India with its huge population is an attractive destination for automobile industry and became the fourth largest auto market in 2018. The automotive industry (vehicles & components) contributes approximately 7 percent to country’s GDP, employs millions of people. However, recently it has been seen that the India’s automobile sector is reeling under immense pressure with the cumulative domestic sales falling month-after month starting from September 2018 onwards. The woes of Indian automobile industry started with demonetization, fuelled by BS-IV vehicles discontinuation and aggravated and hit badly by COVID-19 pandemic. In such testing times, there is an imperative need to take certain prudent steps to relax the tax system of the auto industry to ensure the overall financial wellness of the ecosystem; and have illustrated below a few factors contributing to slow growth of the automobile industry and suggestive steps:Remission should not be linked only to the tax costs … [Read more...] about Opinion: Need of the hour is to bring Indirect tax reforms for the ailing auto industry
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equalisation levy (“2% EL”) in the Finance Act, 2020. This came as a bolt from the blue for many since the 2% EL was not a part of the budget proposals or part of the Finance Bill, 2020.The 2% EL is levied on foreign e-commerce operators, who own, operate or manage a digital facility or platform for selling or facilitating sales of goods and services online to Indian residents [or persons using an Indian internet protocol (IP) address]. In some cases, EL also applies to consideration received from non-residents on (a) sale of advertisement targeting Indian residents or persons using an Indian IP address; and (b) sale of data collected from Indian residents or customers using an Indian IP address.The intent of the levy is clear – to tax non-resident e-commerce players who often escaped taxation in India even though a major chunk of their business and profitability was derived from Indian users.However, a lot of hue and cry has been made by the e-commerce industry … [Read more...] about Equalisation levy: Administrative woes making a stronger case for deferral?
NEW DELHI: With an eye to attract more investment and boost domestic economic activity, the Centre is eyeing further easing of foreign direct investment rules, in addition to pushing reforms in mining, banking and capital market sectors, commerce and industry minister Piyush Goyal said.The minister’s statement at India Global Week comes at a time when the government is working to wean away from China investors who are looking to diversify their production bases, with several firms keen to avoid concentration in China after the coronavirus pandemic. The focus has intensified after the tension with China on the Ladakh border as the government is keen to bolster domestic manufacturing.Sources said the FDI reforms could be announced over the next few weeks. At the event, Goyal said the Centre is also looking at simplifying domestic approvals and bureaucratic processes to make it easier for industry to do business. “We have significant items on the table. We are looking at … [Read more...] about To wean business away from China, eased FDI norms likely
Kuwait’s PM has said the country’s expatriate population should be more than halved to 30% of the total, as the coronavirus pandemic and a slump in oil prices send shudders through Gulf economies. Foreigners account for nearly 3.4 million of Kuwait’s 4.8 million people, and “we have a future challenge to redress this imbalance,” Sheikh Sabah Al-Khalid Al-Sabah told the top editors of local newspapers on Wednesday, according to an official statement carried by state-run KUNA. The comments are a rare public acknowledgment by the executive of one of Kuwait’s most contentious issues, and follow a renewed push by lawmakers to reduce the number of overseas workers, particularly unskilled labor, with the economy under intense strain. MPs are proposing a quota system as well as replacing all expatriate government employees, estimated at 100,000, with Kuwaitis. Critics of the approach point out that small pools of citizens will make replacing many foreign … [Read more...] about Kuwait wants to bring down migrant population from 70% to 30%
special liquidity scheme worth Rs 30,000 crore for stressed NBFCs and HFCs whose financials further deteriorated due to the COVID-19 crisis.The scheme was launched on July 1. The Reserve Bank of India (RBI) has provided funds for the scheme by subscribing to government-guaranteed special securities issued by a trust set up by SBI Capital Markets Limited (SBICAP)."RBI has also issued a circular to NBFCs and HFCs on July 1, 2020 itself on the Scheme. SBICAP has received 24 applications requesting about Rs 9,875 crore of financing as on July 7, 2020 which are being processed," the finance ministry said in a statement.The first application has been approved and the remaining are also under consideration, it said.The Investment Committee of Special Liquidity Scheme (SLS) Trust has approved investment of up to Rs 200 crore in commercial paper issued by the applicant.Non-banking financial companies (NBFCs) and housing finance companies (HFCs) came under stress following a series of defaults … [Read more...] about Stressed NBFCs seek about Rs 10,000-crore financing support under special liquidity scheme