All things Money Thread

Prasham

Armchair Traveller :(
Future may be bright as share bazar is indicating.
But what about present, why things are so bad right now.

Namo may not know or accept that but retail business in North is in doldrums. Why this recession right now, since flow of money is normal now.

The present scenario is aftermath of Demonetization and also the undertone of GST as businesses all over india are worried about what will happen. There are no clear guidelines about the transition of the stocks from CST / Excise to GST. Hence businesses are spending less and less just to avoid or minimize any losses resulting out of crude GST policy. Also you must understand that GST will be tuned over and over for next 6-12 months after observing the affects. Hence businesswise this year will be slow for sure. Our GDP will rise due to higher tax income of government but individual businesses will not do great as demand will be mediocre.
 

citymonk

Super User
The present scenario is aftermath of Demonetization and also the undertone of GST as businesses all over india are worried about what will happen. There are no clear guidelines about the transition of the stocks from CST / Excise to GST.
This is very trouble some scenario.
Why is Government keeping every thing so messed up and not issuing clear cut guidelines. Why is whole economy being troubled and burdened with red tape.



GST is anyway another name of CST,
LST or VAT.
Why to trouble all by misinformation or keeping things secret.

Same Sales Tax officers are going to ask bribes from same markets, maybe this time with more teeth to bite, but why to stop businesses for all this Tamasha.
 

Big Daddy

Super User
10 % is too much to ask, it is hardly 6.5 % currently. Current government started with 8 % only, it was never 10 percent in last 8 years.
Well, then government is more incompetent than I thought. Yet another reason why they should not be trusted with managing money. However, it is not government is at fault. People in India do not want to use their brains and prefer simple concepts even when those concepts do not work well. This blind trust in government (or idolatry as I prefer to call it) is a problem.


This is very trouble some scenario.
Why is Government keeping every thing so messed up and not issuing clear cut guidelines. Why is whole economy being troubled and burdened with red tape.

GST is anyway another name of CST,
LST or VAT.
Why to trouble all by misinformation or keeping things secret.
Indian government has mismanaged money. As an example, Indian state owned banks have made about $175 billion in bad loans (https://www.bloomberg.com/news/articles/2016-12-29/india-s-dominant-state-banks-face-significant-stress-rbi-says). Government does not sell anything so people will end up paying in higher taxes to save these banks.

You cannot escape Capitalism. Money rules this world. When you get emotional and deny this fact, you create bigger problems in the future. For India that future is now. This $175 billion debt can be taken care of by either growing the economy and increasing the income tax revenue. Or not growing the economy and increasing tax burden. Socialist Modi would not only use the second option but also grow government and its benefits. One of these days, Modi will come and drop a bomb that government cannot afford to pay its pensions. A few years ago, government had imposed restrictions on provident fund withdrawals and also taxing withdrawals. People in Bangalore had burnt buses with this announcement and those restrictions were rescinded.

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Prasham

Armchair Traveller :(
This is very trouble some scenario.
Why is Government keeping every thing so messed up and not issuing clear cut guidelines. Why is whole economy being troubled and burdened with red tape.



GST is anyway another name of CST,
LST or VAT.
Why to trouble all by misinformation or keeping things secret.

Same Sales Tax officers are going to ask bribes from same markets, maybe this time with more teeth to bite, but why to stop businesses for all this Tamasha.

Same was the case when VAT was introduced in various states. Governments kept on observing the troubles and kept fine tuning it. GST will be better for business in longer run, especially smaller businesses as they will get benefits of lower input cost. They will intensify competition with larger companies and at end of the day customers will get benefit.

Two biggest worrying factor in GST as per my opinion are 1) Loads of paper work (online or offline) & 2) Requirement of extra money to pay GST. Most business give credit of 30-180 days but GST will have to be paid by month end. Hence whether the business owner received payment or not he will have to pay the taxes and that too in tune of 12-28%. At times profit margins are lesser than the tax slab.
 

Big Daddy

Super User
As if Indian banks do not have bad debt, now Reliance is adding billions of dollars worth of bad debt. India is "Idiot heavy" at the top. Seems like Ambanis are following Flipkart strategy to grow their business by offering freebies.

http://money.cnn.com/2017/05/29/technology/reliance-communications-debt-stock-drop-anil-ambani/index.html?iid=ob_homepage_tech_pool

Indian billionaire bleeds heavily in telecom price war
by Rishi Iyengar @Iyengarish May 29, 2017: 1:20 PM ET
India's richest man on India's digital age
One of India's richest men is losing heavily in the country's cutthroat telecom price war.
Reliance Communications, the mobile service provider owned by billionaire Anil Ambani, saw its stock price crash by more than 20% on Monday to its lowest level in nearly a year.


The sudden stock plunge followed a report by the Economic Times newspaper that the firm, which has borrowed $6.5 billion, had missed loan payments to at least 10 banks.

"We are in the process of talking to all our lenders," a Reliance Communications spokesperson told CNNMoney, adding that the company plans to repay its creditors $3.9 billion by the end of September.

The company reported annual losses of $200 million on Saturday, down from a profit of $100 million the previous year.

To make the debt repayments, it is planning to raise $1.7 billion by selling 51% of its cellular tower business to Canada's Brookfield Infrastructure. The remaining $2.2 billion will come from Reliance Communication's merger with smaller rival Aircel. Both deals were announced last year and are awaiting final approval from regulators.

Related: Why India's 4G license auction was a flop

Monday's market debacle is the latest blow in what has been a year to forget for Reliance Communications. The firm's stock price has fallen nearly 60% in 12 months, and 40% in the last month alone.

It's not the only Indian telecom player that's struggling. Vodafone (VOD) decided to merge its Indian operations with local rival Idea Cellular in March after billions in losses. That could create a market leading network with more subscribers than the population of the U.S.

Current industry leader Bharti Airtel acquired the Indian arm of Norway's Telenor (TELNF) in February.

Sibling rivalry

They're all battling the same adversary -- Ambani's older brother Mukesh, who is also India's wealthiest man. The siblings divided up the Reliance empire their father created after a bitter succession battle following his death in 2002.

Mukesh Ambani has bankrolled Reliance Jio, the newest entrant in India's telecom industry that burst onto the scene last September offering free 4G internet for six months. The blockbuster offer saw it rack up more than 100 million subscribers during that period.

Related: India's richest man extends free 4G offer by three months

Already struggling with mountains of debt, the existing players responded by slashing their own prices to try and compete.

Reliance Communications took a veiled swipe at Jio in its earnings report, saying "free offers, disruptive pricing and hypercompetition" were to blame for the ongoing "crisis" in the sector.

"The telecom sector in India has been very adversely impacted during the [past] financial year by competitive intensity on a scale never witnessed before," the company added.

-- Ivana Kottasova contributed to this report
 
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citymonk

Super User
Two biggest worrying factor in GST as per my opinion are 1) Loads of paper work (online or offline) & 2) Requirement of extra money to pay GST.
Yes 37 returns in a year at the tune of 3 per month, is too much to bother about. For a small business, current 4 VAT returns of year is already a expenditure.

I think a dedicated account would need to be paid instead of current part-time setups.

I wish government should also tax all kind of businesses equally and impartialy. No exemptions or free lunch be provided to selected few.
 

citymonk

Super User
One of India's richest men is losing heavily in the country's cutthroat telecom price war.
Reliance Communications, the mobile service provider owned by billionaire Anil Ambani, saw its stock price crash by more than 20% on Monday to its lowest level in nearly a year.
I think Tina Munim has induced some wisdom to Husband and he has announced some thing about paying something in September to lenders.

http://www.moneycontrol.com/news/business/will-clear-rs-25000-cr-debt-by-sep-30-rcom-tells-lenders-2292655.html?classic=true
 

Big Daddy

Super User
The British had written about Maratha way of paying. You stack up debt and do not pay. When you are threatened with war, you pay half and negotiate another treaty to pay half of what is left. Somewhat similar things will go on here.
 
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