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India's CAD likely at 1.7% this fiscal: Report India's current account deficit is expected to be around 1.7 per cent of GDP in this financial year, largely owing to higher oil prices, says a report. With the December quarter current account deficit worsening to 2 per cent of GDP, Bank of America Merrill Lynch (BofAML) raised its current account deficit (CAD) forecast for this financial year and for the next fiscal. The global financial services major has raised its CAD forecast by 10 bps to 1.7 per cent of GDP in 2017-18 and by 20 bps to 1.9 per cent of GDP in 2018-19. According to data released by the Reserve Bank on Friday, the CAD rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 per cent in the year-ago period, on the back of higher trade deficit. On a cumulative basis, CAD more than doubled to 1.9 per cent of GDP in the April-December 2017 period. The Business Standard, New Delhi, 20th March 2018

Manufacturing sales improve in Q3, profit subdued: RBI  The country's manufacturing sector witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net profit has remained subdued due to lack of support from other income, says a RBI data on performance of private corporate sector.  The RBI data released today said the information technology (IT) sector recorded a modest improvement in sales growth, although lower than a year ago.  The services (non-IT) sector showed signs of revival as reflected by positive sales growth, it added.  This data is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) companies for third quarter of 2017-18.  As per the data, sales of manufacturing companies increased by 14 per cent in the October-December quarter of 2017-18 compared to similar period of the previous fiscal.  The net profit of the manufacturing companies declined by 2.4 per cent in the third quarter, RBI

SEBI exempts govt from open offers for 6 PSBs post capital infusion Sebi has given exemption from open offer requirements with respect to six lenders—PNB, Canara Bank, Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India Markets regulator Securities and Exchange Board of India (Sebi) on Monday exempted the central government from making an open offer for the shareholders of Punjab National Bank (PNB), Canara Bank and four other state-owned lenders following capital infusion. The exemption has been given with regard to Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India also. Following capital infusion in these listed public sector banks, the government’s respective stakes would rise in them. Under Sebi norms, an entity whose shareholding in a listed company goes beyond a particular threshold, then it has to make an open offer. Sebi has given exemption from open offer requirements with respect to the six lenders through six separate but similarly-w

CBEC to verify GST transitional credit claims of 50,000 taxpayers  In order to check "frivolous and fraudulent" tax credit claims by businesses, the CBEC has decided to verify demands of top 50,000 tax payers claiming maximum GST transitional credit, starting with those where the quantum exceeds Rs 25 lakh.  The verification of "unreasonable" transitional credit claims would be conducted in four phases, a source said, adding that credit verification will remain one of the focus areas in 2018-19.  As part of transition to GST last July, taxpayers were allowed to file Form TRAN-1 and avail tax credit on the basis of closing balance of the credit declared in the last return under the pre-Goods and Services Tax regime.  In order to check "frivolous and fraudulent" transitional credit claims, the CBEC has shared with field offices the list of 50,000 taxpayers whose claims would be further scrutinised.  It is suspected that some of these businesses might

 Only 16% of initial GST returns filed for July-Dec matched with final returns  With only 16 per cent of the summary sales returns under GST matching with the final returns, the revenue department has started to analyse major gaps with a view to check any possible tax evasion.  According to the GST returns data, 34 per cent of businesses paid Rs 34,400 crore less tax between July-December while filing initial summary return (GSTR-3B).  These 34 per cent 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.  As per the analysis by the revenue department, initial returns filed and taxes paid by 16.36 per cent of the businesses have matched with their final returns and tax liability. They paid a total tax of Rs 22,014 crore.  However, the data also showed that there was excess tax payment of Rs 91,072 crore by 49.36 per cent of businesses register

  E-wallet will address GST refund issue of exporters Introduction of e-wallet mechanism will effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime, Commerce and Industry Minister Suresh Prabhu said. Under the e-wallet mechanism, a notional credit would be transferred to exporters' accounts based on their past record and the credit can be used to pay taxes on inputs. Prabhu said that secretaries in the commerce and finance ministries are working on the matter. "The only way it can be addressed properly is through e-wallet (mechanism). Finance ministry has to take a call on this. E-wallet will actually address the issue because then you (exporters) do not have to pay and seek refunds," he told PTI. According to exporters, delay in refund of taxes is blocking their working capital and impacting shipments. The issue of refunds to exporters has been delayed for over eight months now. The revenue departm

  IBC amendment: Language may hold the key to who can bid As the government gears up for major changes in the Insolvency and Bankruptcy Code (IBC), those close to drafting these revisions believe the focus is now on getting the language right for ‘’greater clarity’’ in the rulebook While the basic premise and spirit of the Code will remain the same, the commas and the full-stops in the draft report being prepared by a high-level committee will make interpretation of the law simpler, a source told Business Standard. It could take up to 10 days for this panel reviewing the IBC to finalise its recommendations, he said, adding that the ‘’attempt is always to simplify things’’. The panel report will then be taken up by the legislative department of the government for further changes. The government is aiming for the report to be tabled in the current session of Parliament.   Among the changes in the Code likely to be proposed by the committee, it is the tweaking of the layers of pro