Jio vs The Rest: Next round of telecom sector consolidation has just begun

From an industry that had a profit after tax of 15% of its revenues in 2007-08, its losses hit more than Rs 180 bn in 2016-17 even though the revenues doubled in the same period.

Business News India : For a customer using a mobile phone since 2007, it has been a dream run with voice calls now becoming free and unlimited compared to Rs 1 you had to fork out in 2007. Now you pay only for data at rock-bottom prices and monthly bills have dramatically halved in the past 18 months.

Yet in stark contrast, the story of telcos in the last decade has been a topsy-turvy downhill battle, bruised by cut-throat competition, policy paralysis and Central Bureau of Investigation probes, high spectrum prices, and the stick of the Supreme Court, which cancelled over 122 licences. But the incumbents have also faltered, misreading the dramatic change which 4G data would unleash, thanks to the entry of Reliance Jio.

From an industry that had a profit after tax of 15 per cent of its revenues in 2007-08, its losses hit more than Rs 180 billion in 2016-17 even though the revenues doubled in the same period. And its debt burden just went through the roof, increasing five-fold through the decade, which is close to double its overall revenues (see chart). As a result, many telcos like RCom that were unable to pay back loans sold their assets or, like Aircel, filed for bankruptcy.

The inevitable impact was that as many as eight companies such as STel, Loop, and Etisalat closed down operations, some like Telenor and MTS, which tried once again by acquiring the licence for a second time, failed miserably again. And desi players like Tata Teleservices and RCom that could not take the heat of competition unleased by the entry of Jio also called it a day. Together, estimates say, they lost more than Rs 1,500 billion in cash.

Jio hastened the consolidation by its disruptive pricing, and now analysts say there will only be four players — Bharti, Vodafone-Idea, Jio and BSNL.

→ Reliance Jio ←

Supreme Court on Aadhaar linking deadline, Aadhaar mandatory for bank accounts, phone and subsidies

For now, you can safely ignore persistent messages from telecom service providers and banks to link your Aadhaar to your phone number and account.

Business News India : Haven’t linked your Aadhaar number with your mobile phone yet? Breathe easy. The Supreme Court on Tuesday indefinitely extended the March 31 deadline for linking Aadhaar with existing bank accounts, PAN, mobile phone numbers, and various other services. However, according to the Unique Identification Authority of India (UIDAI), your Aadhaar would still be required for opening new bank accounts or applying for Tatkal passports.

For now, you could safely ignore persistent messages from telecom service providers and banks to link your Aadhaar to your phone number and account.

The apex court also ruled that the government could continue to seek beneficiaries’ Aadhaar, the 12-digit national biometric identifier number, for the transfer of benefits under schemes funded from the consolidated fund of India. “We direct that the interim order passed on December 15, 2017, shall stand extended till the matter is finally heard and the judgment is pronounced,” a five-judge Constitution bench, headed by Chief Justice Dipak Misra, said. The judgment provided relief to hundreds or thousands of people who have not yet linked their bank accounts or mobile phones with Aadhaar.

The Aadhaar linking deadline has been extended till the apex court delivers its judgment on a batch of petitions challenging the constitutional validity of the biometric identification scheme. The current deadline for linking Aadhaar with bank accounts, mobile phone numbers, and other services was March 31, after it had been extended by the apex court on December 15 last year.

As Chief Justice Deepak Misra said their interim order stood extended, the Attorney General told the court that the government was prepared to extend the deadline in the last week of March because arguments in the matter would have concluded by then. “We were prepared for extension in last week of March,” he told the court in a bid to stall the extension.

The Constitution Bench, which also includes Justice A K Sikri, Justice A M Khanwilkar, Justice D Y Chandrachud, and Justice Ashok Bhushan, had on March 7 ruled that the Central Board of Secondary Education (CBSE) would not insist on Aadhaar-only identification for NEET and other all-India examinations.

Read More On  → Aadhaar Linking Deadline ←

SBI slashes penalty for not maintaining minimum balance from Rs 50 to Rs 15

The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month to Rs 15, excluding GST.

Business News India : SBI on Tuesday said that it has reduced the penalty for non maintenance of the stipulated average minimum balance (AMB) in a customer’s account.

The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month to Rs 15, excluding GST.

Similarly, the charges for semi-urban and rural centres have been revised from Rs 40 to Rs 12 and Rs 10 respectively.

The bank, in a press release, said the cut in fines will benefit 250 million account holders out of its 410 million savings account holders.

The breakdown of previous and new charges are as follows:

SBI made Rs 18 bn on charges:

The largest Indian bank suffered a huge backlash last December when finance ministry data revealed that it netted a windfall of Rs 17.72 billion, more than its second-quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18.

While SBI’s current Rs 3,000 minimum balance requirement for urban areas is highest among all PSBs, it is the lowest compared to all large private banks.

State Bank of India has close to 405 million savings account customers. SBI, after a gap of six years, had reintroduced the monthly average balance (MAB) charges from April 1, 2017.

After criticism by customers, it reduced those charges with effect from October 1, 2017.

→ SBI Minimum Balance Penalty ←

Pritzker winner Balkrishna Doshi: A man who can think beyond boundaries

At 90, Balkrishna Vithaldas Doshi is remarkably agile; his energy and enthusiasm belie the stereotypes associated with his age, say associates.

Business News India : Noted architect Balkrishna V Doshi, now 90, has been awarded the annual Pritzker Prize, also referred to as the equivalent of the Nobel Prize for this profession. He is the first Indian to win this award, instituted in 1979 by an American entrepreneurial family. Apart from the global recognition, the award comes with a cash award of $100,000. The ceremony will be in May, at Toronto.

“Balkrishna Doshi has always created an architecture that is serious, never flashy or a follower of trends,” said the Pritzker jury.

Also, that Doshi “constantly demonstrates all good architecture and urban planning must not only unite purpose and structure but must take into account climate, site, technique, and craft, along with a deep understanding and appreciation of the context in the broadest sense”.

Over a career spanning six decades, the Ahmedabad-based Doshi has been considered one of the highly influential architects of post-1947 India, fusing international modernist principles with local traditions.

Doshi studied in Mumbai, before travelling to Paris in the 1950s to work for Franco-Swiss pioneer and iconic 20th century modernist architect Corbusier, who designed the city of Chandigarh.

His wide-ranging work includes designs for noted academic institutions, mixed-use complexes, housing projects, public spaces, galleries and also private homes.

At 90, Balkrishna Vithaldas Doshi is remarkably agile; his energy and enthusiasm belie the stereotypes associated with his age, say associates.

In an earlier interview, he had said, “For me, it is a search for the unknown… in that process, I grow and my work grows.”

Pavan Bakeri, managing director of Bakeri Group, a renowned builder in Gujarat and next-door neighbour of Doshi, said: “He has an uncanny ability to visualise spaces; he does not think in terms of boundaries. His visualisations are rarely linear but fluid spaces and he has managed to create functional, simple and breezy living spaces, as a result.”

→ Pritzker Architecture Prize 2018 ←

Ambani scion Akash to marry diamantaire Russel Mehta’s daughter Shloka?

Akash, 27, is Mukesh Ambani’s elder son and twin of sister Isha, and older brother of Anant, 22.

Business News India : Wedding bells may soon be ringing in the country’s premier business family.

According to reliable sources, Mukesh Ambani’s eldest son Akash may soon be betrothed to Shloka, the youngest daughter of Russell Mehta, Managing Director, Rosy Blue India, one of the country’s leading diamond companies.

Though both families are keeping the news under wraps for the present, sources in the know indicate a formal engagement ceremony soon, with the probability of a wedding come December.

Akash, 27, is Mukesh Ambani’s elder son and twin of sister Isha, and older brother of Anant, 22. Shloka is the daughter of Russell Mehta, head of Rosy Blue Diamonds, formerly known as B.

Arunkumar & Co., which is now ranked among the top half dozen diamond companies of India. The family lives in south Mumbai.

Russel is the son of Arunkumar Ramniklal M., one of the co-founders of B Arunkumar & Co., way back in 1960 in Opera House, Mumbai’s hub of diamond business.

The duo is described as among “the most respected diamond business families of India and around the world” by a close family friend.

“Shloka is a very charming girl, extremely cultured and its difficult to say which of the two families is lucky with this upcoming marriage,” said the family friend, requesting anonymity.

Many in close business and family circles have already been unofficially “congratulating” them, but they have been waving them off and asking them “to wait for everything to finalise before we give you a party”.

Coincidentally, Akash and Shloka are alumni of the famed Dhirubhai Ambani International School (DAIS), in the Bandra Kurla Complex here.

After schooling at DAIS, Akash studied at Brown University, a private Ivy League institution based in Rhode Island, and among the most prestigious in the US.

→ Akash Ambani Marriage ←

GES summit 2017: 10 key takeaways from Narendra Modi, Ivanka Trump speeches

This is the 8th GES event to bring together entrepreneurs, investors and ecosystem supporters for mentoring, networking and investment matchmaking.

Business News : The three-day Global Entrepreneurship Summit (GES) 2017 started on Tuesday, November 28, with Prime Minister Narendra Modi and US President Donald Trump’s daughter and advisor Ivanka Trump — who jointly inaugurated the event in Hyderabad — calling for more women across the world to become entrepreneurs.

This is the 8th GES, meant to bring together entrepreneurs, investors and ecosystem supporters for mentoring, networking and investment matchmaking. This is the first time that the event is being held in South Asia.

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Here are the key takeaways from the Ivanka Trump and Narendra Modi speeches at the summit:

1. Women First, Prosperity For All – Ivanka

2. Modi living proof that transformational change is possible: Ivanka

3. Hyderabad – City of Pearls

4. The people of India inspire us all

5. Ivanka highlights difference between women entrepreneurs in the US and developing nations

6. Modi pays tribute to contribution of women in India

7. India has been an incubator for innovations over the ages: Modi

8. World Bank’s Ease of Doing Business Report

9. Invest in India – for India

10. Insolvency and bankruptcy codes and GST

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Business News India : External Affairs Minister Sushma Swaraj welcomed the delegates who attended the GES2017 and hailed the Ivanka-led US delegation for their efforts to promote entrepreneurship program on a global level. “I would like to thank Ivanka Trump, co-host of this summit. She represents energy & spirit of an entrepreneur that characterises the youth of today,” she said.

“I have no doubt that under the leadership of PM Modi and President Trump India and US relations will reach new heights & contribute to global peace & prosperity,” she added.

Click to Read → Global Entrepreneurship Summit 2017

Net neutrality directions to benefit Reliance Jio, Bharti Airtel

Analysts say they will use the content delivery network exemption and offer platform content at lower prices to drive their subscriber base

 

Business News India : Recommendations of the Telecom Regulatory Authority of India (Trai) on Net neutrality are broadly in line with its February 2016 regulation prohibiting discriminatory tariffs for data services.

They also bar differential speeds for various offerings by internet service providers. However, the telecom regulator has kept content delivery networks out of the regulation. This means that cellular service providers who have their own content platform and are offering these services on their own network (content delivery networks) can charge differential pricing.

Mayuresh Joshi of Angel Broking says the reason content delivery networks have been kept out of the regulation is that they will not impact competition and are not considered discriminatory.

According to analysts at Edelweiss Securities, the proposed rules are likely to give integrated operators an upper hand versus pure-play connectivity providers. They expect telcos such as Reliance Jio and Bharti Airtel to be key beneficiaries as they have a presence in content platforms. Reliance Jio (JioTV and JioCinema, among others) and Airtel (Wynk Movies, Music & Games) have been creating their own content ecosystem to retain and increase subscribers.

Analysts say they will use the content delivery network exemption and offer platform content at lower prices to drive their subscriber base.

Most analysts believe that rules are in place but Trai has now recommended that licence conditions related to the issue needs to be amended to cover all other types of discrimination.

Click to Know →  Net Neutrality Rules India

Tweaks in Insolvency and Bankruptcy Code to block wilful defaulters

Cabinet clears ordinance to make it difficult for many promoters to take back insolvent firms

 

Business News India : Wilful defaulters, dubious promoters as well as those involved in fraudulent transactions would not be able to bid for companies going insolvent, with the Centre deciding to amend the Insolvency and Bankruptcy Code.

The Cabinet approved an ordinance on Wednesday. The amendments would come in force with immediate effect (after the President promulgates it), Finance and Corporate Affairs Minister Arun Jaitley said after the meeting.

The ordinance was necessitated as the winter session of Parliament will begin in the middle of December, and a number of insolvency cases are coming up for bidding. Apart from adding a new section that tightens bid guidelines, the government has tweaked a few other sections in the existing Code.

Wilful defaulters, responsible for non-performing assets (NPAs) for over a year, would be prohibited from taking over an insolvent company again. Experts say it usually takes one year after an account is declared NPA to term a promoter a wilful defaulter. The one-year NPA clause was not standard in the Reserve Bank of India’s definition.

However, a senior banker said investigations and follow-ups before declaring someone a wilful defaulter usually takes more than a year. The ordinance could be formalising the timeframe, so that banks cannot arbitrarily declare someone a wilful defaulter before due process is over.

An account is termed NPA when an interest rate or instalment on the principal of a term loan is not paid for over 180 days. There are specific timeframes for non-payment of agricultural dues, overdraft, bills, etc, to term an account as bad debt. A wilful defaulter is the one who does not pay back even when he is able to do so, diverts the loan for other uses or disposes off the collateral without the knowledge of lenders.

Click to Know → ‪Insolvency and Bankruptcy Code of India

After note ban, will Modi govt now ban cheque books for its digital push?

CAIT Secretary General Praveen Khandelwal said the government needs to encourage the use of debit and credit cards

 

Business News : After deciding to revoke the legal tender of Rs 500 and Rs 1,000 currency notes in November last year, the Narendra Modi -led central government might now be working on another disruptive step to boost digital transactions — banning the cheque book. A senior functionary of the Confederation of All India Traders (CAIT) on November 16 said the Centre might withdraw the bank cheque book facility in the “near future” to encourage digital transactions.

CAIT Secretary General Praveen Khandelwal said the government needed to encourage the use of debit and credit cards. “In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions,” he said.

Impact of cheque book facility withdrawal

Demonetisation was a big disruption for most Indians, right from poor labourers to big industrialists. Now, the withdrawal of the cheque book facility could have a massive impact as well. Most business transactions are conducted through cheques. According to experts, 95 per cent transactions currently take place via cash or cheques.

Since cash transactions have declined, transaction by cheque might have increased after demonetisation.

Use of cheque in India

Cheques are fairly popular in SME payments. By taking a PDC (post-dated cheque) against the delivery of goods, a supplier secures payments due in future from its customer. People pay by cheques while buying land and house, too.

Many landlords now take rent from tenants via cheque. Since November 8, 2016, digital payments like BHIM have grown. However, their sweet spot has been small-value payments (two to three figures). The retail and commercial payment usage strongly suggests that cheque is a very compelling method of payment for large-value payments (four figures and above).

Click to Read → Cheque Book Ban

Not just Hinglish: Businesses eyeing India market must ace these languages

Amazon's Alexa speaker can handle requests like, 'Add jeera, atta, haldi to my shopping list', reports Tech in Asia

 

 

If you’re in India, you are likely to get an overdose of the word “only.” It pops up everywhere, as in “I’m here only.” There are other Indianisms, “like this only.” Visitors to India can find it quaint or exasperating, depending on the situation. If you’ve had enough of this already, you can try a reverse Indianism too – “Don’t eat my head.”

The problem of deciphering Indian English isn’t confined to visitors. In the digital world, machines have to deal with it as well. Amazon’s Alexa speaker can handle requests like, “Please add jeera, atta, and haldi to my shopping list.”

Google has a Hinglish-speaking virtual assistant, although it has yet to launch Google Home speakers in India. Apple wants Siri to get the cultural nuances of dialog in India, and has a Hinglish keyboard for the iPhone 8 and iPhone X.

So how can a business overcome multiple language barriers to target these hundreds of millions of non-English-speaking or even Hinglish-speaking consumers? One strategy is to zero in on the most used Indian languages.

As many as 90 per cent of the 700 million literates in India can read and write at least one of India’s 12 major local languages. And among those, Hindi, Marathi, Gujarati, Telugu, and Bengali are the top five Indian languages that any business or app developer localizing digital products for the Indian market should not ignore, according to the first Digital Indian Language report (PDF) published by Reverie Language Technologies.

These five regional languages “represent more than 75 per cent of the total digitally engaged audience who prefer to communicate in their native languages,” Reverie notes. On the other end are Dogri, Kashmiri, Konkani, Maithili, Manipuri, Nepali, Sanskrit, and Santhali – which Reverie calls “digitally endangered languages that would need support from handset manufactures and state governments to preserve for future generations.”

Click here to Read → Business News

SuperNight pack: Vodafone counters Jio with unlimited internet at Rs 6/hour

SuperNight packs will enable users to download unlimited data for five hours at a fixed price

 

Vodafone India on Monday announced a new product -- Vodafone SuperNight -- with immediate effect for prepaid customers.

According to the company, the new product at Rs 29 will enable unlimited 3G/4G data usage and download for five hours.

"The pack can be activated any time of the day but will be applicable only during the subsequent five hours between 1 a.m. to 6 a.m.," it said in a statement.

Get all the Latest updates on Business News

Vodafone is offering Internet access between 1am and 6am at Rs 29 a day. This comes out to less than Rs. 6 per hour.In contrast, Reliance Jio’s services cost about Rs. 10 per day for 1GB of 4G data.

The recharge pack can be purchased anytime during the day, but will kick in at 1 am only. The new SuperNight pack is available to purchase from digital channels, offline outlets, and via the *444*4# USSD code.....More Plans

Make in India fighter jets? Tata, Lockheed join hands to build F-16s

Will compete for contract with Gripen E, built by Saab-Adani combine

 US defence giant Lockheed Martin and India’s Tata group signed an agreement on Monday to jointly build the F-16 Block 70 fighter in Make in India, should New Delhi opt for the American aircraft in the procurement of single-engine fighters for its air force.

Highlighting the importance of this contract for the Tata group’s aerospace and defence aspirations, Chairman Emeritus Ratan Tata attended the signing ceremony at the ongoing Paris Air Show in France.

The Tata group has earmarked Tata Advanced Systems Ltd (TASL) to build the F-16 in India with technology and manufacturing facilities transferred from Lockheed Martin.

Get all the Latest updates on Business News

Coming ahead of Prime Minister Narendra Modi’s visit to the United States this month, Lockheed Martin’s inking of this joint venture (JV) – which would have required formal clearance from Washington – indicates that, despite President Donald Trump’s promises to keep skilled jobs in the US, his administration is willing to transfer the ageing F-16 production line from Texas to India.

TASL and Lockheed Martin already have a joint venture (JV) that manufactures airframe components in Hyderabad, including for the C-130J Super Hercules airlifter and the Sikorsky S-92 helicopter.

However, the manufacture of F-16 Block 70 would be a far more ambitious project. This would first require the Ministry of Defence (MoD) to select the Tata group as an Indian “strategic partner” for aircraft production. Next, the IAF and the MoD would have to choose the F-16 Block 70 as the air force’s single-engine fighter aircraft. That multi-billion dollar procurement has already kicked off with the issue of a global request for information (RFI) by the IAF.

MoD and IAF sources confirm aviation market intelligence that the IAF’s chosen fighter is likely to be either the F-16 Block 70, or the Gripen E fighter that Swedish company, Saab, has offered to India...(read more...)

Wall Street hits record highs on strong technology, health stocks

Nasdaq's biotechnology index rose 2.5% in its biggest one-day gain since February

 

 

US stocks(wall street) rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favour again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.

Nasdaq's biotechnology index rose 2.5 per cent in its biggest one-day gain since February while the S&P's healthcare index had a record-high close.

Amazon.com's Friday announcement that it would buy Whole Foods and an upbeat tone from Federal Reserve speakers seemed to help reassure investors after the US central bank's rate hike last week, according to J Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.

Get all the Latest updates on Business News

"It looks like a bet that interest rates, such as the 10-year yield, are bottoming out," said Evans. "It's a resumption of this idea that the economy is in decent shape."

He added that a "push in M&A tends to propel the market" and that the Amazon/Whole foods $13.7 billion deal was a "tangible sign the mergers and acquisition environment is pretty good right now."

The Dow Jones Industrial Average rose 144.71 points, or 0.68 per cent, to end at 21,528.99, the S&P 500 gained 20.31 points, or 0.83 per cent, to 2,453.46 and the Nasdaq Composite rose 87.26 points, or 1.42 per cent, to 6,239.01.

The S&P's financial sector was also one of the benchmark's strongest gainers with a 0.98 per cent rise after New York Federal Reserve President William Dudley said US inflation was a bit low but should rise alongside wages as the labour market continues to improve, allowing the Fed to continue gradually tightening monetary policy.

The Fed commentary last week had surprised investors who expected more caution after some weak US economic data...(read more...)

TV, smartphone, fridge, gold coins: What gets expensive after GST

However, luxury cars like Mercedes and Audi will get cheaper after GST rollout

 

With the Parliament clearing the way for four crucial GST bills in its April session, India’s landmark tax reform is all set for its rollout on July 1. While it is expected that most goods may become cheaper after the implementation of the Goods and Services Tax, quite a few services and some goods will become more expensive after the tax comes into effect. It is also expected that the Indian economy will see an inflationary effect immediately after the implementation of the GST.

The current taxes are levied on account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.

Get all the Latest Updates On Business News

Here are some goods that will be expensive after GST:

• Luxury cars to become cheaper
• Audio Systems/Home theatres
• Televisions
• Refrigerators
• Watches
• Mobile phones
• ANTIQUE GOLD COINS

GST Prices of the goods  → Click on the Link ←  

BMW to invest Rs 130 cr in India, will launch new version of the 5 series this month

The company is looking to expand its dealer network in the country

 

 

German luxury carmaker BMW is investing another Rs 130 crore in India to enhance operations, taking its total investment in the country to Rs 1,250 crore.

The company will launch new version of its locally manufactured 5 Series later this month and 6 Series Gran Turismo (GT) model next year to strengthen its product portfolio in India.

"Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis," BMW India President Vikram Pawah told PTI.

BMW has invested Rs 1,120 crore in the Indian operations so far.

The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.

Get all the Latest Updates on Business News

With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore.

The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.

"Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018," Pawah said.

In other emerging towns, in addition to 30 major cities, the company utilises its 'Mobile Studios' to expand the market further.

On new product launches, he said: "As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series."

The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales...(read more...)

70% of train tickets booked on Paytm are from Tier-II and III cities

Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad come out as 5 top Tier-II, Tier-III markets

 

 

Recent data by Paytm show that more than 70 per cent of all train tickets booked on Paytm over the past year is from Tier-II and Tier-III cities, in a sign of the increasing reach of digital transactions in non-metro regions after demonetisation.

The study was conducted based data from more than two million rail tickets booked on Paytm over the past year. It was found that while the average ticket size in Tier-I cities is Rs 530, in Tier-II cities it is only Rs 350, pointing at semi-urban and rural India’s price sensitivity. Interestingly, 70 per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men.

"In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in financial year 2017. Our five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad. This year, the company is aiming to be the country’s largest destination for all travel booking needs," the report said. Paytm is the first horizontal e-commerce major to enter into the travel business, a domain that was dominated by vertical players.

Get all the Latest Updates on Business News

 

On the right track

• The five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad

• The average ticket size in Tier-I cities is Rs 530, while in Tier-II its only Rs 350, pointing at semi-urban and rural India’s price sensitivity

• Seventy per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men

• In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in FY17

• The top preferred routes by passengers this summer include New Delhi–Lucknow, Visakhapatnam–Secunderabad, New Delhi–Kanpur, Chennai–Bengaluru, Ahmedabad–Surat and Pune–Solapur.

(read more...)

 

India on track to become top global steel producer

India's steel output to clock an average annual growth of 8.9% during 2017-21

 

 

Business News : India as a steel bright spot is highly encouraging and is on track to become a top global producer, says an industry body.

According to the latest report from BMI Research, demand from construction, automotive and infrastructure industries continues to accelerate.

The report has put down the sector's success to the government's push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India (SUFI) in a statement today.

SUFI President Nikunj Turakhia said, "In recent years, the Indian steel industry has showcased a progressive output trend y-o-y."

Being recognised as a "bright spot" is highly encouraging as well as a large responsibility at the same time, he said, adding that with the introduction new steel and anti-dumping policies, India is on the path to become one of the top steel producers.



The report highlighted that Indian steel giant such as Steel Authority of India Ltd (SAIL) and Tata Steel as the major drivers of such growth.

BMI Research has forecast India's steel output to clock an average annual growth of 8.9% during 2017-21, higher than 2.9% in 2012-16.

India's steel output would grow to 128.6 mt by 2021 from 88.4 million tonnes (mt) in 2017 and the country's share of global steel production will accelerate to 7.7% in 2021 from 5.4% in 2017, it added.

Ahead of the GST Council meeting tomorrow, Turakhia expressed concern over the headwinds faced by the sector. He has also urged the government to relax imposition of GST penalties and prosecution.

SUFI was part of the delegation that recently presented its case on GST to Maharashtra Finance Minister Sudhir Mungantiwar in Mumbai.

The Rs 35,000-cr business of making India GST-ready

Some of the players in the GST race are Payworld, Dell, Tally Solutions

 

 

The past few days have been ‘taxing’ for Pawan Kumar Gupta, in a race against time to become compliant with the requirement for the coming national goods and services tax (GST).

A hardware and bathroom fittings supplier, he’s been zeroing on GST-ready commercial computers and hiring three new accountants, adept with the new intricacies, among other things. A checklist in hand, Gupta is making notes on the things that have to be done before July 1, when GST becomes a reality. Till now, he has spent around Rs 2 lakh in equipping himself for the transition.

National Sample Survey Office (NSSO) data from 2013 say there are around 57.7 million registered small and medium traders. Beside, at least 15 million retailers and hundreds of thousands of offline and online ventures would all come under the new tax net. The money they’d spend for this over the next two years would be over Rs 35,000 crore, say experts.

 

Get all the Latest Updates on Business Standard

In the past eight months, the huge spending potential has created a new sector, of GST enablers. These include providers of computer hardware and software. And, legal, technical and personnel support and services. Every small entity is investing its money to comply with the new regime.

Unlike the value added tax (VAT), say experts, GST is fully computerised, with many layers only professional accountants can understand. So, the demand for computers and skilled personnel will rise.

 

Competition is already on between hardware companies. “We are eyeing the lion’s share of the market and are prepared with our solutions. We have an outreach programme for traders. We believe we would see immediate returns for the next six months to one year,” said Pankaj Harjai, director of the small and medium business at (read more...)

 

 

 

 

GST Council reduces tax rates of 66 items

Council had received representations for 133 items; GST on movie tickets below Rs 100 cut to 18%

 

 

Tax rates on certain kitchen items like pickles and mustard sauce, as well as movie tickets costing up to Rs 100 have been lowered as the Centre and states today reduced levies on 66 items.

Movie tickets costing Rs 100 and below will now attract 18% tax, as against 28% proposed earlier, while those above Rs 100 will continue to attract 28% GST.

Kitchen use items like pickles, mustard sauce and morabba will attract 12% GST, as against 18% proposed earlier. Also, tax rates on cashew nuts have been cut to 5% from 12%.

 

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The GST Council also decided that traders, manufacturers and restaurant owners with turnover of up to Rs 75 lakh can opt for a composition scheme and pay taxes at the rate of 1, 2, and 5% respectively.

The Council also lowered GST rates on children's drawing books to nil from 12%. Computer printers will attract 18% tax as against 28% earlier.

GST on insulin and agarbatti has also been lowered to 5%, while school bags will attract tax of 18%.

Tax rate on kajal has been lowered to 18% from 28%.

 

 

"GST Council has reduced tax rates of 66 items as against representations received for 133 items," Finance Minister Arun Jaitley told reporters here after the 16th meeting of the GST Council.

Next meeting of the Council will be on June 18, when it will take up lottery taxes and e-way bill.

On the issue of review of GST rate on hybrid cars, it was decided that the council will take it up after considering states' comments on a detailed paper issued on the matter earlier.

 

15,080 profitable Indian companies paid no tax in 2015-16

Due to various tax incentives, these firms had an effective tax rate of zero

 

Tax incentives allowed 15,080 profit-making Indian companies to have effective tax rates of zero, and in some cases less than zero, in 2015-16, according to an IndiaSpend analysis of the latest available national tax data or more specifically a government analysis called the Revenue Impact of Tax Incentives under the Central Tax System.

The central government introduced a minimum alternate tax (MAT) in the late 1980s to tackle this anomaly, but even MAT has exemptions that appear to have negated its original intent partially: 52,911 companies made profits in 2014-15 and paid no tax, IndiaSpend reported in March 2016.

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Effective tax rates vary across sectors in 2015-16

The effective tax rates of the lowest paying industries (cement, sugar, financial leasing companies), which were in single digits in 2014-15, have increased substantially and all are touching nearly 20%.
These sectors, however, continue to be taxed at lower rates than other industries.

There are interesting contrasts on tax rates of different industries in the same sector:

1.Banking companies paid tax at 40.3% while share brokers/sub-brokers paid tax at 25.1% (both financial services).

2.Courier agencies paid tax at 41.7% compared to transporters who paid tax at 26.4% (both services).

3.Forest contractors paid tax at 37.6% while mining contractors paid tax at 28.2% (both contractors).

4.Drugs and pharmaceuticals paid tax at 24.2%, electronics paid tax at 35.5% (both manufacturing).

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