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Date :23 Feb 2017

GST adoption could raise India s GDP to over 8%: IMF

The adoption of the GST could help raise India s medium-term GDP growth to over eight per cent and create a single national market for enhancing the efficiency of the movement of goods and services, "Although some uncertainties remain around the design and pace of implementation of the GST, its adoption is poised to help raise India s medium-term GDP growth to above 8 per cent as it will create a single national market and enhance the efficiency of intra-Indian movement of goods and services," the IMF said in its annual country report on India.

Date :23 Feb 2017

Govt May Roll Back 10% LTCG Tax Plan on Esops

Govt proposed in budget that anyone who bought shares in unlisted cos before Oct 1, 2004, and not paid STT will have to pay LTCG tax The government may be looking to roll back or tweak a budget announcement, imposing long-term capital gains (LTCG) tax on holders of ESOPs and private equity investors, people close to the development said. In the budget, the government had introduced a provision whereby anyone who acquired shares in unlisted companies before October 1, 2004, and had not paid securities transaction tax (STT) will be liable to pay 10% LTCG tax.The government had brought the provision to plug a loophole being used to evade taxes.Industry trackers say that not just private equity investors but even receipt of shares under gift, mergers, demergers, bonus issue, rights issue, acquisition of shares under IPO or shares of a company, which was listed after acquisition of shares, will be covered under the definition.The government was looking to plug the loophole in thinly traded or group-z category shares. ET had on January 19 written that the government was looking to introduce LTCG tax on group-Z category of shares. Group-Z is a category made up of listed companies that have not complied with regulatory requirements. There are about 2,200 companies under the category on the BSE.However, there are experts who say the government must totally roll back the capital gains provision. “Introduction of the provision that long-term capital gains tax would be exempt only where the shares were acquired after paying STT would thus require the government to provide a long list of exclusions to remove hardship in many genuine cases. And yet, the list may not be exhaustive. A rollback of this provision would be ideal,“ said Daksha Baxi, executive director, Khaitan & Co.

Date :23 Feb 2017

Bharti Airtel to acquire Telenor India t

Bharti Airtel has entered into a definitive agreement with Telenor South Asia Investments to acquire Telenor India Communications that will give it an access to seven circles including Gujarat, Maharashtra, UP East and UP West. In a BSE filing, the operator said that the acquisition will include transfer of all Telenor India’s assets and customers, which will boost the company’s customer base and network. Data showed Telenor had a market share of 3.9 per cent as of December 2016. Its active subscriber stood at 38 million (3.8 crore) at December end. Bharti Airtel, on the other hand, is the market leader with 26.1 per cent market share and a subscriber base of 258 million (25.8 crore).

Date :22 Feb 2017

Flipkart in talks with Microsoft, others for up to $1.5 billion fundraising