Business & Economy

Corporates not quite
ready for VAT yet

What is India News Service, Friday, 25 March 2005, 1900 hrs IST

Though the stock markets are looking forward to VAT as a trigger, management consultants believe that implementation difficulties of the new tax will take 6-12 months to be ironed out.

Investment managers, especially foreign institutional investors, are circulating reports to their clients that suggest that the markets are hinged on the introduction of VAT and the manner in which agitations against it are controlled. They have also ruled in a possibility of sluggish sales and decreased earnings.

Management consultants, who are handholding corporates in their bid to be ready for VAT, are certain that difficulties in implementation will be intense in the first six months and will continue for a year.

"After today's empowered committee meeting, 21 States have agreed to go ahead with VAT. Now, the specific rules of each of these States have to be notified. Because of this delay, corporates have had little time to be fully ready," said Mr Sachin Menon, Partner - Indirect Taxation, Ernst & Young.

21 States to implement VAT from April 1: The cloud of uncertainty hanging over the implementation of the Value Added Tax (VAT) has cleared with 21 States giving their commitment to switch over to the new tax regime from April 1.

Tata Steel to hike prices for long-term contracts: Tata Steel would be increasing the price of steel for long-term contracts by 20 per cent from April, Mr B. Muthuraman, Managing Director, said on the sidelines of the company's EGM here today.

Bourses stung by sting ops rumour: Rumours of sting operations on powerful personalities, both outside and inside the Government, is beginning to have an impact on the share market. According to market mediamen, there has been gossip since last one week that some ministers, senior journalists and bureaucrats have been "trapped" by TV channels while taking bribes and having fun with women. 

Meet April deadline for switch to Euro-III diesel, refineries told: Come April, diesel in Delhi will be cleaner. But other polluted small towns will have to wait a while longer for clean air. Air pollution in several of these towns is more critical than Delhi.

Going up the ladder after `hard' Indian stint: An Indian posting is increasingly proving to be the global launch pad for executives in the senior and middle management of multinational companies.

Infocomm executives face dilemma on which way to go: With growing possibilities of a settlement between the wranging Ambani brothers Mukesh and Anil, top and middle level executives of Reliance Infocomm are facing the dilemma on which way to go.

Spicejet's introductory offer brings air fares to the ground: Spicejet, the low-cost carrier promoted by Royal Airways, plans to offer fares as low as Rs 99. The lowest air fare offered at present by any Indian carrier is Rs 500, by Air Deccan.

Reddy favours multiple players in DTH field: The government will encourage as many players in the Direct-to-Home (DTH) service as possible as India has enormous potential in the area as well as diversity for such services.

Nigerian scam gets Indian address: The Nigerian scam or the 419 fraud continues to claim victims in India. The perpetrators of the fraud, mass mail on every conceivable e-mail id, requesting the help of the recipient for retrieving blocked funds and offer a healthy percentage of these funds as commission.

Most job-seekers seek challenges, says survey: As the level of hiring by companies continues to rise, job seekers too are gearing up for change in the recruitment market. According to a recent Monster Meter poll, 32 per cent of job seekers plan to change jobs if the new job offers more challenges.