QBiz: No Stay on Tax Demand for Flipkart; GST Return Panel Meet

Here are the top business stories for the day.

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Business
4 min read
An income tax panel refused to stay a demand of Rs 110 crore on Flipkart, India’s largest online retailing platform.
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1. SGX Looks to Bypass Curbs Placed by Indian Bourses

The Singapore Stock Exchange (SGX) on Sunday said it will develop new products to provide investors with access to Indian securities after exchanges in the country abruptly decided to end licensing their products and data to overseas bourses.

Indian stock exchanges, in a joint statement on 9 February, decided to cancel licensing agreements for providing indices and securities-related data feed services to foreign exchanges and trading platforms. The exchanges also terminated licensing agreements with overseas bourses.

(Source: Livemint)

2. GST Return Simplification Panel to Meet Industry This Week

The government appointed panel on Goods and Services Tax returns under GST Network Chairman Ajay Bhushan Pandey will meet industry and traders this week to seek their views on simplification of return filing process.

The committee is likely to submit its report to the Group of Ministers, headed by Bihar Deputy Chief Minister Sushil Modi, which will finalise its recommendations by the month end and place it before the GST Council, Pandey said.

(Source: BloombergQuint)

3. Income Tax Panel Refuses to Stay Rs 110 Crore Tax Demand on Flipkart

An income tax panel refused to stay a demand of Rs 110 crore on Flipkart, India's largest online retailing platform, after it was asked to reclassify discounts and marketing spend as capital expenditure. This may have implications for rival Amazon, which faces a similar liability, and others.

The Income Tax Appellate Tribunal (ITAT) in Bengaluru asked Flipkart to deposit Rs 55 crore and provide bank guarantees to the tune of Rs 55 crore by 28 February. While the tax assessed is for 2015-16, similar demands may be made for subsequent years. Hearings will continue after 28 February.

4. Airbus Halts Pratt A320Neo Shipments as New Engine Issues Emerge

Airbus SE has halted all deliveries of its Pratt & Whitney-powered A320neo after the latest disclosure in a series of flaws with the next-generation engine, according to the company’s biggest customer for the aircraft.

IndiGo, India’s biggest carrier, said on Saturday that it had withdrawn three affected planes from service and canceled some flights after the European Aviation Safety Agency warned of a new issue on the troubled engine program that may be connected to several in-flight shut downs. The investigation to determine the root cause continues, the agency said.

5. Real Estate to See Return of Investor Confidence: Report

The past year may have been eventful for the real estate sector with the implementation of Real Estate (Regulation and Development) Act and introduction of GST, but a report by Sotheby's International Realty in partnership with PwC and RICS says 2018 is likely to bring about a positive change in the market, with only developers with strong balance sheets surviving, leading to a return of investor confidence and entry of new end users.

According to the report, the luxury home market, especially branded residences as a segment, will grow with the likes of Trump Tower projects and Four Seasons branded residences entering the Indian market. The report titled Luxury Real Estate Overview 2018 was released at the Global Luxury Realty Conclave 2018 organised by India Sotheby's International Realty in partnership with the CII. ET was the media partner for the event.

6. Atria Convergence Hires Investment Banks for IPO

Atria Convergence Technologies Pvt Ltd (ACT), a broadband services provider controlled by private equity firms TA Associates and True North, has hired investment banks to help it raise Rs 1,500-2,000 crore through an initial public offering (IPO), said two people aware of the development.

“The company has recently appointed a syndicate of investment banks and has started work on its plans to go public,” said one of the two people cited above, requesting anonymity as he is not authorised to talk to reporters. “The proposed IPO will be a mix of fresh fundraising and stake sales by both the existing private equity investors TA Associates and True North.”

(Source: Livemint)

7. CCI Probing Cartelisation Among Condom Makers

India’s competition watchdog is investigating if 10 condom makers that bid for a government tender in 2014 had formed a cartel to secure higher prices, said two people familiar with the matter.

The Competition Commission of India (CCI) is investigating TTK Protective Devices Ltd, Suretex Prophylactics (India) Ltd, Anondita Healthcare, Cupid Ltd, Mercator Healthcare Ltd, Convex Latex Pvt Ltd, JK Ansell Ltd, Universal Prophylactics Pvt Ltd, Indus Medicare Ltd and Hevea Fine Products Pvt Ltd, the people cited above said on condition of anonymity. The health ministry had floated the tender for 504 million male latex condoms in 2014.

(Source: Livemint)

8. More Jobs This Year? India Skill Report Pegs 2018 Hiring Growth at 10-15%

Corporate India's hiring outlook looks bullish and is expected to witness a growth of 10-15 percent this year after a subdued job market activity in 2017, says a report. According to the India Skills Report 2018, hiring outlook for 2018 looks "positive", and is estimated to grow by 10-15 percent this year.The report captured hiring intent of over 120 employers and reached out to over 5.1 trillion students across the country.

The survey was jointly conducted by HR technology solutions company PeopleStrong, skill assessment firm Wheebox along with Pearson, CII, AICTE, United Nations Development Programme and AIU.

9. NewsDog in Funding Talks With Tencent to Raise $35-40 Million

News and entertainment content aggregator NewsDog is in talks to raise $35-40 million from Tencent Corp and others as start-up investors look for content providers that can attract a large user base online, three people familiar with the matter said.

Tencent, which has invested in Flipkart, Ola, Practo and a few other internet firms, wants to invest in a content start-up and has identified NewsDog as an attractive bet, the three people cited above said. Mint couldn’t ascertain the identity of the other investors talking to NewsDog.

(Source: Livemint)

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