GST E-way Bill: System set to rollout in 2 weeks
Even as GST Network (GSTN) is busy addressing the technical glitches that thwarted implementation of the e-way bill mechanism — was to be rolled out from February 1 but was postponed till a date to be announced — and believes that it might take a couple of weeks to fix the problem, revenue-hungry states are putting pressure on the Centre to avoid any further delay in the use of the key anti-evasion tool. Gujarat has come out with a plan to implement the system from February 20 while Uttarakhand says it will have it rolled out on February 10 itself.
Algo case: NSE’s revenue from co-location biz frozen
India’s largest stock exchange National Stock Exchange (NSE) has to park the revenues it garnered from its co-location business since September 1, 2016, in a separate bank account until SEBI gives its final ruling on allegations of giving preferential access to certain stock brokers. While the NSE has denied these allegations, an independent agency had found that the bourse’s system was prone to manipulation. According to disclosures made by the bourse in its draft offer document for initial public offering (IPO), revenue from the NSE’s co-location facility was Rs.451.2 crore (26.1 per cent of total revenue) in FY15, Rs.553.96 crore in FY16 (29.7 per cent of total revenue) and Rs.302.91 crore in the first half of FY17 (29.3 per cent of total revenue).
LTCG tax has led to market correction: Govt officials
Even as the clamour for a rollback of long-term capital gains (LTCG) tax on shares and mutual funds rises, the government maintains this was the right time to bite the bullet on this levy. Senior officials told ET that the markets had run up sharply and a small correction at this stage should not be a worry. “This was the right time to do it,” a senior government official said. The government was also worried that the preferential treatment for equities was distorting the assets market with stock markets cornering the bulk of savings and deposits and housing losing out.
RBI monetary policy, Q3 earnings to drive markets post budget
As investors adjust to the new taxation regime following the re-introduction of long-term capital gains (LTCG) tax on equity in the Union budget, the markets are expected to shift focus to December quarter earnings and Reserve Bank of India’s (RBI) monetary policy review this week. According to analysts, the impact of budget on the equity markets over the years appears to have declined, as the government has separated major policy announcements from the budget process.
Third quarter earnings point to moderate recovery
Despite some instances of disappointment, the October-December earning season has mostly been on track so far. Results declared by major companies, so far, show some signs of a moderate economic recovery. Some improvement is also because of the base effect as the same period last year witnessed demonetisation. A key challenge is rise in input prices, though consumer demand is on an uptick.
Bitcoin users come under Enforcement Directorate, I-T scanner
Investigative agencies have turned their lens on bitcoin users after earlier surveying cryptocurrency exchanges. Last month, the Enforcement Directorate (ED) and the income tax department (IT) jointly raided users of cryptocurrencies in a few locations suspecting money laundering, fraud and tax evasion, said people aware of the development. The agencies surveyed bitcoin users in Ahmadabad and Surat last month, said an ED official on condition of anonymity. According to an income tax department official, who also declined to be named, the tax department after its December survey of bitcoin exchanges had identified some suspicious accounts and was examining replies to notices sent.
Pre-2016 startups may get breather from angel tax
India could shield startups floated prior to 2016 from the socalled angel tax to boost entrepreneurship in the country. The finance ministry has started discussions with the Department of Industrial Policy and Promotion (DIPP) on the certification of genuine startups to help with this. The government has also asked tax officials not to pursue cases against startups. “We had (earlier) said we will recognise startups only after 2016. We have sent a proposal to the DIPP. If DIPP agrees, then we will not make any adjustment for startups set up before 2016,” finance secretary Hasmukh Adhia told ET.