CA Online

India set to pitch for global framework to tax digital companies The panel under BEPS - Taskforce on Digital Taxation - is expected to come up with a final report by 2020 After global recognition to its equalisation levy on online advertisements from Facebook, Google or Netflix imposed two years ago, India is set to pitch for an international tax measure to tax these companies that earn revenues from a large user base in the country. The framework, technically called the multilateral instrument to implement tax-related measures (MLI) to prevent base erosion and profit shifting (BEPS), will avoid the need to amend individual bilateral treaties. In an interim report - Tax challenges Arising from Digitalisation - released last week, the Organisation for Economic Co-operation and Development (OECD) suggested the use of interim measures like equalisation levy by countries to tax these companies till a long-term multilateral solution is reached. There was, however, no consensus on

 Rupee slips 3 paise to 4-month low of 65.20 ahead of key US Fed meet Foreign investors, however, put in Rs 3.44 billion on net basis in the domestic stock markets The rupee slipped by 3 paise to finish at a four-month low of 65.20 against the US currency on Tuesday on some dollar buying by importers and banks ahead of the US Federal Reserve's key policy meet. The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 per cent from Monday's close of 65.17. Meanwhile, the 30-share BSE Sensex rebounded by 73.64 points or 0.22 per cent at 32,996.76. The greenback's gains against major global currencies ahead of the US Federal Reserve's key policy meet that kicks off later in the day, in which it is expected to hike interest rates, weighed on the domestic unit, dealers said. The rupee started on a negative note at the Interbank Foreign Exchange (forex) market and remained under pressure for the better part of the session on

Government extends facility of fixed term employment for all sectors  The government has extended the facility of hiring workers on fixed term employment to all sectors for improving the ease of doing business for players intending to hire people for completing specified projects, tasks or orders. This facility was available only for the apparel manufacturing sector as per the Industrial Establishment (Standing Order) 1946. As per a notification issued by the labour ministry to amend the Order, words "fixed term employment in apparel manufacturing sector" will be replaced by "fixed term employment" meaning that facility would be available for all sectors. In his Budget speech earlier last month, Finance Ministry Arun Jaitley had said, "the facility of fixed term employment will be extended to all sectors". The fixed term employment was introduced in apparel manufacturing sector in Industrial Employment (Standing Order ) Act in October, 2016. The con

Sebi liberalises spread margin benefit in commodity futures contracts Currently, margin benefit of 75 per cent in initial margins is given in spread trading The Securities and Exchange Board of India (Sebi) has liberalised spread margin benefit in commodity futures contracts.So far, only calendar spreads or spreads consisting of two contract variants have the same underlying commodity.Sebi has now allowed spread contracts across futures contracts in a commodity complex or inter-commodity spreads, with margin benefits from July. Currently, margin benefit of 75 per cent in initial margins is given in spread trading.From July, the benefit in initial margins for such spreads will be permitted when each individual contract in the spread is from the first three expiring contracts.Normally calendar spread takes place in near-month and far-month contracts.Usually, carry traders and financiers trade in spread contracts. The difference in prices of two contracts gives them returns when

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