1. Govt Exceeds 2016-17 Tax Collection Target, Revenue Jumps 18%
Tax revenue to the central government rose 18 percent to Rs 17.1 trillion in the year that ended 31 March, aided by steady growth in direct taxes and a sharp jump in excise and service tax receipts.
The robust growth comes despite the economy getting hit by a temporary cash crunch because of the government’s decision to withdraw high-value currency notes in November.
Central excise duty collection rose 33.9 percent and service tax collection rose 20.2 percent in 2016-17 even as the economy slowed to 7.1 percent. This may be because of better tax compliance in the wake of the government’s crackdown on black money.
(Source: Livemint)
2. India, UK To Set up Green Energy Fund, but Free Trade Agreement Still Away
India and the UK on Tuesday agreed to jointly set up a £240-million (around $300 million) equity fund for the green energy sector in the country.
The two countries would invest an equal amount into the fund, Finance Minister Arun Jaitley told reporters after discussions with the visiting delegation headed by UK Chancellor of the Exchequer, Philip Hammond. He added that the Green Growth Equity Fund would be a part of the National Investment and Infrastructure Fund (NIIF).
The discussions were a part of the ninth UK-India Economic and Financial Dialogue, and has added significance in the light of the UK formally initiating the process to make its exit from the European Union.
(Source: BloombergQuint)
3. SoftBank Moots Snapdeal Sale to Flipkart, Proposed Deal Set to Be Biggest in Indian Ecommerce
SoftBank, the largest shareholder in Snapdeal, held boardroom discussions on the proposed sale of the online marketplace to rival Flipkart on Tuesday, according to two people aware of the development.
According to the terms proposed by the Japanese media and telecom conglomerate, Snapdeal shareholders will get one share of Flipkart for every ten they own, said the people cited above. Early investors in Snapdeal — Kalaari Capital and Nexus Venture Partners — have also asked for about $100 million each from the sale, the sources said.
The proposed sale could see SoftBank pick up a 20 percent stake in the country's largest ecommerce company for about $1.5 billion.
(Source: The Economic Times)
4. Fake Rent Receipt Won't Help You Lower Tax Burden Anymore
For as long as anyone can remember, producing fake property rent receipt, often from parents and relatives, has been an easy way to lower tax burden. Such cavalier disregard for tax rule was overlooked by most employers as well as taxman, who possibly felt it was a minor transgression. Perhaps, not anymore.
The income tax department now has good reason to insist on proof from the tax payer showing that he is indeed a genuine tenant, staying in the property in question.
A salaried employee receiving 'house rent allowance' from the employer could escape paying tax on at least 60 percent of this amount by generating sham rent receipt.
(Source: The Economic Times)
5. Idea Cellular Gets Set To Take On Airtel With Its Own Payments Bank
Aditya Birla Nuvo Ltd has got the final nod from the Reserve Bank of India (RBI) to start a payments bank in India, the company said in a stock exchange filing on Tuesday.
Aditya Birla Idea Payments Bank Ltd a joint venture between two Aditya Birla Group companies – Aditya Birla Nuvo and Idea Cellular Ltd – is the fourth company to get a final approval from the banking regulator. Airtel Payments Bank Ltd was the first such payments lender to launch commercial operations in January, followed by India Post. The latest player to start operations is Paytm.
(Source: BloombergQuint)
6. Mukesh Ambani's Reliance Jio Foray Puts Rs 26,000 Crore Worth MVNO Market in Tatters
The mobile virtual network operator (MVNO) market opportunity, envisaged at Rs 26,000 crore, could take a serious hit at a time when Reliance Jio Infocomm’s disruptive pricing has dented incumbent telco revenues and hastened consolidation in the telecom sector, analysts and industry experts said.
So much so, MVNOs, they said, are likely to find it tough to negotiate viable terms with potential partner telcos, which are engaged in a bruising battle to hold on to margins, amid rising competitive intensity following Jio’s entry.
(Source: The Economic Times)
7. India's ONGC Videsh to Spend Over $3 Billion on Iran Gas Block
The overseas arm of India’s biggest oil and gas explorer intends to spend more than $3 billion on Iran’s Farzad-B natural gas block.
ONGC Videsh Ltd last month submitted a revised plan to the Iranian government for the block, which the company will be able to develop within five years, Managing Director NK Verma told reporters in Mumbai on Tuesday. The Indian oil company is now waiting for feedback from Tehran, Verma said.
India has been weighing investments in Iran worth up to $20 billion. In addition to oil and gas exploration, the South Asian nation has considered petrochemical plants, gas-processing facilities and port expansions, including the industrial hub of Chabahar, Oil Minister Dharmendra Pradhan said last year during a visit to Tehran.
(Source: BloombergQuint)
8. Vishal Sikka Guaranteed 90% of $11 Mn Salary, No Matter How Poorly Infosys Does
Infosys Ltd’s chief executive officer Vishal Sikka is assured of $10 million in annual compensation, irrespective of the company’s performance, because a clause in his employment contract makes him eligible to earn at least 90 percent of his total $11 million salary.
Infosys doesn’t deny the existence of the clause, although it doesn’t explain how this fits in with the company’s disclosure to BSE on 24 February last year that Sikka’s compensation could fall to $3 million if Infosys’s growth fails to meet the internal targets set by the board.
“Should Dr Sikka fail to achieve minimum performance targets, his remuneration as proposed will fall to US $3,000,000 annually, consisting of US $1,000,000 of base salary and US $2,000,000 of time-based RSUs,” reads a part of the filing made to BSE.
(Source: Livemint)
9. Tata Sons Row: NCLT Reserves Order on Waiver Plea by Cyrus Mistry Family Firms
The National Company Law Tribunal (NCLT) in Mumbai on Tuesday reserved its order on an application filed by two firms belonging to the former Tata Sons chairman Cyrus Mistry’s family, seeking waiver of an eligibility condition. The two firms have challenged before the tribunal Mistry’s removal from the Tata Sons last year. The bench of BSV Prakash Kumar and V Nallasenapathy is likely to pass the order on 17 April.
The two Mistry family companies urged the NCLT to waive the condition that a petitioner before the tribunal should hold at least one-tenth of the issued share capital of the company or represent at least one-tenth of its minority shareholders.
(Source: Financial Express)
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