QBiz: Jaitley Allays GST Fears; Tata-Docomo Deal Gets Delhi HC Nod

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Finance Minister Arun Jaitley (Photo: Reuters)

1. Big Rate Changes Unlikely Under GST: FM Arun Jaitley

Finance minister Arun Jaitley said rates under the new goods and services tax (GST) regime will not be “significantly different” from existing levels, suggesting there will be minimal disruption when it is rolled out on 1 July. But any savings should be passed on to consumers, he said.

We are now in the final stages of fixing tariffs for different commodities. The formula under which it is being done has also been explained and therefore nobody is going to be taken by surprise. It’s not going to be very significantly different.

Arun Jaitley, Finance Minister

He added that rules and regulations governing GST have been framed.

GST is one of India’s most significant economic reforms in decades and will erase barriers between states to create a common market that will lower costs and increase efficiencies, thus potentially boosting growth by 4.2 percent, according to a US Federal Reserve paper.

(Source: The Economic Times)

2. Tata-Docomo Case: Delhi HC Rejects RBI plea, Clears $1.17 Billion Arbitration Award

The Delhi high court on Friday cleared the way for enforcement of the 1.17 billion dollars arbitration award between Tata Sons and NTT Docomo Inc.

Accordingly, Tata Sons Ltd can proceed with the transfer of the amount to Docomo, and subsequently the Japanese firm can transfer its shares in Tata Teleservices Ltd to Tata Sons.

The amount of 1.17 billion dollars has already been deposited by Tata Sons with the court. Justice S Muralidhar rejected Reserve Bank of India’s (RBI) intervention in the enforcement of the arbitral award that had been agreed to by both parties.

The verdict has effectively diluted RBI’s standing, thereby limiting its role in a situation concerning enforcement of the arbitration award where money is sought to be remitted outside India.

(Source: Livemint)

3. GST to Push Indian Growth to Over Eight Percent: IMF

The ambitious Goods and Services Tax to be implemented from 1 July would help raise India's medium-term growth to above eight percent, the International Monetary Fund (IMF) has said, adding that the reforms are expected to pay off in terms of higher growth in the future.

The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward.

Tao Zhang, Deputy Managing Director of the International Monetary Fund 

"We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India's medium-term growth to above 8 percent, as it will enhance production and the movement of goods and services across Indian states," the IMF official said.

(Source: PTI)

4. RBI’s Viral Acharya Calls For Reprivatisation of Nationalized Banks

Some nationalised banks need to be re-privatised, to reduce the amount of capital that the government needs to infuse in them and help maintain fiscal discipline, said Viral Acharya, deputy governor of the Reserve Bank of India (RBI) on Friday.

“This (reprivatisation) will reduce the overall amount that the government needs to inject as bank capital and help preserve its hard-earned fiscal discipline, along with stable inflation outlook and the diverse nature of our growth engine,” Acharya said at an event in Mumbai.

The gross bad loans of government banks stood at Rs 6.15 trillion as of December 2016.

(Source: Livemint)

5. Amazon CEO Jeff Bezos Thanks Indian Customers, Promises to Continue Investing to Beat Flipkart

The planet’s second-richest man Jeff Bezos said on Thursday that Amazon India is the country’s most popular web marketplace, signalling the Seattle giant’s intent to invest billions more to win the leadership race in the $16 billion online shopping industry.

The performance in India was the hallmark of the Amazon CEO’s post-result comments that happened to be his first on the country's Internet marketplace after local rival Flipkart recently raised 1.4 billion dollars from a raft of strategic investors, including eBay Inc. Flipkart is currently ahead of Amazon India on the value of goods sold through its platform.

We’re grateful that customers are responding – Amazon.in is the most visited and the fastest growing marketplace in India. It’s still Day 1 for ecommerce in India, and I assure you that we’ll keep investing in technology and infrastructure, while working hard to invent on behalf of our customers and small and medium businesses in India.

Jeff Bezos, CEO, Amazon

(Source: The Economic Times)

6. Taxing Agri Income: Distinction Between Rich, Poor Farmers Needed: CEA

Just days after Union Finance Minister Arun Jaitley ruled out any move to tax agricultural income, Chief Economic Advisor Arvind Subramanian joined the debate and said there could be a distinction between poor and rich farmers.

In a reply to a question on the issue, which has become controversial after two NITI Aayog members made contradictory statements, Subramanian said at a CII event on Friday:

When you say farmer, people think that you are going after the poor farmer... Why can’t we say the rich, regardless of where they get their income, should be taxed?

He added that one could be very socialistic despite making a distinction between poor and rich farmers. “All good policies require us to make certain distinctions. The question is, why are we not able to make those distinctions,” Subramanian said.

(Source: Business Standard)

7. Coca-Cola India Names TKK Krishnakumar as President, Kini Leaves

Coca-Cola India on Friday announced that TKK Krishnakumar will take over as president of the company’s India and South West Asia operations from Venkatesh Kini. Krishnakumar is currently chief executive officer and South West Asia regional director of Hindustan Coca-Cola Beverages Pvt Ltd, the company-owned bottling unit. The appointment is effective 1 May.

Kini, who has been president of the Atlanta-based beverages company’s India and South West Asia business since 1 July 2013, has quit. “I have decided to go back to the US and look for opportunities outside,” said Kini, who will continue for three more months to handle the transition.

While Coca-Cola did not specify reasons for Kini’s exit, two people in the know indicated that falling sales was the key reason.

(Source: Livemint)

8. SEBI Chief Ajay Tyagi Bats For Better Corporate Governance Norms

The Securities and Exchange Board of India (SEBI) is looking at a series of measures to improve corporate governance and investor awareness in the securities market. The regulator is also keen on procedural improvements and moving to a “deterrent” enforcement regime.

Speaking at the CII Annual Session, Sebi chairman Ajay Tyagi outlined a broad range of issues that will engage the regulator’s attention over the next few months. The move comes close on the heels of the regulator’s board meet, where it took several measures including introduction of options in commodities.

(Source: Business Standard)

9. Old Mutual Exits Insurance Venture With Kotak Mahindra For Rs 1,292 cr

Kotak Mahindra Bank on Friday said it has inked an agreement to purchase the entire 26 percent equity stake held by Old Mutual plc, UK (OM) in Kotak Mahindra Old Mutual Life Insurance for a consideration of Rs 1,292.7 crore.

After the completion of the transaction, Kotak Mahindra Group will hold 100 percent of the equity shareholding of Kotak Life.

This move comes in the backdrop of the private sector bank last month proposing to issue up to 6.2 crore equity shares aggregating to over Rs 5,000 crore, to pursue consolidation opportunities in the Indian financial services space.

(Source: The Hindu BusinessLine)