Category: CA News

Vijay Shekhar Sharma blames bad timing for Paytm’s flop listing

Vijay Shekhar Sharma blamed the bad timing for the hot response to Paytm’s first public offering and a faint mention last year, amid rising prices from the company he built almost two decades ago.

One97 Communications Ltd., the parent company of Fintech Pioneer of India, entered the stock market at a time when the market feared various factors and this affected prices, said Sharma Sequoia Capital CEO Rajan Anandan of IAMAI’s India Digital Summit 2022 on Wednesday. This is one of the first public appearances Sharma has made since Paytm’s devastating market debut in November last year.

“Paytm’s success will depend on what we do with the monetization that is driven by financial services. Payment is something that further increases the yield threshold,” he said at the event. “We talked about $ 100 million in payment revenue this quarter as a huge revenue … People underestimated the size of payment revenue.” He also added that Paytm recorded higher revenues at lower costs.

“People underestimate the growing impact of this platform on the customer base … We’ve spent and less than every year since … Our business has never looked better,” he said. and Sharma.

Brokerage company Macquarie lowered One97 Communications’ target price from Rs 1,200 per share to Rs 900 per share on Monday. This is 58% lower compared to the Paytm issue price of Rs 2,150. Macquarie said that Paytms represents 70% of total gross revenues and that the company could therefore be affected by any regulations that charge for digital payments.

On Wednesday, Paytms’ market capitalization was $ 9.49 billion, compared to the highest private market valuation of $ 16 billion. ETtech analysis: behind a bad Paytm IPO and its constant estimates

Sharma said the contribution margin for payments is still doubling compared to Paytm. Quarterly payment revenues reach $ 140 million if the shopping services it provides are included, he said. Sales are expected to grow by at least 50 to 60% year on year, he added.

“Credit is the most expensive financial service. Bajaj Finance has existed for 30-32 years, Paytm has been processing more loans than Bajaj now, in less than three years …,” Sharma said. “Because in our credit business we have to compare with only one person, and that is Bajaj (Finance). We (Paytm) have to look for the benchmark we provide in terms of total loan amount, loan amount and loan quality.

“The problem with our companies is the companies that provide loans – banks and the NBFC. The bad metric they get is the size of the debt. The better metrics they will strive for is loan quality, ”he said.

Last week, Paytm said the number of loans disbursed through its platform had quadrupled last year to 4.4 million in the December quarter, as part of the release of information on Indian stock exchanges.

According to the company, the amount of loans disbursed through its platform in the third quarter was Rs 2,180 million – a year-on-year increase of 365%. The average loan amount provided by Paytm is currently around Rs 5,000.

On Wednesday, Paytm shares on the BSE fell 3.22% to Rs 1,083.40, while the Sensex benchmark ended the day 0.88% higher at 61,150.04 points.

Tax Audit Due Date To Be Extended

Due to the difficulties reported by taxpayers / stakeholders due to Covid and the submission of audit reports for 2021-22 under the IT Act of 1961, the CBDT further extended the deadlines for submitting audit and ITR reports for IS 21-22. Circular No. 01/2022 dated 11.01.2022 issued.

Upon repulsion reported by taxpayers and other concerns due to Covid filing and electronic submission), exercise), exercise), exercise), exercise), exercise), Exercise), Exercise), Exercise His Powers Among Section 119 of law, entertaining entertainment about the following compliance:

The Court of Auditor of the Auditors Report is under all the Act Facility, 2020-21, who named in the case of donkey (A) to clarify 2 of the sub-part (1) in part 139 of the law , as Oct 31, 2021 and January 15, 2022 by Circular No.17 / 2021 Deteder September 09, 2021 rather February 15, 2022;

The set date of the Courtian report under all Act Prospects Last year 2020-21, October 31, 2021, in the sub-part (1) in part 139 of law, is on the 15th of February, 2022;

The fixed date of the report is of a bookkeeper to people entering international transaction under last year 20,000 2022 by Circular No.17 / 2021.202111113 Further On 15th April, 2022;

The end date of revenue revenue income for the year of the year 2021-22, which is 8 in St.00 in paragraph (1) after 30 November 2022 by Circular No.9 / 2021 Danced 20.05.2021 and round. 17/2021 Dated by real 09.09.2021 further extended, goes on 15th March, 2022;

Return the end date income for the year of the year 2021-22, which was the year 2021 in paragraph (1) of December 2022 by the February 2022 dated the February 20,9,55.2021 and round . 17/2021 Dated by real 09.09.2021 further extended, goes on 15th March, 2022.

Explanation 1: Upgrading This attachment cannot be used 1 to subsection 234a in cases where the amount of value has been specified in the speaking (vi part (1) of that part larger larger Lakh Rupees.

Explanation 2: For the purpose of clarification 1, if an individual indicated in the sub-part (2) of action, section 140a on the Act SECRET DATE (without the extended ‘under the Circular No.9 / 2021, Circular No.17 / 2021 and this round) given to that work, tax development.

India has 4th largest foreign exchange reserves in world

India’s Finance Minister Pankaj Chaudhry told Lok Sabha on Monday that India currently has the fourth largest foreign exchange reserves in the world. “On November 19, 2021, foreign exchange reserves were $ 640.4 billion,” he said.

To another question he replied: Records of P-Notes / Outside Derivatives (ODIs) holders and ODI holder stakeholders, as defined in Section 9 of the Anti-Money Laundering Rules, 2005, SEBI. Reported monthly by foreign investors issuing Portfolio Investments (FPIs).

In addition, ODIs issuing FPIs should always keep KYC documents for ODI subscribers and make them available to SEBI upon request.

To another question, Chaudhry replied that the total amount of indirect taxes, including taxes on petroleum products, was around rupees for the last seven tax years (2014-15 to 2020-21). 16.7 million rupees.

The total indirect tax on unbranded gasoline was 9.2 rupees per liter for the period 2013-2014, while the total indirect tax on unbranded gasoline was 3.46 rupees per liter. Currently, the total central unauthorized tax on un-labelled gasoline is 27.9 rupees per liter, while the total indirect tax on un-labelled diesel is 21.80 rupees per liter.

PM Modi to Take Final Call on Crypto Regulatory Framework; Draft Bill could Undergo Some Changes

Two people familiar with the development said Prime Minister Narendra Modi will make the final decision on how to regulate the digital currency amid conflicting views from stakeholders. A high-level meeting was held on Thursday to discuss all options as well as stakeholder views, including the Bank of India’s concerns.

These options include total banning of private digital currencies, partial bans or regulation of all classes of cryptocurrencies, or just a handful of them.

The second person said consultations will most likely take place on Friday before the decision on the framework is made.

The Digital Currency Act and the provisions of the Official Digital Currency Act 2021 will be examined and passed in Parliament’s winter session.

According to the public, the Treasury Department has finalized a concept paper on the bill, but government agencies felt it was necessary to further discuss the principles underlying the bill and the details of the Council on the treatment of virtual currencies in India. The discussion will likely focus on the options and their advantages and disadvantages. “The prime minister will now have one final discussion about it,” he said.

The draft law can be further amended at high level after these negotiations. The bill had previously been included in the last budget meetings but was not tabled as the government decided to amend it.

The bill also aims to create a viable framework for the creation of an official digital currency that will be issued by the central bank. Its purpose is to ban private digital currencies in India while allowing some exemptions to promote this core technology.

Finance Minister Nirmala Sitaraman told the Rajya Sabha newspaper last week that the government would submit the bill to parliament after cabinet approval. 

Crypto Trade Among Bourses may be Banned Exchanges’ Underlying Assets

The proposed bill is expected to show encryption blankets in transferring exchange exchanges, limit certain types of portfolios. and others. The law gives new Delhi officials to examine the LCD for the exchange of books. “The government will monitor the mechanism for INR, where exchanges should be opened with regulators, when they enjoy every three months of purchase every three months.” This person said that the government only allows Indian exchanges to work and move to move the rules of command and control to investors. “The way this will happen that exchanges of the same limitations, such as exhibitions or other commodities with budget, can leave India and how business can happen.  Everything is usually happening in the organizational vacuum and does not know if these exchanges are actually basic assets that are traded on operating systems, “another person who understands and others. 

Industry experts consider such a step necessary, especially if the government wants to regulate digital currencies in the province. “Most Indian currency exchange offices have two ways to buy or sell digital currency and that depends on the digital fiat currency pair. FEMA (Foreign Exchange Regulations) can be activated in cases where most Indian exchange offices buy or sell digital currency in two ways: “he said.” They do. “Amit Gogo, CEO of Ankara Consulting. The base currency of the cryptocurrency is the US dollar or a fiat currency other than the INR.

There is also an offer to have a unified wallet, something like a demat account, but due to the sophisticated technologies used, it seems difficult to implement. “But investors are not allowed to trade with one another through an exchange office,” said another official. This could mean that digital currency transactions become a closed loop transaction or that transactions are limited to one exchange.

An asset, not a currency:

This means that cryptocurrencies can only be used as assets and not as currency.

Bank of India (RBI), in a meeting with the government, expressed concern about cryptocurrencies and how they could threaten India’s financial stability, and regulators, including RBI, expressed concern about the possible use of currencies. Digital currencies for money laundering. .

 Under the new crypto framework, the government could ask SEBI to regulate digital currencies in India. The ET first reported on Sept. 3 that new regulators could view digital currency as an asset / commodity for all purposes, including taxation. On May 17, the main exchange ET announced that it had contacted the government and tried to regulate Sebi, not the RBI. 

Govt’s excise mop-up from petrol, diesel doubles to Rs 3.7 lakh cr in FY21; states get Rs 20,000 cr

The central government’s total indirect tax on gasoline and diesel rose to 3.72 billion rupees in the 2020-21 epidemic, of which states paid less than 20,000 rupees on Tuesday, according to the Rajia Sabha government.

 

Finance Minister Pankaj Chowdhury said in a written answer to a question that the collection of indirect taxes on gasoline and diesel would go from 1.78 thousand rupees in 2019-2019 to 3.72 thousand rupees in 2020-21 (April 2020 to March 2021) has risen.

The increase in the survey was mainly due to the increase in fuel tax rates.The total indirect toll for gasoline in 2019 was 19.98 rupees per liter and 15.83 rupees per liter for diesel. The government doubled the indirect tax twice last year to 32.98 rupees per liter for gasoline and 31.83 rupees per liter for diesel.

These costs were changed in this year’s budget to 32.90 rupees per liter of gasoline and 31.80 rupees for diesel. After sales prices reached unprecedented highs across the country this month, gasoline prices fell 5 rupees per liter and diesel prices fell 10 rupees per liter.

“The total amount of tax remitted to state governments on the collection of goods collected under the central indirect tax in fiscal 2020-2021 was 19972 billion,” said Chaudhry. While the total tax rate for gasoline is currently Rs 27.90 per liter and diesel Rs 21.80, states are only entitled to part of the property tax.

Of the total tax burden, the consumption tax on gasoline is 1.40 rupees per liter. In addition, there are special surcharges of Rs 11 and road and infrastructure taxes of Rs 13 per liter. Rs. 2.50 will be collected from infrastructure tax and agricultural development.

Likewise, the base price for diesel is 1.80 rupees per liter. As a special congestion, road and infrastructure tax, 8 rupees per liter and 4 rupees per liter are levied for the agricultural infrastructure and development tax.

“The completion of the basic element of indirect taxes to state governments is based on a formula that is occasionally determined by the Finance Commission. Currently, the base indirect tax rate is 1.40 rupees per liter for gasoline and 1.80 rupees per liter.” he said, “Per liter. Diesel.”

The total fuel tax collection was Rs. 2.22 billion in 2016-17, which increased to Rs. 2.25 billion the following year, but decreased to Rs. 2.13 billion in 2018-19.

Petrol and diesel are currently not subject to goods and services tax (GST) and receive VAT from the consumption tax levied by the center. “The total sales tax levied on fuel in various states from April 2016 to March 2021 is INR 9.57,” he said.

According to the ministers, this is compared to the 12.11 crore collected by the central government over the same five-year period.

November gross GST collection at Rs 1,31,526 crore, 2nd highest ever

The total GST revenue accrued in November was 1,31,526 rupees. This was an increase from Rs 1.30 crore collected in October.

Of these, CGST includes 23,978 rupees, 31,127 rupees, IGST 66,815 rupees (including 32,165 rupees on imports) and 9,606 rupees on taxes (including 635 rupees on import goods).

November marked the second consecutive month that total GST collections exceeded Rs 1.30 billion.

November revenues are the second highest since taxes were levied on goods and services. The highest income since the tax in April this year (more than 1.41 lakh crore).

“GST sales for November 2021 was the second record since GST was launched after April 2021, based on year-end sales, beating previous months’ indentation, which also includes the impact of required revenue.

The government said the complexes broadly followed the general trend of economic recovery.

Mukesh Ambani turns to WhatsApp to break Amazon’s grip on Indian buyers of grocery

Indians can now use WhatsApp to reserve groceries from billionaire Mukesh Ambani’s JioMart thru a new “tap and chat” choice, as his Reliance Industries Ltd. Challenges the domination of Amazon.Com Inc. And Walmart Inc.-owned Flipkart.

 

Delivery is unfastened and there’s no minimal order cost, according to JioMart users who were given WhatsApp purchasing invites with a ninety-2d educational and catalog. Among the every day essentials on offer are culmination, vegetables, cereal, toothpaste and cooking staples like paneer cottage cheese and chickpea flour. Customers can fill their buying baskets inside the app and pay both through JioMart or in cash whilst receiving their order.

 

Billionaire Mukesh Ambani’s Reliance Industries Ltd., which obliterated competitors in India’s telecommunications region by means of selling $2 facts plans and unfastened voice calls, is deploying a completely comparable tactic — cutthroat pricing — to gain an aspect in the usa’s increasingly more aggressive e-trade area.

 

The circulate comes 19 months after Meta Platforms Inc., previously known as Facebook Inc., invested nearly $6 billion into Reliance’s Jio Platforms unit. The provider taps into the recognition of India’s largest cell operator, Jio, to attain users and is based on its largest brick-and-mortar store chain, Reliance Retail, to execute transport. WhatsApp has about 530 million users inside the u . S . — Meta’s biggest remote places base — and Jio has extra than 425 million subscribers.

 

Food and groceries are predicted to account for over half of of the country’s retail spending, that’s projected to attain as excessive as $1.Three trillion by using 2025, consistent with Boston Consulting Group. Ambani’s institution has enhanced its role to seize a larger proportion of that marketplace with the creation of a no-frills $87 telephone, which comes preloaded with the JioMart and WhatsApp apps, constructed in partnership with Alphabet Inc.’s Google. Like its U.S. Companions and traders — Google invested $4.5 billion into the employer closing 12 months — Jio has placed a concern on getting extra users linked and enrolled to apply its offerings.

 

Meta’s signature messaging service is rebuilding its emblem in India with Reliance’s assist, after several run-ins with the administration of Prime Minister Narendra Modi, which has accused WhatsApp of failing to police content material effectively.

 

Reliance Industries and WhatsApp representatives did not respond to requests for remark.

 

The WhatsApp grocery choice sits alongside Reliance’s JioMart, which launched closing summer season in two hundred towns, years after international competitors got a head begin in Indian e-trade. There’s nevertheless tons possibility left untapped as groceries remain a small albeit swiftly developing phase of on line retail. Beside Amazon and Walmart, a slew of home startups along with SoftBank Group Corp.-subsidized Grofers, Google-subsidized Dunzo, Naspers-subsidized Swiggy, the Tata conglomerate’s recently received Bigbasket and more moderen entrants like Zepto are crowding the grocery delivery arena with promises of discounts and instantaneous deliveries.

 

WhatsApp as a purchasing the front guarantees to be a familiar entry factor for purchasers and outlets alike. Hundreds of thousands and thousands of Indians already use it numerous instances an afternoon as a social, expert and amusement conduit and won’t must download or discover ways to navigate a new app to begin purchasing.

PNB puts up National Steel & Agro Industries for sale to recover Rs 200cr dues

The National Bank of Punjab (PNB) has put a steel and agricultural company based in Madhya Pradesh up for sale for around Rs 200 billion. National Steel and Agricultural Industries Co., Ltd has a bank balance of Rs 199.90.

“Our intention is to submit the account to the ARC / NBFCs / other banks / financial institutions for sale in accordance with the terms of banking policy in accordance with legal guidelines,” the PNB said during the auction. Information.

The reserve lender (on a cash basis) put Rs 95 crore up for sale.

In order for the potential bidder to speed up the due diligence process and to verify the buyer, the bank announced that it will do its best to keep copies of the documents in one place. However, he added that the bank has the discretion to withdraw the account for sale without giving any reason.

The PNB set December 8th as the deadline for completing the precision exercise. The deadline for submitting binding bids is December 9, the reopening of bids is scheduled for December 10, 2021.

WhatsApp Pay plans significant investments in next six months

The Prime Minister said that WhatsApp Pay should take the lead in India over the next six months to accelerate the expansion of its services and work on a full launch.

WhatsApp, a messaging app owned by Meta (formerly Fb), has been approved to expand its business base to one-tenth of India’s human capital.

India National Broad Fund Company (NPCI)

When Meta, the owner of WhatsApp, launched WhatsApp in India in December 2020 – one of the first two countries to receive the facility – there was no doubt that hopes for dominance were high. After all, it was the largest user base in India and as a country it has almost embraced the digital economy. Despite the market cap set by the NPCI regulator, WhatsApp Pay should outperform a significant portion of the Indian mobile payments market, which is valued at $ 1 trillion by 2023.

This means that WhatsApp Pay has increased and found its way into the Indian market, the share of UPI transactions is less than 1%, while the share of Phone-Pe with the support of Walmart and Google Pays is 46% and 34% respectively amounts to.

But maybe there is light at the end of the WhatsApp tunnel in India. The National Payment Company of India (NPCI) enabled WhatsApp Pay to expand its base in India to 40 million users. It is currently limited to 20 million users in the country.

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