DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 14th March 2024
Archives (PRELIMS & MAINS Focus) ‘Five Eyes’ alliance Syllabus Prelims – Current event Context: ‘Five Eyes’ alliance member New Zealand’s Deputy PM and Foreign Minister Winston Peters discusses bilateral ties with S. Jaishankar Background:- At the end of a four-day visit to India, Mr. Peters said that India and New Zealand shared common views on Indo-Pacific security challenges. About ‘Five Eyes’ alliance:- Est: Post-World War II Members states: Australia, Canada, New Zealand, the United Kingdom, and the United States. The term “Five Eyes” refers to the five countries’ collective efforts to gather and share signals intelligence (SIGINT) to address common security threats and challenges. Objectives: Intelligence Sharing: The alliance members collaborate to share signals intelligence, which includes intercepted communications and electronic data, to enhance their collective understanding of global security threats. Counterterrorism and National Security: The Five Eyes network focuses on countering terrorism and addressing other national security concerns by exchanging vital intelligence and cooperating on joint operations. Cybersecurity and Cyber Threats: Given the growing significance of cyber threats, the alliance works together to monitor and address cyber activities from adversarial nations and non-state actors. Information and Technology Sharing: The Five Eyes partners share expertise and technological advancements in the field of intelligence gathering, analysis, and cryptography. Source: Hindu Infrastructure investment trust (InvIT) Syllabus Prelims – Economy Context: InvITs and REITs have gained popularity as preferred investment options, with fundraising, through the route, surging 10-fold year-on-year to ₹11,474 crore in 2023, supported by measures taken by regulator SEBI and attractive returns offered by the instruments. Background: InvITs and REITs are new concepts in the Indian market but have been a popular choice globally for their lucrative returns and capital appreciation. About Infrastructure Investment Trust (InvITs) An Infrastructure Investment Trust (InvITs) is a Collective Investment Scheme similar to a mutual fund. It enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. ( FPI and InvITs) The InvIT is designed as a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs). Regulated by: SEBI (Infrastructure Investment Trusts) Regulations, 2014. An InvIT has four parties namely: Trustee, Sponsor(s) and Investment Manager and Project Manager. While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT. Types of InvITs As per current SEBI Regulations InvITs can be divided into 5 key types depending on the types of infrastructure they own or operate: Energy such as power generation and distribution. Transport & Logisticsg. operating highways and other toll roads optical fiber networks and telecom towers Social and Commercial Infrastructure g. parks Water and Sanitationg. irrigation networks From the perspective of the source of funds, InvITs can be of two types: Privately-Held InvITs:- This type of InvIT is not listed on the stock exchange and units of this type of infrastructure trust cannot be bought or sold on a stock exchange. All units of this type of unit are held privately by a very limited number of individuals or institutions. Public-Listed InvITs:- After an Infrastructure Trust lists itself on the stock exchange, it is known as a public-listed InvIT. Units of a public-listed InvIT can be bought and sold on stock exchanges by retail as well as institutional investors. Current SEBI regulations do not require a mandatory listing of InvITs on stock exchanges. Source: Hindu Businessline MINES AND MINERALS DEVELOPMENT AND REGULATION ACT (MMDRA) Syllabus Prelims – Current Event Context: The Supreme Court has recently examined a batch of over 80 petitions filed by various private mining companies. Background: Petitions challenge the right of state governments to levy taxes on mining activities within their respective territories. The crux of the dispute lies in the distinction between royalty charged on mining and taxes imposed by states. About MINES AND MINERALS DEVELOPMENT AND REGULATION ACT (MMDRA): The The Mines and Minerals (Development and Regulation) Act, 1957 forms the basic framework of mining regulation in India. The act is applicable to all minerals except minor minerals and atomic minerals. MMDR Act, 1957, mandate that every mining lease holder needs to pay royalty for major minerals removed or consumed. This royalty compensates for the privilege of extracting minerals from leased areas. The MMDR Act explicitly places the responsibility for mineral development and regulation within the purview of the Central Government. Central Government has the authority to specify the royalty rates for various minerals. The Second Schedule of the MMDR Act provides royalty rates for various minerals. Under the MDR Act, states have the authority to collect royalties. This provision ensures that mining activities contribute to state revenue while adhering to sustainable practices. It was amended in 2015 and 2016 to bring several reforms in the mineral sector. Source: Money Control MINIMUM ALTERNATE TAX (MAT) Syllabus Prelims – Economy Context: Recently, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has made an important observation regarding the Minimum Alternate Tax (MAT). Background: According to their recent ruling, the assessee is eligible to claim credit for MAT under the Vivad se Vishwas (VSV) Scheme for the relevant assessment year. This decision could have significant implications for taxpayers seeking resolution of their tax disputes. About MINIMUM ALTERNATE TAX (MAT): Minimum Alternate Tax (MAT) is a provision in India’s Income Tax Act. MAT ensures that companies contribute a minimum amount of tax, regardless of their tax exemptions and deductions. MAT was introduced to bring “zero tax companies” into the tax net. It applies to domestic companies, foreign companies operating in India and Special Economic Zone units. The tax is calculated based on the normal income tax liability of the company or entity. MAT ensures tax fairness and prevents companies from completely avoiding taxes. The Vivad se Vishwas (VSV) Scheme aims to provide a mechanism for taxpayers to settle pending income tax disputes and avoid prolonged litigation. By allowing credit for MAT under this scheme, the Income Tax Appellate Tribunal (ITAT) is acknowledging the importance of providing relief to taxpayers and promoting a more efficient resolution process. Source: Times
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