TCS becomes 2nd Indian company to cross $100-bn market cap…….

        IT firm Tata Consultancy Services (TCS) on Monday became the second Indian company to reach the $100-billion market capitalisation milestone, after the company reported better-than-expected quarterly results. Mukesh Ambani’s Reliance Industries was the first Indian company to reach the $100-billion mark, in October 2007, though it is currently valued at $89.7 billion.

Sensex closes 561 points lower at 34,195 amid global selloff, Nifty settles at 10,498

     Benchmark indices pared most losses after  sliding more than 3% and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year. Overnight, US markets had suffered their biggest loss in over six years. The fall comes on the back of a spike in bonds yields. 

     The broader Nifty50 and the benchmark S&P BSE Sensex each fell as much as 3.7% on Tuesday, sixth consecutive session of falls, with both erasing their gains for the year. The slump in Wall Street overnight comes as India’s record-setting share rally came under threat following the government’s announcement of a 10% long-term capital gains tax in equities, which starts in April. MSCI’s broadest index of Asia-Pacific shares outside Japan slid 3.5% to a one-month low, which would be its biggest fall in more than a year and a half, a day after it had fallen 1.6%.

 

Sensex crashes 840 points a day after Budget……..

     Benchmark index BSE Sensex closed nearly 840 points down at 35,067 on Friday, a day after Finance Minister Arun Jaitley unveiled the 2018 Union Budget. Stock markets took a hit after the government proposed 10% Long-Term Capital Gains (LTCG) tax on equity investments with gains of over ₹1 lakh. The NSE Nifty closed 256 points lower at 10,760.

    The Budget 2018-19 presented yesterday imposed long-term capital gains tax of 10 per cent on equities. Investors will also have to pay 10 per cent tax on distributed income from equity-oriented mutual funds. Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India’s rating upgrade. The flagship Sensex crashed 839.91 points, or 2.34 per cent to end the day at 35,066.75 as jittery investors sold off shares across all sectors.

Chinese bike-sharing startup Ofo to launch service in India…….

      Chinese bicycle sharing startup Ofo is expected to launch its services in India on Monday and will reportedly be made available on Paytm. The tie-up with Paytm will be an addition to its stand-alone mobile app, which lets users book a bike. The company is expected to launch the service in Pune, Chennai, Indore, Ahmedabad and Bengaluru.

      Ofo did not respond immediately to an e-mail requesting details of the launch. The development was first reported by the Economic Times in October. According to the report, users will be able to book and pick up Ofo bikes for $1 per hour using an app. The service is aimed at metro cities and the company has already held talks with government regulatory bodies, the report added.                 Ofo signed a memorandum of understanding (MoU) with the Pune Municipal Corporation (PMC) last week. Under the MoU, the company plans to create city wide bicycle networks, which is likely to be expanded into other metro cities in India.  The company is also expected to launch the service in Chennai, Indore, Ahmedabad and Bengaluru and it will also invest money for importing bicycles to India, according a report in November 2017 from Chinese news agency Xinhua.

      “We are delighted to partner with the city of Pune. We wish to improve its quality of life in the city by providing a healthier, quicker, and greener alternative to motor vehicles. Our mission is to solve the ‘last mile’ transportation problem in India’s urban areas and we see immense potential in Pune for Ofo’s convenient, affordable and low carbon way of travel,” Rajarshi Sahai, director of public policy & communications at Ofo said in a statement last week while announcing the tie up with PMC. Founded in 2014, Ofo has operations in over 250 cities across 20 countries with over 200 million global users. In July 2017, Ofo secured a Series E round of funding worth S$700 million led by Alibaba, Hony Capital and CITIC Private Equity. At that time, the company said that it plans to deploy 20 million new bikes and expand its service to more countries.

N Chandrasekaran : “Air India” can be “TATA Air Lines” soon…….

India’s Tata conglomerate is interested in bidding for state-owned Air India as the group needs to increase the sizes of its aviation business, its boss told a television channel in an interview on Monday.  Tata would “definitely look” at Air India once the government finalised the privatisation process, N. Chandrasekaran, chairman of Tata group’s holding company Tata Sons, told the channel. He said Tata, which already has two small airline joint ventures in India, one with Singapore Airlines and the other with Malaysia’s AirAsia Bhd, was still not clear about what a sale would look like. 

       India’s government has not said whether it will sell or parts of Air India and what it might do about the loss-making airline’s debt burden of $8.5 billion. “We still don’t have all the details,” Chandrasekaran said. “We have two airlines, both are subscale. I feel scale is important.” When asked whether Tata had spoken to Singapore Airlines about its interest in bidding for Air India, Chandrasekaran said: “Do you think I would have not?” 

       Tata’s interest in Air India has been reported but Chandrasekaran had not spoken publicly about a possible bid. In June Prime Minister Narendra Modi’s cabinet gave the go-ahead to sell Air India, which has received $3.6 billion since 2012 in state aid. Last month the government invited bids to appoint financial and legal advisors for the sale process. Some companies including low-cost Indian carrier IndiGo, owned by InterGlobe Aviation, ground handling company Bird Group and Turkey’s Celebi Aviation Holdings have expressed an interest in buying some of Air India’s varrious businesses. 

Air India, founded in 1930s by the Tata Group, is saddled with debts and a bloated cost structure. Once the nation’s largest carrier, its market share in the booming domestic market has slumped to 13 percent as private carriers expanded. Chandrasekaran said the group is also focusing on improving returns at Tata MotorsBSE -0.79 %. He said ending production of its loss-making Nano car would make little difference to the firm’s profitability. British luxury carmaker Jaguar Land Rover has long been the main source of revenues and profits at Tata Motors. The company has said it will invest more than 40 billion rupees ($612 million) to boost sales of its passenger and commercial vehicles and return to profit in its domestic business. Sourcehe EconomicTimes.

NO PAN or AADHAR required for Jewellery purchases exceeding Rs 50,000…….

Jewellery purchases exceeding Rs 50,000 won’t require the income tax permanent account number (PAN) to be provided after the government reversed an earlier notification on Friday, providing a big festive cheer for the sector and potential customers. 

Jewellers will also not be required to inform authorities about jewellery purchases of over Rs 50,000 after the government rescinded a notification issued on August 23. 

Dealers in precious metals, precious stones and other high-value goods having a turnover of over Rs 2 crore in a financial year had been notified as persons carrying on designated business and professions under the Prevention of Money Laundering Act, (PMLA) 2002. This had made them reporting entities under the PMLA requiring them to intimate the relevant authorities about transactions above certain limits. 

The government said the notification had been rescinded because certain incongruities had been brought to its notice and a fresh notification will be issued, indicating that the sector may still come under greater watch. 

“The withdrawal of Rs 50,000 limit for KYC (know your customer) under PMLA is great news, as the imposition had impacted sentiment and sales to some extent,” said Sandeep Kulhalli, senior V-P, retail and marketing, Tanishq. Industry expects growth to recover after the relaxation. 

“With the festive season still under way, the withdrawal of the notification has raised prospects of sales recovering in the third quarter,” said Surendra Mehta, national secretary, India Bullion and Jewellers Association. 

“The 30% year-on-year growth that our company and the organised sector witnessed in the fiscal quarter ended June was impacted slightly, down around 5% in the second quarter, by the extension of PMLA to the gems and jewellery trade on August 23,” said Balram Garg, managing director, PC Jewellers. Earlier, like other sectors, the threshold for KYC was Rs 2 lakh. This got lowered to Rs 50,000 after the jewellery sector was brought under PMLA on August 23. 

“After considering various aspects of the issue, the government has decided to rescind the said notification. A separate notification after due consideration of points raised and wider stakeholder consultation in this regard shall be issued separately,” it said in a statement. 

The entities covered by PMLA have to maintain records of all transactions of value exceeding Rs 10 lakh, all cross-border wire transfers of more than Rs 5 lakh and all purchases and sales of immovable property of Rs 50 lakh or more. Last Updated at 01:40 a.m on 7th Oct 2017.  Source The Economictimes.

Arvind Panagariya steppes down as Vice Chairman of NITI Aayog…….

       Arvind Panagariya has stepped down as Vice Chairman of the government think tank NITI Aayog. The Columbia University professor will be returning to the U.S. to rejoin academia. The noted economist, who was appointed to the post by Prime Minister Narendra Modi in January 2015, has written to Mr Modi requesting to be relived by the end of the month as he has not been granted an extension of leave from Columbia University.

       Mr Panagariya, 64, told reporters that he had expressed his desire to rejoin academia to the Prime Minister about two months back. He is a Professor of Indian Political Economy at Columbia University. His last day in office will be August 31 and he is likely to rejoin the University on September 5.

       Mr Panagariya holds a Ph. D in Economics from Princeton University and has also worked for the World Bank, International Monetary Fund, World Trade Organisation, and the United Nations Conference on Trade and Development (UNCTAD) in various capacities. The economist had recently said that India’s gross domestic product (GDP) could rise to about USD 8 trillion over the next 15 years if the country registers an economic growth of 8% annually. Source The Hindu.

GST : Services billed in July, Consumed in June will attract GST…….

       The Finance Ministry has said that, consumers bills will attract GST in their bills which are generated in July for the services consumed in the month of June. Consumers will have to pay GST on their Electricity, Telephone, Credit-Cards, etc bill payments for services consumed in the month of June if the Invoice for the same service has been generated or payments made in the month of July. GST would be levied on the bills generated from July 1st even if the services have been consumed before that, provided that no advance payment was made for it. JahnviNews.

GST : Prez. & PM launches GST, terms GST as India’s Biggest Tax Reform……..

       Goods and Services Tax (GST), India’s biggest tax reform, was launched at midnight at Parliament’s historic Central Hall, by President Pranab Mukherjee and Prime Minister Narendra Modi. With the stroke of the gong, current tax rates are replaced by GST rates. It is the fourth time since Independence that an event was held there at midnight. The last three celebrated India’s Independence and that is among the reasons that the Congress had listed for boycotting the GST launch. Several other opposition parties too stayed away. GST, which replaces a slew of indirect taxes with a unified tax, is set to dramatically reshape the country’s 2 trillion dollar economy. Source NDTV.