Chinese brands sold Rs 500 bn worth of smartphones in India in FY18

As per Counterpoint Research's latest analysis on the important Indian smartphone market, the premium smartphone segment (>Rs. 30,000) shipments reached an all-time third quarter peak

 

Business News: Chinese smartphone brands account for over Rs 500 billion worth of purchases in the Indian market in FY18 so far, double of the figure that they logged last year according to a Counterpoint report quoted by the Economic Times.

Indian smartphone market, the premium smartphone segment (>Rs. 30,000) shipments reached an all-time third-quarter peak during Q3 2018 as attractive offers pushed down the cost of ownership for a premium smartphone in India in the recent past.

Typical offers include trade-ins and buybacks, monthly 0% EMI (monthly instalment plans) and instant cashbacks.

These offers strongly appeal to large sections of the population, especially the youth, that are gaining their footing financially and growing into power smartphone users. Furthermore, the features in premium segment smartphones such as full-screen displays, biometric security, dual-cameras, faster processor and support for artificial intelligence have acted as a catalyst for consumers looking to upgrade from a mid-range smartphone.

Smartphone sales in India grew five per cent to an all-time high of 44 million units in the September quarter, driven by strong shipments by handset vendors ahead of the festive season, according to a report by Counterpoint Research.

In the reported quarter, smartphone segment contributed to half of the total handset market (88 million) with brands like Xiaomi, Samsung, Vivo and Oppo recording their individual highest-ever shipments in a single quarter, it said. The shipments grew 24 per cent on sequential basis.

↓↓↓ Read the full Report here ↓↓↓

Smartphone Sales in India

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News Source: BS & Business Standard

Infosys Q4 Results : Execution rigour is the mantra for the company going forward

The company should be able to hold on to its margins, a function of greater revenue per employee and lower headcount growth vis-a-vis revenue growth.

Business News : Infosys’ constant currency revenue growth guidance of 6-8% year-on-year (y-o-y) for FY19 was on expected lines. The marginal beat can be ascribed to a weaker exit in 4Q (0.6% CC) than our expectation (1.5% CC). This implies that the compounded quarterly growth rate (CQGR) will be better if the guidance is met.

To meet its guidance range of 6-8% y-o-y constant currency (CC) revenue growth in FY19, Infosys will have to clock a CQGR of 1.8-2.5% in the next year. We are assuming 7.5% y-o-y CC growth factoring the guidance and incremental revenue from the acquisition. A cross-currency tailwind of 130 basis points (bps) would imply USD revenue growth of 8.8% for FY19.

Net profit grew 2.4% quarter-on-quarter (q-o-q) to Rs 36.9 billion, below our estimate of Rs 38 billion, due to an impairment loss of Rs 1 billion taken in respect of Panaya.

Infosys also cut its FY19 EBIT margin guidance to 22-24% versus the FY18 band of 23-25%. This will largely factor in investments in localised talent, revitalising sales, digital capabilities and delivery staff. The 1% revision amounts to $120 million, and considering that these are investments in people, which will only come gradually, we see the lower end of the margin band as conservative, and expect it to be raised during the course of the year.

The additional $2 billion payout over and above the normal dividend payout (policy of 70% of FCF) will peg the cash returns at a high level (Rs 100/share pre-tax, 8.6% of current market price) for the second year running. This should act as a crucial support for the stock.

Given these developments, we have cut our earnings by around 2% for FY19/20E, factoring in the weaker exit and the marginal profitability decline. Infosys’ performance in the recent years has been in line with peers.

The guidance on revenues was on expected lines. However, we believe that the lower end of the EBIT margin band of 22% is conservative, with pricing pressures seemingly tailing off and the share of higher-margin Digital inching up. Our price target of Rs 1,330 discounts forward earnings by 16x. We maintain a ‘buy’ rating on the stock in the light of the developments.

→ Infosys Q4 Results

Facebook data breach giving you panic attacks? Here are some desi options

Amid data breach talks and the recent instance of Cambridge Analytica scandal, where unauthorised access to user data apparently caused election meddling, there have been calls to delete Facebook.

Business News : After the scandal broke, there has been a growing scepticism around safety of personal data on social media. There was a frenzy among netizens to delete their social media account in order to protect their personal information.

The safety of your personal information cannot be guaranteed, but if you are looking for some ‘desi’ alternatives to Facebook, here is a list:

Hike

Hike Messenger is a cross-platform instant messaging service that provides users with a platform for text messaging, sending each other graphical stickers, emoticons, images, videos, audios, documents, voice messages, contacts and users’ location. The app can also be used to book Ola vehicles directly and has also enabled Hike ID, through which users can chat with each other without sharing their mobile numbers.

Roposo

Roposo is an app that offers filters and editing tools, and an option for social media sharing that allows users to instantly publish pictures on other social media channels.

The camera in the app helps edit and stitch videos to perfection; reducing the editing time. And users get to edit the videos on their phone itself. With the introduction of augmented reality feature on the app, users can create better content and post it on the platform.

Sharechat

Backed by SAIF Partners and Xiaomi, Sharechat is a leading social networking platform in India which enables users to watch and share videos on other platforms as well. Available in 14 vernacular languages, Sharechat is meant for all the users who love to share videos and photos in their own regional language.

SyncYu

SyncYu is an Indian pro-social networking application which focuses on connecting with friends and family by providing a spam-free platform. It is advertisement-free and claims to show how its users truly are to the world. This app comes with a lot of features like messaging, games, shoutouts, wordsmash, news and much more.

Mooshak

An attempt to make Hindi and Devnagiri relevant for the Next Gen, this app enables users to post content in Hindi. For the users who are not quite good at writing in the language, the app helps to translate your content into Hindi. Simply upload images, videos and audios and share it with people around the globe.

For the unversed, Cambridge Analytica, the political data firm with ties to United States President Donald Trump’s 2016 election campaign, is under fire for allegedly gaining access to private information of more than 50 million Facebook users, and influencing elections by using this stolen data.

Full Updates on  → Facebook Data Breach

Convertible SUV Range Rover Evoque launched in India at Rs 6.95 million

The model has features such as the All-Terrain Progress Control (ATPC) system which enables drivers to set and maintain a steady speed in challenging conditions.

Business News : Tata Motors-owned Jaguar Land Rover India on Tuesday launched Range Rover Evoque Convertible priced at Rs 6.95 million, ex-showroom.

The new luxury convertible SUV is powered by a 2 litre Ingenium petrol engine with a compact 9-speed automatic transmission, the company said in a statement.

JLR India President & Managing Director Rohit Suri said: “We are excited to launch India’s first luxury SUV convertible today… It adds another dimension to the Land Rover family, further enhancing its desirability and appeal.”

Evoque Convertible combines the bold design and refinement of Evoque with a sophisticated folding roof, he added.

The new model has features such as the All-Terrain Progress Control (ATPC) system which enables drivers to set and maintain a steady speed in challenging conditions, the company said.

Besides, it is also equipped with surround camera system that uses cameras placed around the vehicle to offer a near-360 degrees view.

Cambridge Analytica Scandal: How India can save democracy from Facebook

Hegemonic incumbents like Google and Facebook need to be tackled with regulation; govt should use procurement power to fund open source alternatives.

Cambridge Analytica Scandal : Those that celebrate the big data/artificial intelligence moment claim that traditional approaches to data protection are no longer relevant and therefore must be abandoned. The Cambridge Analytica episode, if anything, demonstrates how wrong they are. The principles of data protection need to be reinvented and weaponized, not discarded. In this article I shall discuss the reinvention of three such data protection principles. Apart from this I shall also briefly explore competition law solutions.

Collect data only if mandated by regulation

• One, data minimization is the principle that requires the data controller to collect data only if mandated to do so by regulation or because it is a prerequisite for providing a functionality. For example, Facebook’s messenger app on Android harvests call records and meta-data, without any consumer facing feature on the app that justifies such collection. Therefore, this is a clear violation of the data minimization principle. One of the ways to reinvent this principle is by borrowing from the best practices around warnings and labels on packaging introduced by the global anti-tobacco campaign. A permanent bar could be required in all apps, stating ‘Facebook holds W number of records across X databases over the time period Y, which totals Z Gb’. Each of these alphabets could be a hyperlink, allowing the user to easily drill down to the individual data record.

Consent must be explicit, informed and voluntary

• Two, the principle of consent requires that the data controller secure explicit, informed and voluntary consent from the data subject unless there are exceptional circumstances. Unfortunately, consent has been reduced to a mockery today through obfuscation by lawyers in verbose “privacy notices” and “terms of services”. To reinvent consent we need to bring ‘Do Not Dial’ registries into the era of big data. A website maintained by the future Indian data protection regulator could allow individuals to check against their unique identifiers (email, phone number, Aadhaar). The website would provide a list of all data controllers that are holding personal information against a particular unique identifier. The data subject should then be able to revoke consent with one-click. Once consent is revoked, the data controller would have to delete all personal information that they hold, unless retention of such information is required under law (for example, in banking law). One-click revocation of consent will make data controllers like Facebook treat data subjects with greater respect.

→ Cambridge Analytica Row ←

Reliance Jio Prime membership subscription to end on March 31: What next?

Jio Prime subscriptions, started April 1 last year, expire on 31 March. Now, with the expiry approaching, it is expected that Jio would make a new announcement sometime soon.

Business News : Reliance Jio shook the Indian telecommunication space with the launch of its affordable, data-centric network. After doling out freebies for more than the first six months since the launch, the Mukesh Ambani-owned telecom major introduced Prime membership at Rs 99 with the promise of offering subsidised recharge options and additional benefits for a period of one year.

The Jio Prime membership, which came into effect on April 1 last year, are valid until 31 March. Now, with the subscription expiry approaching, it is expected that Jio would make an announcement sometime soon.

While there is nothing official yet, it is expected that the company might completely do away with the Prime subscription or offer it as a free service.

Here is what the company offered in the first iteration of the Prime membership:

• Free unlimited data and voice services for one year at an effective price of Rs 10 per day
• Special recharge plans with additional data and validity
• Free VoLTE-based voice calls to any network, even on roaming with no black out days either.
• Free access to Jio app suite

The Prime membership was initially rolled out as a loyalty programme to retain subscribers as the company moved from free to paid services.

In the first leg, the Prime membership was advertised as a limited period offer. However, as time moved, the company continued offering the membership to get more subscribers. Now, according to Jio’s official portal, there is no mention of services that the company offers to non-prime subscribers. Therefore, it is safe to assume that the subscription based membership program may eventually fade out.

Bankruptcy Case: UltraTech to pay Rs 73 bn for 98% stake in Binani Cement

The Aditya Birla group firm had offered this amount to resolution professional during insolvency process but its bid was rejected.

Business News : It was a day of high drama in the Binani Cement bankruptcy case with promoter Binani Industries entering into an agreement to sell the cement company’s shares to UltraTech Cement, even as the National Company Law Tribunal’s (NCLT’s) Kolkata bench heard petitions from UltraTech and Braj Bhushandas Binani, director and promoter of Binani Cement.

Aditya Birla Group firm UltraTech Cement agreed to buy out parent Binani Industries’ entire 98.4 per cent stake in the Rajasthan-based cement company. The transaction is subject to the termination of bankruptcy proceedings and other regulatory approvals.

Lenders to Binani Cement had earlier selected Dalmia Bharat over UltraTech to sell the company.

According to a statement by UltraTech, it will pay Rs 72.66 billion to lenders of Binani Cement and free up bank guarantees worth Rs 10 billion.

The NCLT heard the petitions of UltraTech and Binani, which alleged that the resolution professional and lenders reduced the valuation of Binani Cement from Rs 150 billion to just Rs 30 billion. The Binani petition even said the resolution professional had a personal interest in favouring a particular bidder and in undervaluing the company.

UltraTech said Binani Industries approached it to arrange funds to pay its bank debt (around Rs 40 billion), and it had concluded an agreement in principle to buy Binani Cement, subject to termination of proceedings under the Insolvency and Bankruptcy Code (IBC). This was conveyed to the NCLT’s Kolkata bench on Monday, which adjourned the matter till March 22.

“Once a matter is admitted in the NCLT, one has to go by the legal procedure. There is no legal provision which states that such a parallel arrangement can be heard in NCLT,” a source close to Dalmia Bharat said.

Uber, Ola drivers hit by losses; on indefinite strike: Top 10 developments

Ola and Uber drivers allege their earnings are not enough for them to make ends meet.

Business News : Do you use Ola and Uber for your daily commute? If yes, you may want to find other modes of transport as Raj Thackeray’s Maharashtra Navnirman Sena has called for an indefinite strike of drivers of cab aggregators Uber and Ola starting Monday midnight.

The strike, which will be observed in key cities like Mumbai, New Delhi, Bengaluru, Hyderabad, Pune, aims to voice the drivers’ woes of not being able to cover rising costs due to falling business. They are currently being paid Rs 25,000 to Rs 30,000 per month, according to media reports.

“Ola and Uber had given big assurances to the drivers, but today they are unable to cover their costs. They have invested Rs 500,000 to Rs 700,000 and were expecting to make Rs 150,000 a month. But drivers are unable to make even half of this because of the mismanagement by these companies,” said Sanjay Naik of Maharashtra Navnirman Vahatuk Sena, reported news agency PTI.

Naik accused Ola and Uber of giving priority to company-owned cars rather than driver-owned ones, thereby, hitting their business.

In Mumbai alone, there are over 45,000 Ola and Uber cabs but a slump in business has seen a drop of about 20 per cent in their numbers.

Meanwhile, the police has issued notices to leaders of the union under section 149 of CrPC relating to unlawful assembly.

Drivers claim Ola, Uber cheated them: Ola and Uber drivers said that while both the firms promised them an average monthly income between Rs 100,000 to Rs 150,000, the same was not the case. However, they initially believed them, and ended up buying cars on loans. Now that they are being underpaid, they have decided to go on a strike, said Swaraj Vahan Chalak Malak Sanghatna President Guru Katti, reported Times of India.An average cost of a car varies between Rs 500,000 to 700,000.

Drop in per-km fare giving nightmares: Where the per-kilometre fare once to hover around Rs 10, the same has dropped to Rs 6 now due to the stiff competition between Ola and Uber. Moreover, Ola Share offers share pass varying on the distance one intends to travel. For instance, once can buy a pass for Rs 10 valid for 30 days, where one would be required to pay just Rs 30 for distance up to four kms and Rs 200 for distance up to 20 kms. Similarly, Uber offers slashes rates on its ‘POOL’ rides and often gives 50 per cent discount to users on Uber Go, which is the cheapest Uber car ride after share.

Read More on  → Ola Uber Strike

Tamil Nadu Budget 2018: Package for STUs, all old buses to be replaced

Rs 27 bn allocated to transport department, including Rs 7.99 bn as subsidy for free bus passes to students, senior citizens.

Business News : Looking to revive its debt-ridden public transport system, the Tamil Nadu government is in the process of converting the existing debt of Rs 30.01 billion into share capital assistance and replacing all old buses in use for more than 10 years with new ones. The state government, however, has not mentioned alternative fuels or hybrid buses in its Budget proposals for the year 2018-19.

In 2018-19, the state government shall infuse a share capital of Rs 6 billion into the State Transport Undertakings (STUs) for purchasing and inducting 3,000 new buses. This, along with the 2,000 new buses sanctioned during 2017-18, will lead to the replacement of all 4,593 old buses in use for over a decade.

The general price hike and increase in salary costs have adversely affected operations of the STUs. In 2017-18, the state government released Rs 25.19 billion as ‘special ways and means advance’ to STUs to tide over their severe financial stress, settle retirement benefits of pensioners, give pending dues to existing employees and compensation dues to victims of road accidents.

This was in addition to Rs 13.64 billion released as diesel subsidy, senior citizen subsidy, student concession subsidy and share capital assistance provided in the Budget Estimates 2017-2018.

As a one-time measure, the government is providing a ‘ways and means advance’ of Rs 9 billion in the current Budget to the STUs. An amount of Rs 27.17 billion has been allocated for the transport department, which includes Rs 7.99 billion as subsidy for free bus passes to students and senior citizens, said the government.

→ Tamil Nadu Budget 2018  ←

In 30 minutes Lok Sabha clears Finance bill, 218 amendments without debate

The bills were the contentious Finance Bill, 2018, and the Appropriation Bill, 2018.

Business News : In 30 minutes on March 13, 2018, Parliament’s lower house, the Lok Sabha, passed without debate funding demands from 99 Indian government ministries and departments, including two bills and 218 amendments.

As many opposition members of Parliament (MPs) protested, Sumitra Mahajan, speaker of the Lok Sabha–controlled by the Bharatiya Janata Party (BJP)–used a parliamentary procedure called the “guillotine”, which empowers her to pass grants without discussion.

Among the demands passed:

• Controversial foreign funding to political parties, which will allow them to escape scrutiny with retrospective effect for 42 years.
• Salary hikes for members of parliament, the president, and state governors.
• An Appropriation Bill passed by voice vote on March 14, 2018, which allows govt to draw Rs 80,000 crore from the Consolidated Fund of India (Rs 57 lakh crore), the government’s total revenue.
• A long-term capital gains tax, which has received mixed reactions since it was announced in February. Investors will now have to pay 10% tax on profits from shares sold, even if they have had these shares for more than a year.

The bills were the contentious Finance Bill, 2018, and the Appropriation Bill, 2018.

No bills had passed over the last eight days, with the Opposition protesting the Rs 11,000-crore Punjab National Bank scam, special compensation packages for Andhra Pradesh and Telangana, and defacement of the Periyar statue in Tamil Nadu.

On Wednesday afternoon at 12.35pm, speaker Sumitra Mahajan applied the guillotine to pass the budget 2018 in time for the new financial year, which starts on April 1, 2018. At the start of the week, the BJP had issued a three-day whip to its members to be present in the House. The BJP-led National Democratic Alliance government holds an absolute majority in the Lok Sabha.

More on  → Finance Bill 2018 ←

Income Tax department attaches benami properties worth Rs 39 billion

Show cause notices for provisional attachment of benami properties were issued in over 1,500 cases.

Business News : Income tax department has provisionally attached benami properties of over Rs 39 billion in more than 1,200 cases, the Finance Ministry informed the Rajya Sabha today.

In a written reply, Minister of State for Finance Shiv Pratap Shukla also said the tax department has identified more than 1,600 benami transactions till end-February.

“Show cause notices for provisional attachment of benami properties were issued in over 1,500 cases and provisional attachment has been made in over 1,200 cases.

The value of properties under attachment is over Rs 39 billion,” he said.

In another reply, Shukla said till date, in three phases of ‘operation clean money’, the income tax department has identified around 22.69 lakh persons whose tax profile was found to be inconsistent with the case deposits made by them during the demonetisation period.

“Total case to the tune of Rs 5.27 lakh crore has been found to be deposited in bank accounts in case of these 22.69 lakh taxpayers during demonetisation period,” Shukla said.

However, the unaccounted income in such transactions, if any, can be quantified only after completion of the verification/assessment process.

→ Benami Property Act ←

Paytm to launch mutual funds, insurance, banking services via payments bank

The firm, owned by One97 Communications, is also providing the option to transact offline with a physical debit card.

Business News : Mobile-first fintech major Paytm is planning a major push in the financial services sector. In the following couple of months, the Vijay Shekhar Sharma-led company is planning to launch services including mutual funds, general insurance, life insurance and a number of banking services via its payments bank.

The firm, owned by One97 Communications, is also providing the option to transact offline with a physical debit card. “There is a lot of interest among consumers for physical debit cards. Within a time period, we have received orders from 850 towns. We are in the process of setting up banking outlets that will provide deposit, cash withdrawal, money transfer and other permitted banking services to the segment of customers who require assistance,” said Renu Satti, managing director and chief executive officer, Paytm Payments Bank, said.

The company is set to add more than 100,000 Paytm banking outlets to expand the reach of its banking services. It has committed $400 million over the next three years to expand offline distribution network by allowing trusted local partners to act as potential cash-in and cash-out points.

“Some of the services, especially wealth management, lending and insurance, will be provided in partnership with other banks and financial institutions after due regulatory approvals,” Satti said.

Paytm Money, the company set up recently to deal in money market fund, is in discussions with asset management companies to offer direct mutual fund investments.

Initially, the company will not charge any fee or commission from users who invest in mutual funds via Paytm Money. The company, however, is keeping plans under wraps and has not yet revealed if it would set up a separate app for the services.

→ Paytm Mutual Funds , Paytm Insurance  ←

Lucknow, Indore, A’bad, Chennai, Kolkata, Pune airports among world’s best

It is for the first time that so many of AAI airports have bagged top positions in the coveted list.

Business News : The persistent efforts of the Airports Authority of India (AAI) in improving passenger conveniences and offering world-class services has resulted in six of its airports being adjudged among the best in the world.

Lucknow, Indore, Ahmedabad, Chennai, Kolkata and Pune airports of the AAI have been adjudged winners in various categories of the recently released winners’ list of Airport Service Quality (ASQ) Awards 2017 of Airport Council International (ACI).

It is for the first time that so many of AAI airports have bagged top positions in the coveted list.

According to the ACI, this year saw an unprecedented sixteen airports across the world become first time winners, challenging best-in-class airports in the delivery of top-quality customer service.

This phenomenon reflects the increasingly competitive airport industry operating environment, where continuous service improvement is a key ingredient in business performance.

Based on the results of the survey carried out by the Airports Council International (ACI), a global non-profit organisation of airport operators, Lucknow Airport has been rated as the world’s top airport in the category – “Best Airport by Size” among the airports handling 2 to 5 million passengers per year. Lucknow Airport has also bagged the award for “Best airport by size and region” among the airports handling 2-5 million passengers per year in the whole of the Asia-Pacific region.

Indore Airport has bagged the award for ‘Best Airport by Region’ among the airports handling under 2 million passengers per year in Asia-Pacific region.

Ahmedabad Airport has been rated as the ‘Most Improved Airport’ in Asia-Pacific region. Indore and Ahmedabad airports are the two first time winners from India for 2017.

While Kolkata and Pune Airports have been ranked third in the world in the category – ‘Best Airport by Size’ among the airports handling 5-15 million passengers per year, Chennai Airport has been adjudged the third best in the world in the category – ‘Best Airport by Size’ among airports handling 15-25 million passengers per year.

→ ACI Awards 2018 ←

Women’s Day 2018: Here are the top 5 co-working spaces for female employees

Co-working spaces in India are offering special facilities to women in the form of mentor sessions.

Business News : The idea of co-working spaces is rapidly growing in the country. While the hubs were dominated by male entrepreneurs, the co-working spaces are attracting a lot of women.

After the culture of ‘work from home’, women entrepreneurs prefer working in an office set up today.

Co-working spaces in India are offering special facilities to women in the form of mentor sessions, creche facilities and networking to help them in their businesses.

Here are the top women-friendly co-working spaces in the country:

1. 91springboard

• 91springboard has emerged as one of the leading co-working communities with the largest number of hubs present across all key cities. Women being an integral part of the business ecosystems, 91springboard realised the need to encourage women entrepreneurs right from the beginning by introducing communities like Women Entrepreneur (WE) League.
• WE League curates events to encourage, inspire, and mentor women entrepreneurs in their business ambitions. The platform helps women share tools, knowledge, and network to help each other lead, start, and grow.

2. WSquare

• WSquare is a collaborative workspace that provides a ‘Working Desk’ for women who are looking for an alternative to work from home or to just work independently. Their purpose is to create an environment that allows one to focus on their work and meet interesting like-minded women, all in one place.

3. CoWrks

• The CoWrks team is a community of like-minded individuals who live the millennial lifestyle and believe in the power of a community.
• Cowrks is India’s only large format co-working space provider which focuses on three things, carefully designed for female entrepreneurs – incredible workspaces, infectious energy and an ingenious network to tap into.

4. Go Work

• GoWork allows women the freedom to innovate, collaborate and build a vibrant self-sustainable environment. It helps them to connect with freelancers, start-ups, SMBs, NGOs and big corporates on a daily basis.
• An upcoming creche facility at GoWork’s campus is bound to give more independence to women and single parents. GoWork also organises various women-led initiatives like mentoring sessions, meet-ups, accelerator programs and counseling sessions that help them develop lasting professional networks.

5. Innov8

• Innov8 is the leading Indian co-working startup which aspires to be world’s number one co-working and co-living workspace provider. They are committed to delivering excellence through design and experience and boast of a premium work culture with co-working centres spread across major cities throughout the country.
• Innov8 aims to transform real estate into a beautiful and premium workspace. Through various events like We Can, they have always shown special interest in mentoring and inspiring the young female entrepreneurs of India.

Women’s Day 2018

GST: What is an e-way bill and why is it important? All you need to know

A trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

Business News : What is an e-way bill ?

• An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences.

Is there any scheme under GST for payment of taxes by small traders?

• Composition levy is an alternative method of levying tax that is designed for small taxpayers whose turnover is up to Rs 10 million. This scheme is optional and is meant mainly for small traders, manufacturers and restaurant owners. However, it is not available to a trader engaged in inter-state supplies. Further, a trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

In the pre-GST regime, a special economic zone (SEZ) customer was required to provide Form A-2 to claim exemption from payment of service tax. Will a service provider be required to obtain a similar form from his customers for not charging GST?

• Under the pre-GST regime, a service provider was not required to charge service tax on his invoice for services rendered to an SEZ customer if the latter provided Form A-2 wherein he was authorised to receive specified services from such service providers.
• However, under GST law, there has been a change of procedure.
• Under this law, supplies to SEZs have been treated as zero rated subject to execution of Letter of Undertaking/Bond by the service provider. GST law doesn’t require the SEZ customer to provide any specific form (such as Form A-2 under the service tax law).

If the GST rate on outward supply is less than the GST rate on inputs, what will be the treatment of input tax credit that gets accumulated? If refund is available, then at what time can one apply and within what time will one get it?

• GST law contains a specific provision wherein the supplier of goods or services can apply for refund of input tax credit accumulated on account of inverted duty structure, except for a few categories.
• The refund can be applied for before the expiry of two years from the date on which the claim for refund arises. Further, the supplier would be granted provisional refund within seven days from the receipt of acknowledgment from the tax department.

Click to Read More → GST Eway Bill

At 70, Indian Navy is self-reliant, shipshape

The relatively poor disaster prevention and management infrastructure in most of the countries in the Indian Ocean places a bigger responsibility on the Indian Navy.

 

Business News : Navy Day this year is a good occasion to reflect on its journey and evaluate its progress over the last 70 years. The Indian Navy was an exceedingly small force at the dawn of independence and, while being a product of both its British inheritance and the maritime DNA of our forebears, is largely a post-independence construct.

Despite the many problems that besieged the newly independent country — and by extension its Navy — such as low industrial base, problems on our land borders made it imperative to focus on the army and the air force. But the navy was not short on vision.

As early as 1948, it drew up ambitious plans for a balanced navy that would consist of light aircraft carriers, submarines, destroyers, cruisers, auxiliaries and associated training and maintenance infrastructure.

Seen against this backdrop, the Indian Navy has grown quietly but steadily. From a force of less than half a dozen sloops to one that has 135 ships and 235 aircraft, most of them state-of-the-art, is indeed an impressive story.

That we operate in all three dimensions: On, above and below water; that most of our ships are indigenously built; and that we are among the few navies to build and operate an array of platforms from aircraft carriers to nuclear submarines add further strength to the narrative. We are now among the world’s leading navies.

But numbers alone do not tell the whole story. Of particular significance is the fact that the navy has built excellent capacities — both human and material — in several disciplines such as hydrography, special operations, integration engineering, doctrine writing, underwater medicine and disaster relief, to name a few.

Click to Read → Indian Navy Day