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1. Netflix, Amazon Set Aside Rs 2,000 Crore Each in Battle for Indian Market
US-based video streaming platforms and arch rivals Netflix and Amazon have extended their battle to the Indian market, where they have set aside Rs 2,000 crore each for acquiring content to attract subscribers.
Amazon Prime Video has taken an early edge over Netflix, signing up 9.5 million active subscribers since its launch in December. At 4.2 million a little over a year after its launch in India, Netflix has less than half that number.
To be sure, Amazon’s aggressive pricing helps. Amazon Prime Video’s unlimited ad-free, on-demand service comes for an annual subscription of Rs 499 , against Netflix’s Rs 500 for a single month.
(Photo: Livemint)
2. Govt Asks Public Sector Banks to Finalise Next Wage Revision Before 1 November
The Finance Ministry has asked the heads of public sector banks (PSBs) to finalise the modalities for timely implementation of the next pay revision from November.
There are 21 public sector banks, post the merger of six lenders with State Bank of India (SBI), in the country. They together employ about 8 lakh people.
In a communication to CEOs and MDs of the state-owned banks, the Ministry advised them to initiate the steps for smooth conclusion of next wage revision of the employee within the time-frame. “However, it is seen that several banks are yet to proceed in the matter,” it said, requesting the PSBs to “look into the matter and conclude the next wage revision prior to the effective date of 1 November 2017”.
(Source: Livemint)
3. Indians Pay More for Soaps, Shampoos & Toothpastes as HUL and P&G Get Ready for GST
Indians are paying more for soaps, shampoos, or toothpastes, but the recent price hikes or altered output strategies may have less to do with input costs or demand than with the goods and services tax (GST) – the biggest change in the taxation landscape since Independence.
In the run-up to the implementation of the GST, expected on 1 July, consumer goods companies such as Hindustan Unilever (HUL) and Procter & Gamble (P&G) are either changing their production strategies or raising prices to reflect the new tax treatment for their products. HUL, India’s biggest consumer company, has increased its production run in anticipation that GST would lower its tax burden.
(Source: The Economic Times)
4. Now, Link Aadhaar With PAN Through Identity Proof Scan, OTP
Individuals struggling to link their Permanent Account Number (PAN) with Aadhaar because of differently spelt names can now simply upload a scanned copy of PAN to get the work done.
Besides this, the tax department is planning to introduce an option on the e-filing portal through which taxpayers can choose to link the Aadhaar without changing the name by opting for a One Time Password (OTP), provided that the year of birth of the person matches in both documents.
With the linking of PAN with Aadhaar being made mandatory, individuals can log on to e-filing website of the income tax department or NSDL but the seeding cannot happen if the name is differently spelt in the two cards – like use of full name in PAN and initials in Aadhaar.
(Source: Bloomberg Quint)
5. Cash in Use 26% Less Than 8 November Levels, Withdrawals Fall for Fourth Week
Cash levels in the economy remained at least 26% less than what they were before demonetisation as policy makers are keeping a close watch on the new currency that’s flooding the system. Weekly cash withdrawals too have slowed down after the caps on withdrawals were lifted early March. The surge in digital payments – whether government-driven UPI, or private ones – is also helping people withdraw less cash.
Total cash and currency in the system amounted to Rs 13.32 lakh crore as of 31 March, according to the latest Reserve Bank of India data. At current levels, the cash and currency in circulation is 74% of the levels in early November 2016.
(Source: The Economic Times)
6. NSE Cuts Fee On Options, Currency Derivatives
Looking to bring in more liquidity in derivatives, the National Stock Exchange has significantly lowered transaction charges in equity options and currency derivatives.
Trading members will now have to pay a flat Rs 2,500 transaction fee for a month on a billable monthly turnover or premium value of up to Rs 3 crore in equity options.
The move follows changes in transaction charges by rival BSE, which has started charging on per trade basis in certain segments. Besides, the BSE has been gaining market share in the currency derivatives space.
Furthermore, the NSE has introduced a slab-based structure for turnover above Rs 3 crore. Under the structure, transaction charges per lakh of premium value will fall as turnover increases.
(Source: BloombergQuint)
7. Taxpayers to Be Rated on GST Compliance
Taxpayers registered under the new goods and services tax (GST) regime that is set to be implemented from 1 July will be assigned a rating, based on how promptly they upload invoices, pay taxes and file returns.
The ratings will be made public on the GST Network (GSTN) website as tax authorities seek to build peer pressure among companies to ensure compliance.
The rules that govern the new indirect tax regime require the matching of invoices for claiming input tax credit. For example, a manufacturer procuring goods from a supplier will not be able to claim credit for the tax paid until the seller uploads the invoices and the claims of the manufacturer and supplier are matched.
(Source: Livemint)
8. Net Inflows Into Equity, Debt Mutual Funds More Than Double In FY17
Net inflows into equity and debt mutual fund schemes more than doubled to Rs 2.32 lakh crore in the financial year ended March 2017, data compiled by research company Morningstar showed.
While net inflows into equity-based mutual fund schemes declined by over 22 percent during the year to Rs 54,960 crore, investments in debt schemes rose over six times to more than Rs 1.76 lakh, Morningstar said in a release on Friday.
Balanced mutual fund schemes, which invest in both equity and debt instruments, saw a 56 percent increase in net inflows to Rs 30,658 crore.
The return on investment in all three schemes increased significantly in 2016-17 compared with the previous year.
(Source: Bloomberg Quint)
9. Cairn Energy Gets Slapped With Fresh Rs 10,247-Crore Tax Demand Note
Within weeks of tax tribunal ITAT upholding levy of retrospective tax, the Income Tax Department has slapped a fresh demand note of Rs 10,247 crore on British explorer Cairn Energy Plc.
ITAT in its 9 March order held that Cairn Energy was liable to pay tax on the 2006 transfer of India assets to newly created Cairn India, prior to its listing. It, however, held that interest cannot be charged on it as the demand was raised using retrospective tax legislation.
The Income Tax Department had raised a tax demand of Rs 10,247 crore and another Rs 18,800 crore in interest for 10 years.
(Source: Bloomberg Quint)
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