Daily Financial News Analysis – 20th Dec’19 – Free PDF Download

Chabahar Port

• The US has provided a rare exemption to  India from sanctions on the Chabahar port  in Iran.
• USA recognises Chabahar a lifeline for war-  torn Afghanistan  to get humanitarian   supplies from India.
• The Chabahar port — being jointly  developed by India, Iran and Afghanistan — is considered a gateway to golden three countries with central Asian nations.

NCLAT Order Tough to Implement

• The National Company Law Appellate  Tribunal’s order to immediately  reinstate Cyrus Mistry as director on  the boards of Tata Sons and three  other group companies is difficult to  implement.
• Legal experts said the board  concerned would have to meet and  decide on his reinstatement.
• Legal minds are not sure how it will  be implemented.
• There is no provision in the Companies Act for immediate reinstatement of a former board member, said another legal expert.
• If the order is implemented right away, it will not be in accordance with the Companies Act and the Articles of Association.
• The board has to meet and shareholders have to approve his reinstatement to the board

Rupee Down – Crude Up

• The Indian rupee depreciated by 6  paise to close at 71.03 against the US  dollar on Thursday.
• Steady rise in crude oil prices  weighed on investor sentiment.

Pre-budget Meeting

• India Inc has made a strong pitch for  converging corporate tax rate to 15%  over three years, ease of doing  business and improving regulatory  environment to safeguard investment  as part of its budget wish list.
• Industry captains sought measures to  stimulate consumption, revive private  investment and boost growth.
• Bharti Enterprises chairman Sunil  Mittal: mergers and acquisitions and  demergers, about NCLT processes and  about certain sections of income tax  that are coming in the way of M&A or  are slowing them down.
• FICCI president Sandip Somany  suggested that income tax for those  earning over Rs 20 lakh should be  halved to boost consumption.

Rampant GST evasion?

• An analysis by the goods and services tax (GST) department showed that as  much as 39% or 2.5 lakh crore of  input tax  credit  (ITC)  claimed by  taxpayers in FY18 remained unmatched with the invoices uploaded by their suppliers.
• The gap had come down to 13% (Rs. 7 lakh crore) in FY19.
• Need of the hour: more measures to check tax evasion and fraud.
• Experts said that not all mismatched credit amount could be attributed to  frauds.
• The mismatch in credits between various GST returns can be mainly attributed to frequent changes in the  returns, filing requirements, time lines, etc.
• Senior indirect tax officials  have   estimated that the annual GST fraud  could be as high as 90,000 crore.

H-1B visa

• External Affairs Minister S Jaishankar Pitched strongly for the issuance of H-1B visa to Indians, underling their significant contributions to the US Society, econom and polity deepening of bilateral ties.
• The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical  or technical expertise.
• The technology companies depend on it to hire tens  of thousands  of  employees each year from countries  like India and China.
• Indian companies are being unduly targeted by the  administration of  President Donald Trump.
• India has taken up the problems faced by Indian professionals and IT  companies with the Trump

Onions

• The Government has contracted an additional 12,500 metric tons of onions from Turkey.
• The latest contract of onions will begin arriving in India from Mid-January onwards.
• The MMTC has taken this decision following the direction of the Price Stabilisation Fund Management Committee of the Department of Consumer Affairs.
• With this additional 12,500 metric  tonnes, the total contracted onions so  far for imports have gone upto 42,500  metric tonnes.
• A bulk of the contracted Onions to the  tune of approximately 12,000 metric  tonnes will arrive in India before 31st  of this month which  will then  be  supplied to various states in line with  their respective demand.

FASTags

• Road and Transport Minister Nitin  Gadkari has said that the revenue toll collections through FASTags has substantially increased from seven crore to 85 crore rupees.
• The new system will provide seamless traffic and reduce air pollution and save fuel.
• He said, till now one crore FASTags have been issued.

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