fanfare and excitement.

Various programmes and activities were conducted throughout the day. Goa Tourism organized a boat cruise for special children with cultural programmes, song and dance and a variety of entertainment.

An exclusive tour was arranged on the open top Hop on Hop off bus for college students.

Various quiz competitions were also held for colleges in North and South Goa and a painting competition for students from Fine Arts College, Panjim.

The staff of Department of Tourism and GTDC welcomed tourists at the Goa International Airport, Dabolim and KRC station, Margao.

The tourists were presented with roses and sweets and were greeted with a brass band and musical entertainment.

The programmes were organized in keeping with the theme of World Tourism Day: Sustainable Tourism – A Tool for Development

Senior Scale Officers transferred by State Govt.

The State government transferred 10 senior scale officers of Goa civil service recently.

Director of Goa Medical College, Sanjiv Gadkar has been posted as Registrar of Co-operative Society in place of Gurudas Pilarnkar, who has been posted as Director of Art and Culture and member secretary of Goa Kala Academy. Prasad Lolayekar, Director of Art and Culture is now the Director of Higher Education; while director of Public Grievances, Dattaram Sardessai is posted as Director of Goa Medical College.

Member Secretary of Goa State Pollution Control Board Levinson Martins has been posted as Director of Science and Technology. Director of NRI Affairs, Melvyn Vaz has been posted as secretary of State Election Commission in place of Darshana Narulkar, who has now been posted as general manager of DITC.

Director of Women and Child Development Ruhi Redkar is now the Chief Executive Officer of North Goa Zilla Panchayat in place of Dashrath Redkar, who has been posted as additional collector, sub-district, Bardez.

Narayan Prabhudessai has been posted as Superintendent of Central Jail, Colvale, in place of Shamsundar Parab who has been posted as Director of NRI Affairs. Pandharinath Naik, has been posted as chief executive officer of South Goa ZP and member secretary of Ravindra Bhavan, Margao.

Surendra Naik has been posted as Additional Director of Panchayats-I in place of Florina Colaco who has been posted as Additional Director of Panchayat-II. Rajendra Mirajkar has been posted as Inspector General of Prisons in place of Sidhivinayak Naik. Former CCP Commissioner Dipak Dessai has been posted as Director of Women and Child Development while Dharbandora Deputy Collector Agnelo Fernandes, has been posted as Chief Officer of Mormugao Municipal Council in place of Deepali Naik, who has been posted as Joint Secretary and Director of Public Grievances.

Goa Rehabilitation Board Secretary Jayant Tari has been posted as Director of Kala Academy in place of Parag Nagarsekar

Mining ban cost centre nearly Rs 1900cr in taxes reports The Goan

The Goan reported recently that the State government may be attempting to downplay the dependence on mining revenue for the development of the State, but the huge revenue lost is not only a blow to the State, but it has also cost the Centre in a big way.

According to information with the office of principal commissioner of income tax, the Centre lost nearly Rs 1,900 crore by way of income tax over a four–year period from 2012-13 to 2016-17.

Even though mining operations resumed in the State since last year, the revenue collection has been meagre on account of a capping of extraction to 20 million metric tonnes.

Data obtained through Right to Information has revealed that the IT department had generated an average of nearly Rs 1,500 crore as income tax each year, with the income tax collection being Rs 1,555.01 crore in 2012-13

But with the mining ban imposed in September 2012, the income tax collection plunged by almost Rs 600 crore generating only Rs 918.20 crore (2013-14). Over the next two years, the income tax collection continue to remain low at Rs 971.13 crore (2014- 15) and even lower at Rs 844.2 crore (2015-16)

With the resumption of mining activity in 2016, income tax collection rose to Rs 1,360.3 (2016-17), but it was still about Rs 140 crore lower than the average IT collection of Rs 1,500 crore.

Had mining not been halted in the State, the Centre could have earned an average of Rs 7,500 crore as income tax over five years, but ended up earning a tax of only Rs 5,649 crore, a difference of Rs 1851 crore.

During this financial year, the income tax collection has been Rs 152.40 crore till date.

In his own admission while replying to a question in the State assembly on March 6, 2014 then and present Chief Minister Manohar Parrikar had stated that the State government had stood to lose approximately Rs 1,240.85 crore and Rs 1450.36 crore for the financial year 2012-13 and 2013 -14 respectively.

In another reply in the Assembly on August 14, 2014, Parrikar, who is also mines minister, had stated that the estimated loss per day was approximately Rs 2.74 crore.

“Everyone knows mining is a major source of revenue for the state and also generates huge income tax revenue. Tax collection fell significantly due to the mining ban in 2012 and we will be in a position to ascertain the exact revenue difference only when full-fledged mining activity resumes in the State,” a source from the income tax department had communicated to the newspaper (The Goan) that broke this story.

The source, however, informed that two factors had played a role in increasing income tax in the State.

“A boom in tourism added to the IT collection, while the income declaration scheme by Prime Minister Narendra Modi was success in Goa. Many people voluntarily declared their assets and revenue collection showed a raise in 2016- 17,” the source added


 Dr. Kurade to speak at China Chamber of Commerce of Foodstuffs and Native Produce

Dr. Sangam A. Kurade, Chairman and Managing Director of Dr. Kurade’s Group of Companies, has been invited as guest speaker by China Chamber of Commerce of Foodstuffs and Native Produce (CFNA) at Zhangzhou, Fujian province in China on November 16‐19, 2017. Established in Goa in 1994, it is one of the largest and oldest mushroom enterprise in India, and their focus is on creating food through innovation. Dr. Kurade has previously been President of Federation of Small and Medium Enterprises (FISME), New Delhi


TTAG worried over landing slots issue. Appeals to CM

The Travel and Tourism Association of Goa has requested Chief Minister Manohar Parrikar for a meeting on critical issue of non-availability of landing slots to charter flights. This was confirmed by Savio Messias, President, TTAG.

Messias said, “Tour operators are facing a lot of problems because landing slots have still not been allotted at Dabolim Airport to many British and Russian charter flights. Due to this, many airlines are thinking of pulling out of Goa altogether this session. I’ve already received a mail from a British operator saying that they may pull out of Goa this time due to non-availability of landing slots to charter flights.”

Earlier, charter flights used to land at Dabolim Airport on weekends. But, this time the Navy has extended restriction between 8.30 am and 12.30 pm for commercial aviation on weekends as well.

The decision regarding allotment of landing slots is taken by the Airports Authority of India (AAI). Given that, it remains to be seen to what extent the state government can intervene in the matter. Meanwhile, tourism stakeholders are extremely worried because number of foreign tourists will significantly decline if charter flights don’t get landing slots at Dabolim Airport.

Cruz Cardozo, president of Shack Owners Welfare Society (SOWS), said, “We are very concerned because landing slots have not been allotted to most charter flights this time. Our business will be badly impacted if charter flights don’t arrive in Goa this season.” In case charter flights are not able to land at Dabolim Airport, the business of shacks will get affected as well

GST relief for SMEs, exporters. Tax rates on 27 items cut 

Three months after the rollout of the new indirect tax regime, the GST Council recently made sweeping changes to give relief to small and medium enterprises (SMEs) on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items.

Business with annual turnover of up to Rs 1.5 crore, which constitute 90 percent of the taxpayer base but pay only 5-6 per cent of total tax, have been allowed to file quarterly income returns and pay tax instead of the current provision of monthly filings.

Also, the turnover threshold for business to avail of the composition scheme that allows them to pay 1 per cent tax without going through tedious formalities, was raised to Rs 1 crore from current Rs 75 lakh.

“Compliance burden of medium and small taxpayers in GST is being reduced,” Finance Minister Arun Jaitley told reporters after 22nd meeting of the Council.

Small and medium enterprises had complained of tedious compliance burden under the Goods and Services Tax (GST) that was supposed to be a simple indirect tax regime which replaced over a dozen Central and States taxes. Jaitley said the Council also decided to cut GST rate on 27 common use items.

GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent, while the same on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent from 18 per cent.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent.

Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 per cent.

Job works like Zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent. Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those programmes he said. Exporters, who have been facing sluggish growth due to global slowdown, will get refunds for the tax paid by them on exports during July and August by October 18, he said.

For the remainder of the fiscal, they will operate under an exempted category paying a nominal 0.1 per cent GST, he said adding from April 1 attempt would be made to launch an e-wallet facility for the exporters to provide liquidity. The Finance Minister said big taxpayers, who contribute 94-95 per cent of the total taxes, will continue to file monthly returns and pay taxes on a monthly basis. Also, a group of ministers has been asked to go into the issue of extending the composition scheme on inter-state sales as well as rationalizing taxes on restaurants


Chief Minister to look into GST issues faced by small dealers

Urging businesses to ignore IT related issues during the payment of the Goods and Services Tax (GST), as they would be solved soon, Chief Minister Manohar Parrikar assured dealers of an easier GST regime by the year end.

“The government is aware of the structural problems faced by small dealers in payments of GST and will take up the matter with the right person at the central GST Council so that things are sorted out by December end,” he said.

The Chief Minister pointed out that most of the technology snags in the tax network have already improved and will further stabilize in coming month, but conceded that small dealers have genuine concerns. He said that the GST Council in its next meeting on October 6 is likely to take up the issue of ‘reverse charge mechanism’ that is troubling the trade. The mechanism is affecting small dealers as they are “pushed out of business” by larger enterprises refusing to do business with them.

“The government is aware of the structural problems faced by small dealers in payments of GST and will take up the matter with the right person at the central GST Council so that things are sorted out by December end”    – Manohar Parrikar, Chief Minister, Goa

The Chief Minister said that a proposal is mooted to defer the ‘reverse charge’ until March 31 until a replacement to it is found. “If the GST Council accepts the proposal, it would ease things considerably for small dealers,” he said.

The Chief Minister was speaking at a public meeting with dealers, sub dealers and traders organised by the department of commercial taxes. Deepak Bandekar, commissioner, commercial taxes, was present at the meeting along with officials from the department. The stakeholders’ meet ended only after 9 pm, as concerns of taxpayers were taken up on one to-one basis.

Listening to the difficulties, the Chief Minister said that most of the problems were “not that serious and could be worked out”. He asked the commercial tax department to conduct “live demo for filling of the transitional forms” with several dealers encountering difficulty in the online filling of the forms.

The public meeting revealed that the dealers are facing problems in placing their goods or services in the right GST category. Further, small dealers also have to shell out fees to chartered accountants or tax consultants, who do the online filing of returns. Some dealers revealed that chartered accountants are on the verge of hiking their fees to Rs 3,000 per returns and it would mean an outgo of at least Rs 36,000 per year.

Another problem faced is of rectifying mistakes done due to wrong filing of returns. A hardware dealer said that on an average, hardware store purchases goods from at least 80 suppliers and, therefore, thousands of invoices have to be fed into the system. A chemist shop owner pointed out that pharmacies face the unique problem of holding large inventory and find it difficult to get ‘input tax credit’


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