Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 134 points at the opening bell as India and Mauritius yesterday, 10 May 2016 signed the protocol for amendment of the convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains. With this Protocol, India gets taxation rights on capital gains arising from alienation of shares acquired on or after 1 April, 2017 in a company resident in India with effect from financial year 2017-18, while simultaneously protection to investments in shares acquired before 1st April, 2017 has also been provided. Further, in respect of such capital gains arising during the transition period from 1 April 2017 to 31 March 2019, the tax rate will be limited to 50% of the domestic tax rate of India, subject to the fulfillment of the conditions in the Limitation of Benefits Article. Taxation in India at full domestic tax rate will take place from financial year 2019-20 onwards.
The protocol will tackle the long pending issues of treaty abuse and round tripping of funds attributed to the India-Mauritius treaty, curb revenue loss, prevent double non-taxation, streamline the flow of investment and stimulate the flow of exchange of information between India and Mauritius. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance. At the same time, existing investments, i.e. investments made before 1 April .2017 have been grand-fathered and will not be subject to capital gains taxation in India.
In overseas stock markets, Asian stocks were mixed today, 11 May 2016. US stocks jumped yesterday, 10 May 2016 as oil prices rallied.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 328.59 crore yesterday, 10 May 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 68.20 crore yesterday, 10 May 2016, as per provisional data.
Among corporate news, Zee Entertainment Enterprises' (Zee) consolidated net profit rose 12.93% to Rs 260.61 crore on 12.39% growth in total income to Rs 1577.37 crore in Q4 March 2016 over Q4 March 2015. Advertising revenue rose 29.1% to Rs 864.50 crore in Q4 March 2016 over Q4 March 2015. Subscription revenue rose 16.4% to Rs 594.40 crore in Q4 March 2016 over Q4 March 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 52.8% to Rs 413.60 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 10 May 2016.
Zee's board of directors at its meeting held yesterday, 10 May 2016, taken on record the conclusion of acquisition of 49% equity stake in Fly By Wire International (FBW). It may be recalled that Zee had in March this year announced the acquisition of 100% equity stake in FBW which is engaged in aircraft charter services under a NSOP license from Director General of Civil Aviation (DGCA). At that time, Zee said that it initially proposes to acquire 49% equity stake in FBW and the balance 51% equity stake shall be acquired within 5 days of receipt of approval from Ministry of Civil Aviation. The process is expected to be completed by mid-July 2016, Zee said at that time.
NTPC after market hours yesterday, 10 May 2016, announced the commissioning of a 200 megawatts (MW) solar power project at Anantapuram.
Kotak Mahindra Bank and Asian Paints will announce their January-March 2016 quarter results today, 11 May 2016.
Gains in global stocks aided small upmove for key benchmark indices yesterday, 10 May 2016. The Sensex rose 83.67 points or 0.33% to settle at 25,772.53, its highest closing level since 27 April 2016.
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