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  • Ring around a dwarf planet lies in Roche Limit: What it means, why it matters

    roche limit

    Central idea: A new study shows that a dwarf planet, named Quaoar, has a ring system that exists within its Roche limit.

    What is the news?

    • Astronomers have found a ring around a dwarf planet, located in the Kuiper Belt at the solar system’s edge, called Quaoar, according to a new study.
    • The ring, however, is positioned much further away from the planet than is usual and defies theoretical explanations.

    About Quaoar

    • With an estimated radius of 555 km, Quaoar is roughly half the size of Pluto and orbits beyond Neptune.
    • It also has a moon of its own, which is known as Weywot.
    • As the dwarf planet is too small and too distant to be observed directly, the researchers detected the ring with the help of a phenomenon called stellar occultation.

    How was the ring discovered?

    • A stellar occultation occurs when, as seen from Earth, a bright star passes behind a planet.
    • This allows astronomers or anybody on Earth to observe the sharp silhouette of the planet for a brief period of time.
    • The phenomenon, which rarely occurs, is used by researchers to analyze a planet’s atmosphere and determine if it has a ring around it — in 1977, scientists discovered the Uranian ring system with the help of stellar occultation.

    What is the Roche limit?

    • The most intriguing part of the findings is the distance between Quaoar and its ring.
    • Located 2,500 miles away from the dwarf planet, the ring is around 1,400 miles further away from the Roche limit, as per the calculations of the scientists.
    • It suggests that at such a distance, the particles of the ring should have come together to form a moon.
    • For a further understanding of the Roche limit, let’s look at the Earth and the moon. The Earth’s gravity pulls on the moon.
    • However, one side of the moon is closer to the planet and hence, the pull is stronger on the side facing the Earth.
    • The result is the so-called tidal force, which either stretches or compresses the moon from all sides.

    What is the reason behind Quaoar’s far-out ring?

    • As of now, nobody exactly knows how Quaoar’s ring has managed to remain stable at such a distance from the Roche limit.
    • The researchers said that there can be a variety of possible explanations but they aren’t sure about any one of them.
    • It might be possible that Quaoar’s moon, Weywot, or some other unseen moon contributes gravity that somehow holds the ring stable.
    • Another potential explanation can be that the particles of the ring are colliding with each other in such a way that they are avoiding to coalesce into a moon.

     

    Try this MCQ:

    Q.What is the Roche limit?

    A) The distance from a planet where its gravity is balanced by the gravitational force of another celestial body

    B) The minimum distance from a planet that a moon can orbit without being pulled apart by tidal forces

    C) The distance from the sun at which a planet can have a stable orbit

    D) The distance from the earth where meteoroids burn up upon entering the atmosphere

     

    Post your answers here.

     

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  • Folk dance in news: Lavani

    lavani

    Central idea: The article is based on the controversy surrounding the Maharashtra folk dance form, Lavani, which has come under criticism for being ‘vulgar’ and ‘obscene’.

    What is the Lavani folk art form?

    • The word Lavani comes from ‘lavanya’ or beauty.
    • Lavani is a traditional folk art form in which women dancers wearing nine-yard-long sarees in bright colours, make-up, and ghunghroos perform on dholak beats on a stage before a live audience.
    • As an indigenous art form, Lavani has a history going back several centuries, and it attained particular popularity in the Peshwa era in the 18th century.
    • Traditionally, performances were held in front of kings or lords, and for the entertainment of tired soldiers resting during breaks in fighting.

    Genres of Lavani

    • There are several types of Lavani, of which the most popular is the Shringarik (erotic) kind, in which the lyrics are often teasing, with sensuous dance steps and delicate gestures employed to convey erotic meaning.
    • Over the years, Lavani has gained more acceptability among the people, even though certain taboos around it continue.
    • The audience has historically been all-male, but in recent years, some women too have begun to attend performances.

    Why is it under fire these days?

    • Lost its original form: Some also argue that the commercialization of Lavani has led to a loss of authenticity and cultural significance.
    • Objectifying women: The criticism of Lavani dance centres on the traditional dance form’s alleged objectification and commodification of women’s bodies.
    • Public obscenity: It has been accused of promoting obscenity and vulgarity and reinforcing patriarchal attitudes towards women.
    • Communalizing/Stereotyping: Critics have also argued that the dance form perpetuates negative stereotypes of women from marginalized communities, such as the notion that Dalit women are “loose” or sexually promiscuous.

     

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  • (WATCH Live: Zoom link inside) Fill Critical Gaps🚨in UPSC Prelims 2023 Prep | Last 100 days strategy for 120+ score | 1-1 sessions with Santosh sir | Register to get Smash Prelims 3 Mocks, 100 most Imp* topics [PDF] Notes & 1-1 Mentorship

    (WATCH Live: Zoom link inside) Fill Critical Gaps🚨in UPSC Prelims 2023 Prep | Last 100 days strategy for 120+ score | 1-1 sessions with Santosh sir | Register to get Smash Prelims 3 Mocks, 100 most Imp* topics [PDF] Notes & 1-1 Mentorship

    Join Zoom Meeting
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    UPSC Prelims 2023 is 100 days away and this is for you if don’t feel secure w.r.t. your prep.


    Most of the aspirants at this point in time tend to go haywire in their preparation, not knowing how to prioritize and what to study and what to avoid, how to evaluate and measure progress, make improvements, which often leads to confusion, frustration, and in many cases, repeated failures.

    Session by Santosh sir: Last 100 days strategy for UPSC Prelims 2023. Filling critical gaps in your preparation.

    Santosh sir needs no introduction when it comes to UPSC Prelims. He is the Prelims guru for CivilsDaily’s thousands of aspirants who cleared Pre last year with thumping success.

    Santosh sir will be sharing with you a strategy and a blueprint for the remaining 100 days.

    1. What 10 things you must be doing to secure prelims 2023
    2. How to fill critical gaps in your preparation?
    3. Avoiding pitfalls in your preparation, especially 3 months before prelims.
    4. How to solve the current affairs based static questions
    5. Most important themes for UPSC Prelims 2023

    Date: 17th Feb || Time: 7:30 pm || Mode: Online

    Mode: Online (Zoom link will be emailed to you)

    Contact here: +91 7303316700

    2 Day UPSC Prelims 2023 special sessions

    We will have a special 2-Day session by two UPSC toppers, Prabhat sir, AIR 377 & Santosh sir, Asst Commissioner, GST who themselves have faced UPSC Prelims multiple times and cleared it with 120+ scores.

    They will help you define the strategy and approach for the last three months of UPSC Prelims preparation. They will also help you with these things:

    1. Bringing awareness on what your preparation at this stage looks like and how to bridge the critical gaps – in syllabus completion (GS and Current Affairs) and approach.
    2. Making improvements and assessing prep level wrt mocks.
    3. Last 100 days’ strategy
    4. Sticking to the bare minimum for the most optimum UPSC pre-2023 preparation.

    Day 1 with Prabhat sir: Studying what’s important and ignoring the rest. Optimizing preparation like a Topper.

    Prabhat sir will discuss how he approached the last 3 months of his preparation for Prelims. He will discuss basically two things:

    1. Sticking to the bare minimum wrt current affairs and GS subjects.
    2. Following the 80/20 rule, there are 20% of the themes from which you can actually take your success rate up by 80%
    3. The art of attempting mocks for UPSC Prelims
    4. Avoiding 5 mistakes in assessing UPSC Mock tests.

    Date: 15th Feb || Time: 7:30 pm || Mode: Online

    Mode: Online (Video link will be emailed to you)


    CivilsDaily’s FREE Webinar package

    Post-webinar Santosh sir will be sharing:

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    Tavishi failed thrice in the Prelims before but after joining Santosh sir’s mentorship cleared Prelim 2022 on her 4th attempt.

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  • CivilsDaily’s Smash Scholarship Test for UPSC 2024 | Are you an IAS-worthy aspirant?

    Do you have the aptitude and mindset required to be an IAS-IPS-IFS? Get a reality check with 10,000+ aspirants!

    Register now (FREE)

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    Toppers attempt this test 1.5 yrs before their actual prelims to know their level 0

    Even before you start preparing for UPSC 2024, you should have a certain aptitude and bent of mind to be a worthy aspirant. Get a check on your current level and situational awareness wrt this exam.

    • Date: 19th Feb 2023
    • Timings: 9:30 am
    • Duration for test: 2 hrs each
    • Language: English
    • Mode: Online
    • Test Fee: FREE for all
    • Syllabus: Very basic concepts which every IAS aspirant must be hands-on with and general current affairs. School-level concepts.

    Admit cards will be released a day before the mock test.

    Post-scholarship test package

    The package will include a detailed test discussion, and a one-to-one mentorship call to highlight your weak areas and issues in preparation. A timetable and strategy will be shared with you and relevant Smash Program selected PDF notes will be shared for FREE.

    CivilsDaily will assign a dedicated mentor for the post-test process. We will also connect you 1-1 with UPSC IAS rankers.

  • Japan-India Combat Exercise and the Chinese Concerns

    Exercise

    Central Idea

    • Japan and India have launched their second Joint Air Defense Exercise called “Veer Guardian 2023” to conduct multi-domain air combat operations in a complex environment and deepen their mutual operational understanding while fostering closer defence cooperation. This increased military collaboration between Japan and India under US guidance in the Indo-Pacific is causing subdued panic among Chinese commentators.

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    Exercise

    All you need to know about Veer Guardian 2023

    • Bilateral exercise: Veer Guardian is a bilateral air exercise between the Indian Air Force (IAF) and the Japan Air Self-Defense Force (JASDF).
    • Fourth edition: The exercise took place at Hyakuri Air Base, near Tokyo in Japan in January 2023 and was the fourth edition of the Veer Guardian series.
    • Participation: The IAF participated with six Sukhoi Su-30MKI multirole fighters and two C-17 Globemaster transport aircraft, while the JASDF deployed six Mitsubishi F-2 fighters.
    • The primary objectives of the exercise: To enhance interoperability between the two air forces, exchange best practices and operational experiences, and improve understanding of each other’s tactics and procedures.
    • Drills: The exercise included various aerial manoeuvres, air combat scenarios, air-to-ground strikes, and close air support operations. The Indian side also participated in a humanitarian assistance and disaster relief (HADR) drill, which involved the C-17 aircraft dropping relief supplies to a simulated disaster-hit area.

    Japan-India collusion against China

    • Japan’s Pursuit of Allies: Japan has been actively seeking allies to counterbalance China’s rise in the Indo-Pacific region. It has formed alliances with several countries, including the US, Germany, the UK, Australia, and India.
    • Japan-India Security Cooperation: Japan and India have a reciprocal access agreement in place since 2020. They have regularly been conducting joint military exercises in naval, ground and air domains.
    • Opportunities for India to gain experience: India, having faced a three-year-long border standoff with China, sees the joint air exercises with Japan as a rare opportunity to gain experience over the East China Sea. Therefore, the joint drill with Japan can become a stepping stone to future quadrilateral air exercises.

    Exercise

    Why China is concerned about the increasing collaboration between Japan and India?

    • Japan’s National Security Strategy: The NSS sees China as Japan’s biggest challenge ever seen and recommends a counter-strike capability by 2027.
    • Japan’s strategy to counter China’s increasing influence in the Indo-Pacific region: The Chinese government believes that Japan is exaggerating the China Threat Theory as evidenced by Japan’s recently published National Security Strategy (NSS).
    • Limiting Strategic manoeuvrability: A stronger India poses a major threat to China’s west while Japan in the east remains a major threat. As both India and Japan are significant players in the Asia-Pacific region, their collaboration could potentially limit China’s strategic maneuverability.
    • Balance of power: Together, India and Japan can bring a paradigmatic shift in the region’s security. The increasing collaboration with India is one of the ways in which Japan is seeking to balance its power with China.
    • Concern for national security: Moreover, China sees Japan’s recent efforts to court allies and introduce NATO forces in the Asia-Pacific region as potentially leading to a resurgence of Japan’s militarist past, which is a concern for China’s national security.

    Conclusion

    • In sum, the Japan-India joint air drill will impart crucial combat experience to both air forces. It will also further Japan’s approach to involve India deeper in the East Asian security architecture. However, for China, the air drill comes as an ominous portent for the future.

    Mains question

    Q. What is the significance of the Veer Guardian 2023 joint air exercise between India and Japan, and why is China concerned about the increasing collaboration between these two countries? Discuss

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  • Divyang friendly digital infrastructure in India

    digital

    Central Idea

    • The estimation in Census 2011, that 2.21% of India’s population is disabled is a gross underestimation. According to the World Health Organization, about 16% of the global population is disabled. While technology has enormous potential to level the playing field for the disabled, it can, at the same time, reinforce the barriers that the disabled otherwise face if it is not designed with their needs in mind.

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    Smartphone users with disabilities in India

    • It is difficult to determine the exact number of smartphone users with disabilities in India, as there is no specific data available on this.
    • However, according to the 2011 Census of India, there are approximately 2.68 crore (26.8 million) people with disabilities in the country.
    • India, it is reported, had 750 million Internet/smartphone users in 2020.
    • Applying the 16% figure here, this works out to be roughly 120 million (12 crore) Internet/smartphone users with disabilities.

    A Report on Accessibility of Apps

    • Evaluation of the most widely used apps: A report that evaluates the accessibility of 10 of the most widely used apps in India, across five sectors. The apps were Zomato, Swiggy, PayTM, PhonePe, Amazon, Flipkart, Uber, Ola, WhatsApp and Telegram.
    • Goal for launching this report is to start discussion on digital accessibility: 1. Objective assessment of the digital accessibility of the apps. 2. To work with these service providers and help them design practices and processes that will not only improve app accessibility but also educate their stakeholders about accessibility and people with disabilities.
    • Findings of the report: Based on the number of violations, categories developed on the level of accessibility of the apps as high, medium and low. Report found that four out of the 10 apps ranked low, while five were in the medium category.

    digital

    key efforts for Divyanga friendly digital infrastructure

    • Guidelines for Indian Government Websites: The Department of Administrative Reforms and Public Grievances (DARPG) has developed guidelines for making government websites accessible to people with disabilities. The guidelines cover various aspects of website design and development, such as colour contrast, keyboard accessibility, and assistive technology compatibility.
    • Accessible India Campaign/ Sugamya Bharat Abhiyan: The Campaign was launched by the government in 2015 to make public spaces, including government buildings, transportation, and information and communication technologies (ICT), more accessible to people with disabilities.
    • Bharat Interconnectivity Limited (BIL): BIL is a subsidiary of Bharat Sanchar Nigam Limited (BSNL) that provides accessible internet and telecom services to people with disabilities. It offers services such as audiobooks, sign language interpretation, and accessible websites and mobile applications.
    • National Institute of Speech and Hearing (NISH): NISH is an autonomous institute under the Department of Empowerment of Persons with Disabilities, Ministry of Social Justice and Empowerment. It provides training and research in the field of speech and hearing disabilities and also offers services like audiobooks and accessible software.
    • Making assistive technology more affordable and accessible: The government has also taken steps to make assistive technology more affordable and accessible to people with disabilities.
    • For example: The Department of Empowerment of Persons with Disabilities provides financial assistance to purchase assistive devices and the Assistive Technology Industry Association (ATIA) has been established to promote research and development of assistive technology.

    digital

    Measures to improve the accessibility of digital services

    • Promoting education and awareness: Steps must be taken to raise awareness about the needs and capabilities of people with disabilities. This could include providing training to developers and designers on how to create accessible digital products and services.
    • Enforcing web accessibility standards: The government should ensure that all websites and mobile applications comply with web accessibility standards such as the Web Content Accessibility Guidelines (WCAG). This will make it easier for people with disabilities to access digital services.
    • Encouraging inclusive design: Designing products and services that are accessible to all users, including those with disabilities, should be an essential part of the design process. Companies and developers should be encouraged to incorporate inclusive design principles into their products from the beginning.
    • Conducting regular accessibility audits: Regular accessibility audits should be conducted to ensure that digital products and services are accessible to people with disabilities. This can help identify barriers and areas of improvement.

    Conclusion

    • Core to the project of securing a more disabled friendly digital ecosystem must be the conviction that, everything digital must be accessible to everyone. This starts with incorporating the principles of accessibility and inclusive design into every digital offering, right from inception. India needs to be truly accessible for all people with disabilities. Organisations, companies, civil society, the government and the courts must make this happen.

    Mains question

    Q. Discuss the efforts of the Indian government towards creating a Divyanga-friendly digital infrastructure and suggest measures to improve the accessibility of digital services.

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  • Green transition during India’s G20 presidency

    transition

    Central Idea

    • Energy transitions are central to the G20 agenda. In 2023, during India’s presidency, the geopolitics and governance of energy have become immensely challenging, as the shift from fossil fuels to renewable energy, concerns about energy security and, in many cases, the pressure on keeping financial commitments made related to tackling climate change have become complicated.

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    transition

    What is mean by Green Transition?

    • Moving away from fossil fuels: The Green transition involves shifting away from traditional sources of energy that contribute to climate change, such as coal and oil.
    • For example: In 2021, the Indian government announced plans to stop the import of coal by 2024 and to reduce the country’s reliance on coal for power generation
    • Embracing renewable energy: The transition involves embracing cleaner and more renewable sources of energy, such as solar, wind, and hydropower.
    • Examples: In 2021, the Gujarat government announced plans to set up a 500 MW solar park, which is expected to be the world’s largest solar park upon completion. In 2021, Google announced plans to power all of its data centers and offices using carbon-free energy sources by 2030.
    • Reducing carbon emissions: The Green transition involves reducing carbon emissions from transportation, industry, and other sectors.
    • For instance, “Switch Delhi campaign”: In 2020, the Delhi government launched the Switch Delhi campaign to promote electric vehicles and reduce air pollution in the city.
    • Promoting sustainable lifestyles: It involves promoting sustainable lifestyles and behaviours, such as reducing waste and conserving resources.
    • India’s LiFE example: The LiFE (Lifestyle for Environment) campaign is an initiative launched by the Indian to promote sustainable lifestyles and reduce the environmental impact by taking actions at individual level.
    • Encouraging sustainable innovation: The Green transition involves encouraging innovation in sustainable technologies and practices.
    • For instance: In 2021, The Government of India announced plans to set up a National Hydrogen Energy Mission to promote the use of hydrogen as a clean energy source in various sectors.

    Energy Poverty at present

    • Increasing energy poverty in Sub-Saharan Africa: The International Energy Agency counts 20 million more people worldwide without electricity now compared to 2021. Predictably, the worst-affected are in sub-Saharan Africa, which is back to its lowest rate of electrification since 2013.
    • Inadequate energy supply in Europe: In Europe, the number of people experiencing inadequate energy supply has risen to 80 million from 34 million in 2021.
    • Middle-income countries face fuel and electricity shortages: Even middle-income countries in Africa, South America and Asia face fuel and electricity shortages and high levels of inflation.
    • Reduced availability of energy impact on economies and public health: Reduced availability of energy is hurting economies as industries close, and is impacting public health as safe fuels such as cooking gas become expensive.
    • Balance of payments crisis and high energy costs: A number of countries also face a balance of payments crisis, partly driven by high energy costs.
    • Global impact on sustainable development goals (SDG): Energy poverty is global and widespread, impacting technology implementation, industry and SDGs all of which are also G20 goals.

    transition

    Suggestions to produce swift results for India’s G20 presidency

    • Financial support as a cornerstone of climate action and energy transition: The G20 should prioritize providing financial support to those in need as a fundamental aspect of climate action and energy transition under the UNFCC Protocol, as emphasized and reinforced in the Paris Agreement and successive Conference of the Parties (COPs).
    • Galvanizing the pursuit of financial support: Although financial support to developing countries has increased over time, it still falls short of what is necessary for a successful transition to a low-carbon economy. The G20 has the potential to mobilize efforts and drive momentum towards securing the funding required for climate action and energy transition.
    • Public Financing alone is insufficient: Public financing alone will not be sufficient to address the current energy challenges faced globally. Private finance is necessary to complement public finance.
    • Innovative approaches to climate financing: Innovative approaches are required to address the financing needs of climate action. These approaches could include blending finance with public and private capital to create a unified effort. Additionally, impediments like exchange rate risks must be addressed to ensure smooth financing of projects.
    • Creation of a Global Climate Finance Agency to better integrate and drive global agenda: The agency could be mandated to lower hedging costs to mitigate a key risk faced by developers of green projects and insure major clean energy projects from potential losses due to government utilities failing to meet supply and payment obligations, which is a common issue in developing countries like India.
    • Harnessing power of public procurement system: The G20 can use the public procurement system to speed up energy transitions and drive significant change. Effective public procurement can ensure funding and adaptation at scale, which has been proven through abundant evidence.

    transition

    Conclusion

    • The G20 should encourage financial centres and business communities, to create new business models and technologies for energy transitions. This will require cooperation and collaboration between financial centres, including through green financing and economy taxonomies. By doing so, the G20 can accelerate climate transition and energy security for all.

    Mains question

    Q. Briefly explain the concept of green transition. How India’s g20 presidency can lead the world towards Green transition? Discuss.

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  • Income Tax Dept. surveys BBC over Transfer Pricing allegations

    tax

    Central idea: The Income Tax Department has conducted surveys at the premises of the British Broadcasting Corporation (BBC) in Delhi and Mumbai. The BBC has been deliberately violative of transfer pricing rules.

    Transfer Pricing: A Tax Evasion Technique

    • Transfer pricing refers to the practice of determining the price at which goods, services or intangible property are sold between related entities within an enterprise across international borders.
    • It is a practice of multinational companies transferring profits to low-tax jurisdictions to reduce their tax liabilities.

    How does Transfer Pricing work?

    • The I-T Department gives the following example: “Suppose a company A purchases goods for 100 rupees and sells it to its associated company B in another country for 200 rupees, who in turn sells in theopen market for 400 rupees.
    • Had A sold it (the good) direct, it would have made a profit of 300 rupees.
    • But by routing it through B, it (A) restricted it (profit) to 100 rupees, permitting B to appropriate the balance.
    • The transaction between A and B is arranged and not governed by market forces.
    • The profit of 200 rupees is, thereby, shifted to the country of B. The goods is transferred on a price (transfer price) which is arbitrary or dictated (200 hundred rupees), but not on the market price (400 rupees).

     

    What is a ‘Survey’ under the I-T Act?

    • Section 133A of the Income Tax Act, 1961 empowers the Income Tax Department to conduct surveys to collect hidden information.
    • I-T authority can enter any place of business or profession within their jurisdiction, verify books of account, and impound documents if needed.

    What is an I-T search?

    • Section 132 of the Income Tax Act, which I-T Department to conduct searches when it has reasons to believe that someone is in possession of undisclosed income or property.

    Differences between a survey and a search

    • A survey is a less serious proceeding than a search and can only be conducted during working hours on business days within the limits of the area assigned to the officer.
    • In contrast, a search can happen on any day after sunrise, and the entire premises can be inspected to unravel undisclosed assets, with the help of police.
    • While the scope of a survey is limited to the inspection of books and verification of cash and inventory, in a search, the entire premises can be inspected to unravel undisclosed assets, with the help of police.

    Powers of the I-T authority during a search

    • The provisions for impounding or seizing the goods were introduced only by the Finance Act, 2002.
    • The Act says that during a search, an authorized officer can:
    1. Enter and search any building or place where he has reason to suspect that such books of account, other documents, money, bullion, jewellery, or other valuable article or thing are kept;
    2. Break/open the lock of any door, box, locker, safe, almirah, or other receptacles for exercising the powers conferred by clause (i) where the keys thereof are not available;
    3. Seize any such books of account, other documents, money, bullion, jewellery, or other valuable article or thing found as a result of such search;
    4. Place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom;
    5. Make a note or an inventory of any such money, bullion, jewellery, or other valuable article or thing.

    What are Transfer pricing rules?

    • By setting transfer pricing rules, countries can ensure that companies pay taxes on profits generated within their jurisdiction.
    • Transfer pricing rules are used to determine the “arm’s length price” at which transactions between related entities should take place.
    • The arm’s length price is the price that would have been charged between unrelated entities in similar circumstances.
    • The rules aim to ensure that related entities do not shift profits to low-tax jurisdictions, and that the tax authorities of different countries get their fair share of taxes.

    What is the role of tax authorities in curbing transfer pricing?

    • Audit: The tax authorities can carry out transfer pricing audits to determine whether the prices used in transactions between related entities are in accordance with the arm’s length principle.
    • Compliance of Arm’s length principle: If the tax authorities find that the prices are not in accordance with the arm’s length principle, they can make adjustments to the prices and levy taxes accordingly.

    What is the “Arm’s Length Arrangement” that the BBC has allegedly violated?

    • Section 92F(ii) of the Income Tax Act, 1961 defines arm’s length price as “a price which is applied or proposed to be applied in a transaction between persons other than associated enterprises, in uncontrolled conditions”.
    • Section 92C(1) says arm’s length shall be determined by the “most appropriate” among the following methods:
    • comparable uncontrolled price method;
    • resale price method;
    • cost plus method;
    • profit split method;
    • transactional net margin method;
    • such other method as may be prescribed by the I-T Board.

    What lies ahead for BBC?

    • BBC will have to comply with transfer pricing rules in each country in which they operate.
    • Failure to comply with transfer pricing rules can lead to tax liabilities and penalties.
    • Compliance with transfer pricing rules can be complex and require the assistance of tax experts.

    Try this MCQ:

    Q. Which government agency regulates transfer pricing rules in India?

    A) Reserve Bank of India

    B) Securities and Exchange Board of India

    C) Income Tax Department

    D) Ministry of Corporate Affairs

     

    Post your answers here.

     

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  • Big Lithium find: Risks and Rewards

    lithium

    Central idea: The discovery of 5.9 million tonnes of lithium in Jammu & Kashmir is a major boost for India’s electrification plans but mining is a high-risk, high-reward game in the ecologically sensitive Himalayas.

    India’s lithium treasure

    • Huge deposits: Authorities have found 5.9 million tonnes of lithium reserves in Reasi district of Jammu & Kashmir.
    • One of the largest mines: This may be the seventh largest deposit of the rare element, accounting for roughly 5.7% of all the reserves in the world.
    • High grade quality: They are also said to be of a higher grade—550 parts per million (ppm) against the average 220 ppm—making it highly lucrative, given how lithium prices have soared in the last few years.

    Game-changing prospects for India

    • White gold: Due to its ability to pack energy, it has utility across a range of sectors and has gained the moniker ‘white gold’.
    • Soaring prices: According to the International Energy Agency, lithium prices went up more than seven-fold between the start of 2021 and May 2022.
    • Battery economy: It is now primarily used to build the batteries that power modern appliances.
    • EV push: They also power electric vehicles, a segment that will corner most of the global lithium production in future.
    • Import cut: Currently, India does not have its own lithium resources and like crude oil, it is dependent on imports. In fiscal 2022, India imported lithium and lithium ion worth almost ₹14,000 crore.

    Will batteries be made of lithium from India now?

    • There is still some way to go before miners can extract lithium for industrial use.
    • The discovery is ‘inferred’ or preliminary, the lowest of the three levels of estimations of a mineral deposit and the second of the four stages of exploration, as per the UN Framework Classification of mineral resources.
    • There is much analysis to be done before its true value is confirmed.

    Pitfalls of lithium mining

    • Pollution in the valley: Open-pit-mining, refining, and waste disposal from these processes substantially degrades the environment, including depletes and contaminates waterways and groundwater, diminishes biodiversity, and releases considerable air pollution.
    • Water intensity: Extracting lithium from its ore is highly water-intensive, taking about 2.2 million litres of water for one tonne of lithium.
    • Seismicity threats: The Himalayas are a highly fragile and eco-sensitive region and as the recent Joshimath subsidence shows, it is vulnerable to long-term adverse consequences of unplanned development works.
    • Displacement issues: Mining in the region could displace local communities and have significant social impacts. The region is home to a number of indigenous communities who could be negatively impacted by mining in the region.
    • Undue activism over Kashmir: Mining in the region can attract opposition from environmentalists and so-called separatists disguised as national leaders.

    Geostrategic considerations

    • Sensitive location: The new lithium discovery in J&K has significant geostrategic implications due to the geopolitical sensitivity of its location.
    • Neighborhood hostility: The Union territory of J&K has a history of cross-border tensions, domestic insurgency, and terrorism.
    • Resentment of local population: Lack of meaningful engagement with the local populace in the Li extraction project could introduce new frontiers of socio-environmental conflict.

    China factor

    • China currently dominates the global lithium-ion battery manufacturing industry.
    • Dependence on China for Li and other crucial metals and their derivatives is a source of energy security risks.
    • Major economies such as the E.U., the U.S., Canada, and India are seeking alternative supplies to challenge China’s geopolitical dominance.

    Indian initiatives in this regard

    • Undeterred trade with China: India’s security considerations are more immediate due to the growing geopolitical rivalry with China and longstanding territorial disputes.
    • Rare Earths Mission: The Indian government and industry are pushing for a ‘Rare Earths Mission’ to reduce dependence on China and exploit the country’s critical mineral reserves.

    Conclusion

    • In effect, the proliferation of EVs could mean India becoming dependent on China, just like it is reliant on the Middle East for crude oil today.
    • J&K’s reserves, however, provide a major opening for India to be self-reliant.

     

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