Skip to main content

Gst Council To Meet Today, First Time After July 1 Roll Out


A fortnight into the GST, small and medium dealers, and manufacturers are grappling with issues of the new indirect taxation regime.
Finance Minister Arun Jaitley will chair the 19th meeting of the GST Council on Monday, via video conference.
This would be the first meeting after the implementation.
The meeting would reportedly discuss tweaking of rates on some products, besides taking stock of the rollout of the new indirect tax system.
The spread was 1.9 percentage point at the end of FY16 and 4.8 percentage points at beginning of the current rally in March 2013.
The spread was 1.5 percentage point at the end of March 2008.
The earnings yield is the potential yield for an equity investor if the company pays 100 per cent of its current (annual) net profit as equity dividend.
Simply put, it is net profit divided by the market capitalisation of a company.
Typically, the earnings yield on equities should be sufficiently higher than the yield on riskfree assets (such as government bonds) to compensate for the greater risk of owning equities.
Analysts say that this raises the prospect of an outflow of capital from the equity market if the bond yields in the US harden any further.
“The market has been expensive for too long now, aided by lower interest rates in major developed markets like the US. Any further tightening of interest rates in the US or further fall in the earnings yield in India may lead toamarket correction,” says Dhananjay Sinha, head research, economist and equity strategist, Emkay Global Financial Services.
The benchmark interest rates in the US are up nearly 20 bps since the beginning of the current calendar year.
One basis point is onehundredth of one per cent.
This has been partly compensated by around a decline of 10 bps in benchmark interest rates in India.
While many are expecting interest rate cuts by the Reserve Bank of India, there are others who think otherwise.
They argue that interest rates in India could rise, as various state governments hit the bond market to raise funds to finance the farm loan waivers and bigger fiscal deficits.
For domestic investors, the yield spread on equities (difference between 10 year GSec yield and equities yield) is nowanegative 3.2 percentage point, which is worse than a negative spread of 2.8 percentage point at the end of March 2014 but better than negative 4 percentage point at the end of FY 15.
Simply,abroad portfolio of stocks now yieldsapotential dividend of Rs 3,300 for every Rs 1 lakh worth of investment, down from Rs 4,000 at the end of March 2016 and Rs 6,600 at the end of March 2013.
The market is set to get even more expensive as brokerages expect companies to report declines in net profits onayearonyear (YoY) basis during the June 2017 quarter.
The combined net profit of all Nifty 50 companies is expected to decline by 2.6 per cent YoY during the quarter, while excluding metals & oil companies, the net profit is likely to decline by 7.6 per cent YoY for the June quarter.
Three index companies —TCS, IndusInd Bank, and Infosys —have reported their firstquarter results so far and the net profit trend is far from being exciting.
The Business Standard, New Delhi, 17th July 2017

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s