QBiz: Mismatch in GST Returns; PNB Aims to Grow Biz by Around 11%

Here’s your round-up of top business stories

Punjab National Bank’s sealed south Mumbai branch.

(Photo: PTI)

1. GST: Companies Start Getting Notices for Mismatch in Tax Returns

GST officers have started sending scrutiny notices to companies whose tax payment did not match the final sales return, after revenue authorities detected underpayment of GST by about 34 percent, a source said.

Besides, companies whose final sales return GSTR-1 did not match GSTR-2A, which is a purchase return auto-generated by system from his seller’s return, have also received scrutiny notices. As per an analysis done by the revenue department in March, 34 percent of businesses paid Rs 34,400 crore less tax between July-December while filing initial summary return (GSTR-3B).

These 34 percent of the businesses have paid Rs 8.16 lakh crore to the exchequer by filing GSTR-3B, whereas analysis of their GSTR-1 data show that their tax liability should have been Rs 8.50 lakh crore.

(Source: Financial Express)

2. PNB Aims to Grow Biz by Around 11% in Current Fiscal

Nirav Modi fraud-hit Punjab National Bank (PNB) aims to grow its total business by 10.8 percent and close the current fiscal with Rs 12 lakh crore on the back of increased focus on current account savings account (CASA) mobilisation.

The board of the bank in a meeting held last Saturday, 5 May, deliberated on the future roadmap for the bank and implementation of the finance ministry's Enhanced Access & Service Excellence (EASE), PNB CEO Sunil Mehta told.

"The bank will aim at growing by 10.8 percent year-on-year to aim at total business of Rs 12 lakh crore in FY '19. Similarly, the bank has planned 13.7 percent growth in CASA to aim for an amount of Rs one lakh crore," he said.

(Source: The Economic Times)

3. Aurobindo Launches Bid to Buy Novartis Generics Unit

Aurobindo Pharma Ltd has submitted an initial bid to buy Novartis AG’s dermatology generics drug business for about $1.6 billion, two people directly aware of the development said on condition of anonymity.

Hyderabad-based Aurobindo Pharma is the only Indian company that has put in a bid for the assets, which includes an array of dermatology brands, production facilities and associated infrastructure, mostly in the US, said one of the two people, both of whom declined to be named.

“Aurobindo has already put in a non-binding bid for the asset which has also drawn interest from other suitors which include private equity funds and other drug companies,” the person said. “Aurobindo is being advised by Credit Suisse on the transaction.”

The last date for placing binding bids is 15 June.

(Source: Livemint)

4. After Videocon D2H Merger, Dish TV Plans Rs 1,700 Crore Investment

Dish TV, which has completed its merger with Videocon D2H, plans to invest around Rs 1,700 crore as capex in the current fiscal and strengthen both the brands across India, top officials said.

Dish TV would retain both the brands to leverage their strengths and is looking at benefits worth Rs 500 crore from synergies in the first year itself, Dish TV Group CEO Anil Dua told PTI.

While Dish TV would look to enhance penetration in south India, where Videocon D2H has a strong presence, the latter would look to do the same in east India, he said. The merger has given the company “more financial strength to do many more things”, he added.

(Source: BloombergQuint)

5. Indian E-Commerce Market Sees M&A Deals Worth $2.1 Bn in 2017

As much as $2.1 billion worth of M&A (merger and acquisition) transactions were inked in 2017 in the booming Indian e-commerce industry, which may soon witness its largest-ever deal — the proposed Flipkart-Walmart nuptial.

According to data from Grant Thornton, 21 deals worth $2,112 million were seen in 2017 with participation from players like Paytm and Flipkart. This, however, was lower compared to 2016 which saw deals worth $2,224 million (18 transactions) being inked, as per the global audit and advisory firm. In the January-April 2018 period, six transactions worth $226 million were seen, according to the data.

If the Walmart-Flipkart deal indeed goes through, it would be the largest so far in the Indian e-tailing market that is forecast to grow to $200 billion by 2026 (Morgan Stanley estimate).

(Source: Financial Express)

6. Honda Sharply Narrows the Gap with Hero in India Volume Sweepstake

Japanese two-wheeler maker Honda is not far away to dethrone its previous partner Hero Motorcorp as the No 1 player in the domestic market if the April volumes are any indication as the current No 2 has narrowed the gap with the market leader for decades to just 12,134 units.

Hitting a sixer in the volume sweepstake in April at 6,81,888 units, which is up 18 percent over the same month in 2017, Honda Motorcycle & Scooter India has steeply narrowed the gap with Hero which sold 6,94,022 units in the month, which is an addition of 16.5 percent more customers and thus narrowing the gap to just 12,134 units.

For, Honda, the 6-lakh units milestone comes exactly a year after it had crossed the 5 lakh mark last April and of the total April volume domestic sales grew 15 percent to 6,35,811 units.

(Source: The Economic Times)

7. HC to Deliver Verdict in Vodafone Tax Case

Delhi high court is set to pronounce its verdict on 7 May on the centre-Vodafone Group Plc arbitration row over a retrospective tax liability imposed on the telco for its $11 billion acquisition of Hutchinson Telecom.

The court had reserved its judgement on 8 March after hearing the arguments put forth by the centre, Vodafone Group Plc and an amicus curie

The verdict would be the first of its kind as it is likely to settle issues about the legitimacy of bilateral investment treaties in so far as it seeks to protect a foreign investor from allegedly unfair treatment by the country it is investing in.

After the tax liability of over Rs 22,000 crore was imposed in 2012, Vodafone had invoked arbitration under the India-Netherlands Bilateral Investment Protection Agreement (BIPA) through a notice of dispute of 17 April 2012 and notice of arbitration of 17 April 2014.

(Source: Livemint)

8. Govt Likely to Notify 8.55 Percent Interest on EPF for FY18

The Labour Ministry is likely to notify this week an 8.55 percent interest on employees’ provident fund (EPF) for 2017-18, paving the way for the Employees’ Provident Fund Organisation to credit returns into the accounts of around 5 crore subscribers.

The Finance Ministry has ratified 8.55 percent rate of interest on EPF for last fiscal.

“The Labour Ministry has sought Election Commission’s approval to notify rate of interest for crediting the same into members’ accounts by the EPFO in view of model code of conduct for Karnataka elections,” a source said.

“The nod is expected anytime this week to provide 8.55 percent rate of interest to the EPFO subscribers,” the source said.

The recommendation on the rate of interest by the Central Board of Trustees, the apex decision making body of the EPFO, is sent to the Finance Ministry for its concurrence.

(Source: BloombergQuint)

9. Telecom Ministry To Decide On Idea’s 100% FDI Proposal

The Telecom Ministry is the competent authority to take the final call on Idea Cellular Ltd’s proposal for infusing 100 percent foreign direct investment in the company, Commerce and Industry Minister Suresh Prabhu has said.

The Department of Telecom has put some condition while seeking views of the Department of Industrial Policy and Promotion on the proposal.

“The matter is completely in the domain of the line ministry. We have already clarified. No need of our approval,” Prabhu told PTI In an interview. It was communicated to DoT that they are the competent authority to deal with the proposal, he said.

“We have sent back (the proposal) immediately. We have stated that it is for you to decide,” he said, adding that tax liabilities do not constitute additional condition. Idea’s proposal assumes significance against the backdrop of pending merger with Vodafone India to form the country’s largest telecom operator.

(Source: BloombergQuint)