Search Result for : Depreciation

By Stella Joseph and Ranjeet Mahtani By the proposals in the Union Budget of 2017, India has sought to adopt and introduce in its Income tax law provisions, what is popularly known as the Thin Capitalization Rule. The proposal is aligned to the Action Plan 4 of the Base Erosion of Profit Share (BEPS) project of the Organisation for Economic Co-operation and Development (“OECD”), under the initiative of G-20 countries (which includes India). The Final Report on Action Plan 4 was released in October 2015 and additional guidelines thereto have been released in December 2016. The Thin Capitalization Rule has been explicitly adopted by a number of economies including the United States, Russia, Indonesia, Canada, Australia and various European nations. The form which ...

The Dollar Business Bureau Depreciation of the rupee will not have a broader implication on India’s textiles exports but will bring a competitive pressure from China due to devaluation of Chinese currency, according to the Investment Information and Credit Rating Agency of India (ICRA). China’s decision to devalue the Yuan on August 10, 2015, has led to depreciation in the currencies of other apparel exporting countries, including Indonesia and Vietnam. Any fluctuation in their currencies will affect export competitiveness in the market. "As China’s Yuan has depreciated more than the Rupee and given that China enjoys dominant position in international export markets, India will see increased pricing competition which will affect the profitability of Indian exporters," ICRA said in statement. The credit ...

Himanshu Vatsa and Sai Nikesh | The Dollar Business Declining value of Indian rupee against the US dollar may prove to be a double whammy for exporters, as the currency war triggered by depreciation of Chinese Yuan is expected to intensify competition among emerging countries in the region. The depreciation of Yuan by almost 3% earlier this month by the Chinese central bank has crumbled the stock markets across Asia and the world. The Indian stock market fell by more than 5% on Monday, wiping out millions of funds put in by investors across sectors. Though the stock recovered marginally on Tuesday, Indian rupee was at Rs.66.70 per US dollar. Analysts say that exporters from India and other countries will scramble ...