Policy
RBI likely to maintain status quo on rates with an eye on the dollar, oil prices
The Reserve Bank of India's rate-setting panel is expected to maintain the policy interest rates unchanged in its upcoming meeting, as it monitors inflation amid rising crude oil prices and potential rate hikes in the US. The Monetary Policy Committee is likely to keep the repo rate at 6.50% and maintain its stance of withdrawal of accommodation. The increase in global oil prices and the strengthening US dollar have increased inflation and current account deficit risks for India.
Govt to soon come up with rules for direct listing of Indian companies abroad
The move would set the stage for unicorns and other entities to have easier access to a larger pool of foreign capital, they said, adding that it could also encourage a greater number of startups, with Indians at the helm, to incorporate within the country instead of jurisdictions like Singapore.
M-cap of stressed firms zooms three times after IBC resolution, says IBBI chairman
The market capitalization of stressed companies resolved under India's Insolvency and Bankruptcy Code (IBC) has increased from INR 2 lakh crore to around INR 6 lakh crore, according to the chairman of the Insolvency and Bankruptcy Board of India (IBBI), Ravi Mittal. Sales of these companies also rose by 75% after resolution, indicating their improved performance. Mittal highlighted that a record 185 cases were resolved through the IBC in the last fiscal year, and more than INR 51,000 crore has been realized from these resolutions.
Resolutions under insolvency law likely to touch 300 this year: IBBI chief
The number of resolutions of stressed assets under the insolvency law is expected to reach 300 this year, according to Ravi Mital, Chairperson of the Insolvency and Bankruptcy Board of India (IBBI). Mital urged resolution professionals to expedite the cases. He also highlighted that creditors have recovered around Rs 3 lakh crore through the Insolvency and Bankruptcy Code (IBC) and emphasized that the IBC is a resolution mechanism, not a recovery mechanism.
RBI extends deadline to return Rs 2,000 banknotes till Oct 7
The Reserve Bank of India (RBI) has extended the deadline for exchanging Rs 2,000 notes until October 7, 2023. According to the RBI, about 96% of the Rs 2,000 banknotes have been returned to the banking system since the decision to withdraw the note from circulation. Starting from October 8, all branches will cease the procedure for exchange or deposit of the currency.
Travel firms urge govt to defer TCS on overseas trips
Travel firms and operators in India are seeking a deferment of the October 1 deadline for a 20% tax collected at source (TCS) on spending above Rs 7 lakh on overseas tours. They argue that there is no proper mechanism to monitor spending across multiple sources, and that the responsibility for tracking these expenses should lie with the banking system rather than travel operators.
Thousands of taxpayers get GST notices for FY18
Tax experts said this would lead to an increase in litigation over the next three months while hitting cash flows of companies as they would be required to furnish 10% of the total liability as a deposit for filing an appeal.
Centre notifies amendments in CGST and IGST rules for online gaming cos; 28% GST rule to come into force on Oct 1
The Indian government has notified amendments to the Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) for online gaming companies. The amendments, which will come into effect from October 1, require all gaming companies based outside India to register themselves and deduct tax at source.
India in talks with more jurisdictions to make material impact on cross-border payments: RBI DG
India is in discussions with other jurisdictions to address the high cost of cross-border remittances, according to Reserve Bank Deputy Governor T Rabi Sankar. He described the current situation as "unconscionable" given the availability of cheap data connectivity. Sankar suggested that the introduction of a central bank digital currency (CBDC) could lower the cost of cross-border payments by bypassing the legacy correspondent banking system.
ADB’s capital adequacy reforms to increase annual commitment by 40%
Reforms to the capital adequacy framework by the Asian Development Bank (ADB) have increased its annual commitment capacity by 40%, unlocking an additional $100 billion for financing projects in the Asia Pacific region over the next decade. The ADB plans to leverage these funds along with private and domestic capital to address the climate crisis.
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Congress accuses govt of carrying out 'planned euthanasia' of MGNREGA
The Congress party has accused the Indian government of deliberately delaying funding for social audits, resulting in a compromised process that allows the government to deny funds to states. Social audits are a crucial part of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), aimed at ensuring accountability and transparency, the party said.
eGaming companies GST tax demand in line with legal stand: CBIC chief
The Central Board of Indirect Taxes and Customs (CBIC) chairman, Sanjay Kumar Agarwal, has stated that the goods and services tax (GST) notices issued to online gaming companies are in accordance with legal provisions and will not be immediately reviewed. The government is prepared to implement the 28% GST regime for online gaming, horse racing, and casinos once all states amend their laws. The CBIC will review the tax regime in six months. Many online gaming companies have received tax demand notices running into thousands of crores, with a total tax liability estimated at around ₹55,000 crore.
Govt mulls sugar export restrictions to check prices
The final decision on allowing sugar exports from India during the upcoming sugar season which starts from October 1 will be taken after mid October, said people aware of the matter.
India set to implement 28% GST on online gaming from October 1
India is set to implement a 28% Goods and Services Tax (GST) rate on online gaming starting from October 1, following the consensus of all Indian states. The amendments to GST laws were recently passed in the Lok Sabha, and the law for the GST rate on online gaming will have to be passed by the assembly of states.
RoDTEP extension to help boost exports, create jobs: CII EXIM committee chairman
The Indian government's decision to extend export benefits under the RoDTEP scheme until June 2024 will have a positive impact on domestic manufacturing, exports, and job creation, according to Sanjay Budhia, Chairman of the CII national committee on EXIM. The scheme provides refunds for taxes, duties, and levies incurred by exporters in the manufacturing and distribution process. Budhia believes this move will boost exports, generate employment, and help establish India as a global manufacturing hub.
Travel agents' association urges govt to abolish implementation of TCS scheduled for Oct 1
The Travel Agents Association of India (TAAI) has appealed to the Indian government to abolish or defer the implementation of the new Tax Collection at Source (TCS) on foreign remittances until the next fiscal year. The TCS, which has been raised from 5% to 20% on foreign remittances under the Liberalised Remittance Scheme, will be applicable to international travel and other remittances.
