QBiz: Task Force Suggests Corporate Tax Slash; IT Stocks Fall
Infosys has been slammed by the US over alleged cheating in H-1B lottery system. 
Infosys has been slammed by the US over alleged cheating in H-1B lottery system.  (Photo: Reuters)

QBiz: Task Force Suggests Corporate Tax Slash; IT Stocks Fall

1. Direct Tax Code 2.0: Task Force for Big Relief to Individual Taxpayers

The Direct Tax Code (DTC) task force, set up to overhaul the 58-year-old Income Tax Act, has recommended a significant increase in the highest income tax slabs, besides slashing the corporate tax rate to an even rate of 25 per cent for both domestic and foreign companies, sources in the know said.

Income tax payers earning up to Rs 55 lakh per annum may end up with a major tax relief if recommendations to change the tax bracket and rebates are accepted, according to sources.

(Source: Business Standard)

2. Uttar Pradesh Government Increases VAT on Petrol, Diesel

Petrol and diesel prices in Uttar Pradesh will go up by Rs 2.5 and Re 1 respectively from Monday midnight as the government increased VAT. The Value Added Tax (VAT) on petrol has been increased to 26.80 per cent or Rs 16.74 per litre (whichever is higher) and on diesel 17.48 per cent or Rs 9.41 per litre (whichever is higher), according to an official order.

The order will come into effect from Monday midnight.

(Source: LiveMint)

3. Federal Reserve Must Cut Rates by 100 Basis Points, Says Donald Trump

US President Donald Trump stepped up his assault on the Federal Reserve, urging it to cut interest rates by a full percentage point to aid global growth while complaining the “dollar is so strong that it is sadly hurting other parts of the world.”

“The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well,” the president said in a tweet Monday. “If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced--good for everyone!”

(Source: Business Standard)

4. SBI’s Credit Card Subsidiary Invites Bids From Advisors for Share Sale

SBI Cards and Payment Services Pvt Ltd, the credit card subsidiary of India’s largest lender State Bank of India, on Monday invited investment banks and lawyers to act as advisers for its proposed initial public offering.

SBI Card, in which SBI owns a 76% stake and private equity firm Carlyle owns the remaining 24%, is looking to raise Rs 1,000 crore in primary capital through the proposed IPO, according to the request for proposal document on the company’s website.

(Source: LiveMint)

5. Coal Ministry Panel Approves Fuel Supply to Tamil Nadu Power Plants

The coal ministry’s standing committee on linkage has approved fresh fuel supply to upcoming power generation units in Tamil Nadu having capacity of 2,400 MW.

The two under-construction power plants — North Chennai Thermal Power Station Stage-III (800 MW) and Uppur Super Critical Thermal Power Project (1,600 MW) — had sought domestic coal linkages under the Centre’s Shakti scheme.

The panel has recommended two million tonne of domestic coal supply from the Singareni Collieries, and the rest would be procured from Coal India (CIL).

The two power plants would blend imported and domestic coal on a 50:50 ratio. The Shakti scheme was designed to save power plants who were without adequate fuel supply agreements.

(Source: Financial Express)

6. Offshore India Funds See $1.4 Billion Net Outflow in June Quarter; ETFs $383.7 Million Inflow: Report

India-focussed offshore funds registered a net outflow of USD 1.3 billion in June quarter, while India-focussed offshore ETFs saw a net inflow of USD 383.7 million, says a Morningstar report. The combined net outflow of both the investment vehicles narrowed to USD 941 million in June quarter this year as against USD 1.4 billion in the previous quarter, the report said. The combined net outflow of both investment vehicles reached USD 5.6 billion over the last one-year period ended June 2019, the report added.

(Source: Financial Express)

7. Agricultural, Rural Labour CPI Base Year to Be Revised to 2019-20

The Labour Bureau has kick-started the exercise of revising the base year for consumer price index for agricultural and rural labourers (CPIAL/RL) to 2019-20, from 1986-87, besides developing an index for all states and Union Territories (UTs).

The index is used for determining minimum wages and those for the government’s rural jobs programme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

(Source: Economic Times)

8. Sugarcane, Cotton, Apple Crops Hit by Late Rainfall Pan-India

Torrential rains have swamped sugarcane fields in Maharashtra and Karnataka, which will reduce production and cause losses to farmers but won’t impact the heavily-stocked sugar market.

The spurt in monsoon has also inundated oilseed and cotton fields in western and central India, and affected apple production in the north around the time the fruit has matured to the plucking stage.

(Source: Economic Times)

9. IT Stocks Fall Despite Weak Rupee Amid Bleak Outlook

Technology investors typically take heart from a falling rupee as it promises higher dollar earnings, but August was different, as larger concerns weighed on these stocks.

The National Stock Exchange’s (NSE’s) benchmark Nifty IT index has slipped 1.31% in August so far, even as the rupee fell 3.70% against the dollar. Top IT stocks like Infosys Ltd, Tata Consultancy Services Ltd and Wipro Ltd are down 2-5% during the month.

(Source: LiveMint)

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