1. GST Collections Fall Below Rs 1 Trillion for First Time in FY20
After breaching the Rs 1 trillion mark in goods and services tax (GST) collections for two consecutive months, indirect tax mop-up in June fell marginally to Rs 99,936 crore.
However, the average monthly collection for the April-June quarter stood at Rs 1.04 trillion, up by seven percent from the corresponding period of last year.
The sluggish momentum in tax collection growth is partly due to the cuts in tax rates, following the GST Council’s decision to moderate rates wherever it found a compelling case.
(Source: Livemint)
2. Tax Department Tightens the Noose on Offenders
The possibility of prosecution and imprisonment will soon become more real for tax offenders, thanks to the new guidelines issued by the Central Board of Direct Taxes (CBDT). The new rules, effective 17 June, plug a loophole in a tax provision that allowed tax evaders to escape imprisonment by paying up a little extra.
The new rules are expected to make it tough for tax offenders to take undue advantage of the “compounding of offence" provision, under which any alleged tax evader could voluntarily accept the charges and offer to pay the due tax along with penalty in order to avoid prosecution which could lead to imprisonment.
(Source: Livemint)
3. Lenders to Recast DHFL Loans Worth Rs 38,000 Cr
Lenders to Dewan Housing Finance Corp. Ltd (DHFL) have agreed to restructure the stressed home financier’s outstanding loans of more than Rs 38,000 crore.
In a meeting held on Monday, the banks decided to sign an inter-creditor agreement by Friday after DHFL missed interest payments to a few lenders last month. Once the agreement is in place, DHFL will have to submit a resolution plan.
The restructuring plan, which is being prepared under the Reserve Bank of India’s 7 June circular, could include extending the tenure of loans, conversion of debt into equity, fresh working capital and inducting a new management team and financial investors.
(Source: Livemint)
4. Domestic Car Sales Slump Continues in June; Only Mahindra Posts 4% Growth
Automakers sent fewer vehicles for despatch to dealers in June amid poor sentiment and lacklustre demand, shows monthly sales data released by companies on 1 July. Auto companies in India count despatch to dealers as sales.
Combined sales of top six passenger vehicle makers dropped 16.3 percent to 206,115 units compared to the same month a year ago.
Led by Maruti Suzuki that sells one in every two passenger vehicles, the June quarter has been the worst historically for passenger vehicle makers.
(Source: Business Standard)
5. Govt Issues Tenders Worth Rs 15,000 Cr for a Range of Warships
After a significant delay caused by the general elections, the Navy on Monday, 1 July, issued tenders (called Requests for Proposals, or RFPs) worth over Rs 15,000 crore for a range of warships.
This includes the “Buy Indian” acquisition of six Next Generation Missile Vessels (NGMV) for the navy. Also being bought are eight Fast Patrol Vessels (FPV), 12 Air Cushion Vehicles (ACV) and eight ammunition barges for the Coast Guard.
The NGMVs, which constitute the bulk of the procurement, form an important part of the navy’s heritage and tradition.
(Source: Business Standard)
6. Under SEBI Glare, ICRA Sends MD and CEO Naresh Takkar on Sudden Leave
In an unprecedented move, the board of rating agency ICRA on Monday, 1 June, has asked its Managing Director and Chief Executive Officer Naresh Takkar to go on indefinite leave, pending an enquiry into concerns raised by the market regulator the Securities and Exchange Board of India (SEBI).
Without disclosing specific reasons, the rating agency informed the stock exchanges that its board in its meeting on Monday decided to place Takkar on leave, effective immediately, until further notice pending the completion of the examination of the concerns raised in the anonymous representation that was forwarded to the company by Sebi.
(Source: Business Standard)
7. Eight Core Sectors Grow by 5.1% in May
The eight core sector industries recorded a growth of 5.1 percent in May on the back of healthy output in steel and electricity. The eight core sector industries – coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity – grew by 4.1 percent in May last year.
Steel and electricity output increased by 19.9 percent and 7.2 percent, respectively, during the month under review. However, crude oil, refinery products, and fertiliser were in the negative zone.
During April-May, the eight sectors grew by 5.7 percent compared to 4.4 percent in the same period last year.
(Source: PTI)
8. Growth in Housing Prices Moderated to 3.6% in Q4 Last Fiscal: RBI
The growth in housing prices moderated during the January-March quarter of last fiscal to 3.6 percent, according to RBI data. The Reserve Bank of India on Monday, 1 June, released the quarterly house price index (HPI) for January-March quarter of 2018-19 based on transaction data received from housing registration authorities in ten major cities.
"On a year-on-year basis, the growth in all-India HPI continued to moderate and stood at 3.6 percent in Q4 of 2018-19 as against 5.1 percent in the previous quarter and 6.7 percent a year ago," RBI said in a statement.
(Source: PTI)
9. Nifty Still Not out of the Woods; 20-Dma Remains Key
The stock market traded in the positive zone throughout the session on Monday, 1 July, as NSE Nifty ended with a gain of 76.75 points or 0.65 points at 11,865.60.
Dalal Street displayed a positive bias and is likely to witness some followup moves on Tuesday as a flat to mildly positive start to the day cannot be ruled out.
However, Nifty has not still convincingly moved past its critical resistance area of short-term 20-DMA. This level, which is at 11,840, continues to be a vital mark to watch for in the short term.
Tuesday’s session is likely to see 11,890 and 11,965 levels act as resistance. Supports may come in at 11,810 and 11,750.
(Source: The Economic Times)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)