A new three-tier structure could be in the offing for the goods and services tax or GST. On Wednesday finance minister Pranab Mukherjee suggested a system of three different rates. Under the proposal, there’ll be a 20% tax on goods, a 16% tax for services and a lower 12% tax for essential commodities. By the year 2013-14 the three rates are to merge in to a single rate of 16%. Mukherjee’s proposal also added that revenues would be shared equally between the state and centre. The goods and services tax is scheduled to roll out on 1 April 2011.
Private lender Yes Bank has done better than expected in the quarter ending June. It posted a 56% increase in net profit to Rs156 crore. Net interest income climbed 67% to reach Rs262 crore. Yes Bank’s numbers have been driven by strong credit growth that came largely from 3G auction payments. On Wednesday the bank also announced it had 91 new licenses to open branches and planned to open a hundred of them over the next one year.
Yes Bank stock made a modest gain of 0.13% on BSE on Wednesday to Rs297.70
Kicking off the earnings season for the auto industry on Wednesday was TVS Motor. The company reported a net profit of Rs40 crore compared to about Rs18 crore in the first quarter of last year. Sales accelerated to Rs1,370 crore from Rs975 crore. TVS is India’s third largest two-wheeler company. Demand for motorcycles and scooters have been on the rise in India since latter months of 2009.
TVS Motor stock rose on news of the earnings, climbing almost 5.76% on B S E to wind up at Rs128.55.
Oil giant BP’s oil spill troubles could present an opportunity to India. On Wednesday petroleum minister Murli Deora said Indian oil companies would make a bid for B P’s stake in two gas fields off the coast of Vietnam. BP is looking at selling some of its fields to raise money for cleaning up the Gulf of Mexico oil spill.
Markets made gains on Wednesday on expectations of more robust corporate results. The Sensex shot up 99 points to finish at 17,977. And the Nifty went up 31 points to end trade at 5,399.