RBI may not cut rates despite drop in retail inflation: Motilal Oswal


The (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail declined in December 2020, a report by Motilal Oswal Institutional Equities said.

The ‘Ecoscope’ report noted that the central bank is likely to continue with its calibrated approach towards the management of domestic liquidity.

“It is for the first time since the COVID-19 pandemic began that the CPI has come within the RBI’s target range of 2-6%. What remains to be seen is if the downward trajectory in food prices continues during CY21. In any case, we do not expect any further monetary easing and the RBI is likely to continue to manage domestic liquidity in a calibrated manner,” it said.

The Consumer Price Index-based retail inflation for December came in at a 14-month low of 4.59 per cent, down from 6.93 per cent in November, due to lower food inflation, showed official data released on Tuesday.

The Motilal Oswal report noted that the retail inflation data for last month was exactly in line with its expectation, but

Former Reliance Infrastructure CEO Lalit Jalan to head VC firm in India


Lalit Jalan, former chief executive officer of and group director of Reliance, has joined 3Lines Venture Capital as its India chairman.

Jalan has a career spanning over four decades in diverse sectors like finance, infrastructure, power, telecom, healthcare, defence and entertainment.

3Lines Venture Capital is based out of Denver, Colorado.

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HMRC opens pilot for digital VAT filing for SMEs ahead of April rule change


A pilot for a new online VAT service was launched today, with HM Revenue & Customs (HMRC) inviting more than half a million businesses to try it ahead of new rules coming into force in April 2019.

Making Tax Digital (MTD) for VAT will make it easier for businesses to manage their tax and will save them, and their agents, time which can instead be devoted to maximising business opportunities, encouraging growth and fostering good financial planning.

From 1 April 2019, under MTD, around 1m businesses registered for VAT with a taxable turnover above £85,000 will need to keep their VAT records digitally and file their returns using MTD-compatible software. 

The pilot opens today for around half a million businesses whose affairs are up to date and straightforward, and will extend to most other business types over the coming months. HMRC has also listened to concerns and will give a small group of customers with more complex requirements a further six months to prepare. This will ensure there is sufficient time for testing the service with them in the pilot before they are required to join. 

Mel Stride MP, Financial Secretary to the Treasury, said: “HMRC is transforming the tax

Settle litigation for revenues, avoid new taxes in Budget: SBI report


Ahead of the Union Budget, economists on Tuesday pitched for avoiding new taxes and urged the government to mount “honest attempts” to settle past litigations to raise resources instead.

Given the pandemic and the resultant lessons, an additional expenditure of over Rs 2.5 lakh crore will have to be provided on the healthcare front, the economists at the country’s largest lender said, adding the government spent only 1 per cent of the GDP under this head in FY21.

“One suggestion. There must not be any new taxes in the Budget. Let us have a tax holiday budget, with carefully crafted policies for immediate fiscal lubrication.

“A game changer in the budget could be an honest attempt by the Government to settle the cases under tax litigation once and for all,” they said in a note, adding that as of data available till FY19, the total amount under dispute was around Rs 9.5 lakh crore.

The amount under litigation includes Rs 4.05 lakh crore in corporation tax, Rs 3.97 lakh crore stuck in income tax cases and another Rs 1.54 lakh crore on account of commodities and

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