Indias services PMI drops to 4-year low due to GST
The Dollar Business Bureau India’s services sector activities declined in July to a four-year low due to the disruptions caused by the implementation of Goods and Services Tax (GST), according to a private survey. However, the sector is confident of a speedy revival as the new indirect tax regime settle down. The Nikkei India Services PMI Business Activity Index dropped from the eight-month high of 53.1 in June to 45.9 in July, the lowest since September 2013. A reading over the level of 50 on the index indicates expansion whereas a reading below the halfway level shows contraction. “PMI data for July highlight a reversal in fortunes across India, with the economy going into reverse mode after seeing a pickup in ...
IGST, CGST and Compensation Bill receive Lok Sabha nod
By Ranjeet Mahtani and Sweta Rajan A seven-hour long debate in the Lok Sabha, resulted in the passage of the Integrated GST, Central GST and GST Compensation Bills this week. Having been introduced as ‘money bills’ the Rajya Sabha did not have the power to amend or reject bills. Now, the Bills require presidential assent to become law. In preparation for the transition to GST, the Central Government has introduced another bill in the Lok Sabha to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Central Excise Tariff Act, 1985, the Finance Act, 2001, and the Finance Act, 2005, and to repeal certain existing enactments. These amendments are essential to modify the tax levying ...
Goods and Services Tax: Progress made, concerns and the way forward
By Ranjeet Mahtani and Sweta Rajan Draft GST laws The Union Cabinet chaired by the Prime Minister has approved the Integrated GST, Central GST, Union Territory GST and GST Compensation bills on March 20, 2017. These four bills will now have to be passed by the Parliament. It is expected that the bills will be introduced in the Parliament early next week as a ‘money bill’ (note that the Rajya Sabha does not have the power to amend or reject money bills and is required to return it to the Lok Sabha within 14 days). Should the July 1, 2017 target for the introduction of GST in India be met, the Parliament will have to pass these bills before the end of ...
Allcargo to invest Rs.170 cr to expand domestic business
The Dollar Business Bureau Allcargo Logistics, a leading integrated logistics solutions company, will invest around Rs.170 crore in the current financial year for purchasing land to set up a logistics park on New Delhi’s outskirts and a container freight station (CFS) in Kolkata, according to a company’s top official.After announcing a target to nearly increase its revenue three-fold to $2 billion by 2020, Allcargo Logistics, which mainly serves the export-import trade till now, is looking to set its foot in the domestic market with businesses such as express delivery, Shashikiran Shetty, Chairman of the company told to PTI.He also gave a hint that the company will follow acquisitions strategy for domestic play. “We will be investing Rs.170 crore this fiscal year, which ...
India attracts Rs.53 lakh-cr funds in infra sector
The Dollar Business Bureau India has attracted over all investments worth more than Rs.53 lakh crore in various categories of infrastructure sector. The categories include transport, health, education, recreational services, communication services, wholesale and retail trading, information, hotels and tourism, and storage and distribution services. Among these, transport services garnered the maximum share at 71% of the investments. This information has been revealed by Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its study ‘Analysis of infrastructure investment in India,’ in Hyderabad on Friday. Total investments attracted by infrastructure sector across India have increased at a compounded annual growth rate (CAGR) of 10% to reach Rs.53 lakh crore in 2015 from over Rs 32 lakh crore in 2010. As per the ...
Govt to reduce logistics costs to 12%
Ahmad Shariq Khan & Aamir H Kaki The Govt wants to bring down the overall logistics cost to 12%. This was revealed by Nitin Gadkari, Minister for Road Transport, Highways and Shipping during the unveiling of the 3rd edition of a report titled “Operational Efficiency of Freight Transportation by Road in India”, on Tuesday. The report was jointly published by Transport Corporation of India (TCI) and IIM Calcutta.Speaking on the occasion he said if India does not bring down logistics costs, which currently stand at 18 percent, the country will not be able to give a competitive edge to it's exporters. He also stressed on the need to develop multimodal transportation solutions in the country.Referring to China he said, "China's ...
India seeks to enhance multilateral trade cooperation within SAARC
Transport & Logistics Services to get boost in forthcoming SAARC Summit, along with agreements on power and railway networks Sachin Manawaria | @TheDollarBiz While contradictory messages have gone out to the world on Indias stand on Trade Facilitation, the country is galloping ahead with something similar on a slightly smaller scale, within SAARC or the South Asia Association for Regional Cooperation that comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. If everything works out smoothly, soon the SAARC nations may ply their vehicles in others members nation territory for transportation of cargo and passengers. This is one of the aims of the Modi government which approved yesterday the Signing and ratifying the SAARC Motor Vehicles Agreement at the 18th ...
