1. Tax Departments Keep a Close Watch on Prices Post GST Rollout
Tax departments across the country are keeping a close watch on prices following the 1 July rollout of the Goods and Services Tax (GST).
Makers of consumer goods and handsets, as well as some restaurant chains, have all got calls from local tax authorities seeking details of invoices before and after GST as part of the exercise.
A notice sent to a company by local tax authorities in Tamil Nadu read:
In order to study prices under the GST, you are requested to send selling price of your top commodity... in the relevant format.
Similar messages have been sent to companies in states such as Maharashtra, Andhra Pradesh and Puducherry. Some have even got phone calls seeking price information, said a person aware of the development.
Source: Economic Times
2. Flipkart Sweetens Its Offer For Snapdeal to $900 Million
Online retailer Flipkart has sweetened its bid for Snapdeal to about $900 million after its earlier offer was rejected by its smaller rival two weeks ago, three people privy to the development told BloombergQuint.
The fresh offer, which includes e-commerce platform Snapdeal and order fulfillment platform Unicommerce, was made late on Monday night, one of the persons quoted above said requesting anonymity as the talks are private. Credit Suisse is acting as the financial adviser to Jasper Infotech Pvt Ltd, the parent of Snapdeal, in this deal.
Flipkart had made its initial $850-million offer in the first week of July after a month-long due diligence, but that didn’t include Unicommerce, the person quoted above said.
Source: BloombergQuint
3. World Bank to Draw up Plan for Railways' Rs 5 Lakh Crore Makeover
The World Bank will help draw up a granular makeover blueprint for the Indian Railways, which is investing Rs 5 lakh crore to transform itself from a colonial-era mass transporter into a strategic platform underpinning growth in Asia’s third-biggest economy.
The multilateral lending agency would partner the 164-year-old railroad network, the world’s fourth longest, to help the state transporter with investment and planning, digitisation and technology development, besides establishing a Railway University and the Rail Tariff Authority.
The bank, which has earlier worked with the Railways for financing the Eastern Dedicated Freight Corridor Project, will provide advisory services and programme management consultancy for this transformation exercise for 2-3 years.
Source: Economic Times
4. India Signed Defence Deals Worth Rs 1.21 Lakh Crore in Last 3 Fiscals
Fifty-eight contracts involving Rs 1.21 lakh crore were signed by the government with foreign defence firms in the last three fiscals for procuring aircraft, helicopters and weapons systems for the armed forces, the Rajya Sabha was informed on Tuesday.
Replying to questions on defence procurement, Minister of State for Defence Subhash Bhamre also listed agreements India had sealed with foreign governments during the period including with Russia to bolster its defence preparedness.
Referring to the strategic partnership model, Bhamre said transparency and fair competition will be ensured through a rigorous process in its implementation.
Source: PTI
5. ITC Shares Bear Brunt of Cigarette Cess Hike
Shares of ITC Ltd tumbled on Tuesday, wiping Rs 50,000 crore off the market value of India’s largest cigarette maker, a day after the cess on cigarettes was increased to offset an expected decline in tax revenue after the rollout of Goods and Services Tax (GST).
At least six securities houses – CLSA India Ltd, JM Financial Ltd, Morgan Stanley, Credit Suisse Securities (India) Ltd, IIFL Holdings Ltd and ICICIdirect.com – cut their ratings of the stock and slashed target prices, citing a weaker earnings outlook after the move by the GST Council.
Some also see the unexpected increase in tax as a signal that taxation on cigarettes will remain punitive and uncertain.
Source: Livemint
6. Air India Net Loss Declines to Rs 3,643 Crore; Operating Profit Rises in 2016-17
Air India's net loss after tax narrowed to Rs 3,643 crore and operating profit rose to Rs 300 crore in the last financial year, the government said on Tuesday.
The airline saw its total revenue, including exceptional and extraordinary items, increase to Rs 22,146 crore in 2016-17 period, as per provisional numbers provided by Minister of State for Civil Aviation Jayant Sinha to the Rajya Sabha.
The total revenue stood at Rs 20,524.56 crore in the year-ago period.
Source: PTI
7. ONGC-HPCL Merger on Cabinet Agenda Today
The proposed merger of Oil and Natural Gas Corporation (ONGC) and Hindustan Petroleum Corporation (HPCL) is on the agenda of the Union Cabinet meeting on Wednesday. The government is likely to give the control of HPCL to ONGC.
“The ONGC-HPCL proposal could be taken up by the Cabinet,” a senior government official said. Petroleum Minister Dharmendra Pradhan has twice given public statements that the merger of ONGC and HPCL would be completed in the current financial year.
According to a proposal floated by the finance ministry’s Department of Investment and Public Asset Management (DIPAM), the government is looking to sell its entire 51.11 per cent stake in HPCL to ONGC.
Source: Business Standard
8. Xiaomi Plans to Double India Sales
Xiaomi, the second largest shipper of smartphones in the country in 2016, is planning to double its sales this year. The company had sales of Rs 6,500 crore last year and could overtake manufacturers like Micromax if it notches up Rs 13,000 crore in sales in 2017.
“Our sales crossed $1 billion last year and we believe we can easily double that this year. During January-June, our revenue grew 328 per cent, year on year,” said Manu Jain, managing director, Xiaomi India.
Source: Business Standard
9. HUL Q1 Results Beat Analyst Estimates, but GST Pain Seen in Q2
Hindustan Unilever Ltd (HUL) on Tuesday reported June quarter results that beat analyst estimates as India’s largest packaged consumer goods maker cut costs and benefited from price increases in earlier quarters.
Flat volume growth and management commentary on volatility stemming from implementation of the goods and services tax (GST) imply tough times for the sector.
The seller of Surf detergent and Kissan ketchup said profit rose 9.3% from a year ago to Rs1,283 crore in the three months to 30 June. A Bloomberg poll of 10 analysts had estimated HUL’s Q1 profit at Rs1,183.5 crore.
Source: Livemint
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