1. GST Rate Cut for More Items, Returns Filing to Be Made Simpler
The Goods and Services Tax Council (GST Council) on Thursday cut tax rates on 29 products and 54 services at its 25th meeting and agreed to make the process of filing tax returns simpler.
At the meeting chaired by finance minister Arun Jaitley, the federal indirect tax body cut GST rates on products including pre-owned vehicles, household cooking gas cylinders from private suppliers and precious stones.
Services that saw a GST rate cut include legal assistance provided to the government and its agencies, admission to theme parks and small housekeeping services provided by e-commerce firms such as UrbanClap. The revenue impact of these rate cuts will be to the tune of Rs1,100-1,200 crore.
(Source: Livemint)
2. WhatsApp to Allow Business Accounts for Revenue
Messaging application WhatsApp said on Thursday that it would begin allowing business accounts for the first time, a step that brings the free service closer to a plan that would make money for its corporate parent, Facebook Inc.
Some businesses already use WhatsApp, with 1.3 billion users, to answer inquires from customers. Business accounts will allow them to set up automatic greetings, see statistics about their messaging and set up a profile page with hours of operation and other information, WhatsApp said.
The accounts are aimed at businesses that receive a high volume of WhatsApp messages and need help keeping up, WhatsApp Chief Operating Officer Matt Idema said.
(Source: Reuters)
3. Improve Pricing of Risk-Based Loans, RBI Tells Banks
Banks in India must improve pricing of loans based on risk assessment, a skill that would have helped them avoid non-performing assets, said N.S. Vishwanathan, deputy governor of the Reserve Bank of India on Thursday.
He also asked banks to improve underwriting standards by writing strong loan covenants—agreements with the borrowers—as well as enforcing them on time.
Indian banks are currently sitting on a stressed asset pool of over Rs 10 trillion.
(Source: Livemint)
4. Airtel Profit Plunges 39% in Q3 as IUC Cut, Reliance Jio Price War Take Their Toll
Bharti Airtel Ltd’s quarterly profit plunged 39 percent, missing analysts’ estimates, as India’s telecom regulator more than halved interconnection fees and a pricing war triggered by the entry of Reliance Jio Infocomm Ltd continued unabated.
Net profit fell to Rs 306 crore in the three months ended 31 December from Rs504 crore in the year earlier, India’s largest telecom operator said in a statement on Thursday. That compares with the Rs 398 crore profit estimate of 10 analysts surveyed by Thomson Reuters.
(Source: Livemint)
5. HDFC Bank Becomes First Indian Bank to Cross Rs 5 Trillion Market Cap
India’s most-valued lender HDFC Bank Ltd on Thursday crossed Rs 5 trillion market capitalisation for the first time, making it only the third Indian company to achieve this milestone.
In intraday trade, the stock touched a fresh record high of Rs 1,53.75 on the BSE, up 3.31 percent from its previous close. The scrip closed at Rs 1,931.80, up 2.15 percent with a market cap of Rs 5 trillion. The Sensex index closed higher by 0.51 percent to 35,260.29 points.
Tata Consultancy Services Ltd (TCS) and Reliance Industries Ltd (RIL) are the other two companies which crossed market capitalisation of Rs5 trillion.
(Source: Livemint)
6. Banks Power Sensex, Nifty To Record As Earnings Pick Up Steam
Indian equity benchmarks rose to fresh record highs for second day in a row led by rally in heavyweight private sector lenders which rose after reports surfaced which suggested that the government is mulling to raise foreign direct investment (FDI) limit in private sector banks to 100 percent from 74 percent.
The S&P BSE Sensex rose 0.51 percent or 178 points to fresh record close of 35,260 and the NSE Nifty 50 Index advanced 0.26 percent or 28 points to fresh lifetime high close of 10,817.
In the intraday deals, the Sensex rose over 1 percent to 35,507 and Nifty surged as much as 0.9 percent to 10,887. However, due to selling pressure in metals and telecom shares, the benchmarks came off highs but managed to close at new record highs.
(Source: BloombergQuint)
7. Moody's Says Ambani's Jio May Spend $23 Billion to Build Service
Moody’s Investors Service estimates Jio, the mobile carrier run by India’s richest man, may invest as much as $23 billion on capital spending over three to four years as it expands beyond wireless services.
Reliance Jio Infocomm Ltd.’s parent Reliance Industries Ltd. has already spent more than $31 billion to break into India’s mobile-phone market. The 2016 upstart, known as Jio, dislodged rivals and has emerged as the nation’s No. 4 carrier. A Jio spokesman didn’t immediately answer an email with questions about the Moody’s estimate. Reliance Industries is scheduled to report quarterly earnings, including Jio’s financials, on Jan. 19.
(Source: BloombergQuint)
8. Govt to Set up USD 350 Million Solar Development Fund
The government will set up a USD 350 million solar development fund for financing solar projects, New and Renewable Energy and Power Minister Raj Kumar Singh said on Thursday.
Over the years, the minister said, renewable energy has become cheaper and is set to replace conventional energy, which is a healthy development.
India has one of the fastest growing renewable energy programmes in the World and the country would achieve its target of 175 GW of installed renewable energy capacity well before 2020, he said. The minister said that International Solar Alliance (ISA) shall help mobilise sufficient funds for solar energy projects.
(Source: PTI)
9. Jaitley Holds Pre-Budget Meet With State Finance Ministers
Finance Minister Arun Jaitley, on Thursday, held pre-Budget consultations with his state counterparts during which they offered suggestions on various fiscal policy and budgetary measures.
This is part of the customary pre-Budget consultation which the Union Finance Minister holds with his state peers.
During the meeting, Jaitley said the suggestions made by the states/union territories (UTs) and the memorandum submitted by them would be duly examined and suitably considered while formulating the Budget proposals of 2018-19, taking into consideration the spirit of cooperative federalism.
(Source: PTI)
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