©orporate Updates on 16.9.2019
Ø Reliance, BP take over Niko's 10% stake in KG-D6
Ø Exports, housing sops in FM's third growth booster
Ø SEBI mulls whistle-blower mechanism for auditors
Ø Govt. mulls measures to improve financial health of STC
Ø SBI shelves IPO plans for general insurance arm
Ø Dues rise as power sector reels under stress
Ø DLF sells 9 acres to AmEx for Rs. 300 crore
Ø Recent CoC decisions raise hopes for the return of errant promoters
Ø Power gencos outstanding dues on discoms jump 57% to Rs. 73,000 cr in July
Ø Saudi oil attacks raise spectre of oil at $100 per barrel, say analysts
Ø Former NSEL promoter Jignesh Shah shifts gear, bets on water conservation
Ø General Motors hit by first strike in 12 years in clash over Jobs, benefits
Ø Canada pension board set to become controlling shareholder in L&T
Ø India staring at a price flare-up after drone attack on Saudi oil facility
Ø Power Finance raises global bond issuance size to $5 billion
Ø Merged entity of PNB, OBC and United Bank to become operational by next April
Ø Lee Fixel sets sights on Indian startups again, may invest $1 billion
Ø Kae Capital in talks to raise third fund of up to $60 mn
Ø Tata, Vedanta mining leases end in March; Govt. to reject leases of many firms
Ø Air India posts ₹4,600 crore operating loss in 2018-19
Ø Altico Capital default hit debt funds, side pockets created
Ø Ericsson acquires Niche AI workforce for India centre
Ø Exporters say Govt. incentives will boost shipments
Ø SBI to move RBI to offer fixed-floating rate home loans
Ø FPIs turn net buyers, infuse Rs 1,841 cr in first half of September
Ø Rubber futures hit six-month low
Ø Man-made yarn imports up multi-fold in July
Ø Kharif crops to keep agri-GDP at 3 per cent
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👉🏻E-assessment scheme for faceless scrutiny of income tax returns notified
(The scheme is part of the Govt’s efforts to reduce human discretion in the assessment and scrutiny of tax returns that in turn could help eliminate possibilities of corruption)
👇🏻 👇🏻 👇🏻
http://bit.ly/2kLTp0r
👉🏻GSTN releases online version of two simplified forms for taxpayers
(The Goods and Services Tax Network (GSTN) on Friday released two forms-- ANX-1 and ANX-2--for simplified online returns)
👇🏻 👇🏻 👇🏻
http://bit.ly/2mha64t
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🍒 Andhra Bank board okays merger with Union Bank of India : The board of directors of Andhra Bank on Friday accorded in-principle approval for the amalgamation of Andhra Bank and Corporation Bank with Union Bank of India as the anchor bank."In continuation to our letter dated September 11, 2019 regarding intimation of meeting of board of directors of the bank, we wish to inform you that the board in its meeting held on September 13, 2019 has considered and accorded its in-principle approval for the amalgamation of Andhra Bank and Corporation Bank with Union Bank of lndia as the anchor bank, subject to statutory and regulatory approvals," the public sector bank said in a filing on the BSE.Finance Minister Nirmala Sitharaman recently announced the merger of Oriental Bank of Commerce and United Bank with Punjab NationalBank, Syndicate Bank with Canara Bank, while Andhra Bank and Corporation Bank would merged with Union Bankof India.Besides, Indian Bank would be merged with AllahabadBank, making it the seventh largest state-owned bank. - economic times
🍒 Canara Bank board gives in-principle approval for merger with Syndicate : Canara Bank’s board of directors, on Friday, gave the in-principle approval for amalgamation of the bank with Syndicate Bank. The in-principle approval for amalgamation of the two public sector banks (PSBs) is as advised by the Alternative Mechanism of Government of India (GoI) to commence the process of amalgamation, subject to applicable approvals, the bank said in a stock exchange notice.The amalgamation of Bengaluru-headquartered Canara Bank and Manipal-headquartered Syndicate Bank will create India’s fourth-largest PSB with business (deposits and advances) of ₹15.20-lakh crore and the third-largest branch network (10,342 branches).Individually, Canara Bank and Syndicate Bank have total business of ₹10,43,249 crore and ₹4,77,046 crore, respectively. The combined entity will have 89,885 employees – Canara Bank (58,350) and Syndicate Bank (31,535). According to the finance ministry, this merger will see scale and synergy benefits through large cost reduction potential due to network overlaps and cost savings, and income opportunities for joint ventures and subsidiaries. The same core banking solution (CBS) platform, iFlex, in both banks will enable quick realisation of gains. - Busines Line
🍒 PNB merger: Oriental Bank Board to meet on Sept 18 : Oriental Bank of Commerce’s Board will meet on September 18 to consider proposal for approval of amalgamation of the bank with Punjab National Bank (PNB), a top official said. “Our Board will meet on September 18 to consider merger approval”, Mukesh Kumar Jain, Managing Director & CEO, Oriental Bank of Commerce told BusinessLine here.It may be recalled that Finance Minister Nirmala Sitharaman had on August 30 announced as part of mega merger plan for PSBs that Oriental Bank of Commerce and United Bank of India will get amalgamated into Punjab National Bank.PNB Board had recently given its in-principle approval for the three way amalgamation between itself, OBC and United Bank of India. PNB has also embarked on a massive consultant/advisor recruitment drive across 21 banking domain areas to ensure seamless implementation of merger process. - Business Line
🍒 Indian Bank Board to meet on September 18 to consider merger : malgamation of Allahabad Bank with itself, Executive Director M.K. Bhattacharya said here on Friday. The Board will also consider additional capital infusion by the government by way of preferential issue of shares subject to regulatory approvals, he added."Our Board of Directors will be meeting on September 18 to consider amalgamation of the Allahabad Bank with the Indian Bank. Prior to the merger, there are several steps like the appointment of a consultant, valuation of the bank to arrive at the share swap ratio," Bhattacharya told reporters on the sidelines of a function to launch its digital customer loyalty reward points scheme.According to a regulatory filing by the Allahabad Bank, its Board of Directors would be meeting on September 16 to consider amalgamation with the Indian Bank. - economic times
🍒 Corp Bank cuts MCLR : Corporation Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 5-15 basis points with effect from September 15. The bank informed the stock exchanges on Friday that one-year MCLR has been reduced from 8.70 per cent to 8.65 per cent. The six-month MCLR has been reduced to 8.50 per cent (8.65 per cent), three-month MCLR to 8.35 per cent (8.50 per cent), one-month MCLR to 8.05 per cent (8.20 per cent), and overnight MCLR to 7.90 per cent (8.05 per cent) with effect from September 15. - Business Line
🍒 Syndicate Bank donates ₹1 crore for flood relief : Syndicate Bank has donated ₹1 crore towards Karnataka Chief Minister’s Flood Relief and Natural Calamity Fund. The funds will help the government in providing rehabilitation to the people affected by the flood in the State. Syndicate Bank’s MD and CEO, Mrutyunjay Mahapatra, along with Y Nageshwar Rao, Executive Director, Syndicate Bank, met Chief Minister BS Yediyurappa and presented the cheque. - Business Line
🍒 RBI proposes Rs 200 crore minimum capital for small banks under 'on tap' licence regime : The Reserve Bank of India (RBI) on Friday proposed a minimum equity capital of Rs 200 crore to set up a small finance bank (SFB) under the 'on tap' licence regime to expand the banking services through high technology-low cost operations. Releasing the draft guidelines for 'on tap' licensing of SFBs in the private sector, the RBI said existing non-banking financial companies (NBFCs), micro finance institutions and local area banks in the private sector, which are controlled by residents, can opt for conversion into small finance banks.It further said proposals from public sector entities and large industrial house/business groups, and autonomous boards/bodies will not be entertained. - economic times
🍒 Payments banks may be allowed to convert into small finance banks : The Reserve Bank of India may allow existing payments banks to convert into small finance banks (SFBs) if they meet the eligibility criteria, according to the RBI’s draft guidelines for ‘on-tap’ licensing for SFBs. This proposal comes against the backdrop of five of the 11 applicants that were granted ‘in-principle’ licence in August 2015 to start a payments bank either deciding against such ventures or giving up the licence after commencing operations.In the draft guidelines for SFBs, the RBI has proposed doubling the minimum paid-up equity capital to ₹200 crore and lowering the promoter’s stake to 15 per cent in 15 years. - Business Line
🍒 NPCI rationalises MDR for RuPay debit card deals : Hoping to boost the use of debit cards, the National Payments Corporation of India (NPCI) has rationalised the merchant discount rate (MDR) for RuPay debit card transactions across Point-of-Sale (PoS), eCom, and BharatQR Code-based merchant transactions. The MDR has been revised to 0.60 per cent for transactions above ₹2,000, with a maximum cap of ₹150. This is, at present, capped at 0.90 per cent for transactions above ₹2,000, with a higher cap of ₹1,000 per transaction.Additionally, for card-based QR transactions (Bharat QR), the MDR has also been reduced to 0.50 per cent, with a maximum cap of ₹150 per transaction. - Business Line
🍒 E-nomination facility for EPF account holders launched : The Employees' Provident Fund Organisation (EPFO) has launched an e-nomination facility for EPF members. As per a circular dated September 12, this facility can be used by members whose Aadhaar is linked and verified on the member sewa portal. A member can avail of the e-nomination facility by logging in to their account on the EPFO's member sewa portal. Make sure your UAN (Universal Account Number) is activated on the portal to use this facility. Further, your photograph must be available on the member sewa portal. - economic times
🍒 India government had no outstanding loans from RBI in week ended Sept.6 : The Indian government had no outstanding loans with the central bank under the ways and means advances in the week ended Sept. 6, according to a weekly statistical supplement released by the Reserve Bank of India (RBI) on Friday. The central government had no outstanding loans in the week earlier as well.State governments had loans worth 4.21 billion rupees ($59.3 million) from the RBI in the week ended Sept. 6 compared with 6.06 billion rupees in the previous week, the release showed. - economic times
🍒 RBI panel suggests measures to boost credit to farm sector : To address gaps in credit delivery to the agriculture sector, a Reserve Bank of India panel has recommended suitable measures, including the setting up of a credit guarantee scheme jointly by the Centre and States, upping the target for banks to lend to small and marginal farmers (SMFs), and avoiding loan waivers. Underscoring that there is no guarantee scheme available to banks to cover the default risk of borrowers, the central bank’s internal working group (IWG) to review agriculture credit suggested that the Government of India, in partnership with State governments, should set up a credit guarantee fund for the agriculture sector. This scheme for the agriculture sector should be on the lines of credit guarantee schemes implemented in the micro, small and medium enterprises (MSME) sector. - Business Line
🍒 Digital transaction volumes soar; BHIM gains currency : n digital payments across the country since 2016. The number of digital transactions in 2016-17 was 1,013 crore, which increased to 3,134 crore in 2018-19. This year, till September 11, 1,527 crore digital transactions have taken place.Interestingly, the popularity of Bharat Interface for Money (BHIM) payment app is multiplying, when compared to other digital payment modes. Only 4.41 per cent of the total digital transactions were made through this app in 2017-18, while in 2018-19, it rose to 17.8 per cent. Pioneered and developed by the National Payments Corporation of India (NPCI), BHIM was launched by Prime Minister Narendra Modi in December 2016, with the aim of bringing in “financial inclusion to the nation and a digitally empowered society”. - Business Line
🍒 Rupee extends winning run to 7th day; rises 22 paise to 70.92 vs USD : The rupee marched higher for the seventh straight session on Friday to close at 70.92 per US dollar, up 22 paise, as softening crude oil prices and easing US-China trade tensions bolstered investor sentiment. At the interbank foreign exchange market, the rupee opened at 70.94 a dollar.
🍒 Gold rises Rs 70 to Rs 38,695 per 10 gm : Gold and silver prices on Friday witnessed recovery, with the yellow metal rising Rs 70 to Rs 38,695 per 10 gram in the national capital, according to HDFC Securities. Silver prices also witnessed a gain of Rs 172 to Rs 48,400 a kilogram. On Thursday, it closed at Rs 48,228 a kilogram. In the bullion market here, gold rose to Rs 38,695 per 10 gram from its previous closing price of Rs 38,625 per 10 gram, it said.
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Here are key takeaways from FM's third press conference:
🍓To boost exports (incentive and taxation)
1) Extend the scheme of reimbursement of taxes and duties for export promotion
-Existing dispension in textiles of MEIS + old ROSL will continue up to December 31, 2019.
-Scheme for Remission of Duties or Taxes on Export Product (RoDTEP) will replace MEIS.
-Textiles and all other sectors which currently enjoy incentives up to 2 percent over MEIS will transit into RODTEP from January 1, 2020.
-In effect, RODTEP will more than adequately incentivise exporters than existing schemes put together.
-Revenue forgone projected at up to Rs 50,000 crore.
-It is more for labour intensive textile sector.
2) Fully automated electronic refund route for input tax credits (ITC) in GST
-Fully electronic refund module (form GSAT RFD-01) for quick and automated refund of ITC nearing completion and will be implemented by end of September 2019.
-This is expected to monitor and speed up ITC refunds.
3) Expanding scope of export credit insurance Scheme ECIS by ECGC
-Export Credit Guarantee Corporation will expand the scope of ECIS.
-Will offer higher insurance cover to banks lending working capital for exports.
-Premium incidence for MSMEs will be monitored suitably.
-It is expected that the initiative will cost about Rs 1,700 crore per annum.
-This will enable reduction in overall cost of export credit including interest rates especially for MSMEs.
4) Revised priority sector lending (PSL) norms for export credit (after extensive discussion with RBI)
-Priority sector lending norms for export credit have been examined and enabling guidelines are under consideration of RBI.
-This will release an additional Rs 36,000 crore to Rs 68,000 crore as export credit under priority sector.
5) Effective monitoring of export financing by Department of Commerce
-Data on export finance is regularly published by RBI.
-Export Finance will be actively monitored by an inter-ministerial working group in Department of Commerce, tracked through a dashboard, reviewed with institutions and active intervention carried out.
6) Leverage technology to reduce time to export for turnaround time
-Technology will be further leveraged by timely completion of ongoing initiatives to further reduce time to export through seamless process digitisation of all export clearances (port/airport/customs etc) and elimination of offline/manual services.
-An action plan to reduce time to export/turnaround time in airports and ports benchmarked to international standards will be implemented by December 2019.
-Actual turnaround times will be published by real time for each port and airport to push them to improve performance.
7) Annual mega shopping festivals
-Annual mega shopping festivals in India will be organised in 4 places across March 2020 in 4 themes (Gems & Jewellery, Handicrafts, Yoga, Tourism, Textile and Leather).
8) Special FTA utilisation mission
-FTA utilisation mission headed by senior officer in Department of Commerce will be setup.
-To work exclusively with FIEO and export houses to utilise concessional tariffs in each FTA.
-Enhance awareness of preferential duty benefits among MSMEs, disseminate and facilitate compliance requirements (Rule of origin/Certificate of Origin etc) under FTAs for importers and exporters.
-Set goals for FTA utilisation and put in place an effective FTA monitoring system.
9) Online Origin Management System
-An online Origin Management System for exporters to enable them to obtain certificates of origin - COC (under Rules of origin) will be launched in the next few weeks by DGFT in collaboration with Exports Inspection Council.
-This is expected to significantly improve the ease of doing business for exporters.
10) Timebound adoption of mandatory technical standards
-Timebound adoption by industry of all necessary mandatory technical standards and their effective enforcement to elevate and quality and performance ecosystem, enhance competitiveness and address the issue of sub-standard imports.
-A working group on standards will be set up in Department of Commerce to work with industry to lay down a roadmap for adoption of standards, timelines and enforcement.
-This is expected to big boost in enabling Indian products overcome non-tariff barriers in exports.
11) Affordable testing and certification infrastructure
-Affordable testing and certification infrastructure will be adequately expanded and developed in PPP mode to enable exporters to get all internationally.
12) Enable handicrafts industry to effectively harness e-commerce for exports
-Special dispension for facilitating and on boarding handicrafts artisans and handicraft cooperatives directly on e-commerce portal and enable seamless exports.
-Mass enrolment of artisans across India with the help of Ministry of Textiles.
🍓Measures to Housing Sector
1) Relaxation of ECB guidelines for affordable housing
-ECB guidelines will be relaxed to facilitate financing of home buyers who are eligible under the PMAY in consultation with RBI.
2) House building advance
-The interest on house building advance shall be lowered and linked with 10-year G-Sec bond yield.
3) Special window for affordable and middle income housing
-Window to provide last mile funding for housing projects which are non-NPA and non-NCLT projects and are not worth positive in affordable and middle income category to be set up.
-The objective is to focus on construction of unfinished units.
-Government on the lines of NIIF can contribute to the fund while rest of investors would be LIC and other institutions and private capital from banks/sovereign funds/DFIs etc.
-Fund shall be set up as a category - II AIF trust and would professionally run with experts from housing and banking sector.
-Fund size Rs 10,000 crore to be contributed by government and roughly same amount from outside investors.
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FOLLOW TAX AUDIT ASSIGNMENTS LIMIT STRICTLY
As per Chapter VI of Council General Guidelines, 2008 (Tax Audit Assignments under Section 44AB of the Income Tax Act, 1961), CA in practice shall not accept, in a FY, more than 60 of tax audit assignments as prescribed under Section 44AB of the Income Tax Act, 1961.
In case of firm of Chartered Accountants in practice, 60 tax audit assignments per partner of the firm, in a FY. Therefore, if there are 10 partners in a firm of Chartered Accountants in practice, then all the partners of the firm can collectively sign 600 tax audit reports. This maximum limit of 600 tax audit assignments may be distributed between the partners in any manner whatsoever. For instance, 1 partner can individually sign 600 tax audit reports in case remaining 9 partners are not signing any tax audit report.
The maximum number of tax audits that can be undertaken by a CA is limited to 60. Request to members to follow limit Strictly. In UDIN regime, ICAI have data readily and may issue notices.
Note: Audits conducted under Section 44AD, 44ADA and 44AE of the Incometax Act, 1961 shall not be taken into account for the purpose of reckoning the limit of 60
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Capital Market Updates -
🌍Rana Kapoor is likely to sell his 9.6% stake in Yes Bank to Paytm. The Duracell-Eveready deal is another positive. As the bank moves to stronger hands, its prospects appear bright. Accumulate.
🌍Opto Circuits India (a turnaround company) is available at a P/E of just 3.7x. An attractive buy.
🌍Amidst the auto industry slowdown, Ashok Leyland plans to cut down the production days and also introduce the voluntary retirement scheme. Accumulate on dips.
🌍Reliance Capital plans to sell 3.15% stake in Reliance Nippon Life Asset Management for over Rs.505 crore to improve its financial health. Accumulate.
🌍IG Petrochemicals, which fell sharply, suddenly appears to be in a bull phase. New capacities are about to be added. Buy.
🌍Somany Ceramics tanked after a stock broking firm defaulted on its repayment of Rs.26 crore to the company. However, its overall financials look strong. An attractive buy.
🌍Manappuram Finance expects 20% CAGR this year. Its prospects look bright. Accumulate.
🌍ONGC is likely to become debt-free within a year in spite of huge capex plans. Buy for the long term.
🌍The Graphite India counter has witnessed relatively higher volumes. An interim dividend is also around the corner. Buy.
🌍Balkrishna Industries expects volume growth in FY20. As exports constitute a big chunk of its total income, the slowdown in the domestic auto sector may not impact its sales. Accumulate.
🌍Avenue Supermarts (owner of D-Mart) plans to aggressively grow its online business. Worth accumulating.
🌍Reliance Industries seeks $5.4/unit for its new gas find in the Bay of Bengal. Buy for the long term.
🌍Most automobile component companies have put their capex plans on hold. However, Motherson Sumi Systems is a distinct exception. It expects a much better performance this year. Accumulate.
🌍Tata Steel Long Products (formerly Tata Sponge Iron) is reportedly doing well. Its future looks bright. Buy for the long term.
🌍The delay in the Lakshmi Vilas Bank-IndiaBulls Housing Finance (IBHF) merger has kept the share price of IBHF supressed. However, the stock is expected to rebound soon. Accumulate.
🌍This may be the best time to accumulate Varun Beverages, which recently raised Rs.900 crore through its QIP.
🌍Bank of Baroda plans to sell Rs.8907 crore of NPA accounts to asset restricting companies in order to clean up its books. Its current workings are also likely to improve significantly. Accumulate.
🌍Lemon Tree Hotels is likely to close the acquisition of Berggruen Hotels for ~Rs.471 crore soon. A positive for the company. Accumulate.
🌍Despite the economic slowdown, Larsen & Toubro’s order book is expected to grow 12-14% this year. Its future looks bright. Accumulate.
🌍Dalmia Bharat has put in a bid for Emami’s cement business for ~Rs.6000 crore. A good investment bet.
🌍Pitti Engineering is likely to notch an EPS Rs.10.5 for FY20 when the full effect of its expansion is visible. Buy for the long term.
🌍Going by its FY19 results, Kovai Medical Centre & Hospital is likely to notch an EPS of Rs.65 for FY20. Buy for about 30% returns in the medium term.
🌍Vindhya Telelinks notched an EPS of Rs.233 for FY19 on a small equity of Rs.11.8 crore. The stock can cross Rs.1860 on a reasonable P/E of 8x.
🌍Meghmani Organics is likely to notch an EPS of Rs.11 for FY19. It is setting up a 50,000 TPA Epichlorohydrin project based on Epicerol technology at a capex of Rs.275 crore. Its future looks bright. Accumulate.
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GST - Product Nano Rechargeable LED Torch Light is classifiable under CH 8513 and attracts GST @18% - not entitled to concessional rate of GST @5% since not a Solar based device: AAR
GST - Agriculture Mechanical Sprayer is classifiable under CH 8424 and attracts GST @12% - mere provision of a battery for operating the same would in no way alter the nomenclature or classification of the impugned product: AAR
GST - Construction of residential quarters for MP Power Generating Co. Ltd. is chargeable to GST @18% under SAC 9954: AAR
GST - Contributions made to District Mineral Foundation and National Mineral Exploration Trust as per MMDR Act, 1957 are nothing but additions to the royalty payable for the original supply itself - liable to be added to the value of the original supply and treated accordingly: AAR
GST - Exemption in terms of 9/2017-ITR is not available since the service imported is for the purpose of business or commerce - Directorate of Skill Development, Govt of Madhya Pradesh needs to pay GST under Reverse Charge: AAR
GST - 'Interest' collected from customers on delayed payment is not exempted in terms of 12/2017-CTR as the transaction is not one where the stock broker has extended any deposit, loans or advances to its clients: AAR
Cus - Redemption fine is an option in lieu of confiscation and hence, both cannot run simultaneously, which means redemption fine is leviable only as an alternative to confiscation: CESTAT
Cus - Cardamom is not notified u/s 123, therefore, onus to prove that the same is smuggled lies upon Revenue: CESTAT
Cus - Process of roasting of ores into 'concentrate' is manufacture, therefore, benefit of exemption in terms of 4/2006-CX is not available insfoar as CVD is concerned:
CESTAT- It is well settled law that once assessments are finalized at suppliers end, they cannot be reopened and reassessed at recipient's end: CESTAT
https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTUyMTk4
Cus - Process of roasting of ores into 'concentrate' is manufacture, therefore, benefit of exemption in terms of 4/2006-CX is not available insfoar as CVD is concerned: CESTAT
https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTUyMjAz
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GST - Is it a factor behind economic slowdown?
https://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=37211
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Govt notified a scheme to revamp the assessment of income-tax (I-T) returns by making it completely faceless. The e-assessment Scheme 2019, however, would provide an opportunity to the assessee to seek a personal hearing but it would have to be conducted exclusively through video conferencing.
Document not found during income tax search on assessee cannot be subject matter for addition -section 153A. DCIT Vs Vikas Jain (ITAT Delhi).
GST Council could consider relief for the hotel sector, a proposal that is likely to be backed by states that remain divided over a reduction in the rate on automobiles and biscuits. The GST Council will also discuss two notes circulated by the Fifteenth Finance Commission— one on rate rationalisation and the other on revenue projection for both the Centre and the states for five years.
PM launches National Pension Scheme for Traders and Self Employed Persons is a government scheme meant for old age protection and social security of Small Scale Traders and Retailers.
ICAI Professional Development Committee to extend the last date for submission of online Multipurpose Empanelment Form for the year 2019-20 till 20th September, 2019. The last date for submission of Declaration is 25th September, 2019. For Jammu & Kashmir is 30th September, 2019.
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👉Govt. looks to plug GST leaks & boost collections . The Centre is planning to tighten processes related to claiming ITC and improve revenues is likely to be a major area of discussion at this week’s GST Council meeting .
👉RBI took a break from buying dollars as Indian rupee’s weakness renews .
👉FPI turns net buyers in the first half of September, pumping in Rs 1,841 crore into the capital markets, after remaining sellers for the previous two months.
👉Shares of Equitas Holdings slipped 17 per cent to Rs 97 on the BSE after the SEBI on Friday returned the draft scheme with regard to Equitas Small Finance Bank (ESFB), citing that it was not in compliance with the regulatory provisions.
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GST tax base doubles, but collection up only by 14% in Karnataka:
READ MORE- https://www.gststation.in/gst-tax-base-doubles-but-collection-up-only-by-14-in-karnataka/
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INCOME TAX BULLETIN
To give boost to automobile sector, GOI has decided to give additional 15% depreciation on vehicle purchased during 23-08-2019 to 31-03-2020. Thus, Depreciation rate
For Cars is now 30% &
For motor buses, lorries and taxis is now 45%
cut off date to avail 100% depreciation is 04-10-2019 as 2020 is leap year
Note: if motor vehicle is put to use for less than 180 days, depreciation will be allowed only 50% of above rates. Thus, Depreciation rate
For Cars- 7.5%+7.5%=15%
For Motor buses, lorries and taxis- 15%+7.5%=22.5%
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🍒 Merged entity of PNB, OBC and United Bank to become operational by next April : Ashok Kumar Pradhan, Managing Director and CEO, United Bank of India, on Saturday said that though the merger of the bank with Punjab National Bank and Oriental Bank of Commerce is likely to come into force from April 1, 2020, the integration of HR and IT is expected to take more time. “Though the balance sheet merger is likely to happen by April 1, 2020, it will take another 3-6 months post that for the HR and IT integration to be complete,” Pradhan told newspersons post an interactive meet with the Kolkata-based employees and customers of the three banks.The complete harmonisation among the merged entities would take another 12-14 months post merger, he added. The meeting was also attended by the senior officials of PNB and OBC.While the board of PNB has given in-principle approval for the amalgamation, United Bank and OBC will seek board approval on September 18.The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank of India is likely to create the second largest bank in India. Before the proposed merger, the amalgamated entity’s capital adequacy ratio would be over 13 per cent.The merged entity will have a “huge appetite for growth” and would be equipped with sufficient funds to finance large projects, he said. - business line
🍒 SBI to move RBI to offer fixed-floating rate home-loans: Chairman Rajnish Kumar :The largest lender State Bank of India will be seeking clarifications from the Reserve Bank whether it can offer long-term home loans with fixed rates in the beginning and convert the same into floating rates later, chairman Rajnish Kumar has said. The move comes after the Reserve Bank has mandated banks to shift all retail lending to floating rates that will be determined by external benchmarks like the repo rate.Kumar said there is a lack of clarity on how it can go ahead with the fixed rate products, after the RBI's new regulations on floating rates.Hinting at the volatility in the repo rate, he said some home buyers may want their loan rates to be fixed.For such buyers, it can offer a 'fixed-floating' product, wherein the rates are locked in for an initial period of say five to ten years, and then turns floating.The need for making the product floating in the latter part arises out of the bank's inability to project the liability movements in the future, he said, adding typically, home loans are for about 30 years.It can be noted that the repo rate at which the central bank lends to the system is at a nine-year low of 5.40 per cent.Speaking to reporters here over the weekend, Kumar said the central bank's recent guidelines on floating rate products for the retail segment has necessitated the need for the clarity.Kumar has clarified that from an asset liability management perspective, it is difficult to have a fixed rate product for a long term like 30 years, the maximum tenor of a home loan now from the bank now. Some private sector peers offer up to 35 years of home loans depending on in the age of the borrower, though. - Business Line
🍒 SBI shelves IPO plans for general insurance arm; card JV to hit market in Q4 : he largest lender State Bank has dropped its plan to take its general insurance arm public as there is no need for additional capital now, chairman Rajnish Kumar has said. Investor interest for its cards business is very high, and SBI Card listing will happen in the March quarter, he said.The bank was earlier looking for an IPO for SBI General Insurance in FY21.When asked if the IPO for general insurance will happen next fiscal, Kumar replied in the negative, saying there is no need for capital.SBI General, valued at over Rs 12,000 crore recently, is a joint venture between SBI and Insurance Australia Group with a 26 per cent ownership.On the additional stake sale in SBI Life, Kumar explained that the bank is required to offload an additional 2 per cent stake as per the Sebi norms, but has time till October 2020 to execute the same. - Business LIne
🍒 Miscreants break open ICICI ATM using gas cutter, flee with cash : Some miscreants decamped with an undisclosed amount of cash after breaking open an unguarded ATM of ICICI Bank using a gas cutter in south Delhi's Maidan Garhi area, police said on Sunday. Initial probe suggests involvement of around two-three people in the incident Saturday night, they said.Police said they were informed about the incident Sunday evening and have sought footage from the CCTV camera installed inside the ATM kiosk to ascertain the sequence of events and identify the accused.There was no guard at the ATM kiosk at the time of the incident, they said. - Live Mint
🍒 Standard protocols being developed to improve Ayushman Bharat services: CEO : Ayushman Bharat Pradhan Mantri Jan Arogya (PMJAY) is developing standard protocols to improve quality of services, according to Indu Bhushan, CEO, PMJAY and National Health Authority (NHA). He was speaking at Apollo Hospital’s International Health Dialogue here on Saturday.“PMJAY will create large amount of data and with that we can study and understand different disease pattern, help improve and implement policies and support the health sector in general,” he said.The agency is working with the Insurance Regulatory and Development Authority of India (IRDAI) to develop standards, empanel hospitals and create a format for claims management, he added. - Business Line
🍒 NHA, IRDAI recommend measures to check frauds, data standardisation : The National Health Authority (NHA), responsible for implementing the Ayushman Bharat scheme, and Insurance Regulatory and Development Authority of India (IRDAI) have launched a report recommending best practices, common standards, collaborative measures and IT framework for data standardisation and to check frauds. A joint working group of IRDAI and NHA was formed to work on key areas of mutual interest and co-operation which focussed their work on four key areas — Hospital Network Management, Data Standardisation and exchange, Common IT infrastructure for health insurance claims management and Fraud and abuse control. - Business Line
🍒 Air India posts ?4,600 crore operating loss in 2018-19 : Air India posted an operating loss of around ?4,600 crore in the last financial year mainly due to higher oil prices and foreign exchange losses but the debt-laden carrier expects to turn operationally profitable in 2019-20, according to senior officials. Reflecting tough business conditions, the airline's net loss stood at about ?8,400 crore while total revenues touched around ?26,400 crore in 2018-19, one of the senior officials told PTI.Another senior official said the airline is projected to post an operating profit of ?700 to 800 crore in 2019-20, provided oil prices do not shoot up significantly and there is no steep fluctuation in foreign exchange rates. - Live Mint
🍒 Six of 10 most valued cos add ?50,580 cr in m-cap : Six of the 10 most valued domestic companies together added ?50,580.35 crore in market valuation last week, with banking majors SBI and ICICI Bank emerging as the lead gainers. While RIL, HDFC Bank, HDFC and Kotak Mahindra Bank were the other winneRs, Tata Consultancy Services Ltd (TCS), HUL, Infosys and ITC suffered losses in their market capitalisation (m-cap) for the week ended Friday.The market cap of State Bank of India (SBI) zoomed ? 15,841.19 crore to ? 2,60,330.92 crore.ICICI Bank’s valuation jumped ? 14,062.37 crore to ? 2,66,874.13 crore. The m-cap of Kotak Mahindra Bank climbed ? 8,011.67 crore to ? 2,83,330.41 crore and that of HDFC rallied ? 7,695.41 crore to ? 3,60,062.95 crore. - Business Line
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