Business

One year of GST: Compensation cess drives confusion for the auto sector

One year of GST: Compensation cess drives confusion for the auto sector

Business
By Sarika Goel With the Goods and Services Tax ('GST') regime in India nearing completion of its first 12 months, it is probably an apt time to take a look back at the various ups and downs of the regime and their impact on one of the key sectors of the Indian economy - the automotive industry. The Indian automobile industry has historically been one of the highest taxed sectors from an indirect tax perspective. With the increasing pressure on domestic demand, the auto OEMs were hopeful that the introduction of GST would reduce the overall tax burden on vehicles, which in turn will boost demand. However, the last minute introduction of an additional levy in the form of Compensation cess ensured that the effective tax rate on vehicles did not change significantly versus the previous reg...
Sensex Opens On A Flat Note, Nifty At 10743 Ahead Of OPEC Meet Outcome

Sensex Opens On A Flat Note, Nifty At 10743 Ahead Of OPEC Meet Outcome

Business
The S&P BSE Sensex opened on a flat note at 35,428 points, barely 4 points lower, while NSE's Nifty also traded flat at 10,742.70. However, the market benchmark Sensex slipped 60 points soon after the opening hours to trade at 35,371. Nifty, at the same time, fell 23 points near 10,720 level. Most BSE indices trade in the red. The BSE healthcare index falls 0.67 per cent, BSE industrials fell 0.34 per cent, and BSE energy plunged 0.74 percent. Maximum losses were posted by Reliance Industries (1.27 percent), Coal India (1.14 percent), SunPharma (0.96 perent) and SBI (0.74 percent) in the opening trade. The gainers included M&M, ITC and HDFC that rose by 1.65 percent, 0.79 percent and 0.64 per
Rupee Firms Up By 19 Paise Against US Dollar. 5 Things To Know About Forex Market

Rupee Firms Up By 19 Paise Against US Dollar. 5 Things To Know About Forex Market

Business
Fresh foreign capital inflows took the local currency higher today. The Indian rupee gained by 19 paise to open at 67.79 against the US dollar in early trade on Friday. The surge in Indian rupee came due to increased selling of the US currency by exporters and banks. The US dollar slipping from an 11-month peak against other currencies overseas as investors took profits also helped the Indian rupee. On Thursday, the Indian rupee had appreciated by 10 paise to close at 67.98 against the greenback on sustained selling of the American currency by exporters and local banks.
Swiggy enters unicorn club, raises $210 million from DST Global, Naspers

Swiggy enters unicorn club, raises $210 million from DST Global, Naspers

Business
Food delivery continues to determine the flow of big capital in India’s startup ecosystem with Swiggy being the latest to join the race. The food delivery startup has raised $210 million in its latest round of funding with Russian billionaire Yuri Milner's DST Global and existing backer Naspers leading a $210 million round in the firm. US-based hedge fund Coatue Management and existing investor Meituan Dianping also participated in this round. The round values Swiggy at $1.3 billion according to sources with direct knowledge of the development and makes the Bengaluru-based firm one of the fastest internet companies to join the much-celebrated Unicorn club in under four years since its inception - less than half the time it took rival Zomato to earn that tag. Unicorn is a tag given
Oyo starts China business with hotel rooms in 26 cities

Oyo starts China business with hotel rooms in 26 cities

Business
Oyo is said to be in talks with existing investors led by SoftBank Group and two new investors to raise up to $800 million in fresh capital. Bengaluru: Hotel chain Oyo is expanding its China business, its third overseas market. Oyo, which is owned and operated by Oravel Stays Pvt. Ltd, has more than 11,000 rooms across 26 Chinese cities, including Hangzhou, Xian and Guangzhou. The company had entered China earlier this year, but disclosed its business only on Wednesday. “After our successful overseas expansion and operations in Malaysia and Nepal, we are thrilled to offer Oyo hotels’ hassle-free and standardized stay experience to guests in China,” said Oyo founder and chief executive Ritesh Agarwal. “The country’s tourism industry is on the cusp of booming and flourishing w

Market Live: Sensex consolidates amid global trade war fears; RIL at record high

Business
Market Opening: Benchmark indices started off the day on a positive note Thursday, tracking positive Asian cues. The 30-share BSE Sensex rose 92.13 points to 35,639.46 and the 50-share NSE Nifty gained 25.70 points at 10,797.70. ICICI Bank gained 1 percent. Nifty Midcap index rose 45 points. InterGlobe Aviation, Adani Transmission, Adani Ports, Arvind, PFC, Havells, Jubilant Foodworks, NIIT Tech, PTC India Financial, CG Power, Delta Corp, Gruh Finance and Cummins India gained 1-3 percent. Bank of Maharashtra, Opto Circuits, Ruchi Soya, Jindal Saw, Welspun Corp and Strides Shasun are under pressure.
India rate panel strikes balanced tone, awaits clarity for further move – minutes

India rate panel strikes balanced tone, awaits clarity for further move – minutes

Business
MUMBAI: India's monetary policy committee struck a balanced note on its rate stance going forward and cited rising inflation pressure due to high oil prices as the key reason for raising interest rates in the June meeting, according to minutes of the meeting released by the Reserve Bank of India on Wednesday. The MPC members raised concerns over rising household inflationary expectations which along with robust growth momentum could add to price pressure going forward. However, the six members who had unanimously voted for a rate hike at the June 6 meeting preferred to wait for more clarity on the inflationary impact of a government proposal to increase the minimum purchase price of foodgrains, along with the direction of oil prices. That prompted them to hold their stance at "neutra...

GST on petrol, diesel: A 28% levy plus VAT is the worst concoction for rising fuel prices

Business
A peak tax rate of 28 percent plus states levying ‘some’ amount of local sales tax or Value Added Tax  (VAT) on petrol and diesel is likely to be the tax structure when the two auto fuels are covered under the GST regime, a top government official said. The operative and dreaded word is ‘some’. As the ensuing discussion would show, ‘some’ could ultimately turn out to be ‘substantial’. Be that as it may, he went on to rationalise the mish-mash on the ground that when the Goods and Services Tax (GST) was unveiled in July 2017 it was after all preceded by hectic activity in arriving at revenue neutral rates for goods and services. By the same logic, he said, there was nothing wrong in fixing a revenue neutral rate of tax for petrol and diesel. So what is wrong if

Rupee opens 12 paise down at 68.20 against dollar

Business
The rupee opened nearly 12 paise down at 68.20 against dollar on Thursday. Buying of American currency by banks and importers triggered the fall in the domestic unit. The local currency staged a smart comeback in the previous trading session, gaining 30 paise to end at 68.08 against the greenback. According to IIFL, widening current account deficit has prompted higher forward projections for USD/INR, with levels above 70 seen during this year. With Fed clearly the most hawkish bloke in town, and peers like ECB and BOJ kicking the can of rate moves down the road, the repercussions of a resurgent US dollar index are amply clear for Indian rupee. Foreign portfolio investors offloaded shares worth of Rs 1,410.80 crore on Wedneday, as per data available with depository NSDL. Meanwhile,...

Drip Capital raises $15 million from Accel, Sequoia, Wing VC

Business
Fintech startup Drip Capital provides trade finance to SMEs engaged in import-export in emerging markets. Photo: Bloomberg Mumbai: Fintech startup Drip Capital, which provides working capital finance to small and medium enterprises (SMEs) engaged in cross-border trade in emerging markets, has raised $15 million in a Series A round from venture capital firm Accel Partners, Sequoia India and Wing VC, a Silicon Valley based venture fund. The round also saw the participation of its existing investors, including US seed accelerator Y-Combinator, among others. Drip Capital had raised $5-million in seed money in 2015, besides securing an undisclosed amount in debt capital from Silicon Valley Bank, a subsidiary of the California-based SVB Financial. With the recent funding, the Cali...