Daily Economic News - 11 August 2014

1. It’s Raining Profits in India Inc:
Firm top line growth, stable operating costs and higher other income are helping India Inc report possibly the best net profit growth and operating margins in recent quarters. Earnings for the June quarter – excluding banks, finance and oil & gas firms – has delivered a robust 35.4% increase in net profit at the aggregate level compared with the year ago. Revenue rose 15.2%, whereas operating margin widened to the most in 3 years amid signs of a revival.
(Source: The Economic Times)

2. GAAR to be diluted to boost investor trust:
Keen to restore investor confidence, the finance ministry is likely to whittle down the scope of the General Anti-Avoidance Rules (GAARs) so that genuine tax planning isn’t impacted by these dreaded rules. GAARs incorporated in the Income Tax Act in 2012 would be invoked only as “a last resort” if there is no other provision in law that can be used to question a dodgy business arrangement aimed at saving tax. GAARs are intended to prevent businesses from reducing tax liability through legal loopholes and arrangements that are legal in letter but not in spirit. These rules empower the taxman to lift the corporate veil of the tax payer and re-characterise transactions if needed.
(Source: The Financial Express)

3. India, ASEAN likely to sign FTA in Services and Investments later this month :
Foreign Ministers of all ASEAN countries as well External Affairs Minister Sushma Swaraj have hoped that the pact will be finally signed during the four-day-long meeting of Economic Trade Ministers of India and ASEAN beginning August 25. The Indian government has already approved the pact in December last year.
The agreement will boost movement of Indian professionals in the ASEAN region besides facilitating investments. The India-ASEAN Trade in Goods Agreement was signed in August 2009 and it had come into force in 2010. The bilateral trade between India and ASEAN grew by 4.6 per cent from $ 68.4 billion in 2011 to $ 71.6 billion in 2012.
ASEAN's exports were valued at $ 43.84 billion and imports from India amounted to $ 27.72 billion in 2012. The target has been set at $ 100 billion by 2015 for ASEAN-India trade.
(Source: The Economic Times)

Thaiindianet.Team

11 August 2014