Direct tax collection rises 13% in Apr-Nov

Amid slowing economy, the gross direct tax collection has risen only by 13.18 per cent to Rs 3.68 lakh crore during the April-November period of 2013-14 fiscal.

The collections had totalled Rs 3.25 lakh crore during the first eight months of the 2012-13 fiscal.

Net direct tax collections rose 14.60 per cent to Rs 3,10,317 crore during April-November, as against Rs 2,70,771 crore in the year-ago period, the Finance Ministry said in a statement on Thursday.

The government has fixed direct tax collection target of over Rs 6.68 lakh crore for 2013-14, envisaging a growth of 19 per cent, as against Rs 5.65 lakh crore in 2012-13.

The gross collection of corporate taxes increased 9.66 per cent to Rs 2,25,124 crore during April-November, up from Rs 2,05,291 crore in the year-ago period, the Finance Ministry said in a statement today.

Gross collection of personal income tax was up by 19.60 per cent to Rs 1,39,763 crore in the first eight months of this fiscal, from Rs 1,16,862 crore in the year-ago period.

Securities Transaction Tax or STT mop-up stands at Rs 3,053 crore.

Mphasis net profit falls to Rs 190.22 cr in Aug-Oct quarter

 
HP-owned IT services firm MphasiS on Thursday said its net profit declined 9 per cent, while revenues grew 22 per cent for the quarter ended October 31, 2013 on the back of significant deal wins.

MphasiS, which follows November-October fiscal, posted a 9.12 per cent drop in its net profit to Rs 190.22 crore year-on-year on account of higher taxes and increase in interest costs.

The company's consolidated revenues for the reported quarter grew 22 per cent to Rs 1,594.03 crore for the quarter under review from Rs 1,306.16 crore in the year-ago period.

For the year, the company's net profit declined 6 per cent to Rs 743.8 crore, while revenues were up 7.4 per cent to Rs 5,796.3 crore.

The direct vs HP business mix stood at 60:40 at the end of the financial year significantly reducing client concentration risk.

It added 76 new logos during the year and accelerated participation in large deals resulted in significant wins totalling $250 million in total contract value in the last two quarters, MphasiS said.

"Of this, deals with TCV of $115 million were won in Q4 FY 2013," it added.

Talking about the results, MphasiS CEO Ganesh Ayyar said the company's direct business has more than doubled in the last three years.

"Our direct business in mature markets has seen a growth of 63 per cent in the last one year. Our named account strategy, niche portfolio and highly talented workforce are behind this transformational result. We will stay focused with greater level of specialisation, automation and innovation thereby generating higher revenue per employee," he added.

During the fourth quarter, the firm's banking and capital markets business grew to Rs 685.64 crore and from the insurance vertical rose to Rs 199.34 crore.

FM meets Sushma, Jaitley on Insurance, DTC Bills

 
Keen to get key reforms bills passed, Finance Minister P Chidambaram has reached out to opposition Bharatiya Janata Party (BJP) to get Parliament approval for the long-awaited Insurance Bill and Direct Taxes Code Bill (DTC) in the Winter session that began on Thursday.

"I met Sushma Swaraj Thursday to discuss the Insurance Bill. BJP said they will consider the bill," Chidambaram said on the sidelines of a function to inaugurate the registered office of Bharatiya Mahila Bank in New Delhi.

Sources said Chidambaram met Swaraj, the Leader of the Opposition in the Lok Sabha (Lower house of Parliament), and her Rajya Sabha (Upper house of Parliament) counterpart Arun Jaitley to discuss the two bills.

However, BJP has not given any assurance of support and conveyed to the Finance Minister that the matter will be discussed within the party and take a call, sources said.

The government is keen on increasing the FDI cap in the insurance sector.

The Manmohan Singh dispensation wants to increase the FDI limit to invite more foreign investment and give a boost to the economy.

There is a broad agreement on the Direct Taxes Code Bill between the government and BJP, but they differ on some aspects. BJP is firm that unless the differences are sorted out the party will not support the Bill.

The Left parties too are opposed to the Insurance Bill and the Direct Taxes Code (DTC) Bill.

The Insurance Bill which seeks to raise the foreign direct investment ceiling in the insurance sector to 49 per cent has been with the Rajya Sabha since 2008. The Cabinet had approved it again in October 2012.

The Standing Committee on Finance had, however, suggested that the cap should be kept at 26 per cent.

The government is now understood to be considering a proposal to raise the FDI cap to 49 per cent without an increase in voting rights.

Rupee hits fresh 1-month high, up 30 paise vs dollar

 
The rupee on Thursday hit fresh one-month high by gaining 30 paise to 61.75 against the dollar in early trade at the Interbank Foreign Exchange market following increased selling of the US currency by exporters, amid sustained foreign capital inflows.

Strengthening of other currencies against the dollar overseas and a higher opening in the domestic equity market also supported the local currency, forex dealers said.

The rupee had gained 31 paise to close at one-month high of 62.05 against the dollar in Wednesday's trade.

Meanwhile, the benchmark BSE Sensex regained 21,000 level by surging 439.55 points, or 2.12 per cent, to trade at 21,148.26 in opening trade on Thursday.

BSE Sensex surges over 400 points in early trade, Rupee hits 1-month high

 
The BSE Sensex crossed the psychological 21,000 level by surging over 400 points in early trade on Thursday following heavy fund inflows amidst exit polls forecasting good show by the BJP in state assembly elections.

At 10.13 am, Sensex was up 389.57 points at  21098.28. Similarly, Nifty was up 117.45 points at 6278.40 duriing the same time.

Brokers said a flurry of buying by funds as well as retail investors, triggered by exit polls predicting good show by the main Opposition party in state assembly elections, buoyed the trading sentiments.

The rupee on Thursday rose by 30 paise to trade at fresh one-month high of 61.75 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters, amid sustained foreign capital inflows.

The 30-share index, which had lost 189.30 points in the previous two sessions, rebounded by 439.55 points, or 2.12 per cent, to trade above 21,000 level at 21,148.26 in early trade.

All the sectoral indices, led by banking, capital goods and realty, were trading in positive zone with gains up to 4.02 per cent.

The wide-based National Stock Exchange index Nifty spurted by 121.90, or 1.98 per cent, to 6,282.85.

Major gainers are ICICI Bank, SBI, HDFC Bank, RIL, Infosys, TCS, ITC, Bharti Airtel, Bajaj Auto, Larsen and Toubro and BHEL.

In the Asian region, Japan's Nikkei fell 0.35 per cent, while Hong Kong's Hang Seng was down 0.40 per cent in early trade on Thursday.

The US Dow Jones Industrial Average closed 0.16 per cent lower in Wednesday's trade.