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Indian Economy News & Discussion - Aug 26 2015

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 17 May 2017 08:43

GST Bonanza Turns City at India's Dead Center Into Nation's Warehouse
Nagpur is in the dead center of the country, at the crossroads of busy road and rail corridors that bisect India east to west and north to south. Now, India is on the cusp of a sweeping tax overhaul that could turn the city of 2.4 million people into one of the nation’s biggest logistics hubs.

Known for its oranges, tiger sanctuaries, and 45-degree Celsius (108 Fahrenheit) summer heat, Nagpur has seen a groundswell of investment from retailers and warehouse companies betting that the debut of Prime Minister Narendra Modi’s national goods-and-service tax on July 1 will transform the city’s fortunes.

The new tax will replace layers of provincial levies and unify India’s 29 states into a single market. Transport Minister Nitin Gadkari said it could push economic growth into double digits by eliminating shipping delays across state borders and cutting corruption.

At present, trucks can queue for up to three kilometers to pay an entry fee at New Delhi’s 122 checkpoints. About 75 percent of the country’s road-hauling firms operated fleets of fewer than five trucks, according to a 2014 government report.

Image
Future Group’s warehouse in Nagpur.Photographer: Dhiraj Singh/Bloomberg

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby jamwal » 17 May 2017 13:18

NDA beats UPA, rolls out roads faster

The government's work order for highway expansion has shot up by 122% during the first three years of Modi government and the pace of construction has gone up by 25%, according to data released by the road transport and highways ministry. During 2011-2014, daily highway construction was about 13 km in comparison to 17 km during the three years' of Modi government. The acceleration in award of works to road builders — over 11,000 km on an average in the past three years against only 5,000 during UPA's corresponding period — has significance considering that this will translate into actual construction of roads by April 2019 when the government faces election. It is expected that by 2019, the government will be in a position to achieve more than 30 km of highway construction per day, a source said. Highways minister Nitin Gadkari has set the target of pushing daily highway construction to 41 km. Highway development is considered one of the biggest job generators and increased road connectivity has been recognised as a major contributor to economic activities even in the hinterlands. However, for the current financial year, the government has set the target of awarding at least 30% of highway projects on public private partnership (PPP). Last year only 17% projects were bid out on PPP mode. Similarly, shipping ministry data show high increase in capacity of 12 major ports under government from 745 million tonnes in 2012-13 to 1,065 million tonnes in 2016-17.

http://timesofindia.indiatimes.com/indi ... 709063.cms

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Hari Seldon » 17 May 2017 17:21

After PM Narendra Modi boost, BHIM app referral scheme gains momentum (FinExp)

GoI learning Marketing 101 to boost adoption amongst janta and traders of much needed (and almost 'free') Govt schemes like the BHIM app for fin inclusion.

National Payments Corporation of India managing director on Tuesday said that Bharat Interface for Money (BHIM) referral bonus scheme for consumers has started gaining momentum in the country.

The scheme, aimed to promote the use of the application, was launched by Prime Minister Narendra Modi on April 14, 2017 on the occasion of commemorating the 126th birth anniversary of Dr Bhimrao Ambedkar.

The Narendra Modi government has decided to spend Rs 495 crore on the scheme for a period of six months (from April 14, 2017 to October 14), NPCI said in a statement.

As per the scheme, the referrer is expected to encourage the referee to download the BHIM app and enter the referrer’s mobile number as the referral code. Both the referrer and referee will get a bonus provided the new user completes three successful transactions (minimum amount of Rs 50). The referrer will get Rs 10 per successful referral, while the new users will get Rs 25 for downloading and transacting from BHIM App.


Sounds like small change, eh? INR 10, 25, 50 and so on for referrers and referreds alike?

My bet is it'll go viral very soon in our vast hinterlands among the great unwashed. Rural India is smart AND price-sensitive enough to switch mobile carriers for a half-paise per second change in talk-time call-rates, after all.

Won't be long before the trade picks it up as well. KirANas may resist due to govt ability to track digital payments, however. But a foot in the door is all that's needed. We'll see.

Jai ho.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 17 May 2017 18:17

achoudhury wrote:The sovereign rating is not just used for Govt borrowing. It impacts private sector borrowing as well as investment decisions by fund houses. Lot of allocation is based on the credit rating, especially by Pension funds. If India had better credit rating then investment in Infra would have been far better as Pension funds are ideally suited to fund long gestation infra projects which provide long term stable IRR


Thanks! I think the GOI's credit rating is the lowest possible within the "investment grade" class? What credit rating would make a meaningful difference?

Maybe demonetization will have brought sufficient new taxpayers into the net to take away one objection against raising India's credit rating.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Uttam » 17 May 2017 19:14

Thanks! I think the GOI's credit rating is the lowest possible within the "investment grade" class? What credit rating would make a meaningful difference?

Maybe demonetization will have brought sufficient new taxpayers into the net to take away one objection against raising India's credit rating.


Aswath Damodaran from NYU provides wonderful data on country default risk premium for various sovereign rating. Check it out

http://pages.stern.nyu.edu/~adamodar/Ne ... yprem.html

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Gagan » 18 May 2017 01:10

Former US ambassador to India

https://www.youtube.com/watch?v=GxNgdq9aV2Y

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 18 May 2017 01:55

Banks may add Rs 2.6 lakh cr worth NPAs to existing pile by FY19-end: Fitch
Indian banks could potentially add as much as Rs 2.6 lakh crore ($40.58 billion) worth of soured loans by March 2019 to their existing pile, India Ratings and Research said on Wednesday.

The rating agency, an affiliate of Fitch, said it estimated banks were sitting on unrecognised stressed loans worth Rs 7.7 lakh crore.


"While a sizeable proportion of the unrecognised stressed exposure has strong group linkage or some form of parental support, potentially half of it could further slip in the next 12-18 months," India Ratings analysts led by Udit Kariwala wrote in a note.

As of end-December, banks in India had stressed loans of Rs 9.64 lakh crore, according to government data.

Textile sector pins hope on 5% GST rate
The textile industry is awaiting the central government's decision on whether the new goods and services tax (GST) rate would be five per cent for segments presently not subject to any indirect tax or stick to one of 12 per cent.

The sector provides direct employment to an estimated 45 million individuals and indirect jobs to another 60 million. And, is a tenth of the country's manufacturing. Textile commodities have a seven point weight in the Consumer Price Index.

Observers say there is a large 'grey market' which is completely outside the ambit of tax payment.

Currently, fabrics are fully exempt from taxes but not yarn or garments. The way GST works, with input credit, the duty will apply to all on value addition and can be collected back from buyers. However, a segment that has been completely out of a tax regime will find it difficult to accept a 12 per cent rate.

CMAI says extension of GST to both fabrics and apparel would mean a substantial expansion of the tax base. Assuming even 50 per cent compliance in the sector, a five per cent GST would generate annual revenue of Rs 10,850 crore for the government.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 18 May 2017 02:45

Uttam wrote:
Aswath Damodaran from NYU provides wonderful data on country default risk premium for various sovereign rating. Check it out

http://pages.stern.nyu.edu/~adamodar/Ne ... yprem.html


Thanks, excellent resource!

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby SwamyG » 18 May 2017 05:54


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Re: Indian Economy News & Discussion - Aug 26 2015

Postby deWalker » 18 May 2017 06:02

And a quick follow-on to SwamyG's post above:
Apple gets cranking on iPhones in India

With a link to the original WSJ article inside that link

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 19 May 2017 00:07

Crop insurance claims seen soaring to Rs 13,000 cr in 2016-17
The crop insurance claims are likely to touch Rs 13,000 crore in the 2016-17 crop year ending next month, in spite of good monsoon, indicating other risks weighing heavy on the farm sector. More farmers applied for the upgraded crop insurance policy ‘Pradhan Mantri Fasal Bima Yojana (PMFBY)’ launched in the 2016-17 crop year (July-June) with better features like lower premium, early and full payment of claims.

As per the agriculture ministry data, about Rs 15,891 crore premium is estimated to have been collected by the 11 empanelled insurance companies who sold crop insurance policy to the farmers in both kharif (summer) and rabi (winter) season during the 2016-17 crop year.

Of the total premium collected in 2016-17, farmers’ share was Rs 2,685 crore. Under the PMFBY, farmers pay very low premium, while the rest is paid equally by the Centre and states. Interestingly, total insurance claims during the year are expected to be around Rs 13,000 crore, more than 80 per cent of the total premium collected.

“Despite good monsoon year, crop insurance claims are seen to be huge. This shows how risky the farming is in the country. The risks vary from place to place and region to region,” a senior ministry official told PTI.

GST rates finalised: Food grains to get cheaper; sugar, tea, edible oils will be taxed at 5%
India has finalised the tax rates on all but six out of the 1,211 items in the proposed GST (Goods and Services Tax) regime, fitting over 80% of the items in the up to 18% tax slabs, effectively making food grains cheaper, while exempting essential items such as cereals and milk from the levy altogether.

Revenue Secretary Hasmukh Adhia, who is in Srinagar for a meeting of the GST Council, said that only 19% of all goods will be taxed at the highest slab of 28%.

The council has put items of essential use such as sugar, tea and edible oil at the lower end of the tax slabs at 5%. Another item which will attract the 5% levy is coal. On the other hand, toothpaste and hair oil, which at present attract a tax rate of 28%, are fitted in the 18% slab, effectively making your daily needs bill slimmer. Capital goods and industrial intermediate items will also be taxed at 18% under GST.

Adhia said that 7% of the items are at the 0% tax slab, while 14% are in the 5% slab. The 18% tax slab has the highest number of the items at 43% of all, whereas 17% of items will fall under the 12% tax slab.

GDP numbers likely to be revised higher: Nomura
The new series for industrial production and wholesale prices suggest that the GDP numbers for financial year 2016-17 could be revised up from 6.7 per cent to 7.4 per cent, says a Nomura report. The Central Statistical Office (CSO) revised India’s wholesale price index (WPI) and industrial production (IP) series last week, changing the base year to 2011-12 (from 2004-05).

Industrial production is an input in estimating gross value added for the unorganised manufacturing sector, while WPI is used as a deflator for deriving real GVA values from nominal data.

“We estimate that GVA growth will be revised up to 8.2 per cent (from 7.8 per cent) for 2015-16 and to 7.4 per cent (from 6.7 per cent) for 2016-17,” Nomura said in a research note.

The GDP numbers are scheduled to be released on May 31.

The report further said that 2016-17 GDP growth may also be revised up to 7.8 per cent (from 7.1 per cent in the second estimate), with both consumption and investment growth likely to see upward revisions.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby VKumar » 19 May 2017 09:18

Today government is to decide GST rates on packaged and branded foods. I urge the government to keep the rates for these at 5% so as to promote food processing, increase employment, reduce food wastage, make India a global giant in processed foods, serve the consumer with a wide choice of foods at lower costs, benefit the farmers by higher sales at better rates through the year.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby jamwal » 19 May 2017 11:59

http://economictimes.indiatimes.com/new ... 707215.cms

India suspends fruits from China after they fail pesticide tests


India has suspended imports of apples, pears and tagetes seeds from China after repeated tests found pests in the incoming shipments.

This is the first instance of Indian authorities banning farm products from China. Apples and pears account for almost 90% of the fruit and vegetables India imports from its neighbour.

“We repeatedly found quarantine pests in apples, pears and tagetes (marigold flower) seeds coming from China. Hence, we have temporarily suspended their imports,” said an official aware of the matter.

The move comes as India has made a point of staying away from China’s ostentatious promotion of its One Belt One Road (OBOR) initiative and relations between the two countries have been going through a prickly time, mainly due to differences centered around border disputes.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Singha » 19 May 2017 13:39

pests are free protein. pesticides are not good. the article seems to mix up the two.

India prohibits import of milk and milk products such as chocolates, candies and confectionery, and food preparations with milk or milk solids as an ingredient form China.

the chinese upper middle class is so terrified of their own baby foods there is a huge market for shipping food products from abroad via chinese students or exim cos. my wife was saying some cheen visitors(young lads) were looking around at indian amul and nestle type tins to take back after a official visit here :lol: there is a lot of mistrust under the glitzy sheen of the gold coast

https://www.nytimes.com/2017/05/02/worl ... aigou.html

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JohnTitor » 19 May 2017 17:48


Is it possible that there is fraud involved? or are there sufficient checks in place to prevent the insurance from being misused?


Good but food grains and other food ingredients need to be tax-free. These raw materials are not a luxury. Processed food (such as buscuits, cakes etc) can be taxed at 5%. This would be similar to the UK VAT regime

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 19 May 2017 17:58

JohnTitor wrote:

Is it possible that there is fraud involved? or are there sufficient checks in place to prevent the insurance from being misused?


Good but food grains and other food ingredients need to be tax-free. These raw materials are not a luxury. Processed food (such as buscuits, cakes etc) can be taxed at 5%. This would be similar to the UK VAT regime


In their eagerness to pass the GST bill, the GoI have ceded too much control and concessions to the rogue states. The center needs to show some spine and think about a uniform tax rate for items countrywide and also a fairly low tax regime.

Why are they aping the west by setting rates at 18%??

why bugger your own people??

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JohnTitor » 19 May 2017 18:15

chetak wrote:In their eagerness to pass the GST bill, the GoI have ceded too much control and concessions to the rogue states. The center needs to show some spine and think about a uniform tax rate for items countrywide and also a fairly low tax regime.

Why are they aping the west by setting rates at 18%??

why bugger your own people??

I meant having unprocessed food at 0% and processed at 5% would be similar to the west.

Let's be honest, that is fair. Food isn't a "luxury", especially unprocessed food. But I reckon they are using this as a means to raise taxes from those who refuse to pay income tax. With so many people not paying taxes, the price of goods is ridiculously high in india.

For instance, the price of a car (like saw Toyota) is over 2x that of the UK, and UK is considered to be a high tax country! When tax is low, prices are lower and people tend to spend which in turn drives the economy. On top of this you have a 28-33% tax for such items. In contrast, VAT is charged for cars etc @ 20% max. I'm not sure what the current US rates are but I believe they are lower than the UK rate.

The govt should incentivize people to pay income tax by providing relief for indirect taxes through the IT form (with full receipts of course) - at least for a decade or so. This would increase the tax base and once it is big enough it can be repealed and indirect taxes can be brought down. But I don't really see any innovative ways of expanding the tax base and reducing the burden on the average tax payer being done in India.
Last edited by JohnTitor on 19 May 2017 18:18, edited 2 times in total.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 19 May 2017 18:16

speech by Aravind Datar on the nightmare that is India's version of GST.


https://youtu.be/xGmJyxugA2E




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Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 19 May 2017 20:14

^^So an advocate giving a lecture on taxation in 20 mins prefaces GST as outdated and that to out of his personal conviction.

Heard it all.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 19 May 2017 20:20

There are some good points in the Aravind Datar talk.
E.g., in Singapore, the default filing period is quarterly. In India it is monthly.

Some docs:
https://en.wikipedia.org/wiki/Goods_and ... ngapore%29
https://www.iras.gov.sg/irashome/upload ... nesses.pdf

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 19 May 2017 22:29

Size of singapore economy: $300 B., Indian economy is 8x times more. And further., Indian economy is very diversified. For example India has a agriculture sector which Singapore does not have. Or has a mining sector which Singapore does not have. Or India's internal trade is so diversified that S'gpore can not even fathom.

To put filing requirements as a point while comparing two very different economies., where one is a civilizational state and other is a mere city state to run down a single-market tax treaty itself points to pseudo-intellectualism. But Datar is doing what his self-interest is in., to remain relevant and make gains as an "intellectual"., I do feel pity for his audiences though - to completely believe in his hyperbole and a chagrin at myself for listening to his crap.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 19 May 2017 22:52

chetak wrote:In their eagerness to pass the GST bill, the GoI have ceded too much control and concessions to the rogue states. The center needs to show some spine and think about a uniform tax rate for items countrywide and also a fairly low tax regime.

Why are they aping the west by setting rates at 18%??

why bugger your own people??

Why not give it a chance to work and then criticize ? It's the states and centre together who have created GST. States too have taxation powers. We are a federal system, not a unitary one.

GST is the most complex and far-reaching fiscal legislation passed in the history of modern India. It's been finally agreed upon after 1.5 decades of discussion, through the efforts of this government. Give it a chance to work for some time before stating opinion. The time for preview opinions is past - its structure is fixed now.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Bart S » 20 May 2017 00:19

Singha wrote:pests are free protein. pesticides are not good. the article seems to mix up the two.

India prohibits import of milk and milk products such as chocolates, candies and confectionery, and food preparations with milk or milk solids as an ingredient form China.

the chinese upper middle class is so terrified of their own baby foods there is a huge market for shipping food products from abroad via chinese students or exim cos. my wife was saying some cheen visitors(young lads) were looking around at indian amul and nestle type tins to take back after a official visit here :lol: there is a lot of mistrust under the glitzy sheen of the gold coast

https://www.nytimes.com/2017/05/02/worl ... aigou.html


Pests are a problem too. Most countries, especially Aus have very strict rules against it as once alien pests spread they can be extremely difficult to control. Even US customs get very upset if you bring in foodstuffs without declaring.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby SBajwa » 20 May 2017 00:33

Even US customs get very upset if you bring in foodstuffs without declaring.


You are not allowed to bring anything that is raw vegetables or uncooked meats. I tried to get Jhatka Meat from Canada into USA., they threw away all 5kg of it in garbage in front of me .

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Rishirishi » 20 May 2017 00:54

chetak wrote:
speech by Aravind Datar on the nightmare that is India's version of GST.


https://youtu.be/xGmJyxugA2E





One thing is pointing out issues, flaws or challenges. But this duds speach is just CRAP.

1 Most countries in the world have several level of VAT/GST that is not really a great of a problem as one may think.
2 State governments CAN levy extra GST taxes. But that will just hurt business in that state. A lot of the states will opt for the recomended model
3 The dude mixes GST with income tax rules.


This dude is an advocate for the BABUS who will loose cucrative income.
Last edited by Rishirishi on 20 May 2017 01:14, edited 1 time in total.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 20 May 2017 01:07

^^^^^^^

never any harm in taking on board another POV.

Didn't know about all those extra forms, though.

Even dissenting POVs adds to your body of knowledge and forces you to take many points into consideration that you may otherwise have missed out.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 20 May 2017 01:14

He's an attention seeker. Anyone who claims to be making a serious 'POV' titled "Most terrible thing that will happen to the country" is not worth one's time. Resorting to sensationalism is something no one with a meaningful POV needs.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 20 May 2017 01:24

Suraj wrote:He's an attention seeker. Anyone who claims to be making a serious 'POV' titled "Most terrible thing that will happen to the country" is not worth one's time. Resorting to sensationalism is something no one with a meaningful POV needs.


sirji,

didn't someone say that even the dog that did not bark, tells you something?? :)

Barking dogs with an audience patiently listening to them makes old dogs more friendly with google, leading one to books and other subject matter specialists.

It's all maya onlee.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 20 May 2017 01:28

Sorry, we'll have to agree to disagree. Not only is he an attention seeker, but he's too late to be making his case now. Like 5 years too late.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 20 May 2017 02:12

Suraj wrote:Sorry, we'll have to agree to disagree. Not only is he an attention seeker, but he's too late to be making his case now. Like 5 years too late.


sirji,

I have no ideological attachment to the GST, neither for nor against. We don't even have a disagreement.

the aam admi has become aware of GST only a few months to maybe, a year ago. Experts have been at it for years and years. Maybe the guy made his case 5 years ago or maybe he did not. I have personally passed up more than a couple of opportunities to listen to such folks on the GST but simply did not bother to attend such unappetizing and exceedingly dry talks/topics.

Credible info, suitable for the masses, became available only recently hence the heightened interest.

personally, most businesses will crib, pay the GST, whatever the rate and move on. Someone will soon discover or be told about the special built-in loopholes in the GST that the baboo(n)s would have specially written into the law at the behest of their political masters.

After all, a guy's gotta eat, no??

tax cases at SC level is not anything that an ordinary chappie would even bother looking at unless there was a young, pretty lawyer lady to gawk at.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 20 May 2017 02:51

disha wrote:Size of singapore economy: $300 B., Indian economy is 8x times more. And further., Indian economy is very diversified. For example India has a agriculture sector which Singapore does not have. Or has a mining sector which Singapore does not have. Or India's internal trade is so diversified that S'gpore can not even fathom.

To put filing requirements as a point while comparing two very different economies., where one is a civilizational state and other is a mere city state to run down a single-market tax treaty itself points to pseudo-intellectualism. But Datar is doing what his self-interest is in., to remain relevant and make gains as an "intellectual"., I do feel pity for his audiences though - to completely believe in his hyperbole and a chagrin at myself for listening to his crap.


1. Size of the economy is hardly relevant to the overhead of filing taxes of a particular business. There is nothing about an economy that includes agriculture which makes filing taxes monthly better than filing taxes quarterly or even annually.

2. The issue is not about making Datar more relevant or such; it is accepting truth from wherever it is found. If you don't like Datar, that's fine.
Here is M.S. Mani, Senior Director, Indirect Tax, Deloitte, making a similar point:
https://www.pressreader.com/india/busin ... 9729629794
or
http://www.business-standard.com/articl ... 742_1.html
This is from March 2017.

Companies would have to upload three returns every month - by the 10th, 15th and 20th of the month after a sale happens, said M S Mani, senior director, indirect tax, Deloitte.

According to rules on returns, companies would have to submit details of its supplies or invoices by the 10th of the subsequent month. They have to upload details of purchases of inputs by the 15th of the subsequent month.

GST returns, carrying details of taxes paid and input credit taken, have to be filed by the 20th of the next month, said Mani. Besides, by the next year-end, companies would have to upload annual returns as well.

This would burden industry with too much compliance. Service companies such as Infosys, Tata Consultancy Services (TCS) and Airtel, among others, would be particularly hit.

Service providers would have to file 37 returns each a year, said Mani, from two returns - one every six months - now.

Besides, service tax is a central duty. So service providers do not have to file returns in each of the state where they have offices. This will, however, change under the GST regime and they would have to file 37 returns for each state they have an office in, besides the central government.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 20 May 2017 02:56

Ironically enough, What you are saying is a far more meaningful examination of GST than the guy in the video . His talk is sensationalist self-promoting variety, because he says things that would have been meaningful 5 years ago as feedback, today . There's no longer any scope to change it. Everyone's already finalized things . All this talk about making loud noises makes no sense right now . The time to make loud noises was there in the past and he was silent then . Right now he's doing the equivalent of suggesting choice of midwife after baby is born . He lacks credibility . A credible person would know when his critique would actually be meaningful .

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Kashi » 20 May 2017 05:03

Singha wrote:the chinese upper middle class is so terrified of their own baby foods there is a huge market for shipping food products from abroad via chinese students or exim cos.


Retailers in Japan were forced to restrict the sales of baby diapers (in particular "Merry") to two PER FAMILY, in the wake of hoarding by Chinese "tourists".

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 20 May 2017 05:34

A_Gupta wrote:1. Size of the economy is hardly relevant to the overhead of filing taxes of a particular business. There is nothing about an economy that includes agriculture which makes filing taxes monthly better than filing taxes quarterly or even annually.


Precisely., so why the differing procedures for filing a tax return across two-countries is used as a basis to ding GST? Basically the speaker was talking non-sense and needed a crutch to give sense to his non-sense.*

If you don't like Datar, that's fine.


Pointing out that Datar talks non-sense is not because I dislike Datar. He talked non-sense and it is non-sense and my like or dislike of a person has nothing to do with it. Though I now admire him for the simple fact that he has made quite a following by people licking out non-sense from his hands.

On your point:

Companies would have to upload three returns every month - by the 10th, 15th and 20th of the month after a sale happens, said M S Mani, senior director, indirect tax, Deloitte.


I am also upset that I have to upload tax twice a month! Now it is automated., but earlier it was painful manual process. How I wish that I pay my taxes only at the end of the year! Only one filing. But as an individual I have to ensure that not just the tax but other deductions (at least 4 separate deductions to different accounts - hence total 6 and times 2 so total 12) are also filed regularly.

This would burden industry with too much compliance. Service companies such as Infosys, Tata Consultancy Services (TCS) and Airtel, among others, would be particularly hit.

Service providers would have to file 37 returns each a year, said Mani, from two returns - one every six months - now.


I file 145 returns every year., 37 returns is 1/4th of my burden.

%%%%%%

Excellent canard is being trotted out NOW: GST is bad because my compliance requirements have been tightened!

I shiver in my dhotis when people trot out such insane arguments...

*There might be reasons for a monthly filing., so that liabilities are not accumulated and budget forecasting is simplified. Further monthly data over time can lead to better econometric analysis.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 20 May 2017 17:50

For the record, the issue of simplifying procedures for multi-state service entities like banks, telecoms, etc., came up in the press during December 2016-March 2017, when in March 2017, Jaitley ruled out any such thing.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 20 May 2017 19:41

Sir A_Gupta., normalization of compliance requirements is always an ongoing process. Further compliance requirements do change on several factors., both external and internal. At this point., using compliance requirements to ding a tax treaty which was 15 years in making and particularly after the tax law is passed is basically clutching at the straws.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby VKumar » 20 May 2017 21:27

Uploading of sale and purchase data on daily basis is not practical. What happens if there is no power supply, or Internet is down or computer is hanging or accountant is absent? SME who kept part time accountant will need to employ two full time! Just in case one is on leave.

Government always makes rules that are based on their experiences with very large companies. Their feedback is from FICCI and CII, large sector. Similar thing happened two years ago with new Companies Act and they were forced to modify several sections after SME sector howled.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby jamwal » 21 May 2017 11:59

https://qz.com/984656/solar-power-is-no ... -no-sense/
Solar is now cheaper than coal-based electricity in India, but the math makes no sense
Solar energy prices are crashing through the floor in India.
In the last three months, solar tariffs have dropped by over 25%, with much of the recent action focused around Rajasthan’s Bhadla solar park, a 10,000-hectare facility on the edge of the Thar desert.
At an auction for 500 megawatt (MW) of capacity at the park on May 12, the state-run Solar Energy Corporation of India (SECI) managed to discover a record-low tariff of Rs2.44 per kilowatt-hour (kWh). The previous low was two days before that when tariffs hit Rs2.62 per kWh during auctions for another phase of Bhadla solar park.
At such rock-bottom prices, solar power is even cheaper than India’s coal-based thermal power plants. The country’s largest power company, NTPC, sells electricity from its coal-based generation units at a princely Rs3.20 per kWh.
Moreover, India’s solar-generation capacity is expected to touch 8.8 gigawatts (GW) this year (a jump of 76% over 2016) to become the third-largest solar market in the world, according to renewable energy consultancy Bridge To India (BTI). And, on the back of prolific growth in non-conventional power, consulting giant Ernst & Young reckons that India is the world’s second best market for investing in renewable energy.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby atamjeetsingh » 21 May 2017 23:35

Companies would have to upload three returns every month - by the 10th, 15th and 20th of the month after a sale happens, said M S Mani, senior director, indirect tax, Deloitte.

My take on that is it should be based on revenue. Higher the revenue more frequent should be the return filing. After all tax is the govt money which the trader is holding. If the trader go belly up or do Mallaya you don't want them to be running away with a year worth of tax collected.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 22 May 2017 00:10

The percentage of EPF corpus invested in the equity market is being slowly raised, starting at 5%, and now 10%, with the current proposal to raise it to 15%:
EPFO to take call on raising ETF investment limit to 15%
Union minister Bandaru Dattatreya on Sunday said the Employees' Provident Fund Organisations (EPFO) will take a final call on raising investment limit in exchange traded funds (ETFs) to 15 per cent from 10 per cent at a meeting scheduled on May 27 in Pune.

As of April 21 this year an investment of Rs 21,559 crore has been made and market value is Rs 23,845 crore with an absolute return of 10.6 per cent till March 31 while the absolute return as on April 21 is 11.5 per cent, the minister said.

Credit profile of industry is strengthening. The change in credit profile is a leading indicator of rising or falling business solvency. For example, corporate bond issues peaked in risk in 2009-10, right before the slowdown from 2011-15.
India Inc's credit profile strongest in FY17, unsafe corp debt below 10%
India Inc's credit profile was at its strongest last financial year (FY) with less than 10 per cent of the corporate debt securities rated as unsafe for investment — the lowest level so far for such issues.

Credit rating agencies (CRAs) rated a total of 1,204 long-term corporate debt securities worth Rs 17 lakh crore in 2016-17, according to the latest data compiled by the Securities and Exchange Board of India (Sebi).

Of these, a majority 1,087 issues (90.3 per cent) worth Rs 16.88 lakh crore were rated "investment grade".

Accordingly, only 117 corporate bonds representing 9.7 per cent of the total corporate debt issues were assigned a "non-investment grade" in the last FY. These issuances were worth Rs 12,714 crore.

An analysis of the Sebi data showed that this is the first time that less than 10 per cent of the total issues were assigned 'non-investment grade' rating for corporate debt securities so far in India.

Nearly 21 per cent of the total debt issues were found to be of non-investment quality during fiscal 2008-09. Following this, the credit profile of companies for such issues witnessed continuous deterioration.

In 2009-10, nearly 50 per cent of the corporate bond issues were found to have the highest risk for defaults, which increased to 57.6 per cent in 2010-11.

GST will be PM Narendra Modi govt's biggest achievement, says Assocham
Progress towards realising the pan-India single tax system, the Goods and Services Tax (GST), will be the biggest achievement of the Narendra Modi-led government, industry organisation Assocham said on Sunday.

As the NDA government completes three years in office, besides the GST that was nearing a roll-out, its other achievements on the economic front would be financial inclusion, digitisation and public investment on infrastructure — railways and power distribution, the Assocham said in a release.

Perceived as another credible step for structural changes in the economy was the focus on improving ease of doing business through measures like the GST and other taxation reforms, he added.

Assocham said the "clean-up" of the subsidy disbursal process was yet another big plus of the government, which is pursuing to link Aadhaar ID with every bank account holder.


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