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☆ India tax council to meet on Aug 2 to finalise online gaming tax - source
▼ + stars: | 2023-07-26 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, July 26 (Reuters) - India's Goods and Services Tax (GST) Council will meet on Aug. 2 to decide on a 28% tax on funds that online gaming companies and casinos collect from customers, and finalise other rules, a government official said on Wednesday. The official asked not to be named because he was not authorised to speak to the media. The Finance Ministry and GST Council Secretariat did not immediately respond to a Reuters request for comment. Since the government first announced its plan for the tax on July 11, the gaming industry and its investors have asked it to review the decision, which will increase the tax burden on both companies and consumers. This would be taken into account when a final decision is taken by the GST Council, Malhotra told NDTV.

Persons: Nirmala Sitharaman, Narendra Modi, Sanjay Malhotra, Malhotra, Nikunj Ohri, Savio D'Souza Organizations: Goods, Services Tax, India's, Finance Ministry, Tiger, Steadview, NDTV, Thomson Locations: DELHI

NEW DELHI, July 24 (Reuters) - Tesla representatives are set to meet India’s commerce minister this month to discuss plans to build a factory to produce what the company has described as an all-new $24,000 car, a person with direct knowledge of the matter told Reuters. The meeting with the commerce minister would be the highest level discussions between Tesla and the Indian government since June when Elon Musk met India's Prime Minister Narendra Modi and said he intended to make a significant investment in the country. The $24,000 target price for the new Tesla vehicle was reported earlier this month by The Times of India newspaper. Reuters reported in May that Tesla executives visited India and held talks with officials on establishing a manufacturing base for cars and batteries in India. As part of that, Tesla representatives are set to meet Indian commerce minister Piyush Goyal, the first person said, and discussions are expected to centre around setting up an EV supply chain and discussing land allotment for a factory.

Persons: Tesla, Elon Musk, Narendra Modi, Piyush Goyal, Shivangi Acharya, Nikunj, Kevin Krolicki, Kirsten Donovan Organizations: Reuters, India's, EV Tesla, The Times, Thomson Locations: DELHI, India, China, New Delhi

NEW DELHI, July 21 (Reuters) - Tiger Global, Peak XV and Steadview Capital are among 30 foreign and domestic investors asking Indian Prime Minister Narendra Modi to review a 28% gaming tax, saying the levy would adversely impact $4 billion in prospective investments, a letter showed. India last week announced the tax on the funds that online gaming companies collect from their customers. Games such as fantasy cricket have become increasingly popular in recent years, but have also raised concerns about addiction among players. Tiger Global and Peak XV, previously known as Sequoia Capital India, have invested in Indian gaming companies such as Dream11 and Mobile Premier League. Over 100 gaming firms wrote a letter recently to the finance ministry with a similar request, saying the tax will stifle foreign investment and put $2.5 billion already invested in the sector at risk.

Persons: Narendra Modi, Aditya Kalra, Chris Thomas, Tanvi Mehta, Savio D'Souza, Kim Coghill, Muralikumar Organizations: Tiger, Steadview, Indian, Reuters, Tiger Global, Sequoia Capital, Mobile Premier League, Thomson Locations: DELHI, India, Sequoia Capital India, New Delhi

☆ India should cash in on 'China plus one' strategy - World Bank chief
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +2 min

In recent years, many companies have adopted a "China Plus One" strategy to build new manufacturing units outside the People's Republic. India has a window of three-to-five years to seize this opportunity to attract investment, said Ajay Banga, the former Mastercard CEO who became World Bank chief last month. "I think India's opportunity currently is to cash in on the 'China plus one' opportunity. The World Bank chief also called for private capital investments to aid global efforts for renewable energy funding. We will also need different forms of multilateral bank capital and government capital and philanthropy capital to take first risk positions or help enable the blended finance to come through," Banga said.

Persons: Ajay Banga, Banga, Narendra Modi, Nirmala Sitharaman, Nikunj Ohri, Shivam Patel, Sharon Singleton, William Maclean Organizations: World Bank, chipmaker Micron Technology, Mastercard, Indian, India's, Thomson Locations: DELHI, India, China, United States, Asia, People's Republic, New Delhi

☆ Exclusive: India to push G20 to raise share of taxes on firms where they earn 'excess profit'
▼ + stars: | 2023-07-16 | by ( Shivangi Acharya Sarita Chaganti Singh Nikunj Ohri | Shivangi Acharya | Sarita Chaganti Singh | ) www.reuters.com time to read: +3 min

"India has made suggestions to get its due share of taxing rights on excess profits of multinational companies," one official said. The suggestions have been made to the OECD and will be discussed "extensively" during the G20 meeting on Monday and Tuesday, the official said. Under the agreement, global corporations with annual revenues over 20 billion euros ($22 billion) are considered to be making excess profits if the profits exceed 10% annual growth. The 25% surcharge on these excess profits is to be divided among countries. The G20 host nation will also propose that withholding taxation be de-linked from the excess profit tax principle.

Persons: Sarita Chaganti Singh, Shivangi Acharya, Nikunj, Aftab Ahmed, William Mallard Organizations: Organisation for Economic Cooperation, Development, OECD, People's, India's Consumer, Thomson Locations: DELHI, India, Australia, Japan, Gujarat, U.S, New Delhi

☆ Exclusive: India to push G20 to raise share of taxes on firms where they earn 'excess profit,' officials say
▼ + stars: | 2023-07-16 | by ( Shivangi Acharya Sarita Chaganti Singh Nikunj Ohri | Shivangi Acharya | Sarita Chaganti Singh | ) www.reuters.com time to read: +3 min

"India has made suggestions to get its due share of taxing rights on excess profits of multinational companies," one official said. The suggestions have been made to the OECD and will be discussed "extensively" during the G20 meeting on Monday and Tuesday, the official said. Under the agreement, global corporations with annual revenues over 20 billion euros ($22 billion) are considered to be making excess profits if the profits exceed 10% annual growth. The 25% surcharge on these excess profits is to be divided among countries. The rules now say countries offset their share of taxes with the withholding tax they collect.

NEW DELHI, July 14 (Reuters) - Indian refiners have settled some payments for Russian oil imports in Chinese yuan, but the U.S. dollar remains the dominant currency for such payments, a senior government official said. Reuters reported earlier this month that Indian refiners have started turning to the yuan for some payments for Russian oil. "Use of yuan for payment by India will remain limited, given India doesn't accumulate much yuan as export to China is low," the official, who did not want to be named, told Reuters. The official also said the Reserve Bank of India will release guidance for banks in two to three days to resolve some teething issues on the rupee trade mechanism. "The issue with rupee trade is that it can only work as a barter currency," the official said.

Persons: Sergei Lavrov, Shivangi Acharya, Aftab Ahmed, Nikunj, Devika Organizations: U.S, Reuters, Reserve Bank of India, Russian, Thomson Locations: DELHI, India, Moscow, Ukraine, China, Russia

☆ India finance minister not considering tax waivers for Tesla, senior official says
▼ + stars: | 2023-07-13 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI, July 13 (Reuters) - India's finance ministry is not considering any duty waivers for U.S. automaker Tesla Inc (TSLA.O), Revenue Secretary Sanjay Malhotra told Reuters on Thursday. Last month, Tesla CEO Elon Musk said Indian Prime Minister Narendra Modi was pushing the car maker to make a "significant investment" in the country, adding that such an announcement was expected soon. In the past, talks between the U.S. carmaker and the Indian government have involved seeking customs duty waivers for importing its electric vehicles, which was rejected by India. "Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now," Malhotra said on Thursday. Reporting by Nikunj Ohri; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Sanjay Malhotra, Elon Musk, Narendra Modi, Tesla, Malhotra, Nikunj Ohri, Devika Organizations: U.S, Tesla Inc, Indian, carmaker, of Revenue, Thomson Locations: DELHI, India

REUTERS/Mukesh Gupta/File PhotoNEW DELHI, July 14 (Reuters) - India will not impose countervailing duty (CVD) on select steel products imported from China despite a recommendation from trade officials and lobbying from local steel manufacturers, a government source told Reuters. The decision by the finance ministry aims to protect steel consuming firms from higher prices even though it could hurt local steel manufacturers, the source said. In April DGTR - which is India's trade ministry's arm that investigates unfair trade practices - recommended CVD on some stainless steel flat products. The finance ministry has rejected the recommendation despite steel purchases from China touching a six-year high in April-May period, with imports rising 62%. India's finance and trade ministry did not immediately reply to emails sent after office hours.

Persons: Mukesh Gupta, Nikunj Ohri, Conor Humphries Organizations: REUTERS, Trade, Reuters, Trade Organisation, Jindal Stainless Ltd, Steel Authority of India, Thomson Locations: Jammu, DELHI, India, China

☆ India hits online gaming industry with 28% tax
▼ + stars: | 2023-07-11 | by ( Nikunj Ohri | ) www.reuters.com time to read: +1 min

International investors have also been drawn to the industry, with Tiger Global backing Indian gaming startup Dream11, the lead sponsor of India's national cricket team. India's Finance Minister Nirmala Sitharaman, who chairs the goods and services tax (GST) council, comprising state finance ministers, said the decision to tax online gaming was reached after extensive discussion. "The implementation of a 28% tax rate will bring significant challenges to the gaming industry. This higher tax burden will impact companies' cash flows," Aaditya Shah, chief operating officer at the gaming app IndiaPlays, said. Roland Landers, CEO of The All India Gaming Federation, said the decision was "unconstitutional (and) irrational".

Persons: Dado Ruvic, Nirmala Sitharaman, Shah, Roland Landers, Sudipto Ganguly, Aftab Ahmed, Mark Potter, Jane Merriman, Barbara Lewis Organizations: REUTERS, Tiger Global, national cricket team, India's, Industry, The, India Gaming Federation, Thomson Locations: DELHI, India

☆ HDFC Bank to sell 2% stake in NSDL IPO
▼ + stars: | 2023-07-09 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, July 9 (Reuters) - HDFC Bank (HDBK.NS) will sell a 2% stake in the initial public offering (IPO) of National Securities Depository (NSDL), the lender informed exchanges on Sunday. The lender holds a 8.95% stake in NSDL, which handles most of the securities held and settled in dematerialised form in the Indian capital market. In its draft red herring prospectus (DRHP) dated July 7, the depository said the IPO will see sales of 57.3 million shares by its six shareholders. IDBI Bank (IDBI.NS) will sell up to 22.2 million shares, while National Stock Exchange will sell 18 million shares it owns in the depository. Union Bank of India (UNBK.NS) will sell 5.62 million shares, and State Bank of India(SBI.NS), and Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 4 million and 3.4 million shares, respectively.

Persons: Nikunj Ohri, Kim Coghill Organizations: HDFC Bank, National Securities Depository, IDBI Bank, National Stock Exchange, Union Bank of India, State Bank of India, Unit Trust of India, Thomson Locations: DELHI, NSDL, dematerialised

The current National Pension Scheme requires employees to contribute 10% of their basic salary and the government 14%. But, "we will not go back to the old pension system," said one senior government official. This compromise, the government believes, will assuage the concerns of states that went back to the old pension system and cover the whole country with one fiscally sustainable pension scheme, both the sources said. Recently, states including Rajasthan, Jharkhand, Chhattisgarh, Himachal Pradesh and Punjab have opted to move back to the old pension system. Reuters GraphicsThe government officials said that the amended pension scheme will not stress the budget math as much.

Persons: Narendra Modi, Modi, Aftab Ahmed, Nikunj, Savio D'Souza Organizations: Reuters, Pensions, Thomson Locations: DELHI, Rajasthan, Jharkhand, Chhattisgarh, Himachal Pradesh, Punjab

[1/2] Customers look at a Hero MotoCorp Karizma motorbike at a Hero MotoCorp showroom in the western Indian city of Ahmedabad April 26, 2013. REUTERS/Amit Dave/File PhotoCompanies Hero MotoCorp Ltd FollowNEW DELHI, June 15 (Reuters) - India's Ministry of Corporate Affairs has ordered an investigation to assess Hero MotoCorp's (HROM.NS) relationship with a third-party vendor in a case related to alleged diversion of funds, two government sources told Reuters on Thursday. The investigation has been ordered in the "public interest" to probe the ownership structure of Hero MotoCorp and whether it controlled the third-party vendor, said the two sources, who are privy to the internal government directive. Hero MotoCorp, India's largest manufacturer of motorcycles, said in a statement to Reuters that it had not received any communication from the government and could not comment. Separately, Hero MotoCorp was under the scrutiny of India's income tax authorities last year.

Persons: Amit Dave, MotoCorp, Hero MotoCorp, Pawan Munjal, Nikunj Ohri, Aditya Kalra, Aditi Shah, Jason Neely Organizations: REUTERS, NEW, India's Ministry, Corporate Affairs, Reuters, India's, Companies, Thomson Locations: Indian, Ahmedabad, NEW DELHI, New Delhi

☆ India plans to ask lawyers to report clients' dubious transactions
▼ + stars: | 2023-06-15 | by ( Nikunj Ohri | ) www.reuters.com time to read: +3 min

The authorities believe the plan will help in faster recognition of dubious transactions involving shell companies and money laundering. The plan is to implement recent recommendations of the FATF which require lawyers, notaries, other independent legal professionals and accountants to report suspicious transactions, and maintain a record of transactions undertaken for clients, said the first source. "If lawyers are brought under the money laundering law, it will breach the trust between client and attorney and impact privilege communications," said senior lawyer Hiten Venegaonkar. Other countries such as the United Kingdom and Australia have anti-money laundering requirements for law firms and lawyers, said K.V. India is currently compliant with FATF regulations but even within the compliant category, FATF assigns scores to various countries based on strength of regulations and implementation of these.

Persons: Hiten Venegaonkar, Venegaonkar, K.V, Karthik, Nikunj Ohri, Kim Coghill Organizations: Reuters, Money, Bar, Deloitte Touche, Thomson Locations: DELHI, New Delhi, United Kingdom, Australia, India

☆ Most G20 nations see banking system sound as bloc talks financial stability - official
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI, June 14 (Reuters) - Most G20 member nations are of the view that banking systems and regulations in their countries are steady, India's chief economic advisor said on Wednesday. "Most country members who spoke expressed the view or the hope that their individual country regulations and banking systems were sound, and they don't anticipate any trouble," V. Anantha Nageswaran said after the bloc discussed financial stability risks. Reporting by Shivangi Acharya and Nikunj Ohri; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

Persons: Anantha Nageswaran, Shivangi Acharya, Nikunj, Nivedita Organizations: Thomson Locations: DELHI

Food inflation, which accounts for nearly half of the overall consumer price basket, moderated to 2.91% in May against 3.84% in April. "Food inflation benefited from a sequential fall in the prices of fruits and oils," said Suvodeep Rakshit, economist at Kotak Institutional Equities. Core inflation, which had been easing after being a key concerns for months, remained below 6% for a third consecutive month. According to two economists' estimates, core inflation was 5.02% in May, compared with 5.2% in April. The Indian government does not release figures of core inflation, which strips out volatile food and energy prices.

Persons: Suvodeep Rakshit, Devendra Kumar Pant, Nikunj Ohri, Aftab Ahmed, Andrew Heavens Organizations: Reserve Bank of India's, Reuters, El, Thomson Locations: DELHI, Asia, India

The government expects growth could remain around 6.5% in the current fiscal year, despite risks emerging from a global slowdown. Asia's third-largest economy expanded faster than the forecast of 5.0% by economists in a Reuters poll in the last quarter of the 2022/23 fiscal year through March, up from a revised 4.5% in the previous quarter. She added growth numbers, however, reflected optimism for the Indian economy despite global headwinds. Reuters GraphicsFederal government spending, constituting about 10% of GDP, rose 2.3% year-on-year in the latest quarter, compared with a revised 0.6% contraction in the previous quarter. Currently, 45% of India's workforce is employed in the farm sector, which contributes just 15% to the economy.

Persons: Anantha Nageswaran, Sakshi Gupta, Narendra Modi, Economists, Sarita Chaganti Singh, Shivangi Acharya, Nishit Navin, Emelia Sithole, David Holmes Organizations: Reserve Bank of India, Reuters, Reuters Graphics Federal, Monitoring, Thomson Locations: DELHI, India, HDFC, Mumbai, New Delhi, Bengaluru

☆ India exempts overseas card spends up to 700,000 rupees from 20% tax
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI, May 19 (Reuters) - India will not impose a 20% tax on spending of up to 700,000 rupees ($8,559.55) through international debit and credit cards in a financial year, it said in a statement on Friday, partly reversing the rules within days after a public backlash. The finance ministry earlier this week had announced a tax of 20% on the spending for overseas travel and purchases using international debit and credit cards from July 1. A tax collected at source could be claimed by the payee at the time of filing of tax returns. ($1 = 81.7800 Indian rupees)Reporting by Nikunj Ohri and Nidhi Verma; Editing by Varun H KOur Standards: The Thomson Reuters Trust Principles.

The off-balance sheet borrowings incurred after fiscal year 2021 will continue to be adjusted over the next three financial years, said one of the sources. However, from here on, any new off-balance sheet borrowings will be adjusted in the same year or the year after they have been incurred, the source added. In one year, the adjustment from borrowing requirements will not be more than 0.25% of gross state domestic product, said a the second source. Reuters GraphicsLower market borrowing by state governments was one factor that helped keep federal government bond yields in check in 2022-2023. State governments also had high cash balances at the start of the previous year, which helped bring down borrowings, said ICRA.

☆ Byju's CEO assures company's compliance after raids over alleged forex law violations
▼ + stars: | 2023-04-30 | by ( Aditya Kalra | ) www.reuters.com time to read: +2 min

India's Enforcement Directorate raided three premises linked to the company on Saturday over alleged foreign exchange law violations. The searches revealed that Byju's parent firm Think & Learn Pvt Ltd had received foreign direct investment of nearly 280 billion rupees ($3.43 billion) between 2011 and 2023, the agency said on Saturday. The agency also said that the company remitted 97.5 billion rupees to various foreign jurisdictions between 2011 and 2023 in the name of overseas direct investments. In the internal memo, Raveendran said that the company had sent some money overseas to fund its international acquisitions. The company had taken all efforts to comply with foreign exchange laws and all cross-border transactions were routed through regular banking channels, he added.

☆ India's retail inflation eases below RBI's upper tolerance level
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, April 12 (Reuters) - India's annual retail inflation for March eased below the central bank's upper tolerance level for the first time this year, as food prices softened. Annual retail inflation eased to 5.66% in March from 6.44% in the previous month, government data showed on Wednesday. A Reuters poll of 39 economists had forecast an annual inflation rate of 5.80% in March. Food inflation, which accounts for nearly half of the overall consumer price basket, moderated to 4.79% as vegetable prices eased, offsetting surging cereal prices. RBI's sudden pause came even as retail inflation has remained above the central bank's mandated target range for 10 out of the 13 readings.

☆ India cuts windfall tax on crude oil to zero, diesel halved
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, April 4 (Reuters) - India cut its windfall tax on crude oil to zero from 3,500 rupees ($42.56) a tonne and halved the tax on diesel to 0.5 rupee per litre, a government notification said on Tuesday. The government adjusts the tax rates twice a month according to global crude oil price movements. The windfall tax on exports of aviation turbine fuel (ATF) and petrol, which had previously been cut to zero, were left unchanged, the notification said. The government intends to withdraw the windfall tax once global crude oil prices fall firmly below $70 a barrel, a top government official told Reuters last year. Brent crude oil prices slipped last month near $70 a barrel, a 15-month low, on fears of weakening demand but this week surged above $85 after the OPEC+ group's decision to curtail production.

☆ World Bank cuts Pakistan's GDP f'cast on rising rates, limited fiscal space
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +2 min

NEW DELHI, April 4 (Reuters) - The World Bank sharply lowered Pakistan's current year growth forecast, saying the country's economic growth prospects have weakened due to tighter financial conditions and limited fiscal space. The World Bank now expects Pakistan's economy to grow 0.4% in the current year, from its October forecast of 2% growth. Pakistan expects its economy to grow 2% in FY23, however, the country's central bank chief said in January the growth forecast could face downward pressure. The World Bank lowered its 2023 regional growth forecast to 5.6% from 6.1% in October. Inflation in South Asia is set to fall to 8.9% this year, and to below 7% in 2024, the World Bank said.

☆ India's April-September borrowing slightly above market expectations
▼ + stars: | 2023-03-29 | by ( Nikunj Ohri | ) www.reuters.com time to read: +2 min

The planned April-September borrowing constitutes about 57.6% of the total 15.43 trillion rupees planned for the current fiscal year, the government said in a statement on Wednesday. Borrowing in the first six months is slightly above market expectations of about 55% of this year's target. The government said the borrowing will be done through bonds of three, five, seven, 10, 14, 30 and 40 years tenure. It plans to borrow between 310 billion and 390 billion rupees a week in the first half of the fiscal year. The government plans net borrowing of 1.42 trillion rupees in the quarter ending June 30, compared with 2.40 trillion rupees in the same period last year.

☆ Indian govt has 54 Chinese investment proposals pending - finance minister
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +1 min

March 27 (Reuters) - The Indian government has received about 54 foreign direct investment proposals from China since last year that are pending for approval, said Finance Minister Nirmala Sitharaman. "54 FDI proposals received during the past year and current year with investor/ beneficial owner from China/Hong Kong are pending for decision with government as on March 21, 2023," Sitharaman informed lawmakers on Monday. The Indian government is not considering easing restrictions put in place a few years ago on foreign investments from countries that share land border with India, Sitharaman said. The restrictions called for beneficial owners of a country sharing a land border with India to seek its government's approval for investments. The step was taken to prevent hostile takeovers of Indian companies when the country was severely impacted by the COVID-19 pandemic.

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