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Showing posts with label GST News. Show all posts
Showing posts with label GST News. Show all posts

Sunday, 24 December 2017

GST collection: With 24% share in cess, Maharashtra, UP top list

Karnataka is 3rd with cess collection of `3,110 cr, followed by Chhattisgarh


Comprising about 24 per cent of the total cess collections of Rs 30,224 crore under the Goods and Services Tax (GST) regime, Maharashtra and Uttar Pradesh are the top contributors among states and Union Territories in the first five months of the rollout of the GST regime.

Maharashtra garnered Rs 3,702 crore and Uttar Pradesh collected Rs 3,549 crore through cess levied on sin and luxury goods since the July 1 rollout of the new indirect tax regime, Minister of State for Finance Shiv Pratap Shukla said in reply to a question in Lok Sabha on Friday. The individual contribution of these two states is even higher than the cess collected through imports, which stands at Rs 2,604 crore.

Karnataka ranks third with cess collection of Rs 3,110 crore, followed by Chhattisgarh that raised Rs 2,288 crore as cess till November 30, the data provided by the government showed.

Maharashtra also has the highest State GST (SGST) collections of Rs 18,701 crore during July-November, the data showed. Tamil Nadu is at the second spot, having collected Rs 8,739 crore, about half of the SGST amount raised by Maharashtra.

The two manufacturing states are closely followed by Karnataka and Gujarat with SGST collections of Rs 7,736 crore and Rs 7,375 crore, respectively.

The government has garnered Rs 30,224 crore as cess from July 1-November 30, the data showed. About Rs 59,048 crore has been collected as Central GST (CGST) and Rs 87,888 crore has been collected as SGST in the first five months of the GST regime.

An amount of Rs 1.91 lakh crore has been collected as Integrated GST (IGST) till November 30. Out of the total IGST collection of Rs 1.91 lakh crore, Rs 90,038 crore has been collected through imports. The high unutilised IGST will be set off by GST taxpayers against their tax liabilities of IGST,CGST and SGST, in that order, in the coming months and is likely to result in lower collections via CGST and SGST payments, as was seen in October revenue collections.


The GST regime, which was implemented from July 1, has tax slabs of 0, 5, 12, 18 and 28 per cent. Additional cess ranging from 1 to 290 per cent is levied over and above the highest tax rate of 28 per cent on sin

and luxury goods such as tobacco, cigarettes and luxury cars. The amount collected through cess flows into compensation fund, which is used to compensate states for revenue losses on account of implementation of GST.
As per Section 7 of the Goods and Services Tax (Compensation to States) Act, 2017, states and Union Territories with
legislatures have to be compensated for revenue losses arising out of implementation of GST during the five-year transition period beginning from the date on which the SGST Act of the concerned state has come into force.
The GST (Compensation to the States for Loss of Revenue) Act has projected the revenue growth for states during the five-year transition period to be 14 per cent and the financial year of 2015-16 has been fixed as the base year for calculation of compensation amount, with the base year tax revenue including states’ tax revenues from state VAT, Central sales tax, entry tax, octroi, local body tax, taxes on luxuries, taxes on advertisements.
However, any revenue among these taxes related to supply of alcohol for human consumption, entertainment tax levied by the states but collected by local bodies and petroleum products not part of GST will be excluded from the base year revenue.
As per the data provided by government in Lok Sabha, 93.33 lakh taxpayers have registered under the new GST regime till October 31. Out of total 93.33 lakh registrants, 64.38 lakh taxpayers migrated from the earlier excise and VAT system, while 28.94 lakh are new registrants in the GST regime.


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Wednesday, 6 December 2017

Gujarat Assembly Election: TV9/CVoter poll shows Congress gaining on BJP, but sizeable gap remains


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Congress is definitely making some inroads into the BJP bastion in Gujarat but the state poll due shortly will be far from being a cliffhanger as the TV9/CVoter poll predicts. Ahead of the Gujarat Assembly election, the study finds that the BJP will likely lose six seats and the Congress will likely gain 12 seats bringing their tally to 109 and 73 seats in the 182-seat Assembly respectively.


The poll, dividing Gujarat by region, predicted that the BJP will nab 36 seats in Central, 13 seats in North, 43 seats in Saurashtra and 17 seats in South. 

The Congress is predicted to win 27 seats in Central, 19 seats in North, 11 seats in Saurashtra and 16 seats in South. 

Other parties are predicted to win zero seats. The Congress is predicted to gain five seats in Central, two seats in the North, 10 seats in the South but lose five seats in Saurashtra. The BJP is predicted to lose three seats in Central, two seats in North, nine seats in the South but pick up eight seats in Saurashtra.

In 2012 election, the BJP won 115 seats and the Congress netted 61 seats in the state. Other parties netted six seats in the state.
Here's the seat share as predicted by the survey.
Year RegionINCBJP Others Total
2012Central2239263
North1715032
Saurashtra1635354
South626133
Total611156182
 ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄
Year RegionINCBJP Others  Total
2017Central2736063
North1913032
Saurashtra1143054
South1617033
Total731090182
 ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄
YearRegionINCBJP Others  Total
SwingCentral5-3-20
North2-200
Saurashtra-58-30
South10-9-10
Total12-6-60
 ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄
The opinion poll found that the Congress could get as much as 41.7 percent of the vote share across the state, however, the BJP will still be in the lead with a slim margin at 46.5 percent, despite the much-touted Patidar wave in certain pockets. The survey also showed that while the Congress vote share has gone up by roughly 2.9 percentage points, the BJP's share of votes has come down by 1.3 percentage points. 
The share of Others remained more or less the same.

According to the survey, the Congress party could get the largest lead in South Gujarat where it vote share has improved by 7.5 percentage points as compared to 2012 results. 
The party however, could not make much impact in Saurashtra, where it's vote share shows a growth of just 0.1 percentage points. 
However, unlike its rival BJP, the Congress does not suffer a decline in its vote share anywhere in Gujarat.

The BJP on the other hand has slipped by 1.3 percentage points as compared to 2012. The only region where it manages to retain its lead in vote share is the Saurashtra region, while it slipped  by eight percentage points—the largest decline—in South Gujarat, which has a sizeable presence of Muslims, Patidars and small traders, who were worst-hit by demonetisation and GST.

Here's the vote share tally as predicted by the survey.
Year RegionINCBJPOthers Total
2012Central39.450.210.4100
North45.943.610.5100
 Saurashtra 36.944.918.2100
South37.35210.7100
Total38.847.813.4100
  ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄
Year RegionINCBJP Others Total
2017Central42.745.511.8100
North47.242.210.7100
 Saurashtra 37.149.213.7100
South44.843.911.2100
Total41.746.511.8100
 ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄
YearRegionINCBJP Others Total
SwingCentral3.4-4.71.4100
North1.3-1.50.2100
 Saurashtra0.14.3-4.4100
South7.5-8.00.6100
Total2.9-1.3-1.60
 ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄ ̄

On Tuesday, an opinion poll conducted by Lokniti-CSDS-aapkasamachar  predictedthat BJP is likely to win 91-99 seats while the Congress will bag 78-86 seats.
Earlier, Prime Minister Narendra Modi likened the imminent elevation of Rahul Gandhi to dynastic succession of Mughal rulers, and castigated the Congress for abandoning "public modesty" by deciding to make a person, who is out on bail in a graft case, its presiden
The prime minister also targeted the Congress over corruption during its rule and spoke about the clean governance under him in Gujarat and at the Centre.
Modi said with the Congress deciding to make such a leader its president gave a glimpse of what culture the party will follow and the kind of leadership will emerge there in future.
Assembly elections in Gujarat will be held in two phases: On 9 and 14 December. The counting will take place on 18 December, the same day as Himachal Pradesh election.

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Indian bonds gain on RBI's more balanced tone on inflation, liquidity

India's 10-year bonds gained today after the RBI stuck to a more balanced tone on inflation and market liquidity, in a relief to investors who had braced for more hawkish comments


Mumbai: India's benchmark 10-year bonds gained on Wednesday after the central bank stuck to a more balanced tone on inflation and market liquidity, in a relief to investors who had braced for more hawkish comments.

The Reserve Bank of India kept its policy rate steady at 6% as widely expected, but slightly softened its language on inflation by saying risks were "evenly balanced."


Bond investors were further relieved after RBI deputy governor Viral Acharya said he expected "slightly surplus" liquidity by March, reducing some of their concerns that the central bank would continue with aggressive open market debt sales to drain out cash from the financial system.

"Market is relieved that the RBI did not raise its anti-inflation rhetoric," said Anindya Das Gupta, managing director and head of trading at Barclays India.
"Market was fearful of a slightly more hawkish tone," he added. "So in a sense there is no fresh bad news which is a bit of a relief."


The benchmark 10-year bond yield ended at 7.03%, compared with around 7.07% right before the RBI decision came in. The yield had closed at 7.06% on Tuesday.
Meanwhile, the broader NSE index dropped 0.7% and the rupee weakened to 64.51 to the dollar from 64.38 on Tuesday.
The positive end in bond markets comes after a recent sell-off sent the 10-year bond yield up by more than 60 bps since the RBI last cut the repo rate by 25 bps in early August.

Bond markets have pummelled as an acceleration in inflation has sharply reduced the prospect of rate cuts, while worries mount that the government would borrow more from debt markets as it struggles to meet its annual fiscal deficit target.

The RBI also contributed to the sell-off by selling Rs90,000 crore ($13.95 billion) via open market operations since July to drain out excess cash accumulated after India's shock move to ban higher-value bills late last year as well as the central bank's foreign exchange market interventions. 

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Thursday, 23 November 2017

‘Technology has paved way for efficient service delivery, governance’: Full text of PM Modi’s speech at GCCS

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Prime Minister Narendra Modi said, "Today, digital technology has emerged as a great enabler. It has paved the way for efficient service delivery and governance."



Prime Minister Narendra Modi on Thursday recalled the speedy evolution of cyberspace from the bulky mainframe computers to hand-held smartphones and gadgets of the present era. Speaking at the inauguration of the fifth edition of the Global Conference on Cyber Space in New Delhi today, PM Modi talked about how the cyberspace has transformed across the world in the past few decades. The Prime Minister also emphasised the need for not allowing digital space to become a playground for terrorists.

Here is the full text of his speech:-
Ladies and Gentlemen.
I welcome you to New Delhi, for the Global Conference on Cyber Space. I also welcome all those who are joining this event remotely from across the world, over the internet.
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Friends.
We all know how cyberspace has transformed the world over the last few decades. The senior generation among the gathering here, would recall the bulky mainframe computer systems of the seventies and eighties. A lot has changed since then. Email and personal computers brought about a new revolution in the nineties. This was followed by the advent of social media, and the mobile phone as an important vehicle of data storage and communication. Expressions such as the Internet of Things, and Artificial Intelligence, have now become commonplace. These indicate that change continues, perhaps at an even faster pace now.
These rapid developments in the digital domain have mirrored immense change in India as well. Indian IT talent has been recognized worldwide. Indian IT companies have made a name for themselves globally.
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Today, digital technology has emerged as a great enabler. It has paved the way for efficient service delivery and governance. It is improving access, in domains from education to health. And it is helping to shape the future of business and economy. Through each of these ways, it provides the less privileged sections of society, a more level playing field. On a macro-scale, it has contributed to emergence of a flat world, where a developing nation like India can compete on a level footing with developed nations.
Friends.
Technology breaks barriers. We believe it validates the Indian philosophy of “Vasudhaiva Kutumbakam” – the world is one family. This expression reflects our ancient, inclusive traditions. Through technology, we are able to give meaning to this expression, and indeed to the best of democratic values.
We in India, give primacy to the human face of technology, and are using it to improve what I call, “ease of living.” Empowerment through digital access, is an objective that the Government of India is especially committed to. “Digital India” is the world’s largest, technology-led transformative programme which is paving the way for our citizens to avail digital services. We are using mobile power or M-power to empower our citizens.
I am sure most of you are already aware of Aadhaar, which is the unique biometric identity of a person. We have used this identity to liberate our people from queues and cumbersome processes. Three factors: first, financial inclusion through our Jan-Dhan bank accounts; second, the Aadhaar platform; and third, the Mobile phone, have greatly helped reduce corruption. We call this the J.A.M. or JAM trinity. Through better targeting of subsidies, the JAM trinity has prevented leakages to the tune of nearly 10 billion dollars so far.
Let me share a few examples of how digital technology is becoming a great facilitator for “ease of living.”
Today, a farmer can access a variety of services, such as soil-testing results, expert advice, and a good price for his produce, at the click of a button. Digital technology is therefore contributing to increased farm incomes.
A small entrepreneur can register on the Government e-Marketplace, and bid competitively for supply of goods to the Government. As he expands his business, he also contributes to lowering the cost of procurement for Government. This leads to increased efficiency, and greater value for public money.
Pensioners no longer need to present themselves in front of a bank officer, to provide proof of life. Today, a pensioner can leverage the Aadhaar biometric platform, to provide this proof with minimal physical effort.
Women form a significant part of the IT workforce. Digital technology has facilitated several new enterprises led by women. In this way the IT sector has contributed towards gender empowerment.
Citizens of India are increasingly adopting cashless transactions. For this, we created the Bharat Interface for Money – or BHIM App. This App is helping the movement towards a less cash and corruption free society.
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These examples show the power of technology in improving governance.
Friends.
We are using the digital domain to facilitate participative governance, or Jan Bhagidari. When we assumed office in May 2014, many people, particularly youngsters expressed a keen desire to share their ideas and work for the nation. It is our firm belief that there are millions of Indians, whose transformative ideas can go a long way in taking India to new heights.
Therefore, we launched the citizen engagement portal, MyGov. This platform enables citizens to share their thoughts and ideas on important issues. In many key policy areas, we received thousands of valuable suggestions. Many logo and emblem designs for various Government initiatives today, are the result of crowd-sourcing, and competitions on MyGov. In fact, even the official app for the Prime Minister’s Office, is the result of a competition floated on MyGov, which received brilliant responses from youngsters. MyGov is a prime example of how technology strengthens democracy.
Let me turn to another example. On assuming office, I realized that important government projects and initiatives often suffer on account of unnecessary silos in government functioning, and the lack of focused decision-making. Therefore, we devised a cyberspace based platform, called PRAGATI or Proactive Governance for Timely Implementation. PRAGATI, in Hindi, literally means progress.


On the last Wednesday of every month, I meet top Union and State government officials for a PRAGATI Session. Technology breaks silos. Sitting in our respective offices, aided by the cyber world, we discuss and resolve important governance issues. I am happy to share with you that the PRAGATI sessions have resulted in faster decision-making, through consensus, in the larger interest of the nation. PRAGATI has put back on track infrastructure projects worth billions of dollars which were stuck in redtape
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I have even tried something of my own, through the Narendra Modi Mobile App. This App deepens my connect with citizens. The suggestions I get through the App are very useful.
Today, we launched the UMANG Mobile App, which will provide over a hundred citizen-centric services. At the back-end, these services will be catered for by many different departments of the Union and State Governments. This integrated approach will add an automatic layer of “peer performance pressure”, in the working of these departments.
Friends,
We shall be happy to share our experiences and success stories with the global community. On the other hand, India is keen to find scalable models and innovative solutions in education and health, using digital technology. We also wish to make cyberspace an enabler for the differently-abled. Recently, during a thirty six hour Hackathon, college students suggested solutions to chronic problems that were put forward by Ministries. We look forward to learnfrom global experiences and best practices. We believe that growth happens only when we all grow together.
Cyberspace remains a key area for innovation. Our startups today, are looking to provide solutions to common everyday problems, and improving the lives of people. I am confident that the global investor community, will recognize the immense potential waiting to be tapped from India’s startup pool. I invite you to invest in this space, and be a part of the unfolding story of Indian startups.
Friends ,
The internet, by nature, is inclusive and not exclusive. It offers equity of access, and equality of opportunity. Today’s discourse is being shaped by Facebookers, Tweeples, and Instagrammers. Social media platforms are making cyberspace participative for all. News that experts tell us from studios, is now supplemented by experiences highlighted on social media. This transition, to a blend of expertise and experience, is the contribution of the cyber world. The internet has become the ideal platform for youngsters to showcase their creativity, capability and capacity – be it an insightful blog, a beautiful musical rendition, artwork, or theatre… the sky is the limit.
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Friends.
The theme of the Conference: “Secure and Inclusive Cyberspace for Sustainable Development” also highlights the importance of securing this vital asset for mankind. The global community needs to approach the issue of cyber-security with confidence, as much as with resolve. Cyberspace technologies must remain an enabler for our people.
The quest for an open and accessible internet often leads to vulnerability. Stories of hacking and defacement of websites are the tip of an iceberg. They suggest that cyber attacks are a significant threat, especially in the democratic world. We need to ensure that vulnerable sections of our society do not fall prey to the evil designs of cyber criminals. Alertness towards cyber-security concerns, should become a way of life.
One of the major focus areas should be the training of well-equipped and capable professionals to counter cyber threats. Cyber-warriors who will remain on the alert against cyber-attacks. The term “hacking” may have acquired an exciting, even if dubious overtone. We need to ensure that cyber protection becomes an attractive and viable career option for the youth.
On a related note, nations must also take responsibility to ensure that the digital space does not become a playground for the dark forces of terrorism and radicalization. Information sharing and coordination among security agencies is essential to counter the ever-changing threat landscape.
Surely, we can walk the fine balance between privacy and openness on one hand, and national security on the other. Together, we can overcome the differences between global and open systems on one hand, and nation-specific legal requirements on the other.
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Friends.
Emerging digital technologies could impact our future in ways that we cannot yet foresee. Important questions of transparency, privacy, trust and security may need to be addressed. Digital technology serves to empower mankind. We must ensure that it continues to stay that way.
The large multi-stakeholder participation at this event, is proof of the global endorsement that this platform has received. Nation states, the industry, academia and civil society, all need to work towards a formal collaborative framework. This will enable a secure cyberspace which improves quality of life.
Friends.
This conference is perhaps the biggest ever such event in terms of numbers. I am told that all the background and logistics have been handled digitally. I hope delegates from around the world found it a smooth and seamless experience.
I conclude by wishing you fruitful and productive deliberations and outcomes. I once again welcome you,and wish the conference all success.




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Wednesday, 22 November 2017

Government sets up a panel to draft new direct tax law

The government today constituted a task force for redrafting the 50-year old income tax law in sync with the economic needs of the country. 

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The six-member task force will have Arbind Modi, CBDT Member (Legislation) as the Convener and other members, including Girish Ahuja (chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY) and Mansi Kedia (Consultant, ICRIER). 
Prime Minister Narendra Modi, during the annual conference of tax officers in September, had observed that the Income-tax Act, 1961 was drafted more than 50 years ago and it needs to be redrafted. 


Accordingly, in order to review the Act and to draft a new direct tax law in consonance with economic needs of the country, the Government has constituted a task force," a finance ministry statement said. 

The task force will submit its report to the government within 6 months. 


Chief Economic Adviser Arvind Subramanian will be a permanent special invitee in the task force. 




The panel has been tasked to draft a direct tax legislation keeping in view the tax system prevalent in various countries, the international best practices and economic needs of the country. 

Seeking to replace the existing I-T Act, the UPA government had in 2009 come out with Direct Taxes Code to simplify the tax legislation for individual taxpayers as well as corporates. 


The Direct Taxes Code (DTC) Bill, 2010, which was introduced in Parliament in 2010, lapsed with the dissolution of the 15th Lok Sabha. 

The Bill had proposed annual I-T exemption limit at Rs 2 lakh, and levying 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh. For domestic companies it suggested tax rate of 30 per cent of business income. 

The NDA government, since coming to power in 2014, has already implemented general anti-avoidance rules GAAR. In 2016 Finance Minister Arun Jaitley also promised to lower corporate tax rate to 25 per cent in 5 years. 


Currently, income up to Rs 2.5 lakh per annum is exempt from tax for individuals.

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Monday, 6 November 2017

Govt may review monthly GST return filing process

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Under the GST regime rolled out from July 1, the government has allowed businesses to file initial returns and pay taxes by filing up form GSTR-3B by the 20th day of next month.




The government may review the requirement of filing at least three returns every month under the GST regime with a view to easing compliance burden of taxpayers, officials said. Presently, businesses have to file returns in GSTR-1, GSTR-2 and GSTR-3 forms for every month.These forms detail outward supplies of taxable goods and/or services, inward supplies for claiming input tax credit and monthly return.

The review follows businesses complaining problems in matching invoices while filing July returns. “There will be a review of the norms to file GSTR-1, 2 and 3. Businesses have complained of trouble in invoice matching while filing GSTR-2. It would be reviewed whether matching of invoices would be pursued in the coming months,” a senior government official told PTI.

Under the Goods and Services Tax (GST) regime rolled out from July 1, the government has allowed businesses to file initial returns and pay taxes by filing up form GSTR-3B by the 20th day of next month.
This form is only for period July to December and would be discontinued from January.
The official said the GST Council, headed by Union Finance MinisterArun Jaitley and comprising representatives of all states, may also consider extension of GSTR-3B filing beyond December as the Central Board of Excise and Customs (CBEC) feel that the filing the initial returns has stabilised and businesses have got used to the system.


The first three months of GST roll out have earned a cumulative revenue, including Integrated GST collections, of around Rs 2.78 lakh crore to the exchequer.
The final GST returns are to be filed by submitting form GSTR-1, 2 and 3. Businesses have filed GSTR-1 return, which is the sales returns, for the month of July and over 47 lakh business have filed it.
These sales returns will have to be matched with the purchase invoice to be filed in GSTR-2. So far over 21 lakh businesses have filed July GSTR-2 and the due date for filing has been extended by a month to November 30.
After matching of GSTR-1 and 2, the businesses will have to file July GSTR-3, the last date for which is December 11.
“Invoice matching has been an issue and there is a thinking that we may give some time to settle down. In the meanwhile we can probably extend GSTR-3B beyond December,” the official added.
The official further said that a decision to this effect may be taken next month.
A group of ministers headed by Assam Finance Minister Himanta Biswa Sarma had last week suggested that all taxpayers should be allowed to file returns quarterly, akin to those businesses whose monthly turnover is up to Rs 1.5 crore.
The official further said that invoice matching is important in the GST regime to check tax evasion and hence the government wanted every taxpayer to understand how the system works and get used to it gradually.
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