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Barring Japan, major Asian stock markets have opened the day in red, with stock markets in Indonesia (down 0.9%) and Hong Kong (down 0.6%) being the top losers. Major stock indices in Europe ended their previous session in red. However, benchmark indices in US closed on a positive note. The rupee is trading at 66.75 per US dollar.
Indian stock markets have opened the day on a flattish note. BSE-Sensex is trading marginally lower by 4 points (down 0.02%) and NSE-Nifty is trading lower by 7 points (down 0.1%). However, both S&P BSE Midcap and S&P BSE Smallcap are trading higher by 0.2% each. Major sectoral indices have opened the day in green. Stocks from metal and capital goods sector are witnessing buying interest.
As reported in a leading financial daily, Cellular Association of India (COAI) has pleaded the Delhi High Court to put a stay on the call drop compensation. Recently, in the month of October, Telecom Regulatory Authority of India (TRAI) had ordered telecom operators to pay a compensation of Rs 1 for every call drop they experienced in their network.
However, COAI argued that TRAI does not possess any power for ordering telecom operators to grant compensation to the end subscriber under the TRAI Act.
Further, telecom operators contested that the regulator has not taken into account factors such as spectrum related issues, closing down of sealing of cell-sites and other factors which are beyond the control of service providers. The telcos state that such factors are significantly responsible for the call drop problems.
To add to this, telcos states that the outgo of money from such compensation will be Rs 540 billion on an annual basis. Further, they stated that in order to recover this compensation outgo the telecom operators will have to increase tariffs.
As per an article in Business Standard, there may be some bad news for players in the FMCG, pharmaceutical and apparel segment in relation to concerns regarding Goods and Service Tax (GST). Reportedly, trade discounts and incentives provided to the wholesalers and agents might not be deducted from the sales turnover figure for deriving at an amount to be taxed under the GST.
The draft GST law being discussed among the empowered committee of state finance ministers includes these trade discounts or incentives in the taxable value of goods and services. The move will essentially hit wholesale dealers and travel agents who are given incentives on volume targets.
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