QBiz: Exports Dip 9.71%; Govt Plans Amnesty Scheme on I-T Cases
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1. Govt Plans One-Time Amnesty Scheme for Old Income-Tax Cases
A government task force could recommend a one-time amnesty to resolve legacy income tax disputes worth at least Rs 8 lakh crore, according to people familiar with the matter who asked not to be named.
Experts said that if this happens, it will reduce the volume of tax litigations significantly and also help taxpayers spend their time and effort on more productive matters, but added a caveat that its success will depend on the actual details of the amnesty. For companies, they added. it would also make it easier to do business in India.
(Source: Hindustan Times)
2. Exports Dip 9.71% After Gap of Eight Months
India's exports have entered negative zone after a gap of eight months recording a decline of 9.71 percent to $25.01 billion in June, according to the government data.
Imports also declined 9 percent to $40.29 billion in June mainly due to falling prices of petroleum products, leaving a trade deficit of $15.28 billion.
It was $16.6 billion in June last year. Last time it was in September 2018, when exports contracted by 2.15 percent.
Exports were down on account of fall in shipments of gems and jewellery, engineering goods, petroleum products, plastic, handicrafts, ready-made garments of all textiles, chemicals, leather, and marine products, oil meals and oil seeds.
Commenting on the figure, Commerce Secretary Anup Wadhawan said "the decline in exports in June is due in large part to a base effect of an extraordinarily good month in June 2018".
In June last year, the outbound shipments were $27.7 billion.
(Source: The Indian Express)
3. WPI Inflation Eases to Near 2-Year Low at 2.02 %
Wholesale price-based inflation declined for the second consecutive month to its 23-month low of 2.02 per cent in June, helped by decline in prices of vegetables as well as fuel and power items, according to official data released Monday.
The Wholesale Price Index (WPI)-based inflation was at 2.45 per cent in May. It was 5.68 per cent in June 2018.
Inflation in food articles basket eased marginally to 6.98 per cent in June, from 6.99 per cent in May.
Vegetable inflation softened to 24.76 per cent in June, down from 33.15 per cent in the previous month. Inflation in potato was (-) 24.27 per cent, against (-) 23.36 per cent in May.
(Source: Business Standard)
4. IndiGo Secures Credit Facility Worth Rs 2,577 Crore Amid Promoter Dispute
Interglobe Aviation Ltd. which operates the country’s largest airline under the brand IndiGo has secured a credit facility of around Rs 2,577.75 crore since April for meeting its working capital needs, while targeting an expansion of the carrier’s fleet.
On 17 June, IndiGo signed a $20 billion agreement with aircraft engine maker CFM International to buy CFM International LEAP-1A engines to power 280 Airbus A320neo and A321neo aircraft. The deal includes supply of spare engines and an engine overhaul support agreement.
5. Manipal Hospitals Set to Buy Medanta for Rs 6,000 Crore
Barring a last-minute hitch, Manipal Hospitals is all set to acquire one of the leading hospital chains in the country, Medanta, for Rs 5,500-6,000 crore with almost all the hurdles having been cleared for the takeover, including necessary due diligence of the healthcare major.
“If we had to face any roadblocks, we would have come across it by now. We have crossed most of the hurdles but there can be a slip between the cup and the lip even at the last moment. It typically comes from someone who has suddenly developed cold feet,” a top executive who is involved in the acquisition told BusinessLine.
(Source: The Hindu BusinessLine)
6. Government Plans Public WiFi Interoperability
The government is planning to allow interoperability of public WiFi that will enable users to login for the facility once and stay connected with the wireless internet service across the country without any need for refilling entire details again on their mobile devices.
"Interoperability of public WiFi is under consideration. This will enable a user to stay connected with all public WiFi across the country when they come within its range. A mobile device user have to login once, and other WiFi networks, be it of BSNL, Airtel, Jio, etc, will recognise the device and connect it to the network," an official source told PTI.
The source said inter-ministerial panel Digital Communications Commission (DCC) may consider the proposal in its next meeting. The DCC meeting was earlier scheduled for Tuesday, which has now been deferred.
7. RBI Slaps Rs 7 Crore Penalty on SBI for Violating Norms
The Reserve Bank of India Monday said it has slapped a penalty of Rs 7 crore on the country's largest bank SBI for non-compliance with norms related to NPA identification and fraud risk management, among others.
The penalty has been imposed on the bank for non-compliance of income recognition and asset classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds.
Giving details of the case, it said the statutory inspection of SBI with reference to its financial position as on March 31, 2017, revealed, non-compliance with IRAC norms, sharing of information about customers with other banks, reporting of data on CRILC, fraud risk management, and classification and reporting of frauds.
(Source: The Economic Times)
8. Business Sentiment in India Falls to Lowest Level in 3 Years: Survey
Business sentiment in India fell to its lowest level since June 2016, as companies were worried over a slowing economy, government policies and water shortage, a survey said Monday.
According to the IHS Markit India Business Outlook, predictions of softer activity growth underpin the downward revisions of profit outlook, subdued hiring plans and relatively muted capital expenditure.
The net balance of private sector companies foreseeing output growth in the year ahead fell from 18 per cent in February to 15 per cent in June -- this matches the data of June 2016, and also October 2009 when aggregate figures became available.
"June sees business sentiment in India fall to the joint lowest level since comparable data became available in 2009," the survey said.
The survey said water shortages, public policies and weak sales have restricted sentiment in June.
(Source: The Economic Times)
9. India Bond Yield Could Drop to Lowest Since Global Crisis: Deutsche Bank
Deutsche Bank AG is predicting a big decline in India’s sovereign bond yields to levels last seen in 2009. The yield curve is pricing in a deeper trough on policy, with expectations of more rate cuts from the Reserve Bank of India and a change in the way the authority manages liquidity to help transmit lower borrowing costs through to the economy, strategists including Sameer Goel wrote in a note.
“The rates narrative in India has the support of strong tailwinds from policy, liquidity and technicals," they wrote.
Sovereign bonds have rallied in India, with the 10-year yield falling to its lowest since 2017, after the government surprised markets by trimming the budget deficit target for this fiscal year from its estimate in February, and shifting a part of its market borrowing overseas.
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