QBiz: Rs 13K Cr Undisclosed Income Found; Telangana for Clean Fuel
The Quint’s roundup of the top business stories of the day.
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1. I-T Department Detects Rs 13,715 Crore Undisclosed Income Last Fiscal
The Income Tax department detected undisclosed income of Rs 13,715 crore through surveys in 2016-17, Minister of State for Finance Santosh Kumar Gangwar said. Also, as many as 1.26 crore new taxpayers were added last fiscal, he said in a written reply in the Rajya Sabha.
Last fiscal, the income tax department conducted searches at 5,102 premises of 1,152 groups during which undisclosed income of Rs 15,496 crore was admitted. Gangwar said:
He said a total of 1.96 crore income tax returns were filed between 9 November 2016, to 31 March 2017, compared with 1.63 crore returns filed during the same period of 2015- 16. In a separate reply, Gangwar said that during phase one of ‘Operation Clean Money’ launched on 31 January, about 18 lakh persons were identified whose cash transactions did not match their tax profiles.
Source: Financial Express
2. Telangana to Buy Power Produced From Its Waste
A private power producer will supply electricity generated from waste collected around Hyderabad to the Telangana government for two decades.
Nettlinx-owned Sri Venkateswara Green Power Projects Ltd – a 12 megawatt unit – will use 700 tonnes of waste per day to provide electricity to roughly one lakh households, according to a press statement released by the company on 8 August.
The Telangana government has guaranteed to buy power at Rs 7.4 per unit for 20 years. That compares with the levelised solar power tariff of Rs 2.62 per unit and wind power tariff of Rs 3.46 in the latest auctions.
Source: BloombergQuint
3. Tata Steel Must Pare Debt to ‘Sustainable’ Level, Says Chandrasekaran
Tata Sons Ltd’s Chairman N Chandrasekaran said that Tata Steel’s debt, the highest among peers in India, is one of the key challenges for the steelmaker. Chandrasekaran said during his maiden address to shareholders at the steelmaker’s annual general meeting:
The other challenge, according to Chandrasekaran, would be on building sustainable European operations. The company's business in Europe has been a drag on its earnings.
Source: BloombergQuint
4. SEBI Asks Listed Firms To Disclose Loan Defaults Within One Day
Tightening its disclosure norms for listed companies defaulting on loan payment from banks and other financial intuitions, market regulator SEBI on Friday asked firms to make such information public within one working day.
This will come into force from 1 October, the Securities and Exchange Board of India (SEBI) said in a circular.
Source: PTI
5. State-Owned GIC Re May Raise up to Rs 10,000 Crore in IPO
State-run reinsurer General Insurance Corporation of India has filed its draft red herring prospectus for an initial public offering. The country’s only homegrown reinsurer is likely to raise Rs 8,000 -10,000 crore, two bankers privy to the details told BloombergQuint requesting anonymity. The IPO is a combination of fresh issue and an offer for sale.
It’s part of the government’s plans to reduce its stake by 25 percent in its five fully owned non-life insurance companies. Axis Capital, Citi, Deutsche Bank, HSBC and Kotak Investment Banking are the book runners for the offer. The price band and the bid lot size will be decided by the book managers after getting approval from the Securities and Exchange Board of India.
Source: BloombergQuint
6. Tata Steel's Outlook Pinned on China's Appetite for Steel
A few years ago, global steel majors railed against China’s steel industry for its excess production, which flooded their markets. A wave of protectionist measures followed to keep Chinese steel out, including in India. Since then, steel prices have risen but they weakened in the past few quarters.
Tata Steel Ltd’s management pointed out that steel prices have increased again, chiefly due to China. In the June quarter, domestic demand was dull and realizations declined sequentially. But an increase in global steel prices can change that. China has cut steel output and even better, its steel consumption is increasing.
That’s a situation that will drive prices higher. On Monday, Chinese rebar steel futures rose by 7 percent to their highest level in four years, according to Reuters, sparking a similar jump in iron ore prices.
Source: Livemint
7. GST: Online Travel Agents Liable to Deduct 1% Tax at Source
Online travel agents providing online ticketing and other services will be liable to deduct 1 percent tax at source under the GST regime as they have been classified as e-commerce operators, the CBEC said on Tuesday. Under the Goods and Services Tax (GST) regime, an e- commerce operator is required to collect 1 percent of the net value of taxable supplies made through it.
The amount so collected is called tax collected at source or TCS but this provision has been kept in abeyance for the time being. Online travel agents have been classified as e-commerce operators (ECO) and so they have to deduct TCS.
The Central Board of Excise and Customs (CBEC), in a fresh set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website. Only applicable GST for the goods would be levied in that case.
Source: PTI
8. Axis Bank Cuts Savings Account Rate For Small Value Deposits
Private sector lender Axis Bank Ltd., on Tuesday, said that it will drop interest rates on savings account deposits up to Rs 50 lakh. Axis Bank follows State Bank of India and a handful of other lenders who have also reduced rates on savings accounts.
In a notification to the stock exchanges, the bank said that for savings deposits upto Rs 50 lakh, the bank will cut the interest rate by 50 basis points (bps) to 3.5 percent. For deposits over Rs 50 lakh, the bank will continue to offer 4 percent interest. The new interest rates will be effective immediately, the bank said.
Source: BloombergQuint
9. Boeing Eyes India Tie-Ups for Drones, Digital Technology
Boeing Co. is in talks with Indian companies to collaborate on drones, digital technology and aerospace services, a top company executive said.
The US-based aircraft maker is already making the fuselage of its Apache attack helicopters and floor beams for some of its planes in collaboration with the Tata group in India and has also invested in an engineering unit in Bengaluru.
Marc Allen, president of Boeing International, said Boeing is casting its “anchor deep into India” and more announcements are likely soon.
Source: Livemint
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