Indian frontline equity indices have come off a great deal from the intraday highs as investors booked profits from the oil and gas sector stocks particularly from heavyweight Reliance Industries which sank below its previous closing levels after surging around one and half a percent during Chairman Mukesh Ambani's speech at the annual general meeting. The sock fell by around half a percent after marketmen showed a knee-jerk reaction to reports that RIL has shelved plans to enter power sector. Many other blue chip stocks took it on their chin in the hour gone by as jittery investors opted to take profits off the table amid the growing uncertainty in the local markets. However, the downside risks were capped by the rally in shares of Reliance ADA group companies after a Central Bureau of Investigation court turned down a plea seeking a probe against group chairman Anil Ambani in the case of alleged rigging of sale of telecommunication licenses and bandwidth in 2008. Reliance Communications, the country's second-largest mobile-phone operator, surged 5.56% while Reliance Infra soared by 3.01% in the afternoon trades. While unlike the Asian markets, all the European counterparts commenced their session in the green terrain giving the much needed support to the domestic bourses. On the sectoral front, the capital goods and realty counters showed some fervor as they abstained from giving into the selling pressure after majors like L&T and Reliance Infrastructure moved higher by 1.59% and 3.01% respectively. However, the PSU and healthcare pockets had to bear the brunt of selling pressure and they slipped by 0.59% and 0.58% respectively.
Moreover, the broader markets too succumbed to the selling pressure that was exerted on their larger peers. The midcap index rose marginally by 0.06% and the smallcap index gained 0.30% points. The market breadth on the BSE was in favor of advances in the ratio of 1463:1078 while 119 scrips remained unchanged.
The BSE Sensex slipped by 36.88 points or 0.20% at 18,457.30. The index touched a high and a low of 18,672.65 and 18,453.56 respectively.
The BSE Mid-cap index added 0.06% and Small-cap index gained 0.30%.
On the BSE sectoral front, Capital Goods up 0.50%, Realty up 0.40%, Information Technology up 0.30%, Teck up 0.27% and Power up 0.11% remained the major gainers.
While, PSU down 0.59%, Healthcare down 0.58%, Metal down 0.56%, Oil & Gas down 0.51% and FMCG down 0.44% were the major laggards in the BSE sectoral space. The top gainers on the Sensex were R Com up 5.56%, R Infra up 3.01%, L&T up 1.59%, M&M up 0.70% and Infosys up 0.67%.
On the flip side Tata Motors down 2.35%, BHEL down 1.40%, Hindalco down 1.36%, HDFC down 1.17% and Jindal Steel down 1.12% were the major losers on the index.
India, which already has comprehensive Double Taxation Avoidance Agreements (DTAA) with around 80 countries, has notified the DTAA with the Government of Mozambique for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on May 31, 2011.
Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). Such double tax liabilities are mitigated by tax treaties like DTAA between countries.
Besides facilitating economic cooperation, the DTAA between India and Mozambique provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state. Examples of permanent establishment include a branch, factory, office, place of management, etc. Profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for more than 12 months, according to the official statement issued by the finance ministry.
Under the agreement, the profits derived by an enterprise from the operation of ships or aircraft in international traffic shall be taxable in the country of residence of the enterprise. Moreover, dividends, interest and royalties income will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed 7.5% in the case of dividends and 10% in the case of interest and royalties. Capital gains from the sale of shares will be taxable in the country of source, the release stated.
According to the statement, the nations will also engage in effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards including exchange of banking information and incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries.
The pact will also provide tax stability to the residents of India and Mozambique and facilitate mutual economic cooperation, besides stimulating the flow of investment, technology and services between India and Mozambique. The S&P CNX Nifty eased 4.40 points or 0.08% at 5,545.95. The index touched high and low of 5,604.95 and 5,545.80 respectively.
The top gainers on the Nifty were R Com up 5.45%, R Capital up 4.94%, R Infra up 3.01%, R Power up 2.57% and L&T up 1.91%.
On the other hand, Tata Motors down 2.36%, IDFC down 1.77%, Axis Bank down 1.63%, SAIL down 1.44% and Hindalco down 1.39% were the major losers on the index.
On the Asian front, Hang Seng plunged 1%, Jakarta Composite down 0.38%, KLSE Composite declined 0.12%, Nikkei 225 drifted 0.66%, Straits Times fell 0.59% and Seoul Composite inched down 0.03%.
On the flipside, Shanghai Composite climbed by 0.84%, and Taiwan Weighted advanced 0.61%.
The European markets have opened a flat note with a positive bias as the France's CAC 40 added 0.22%, Germany's DAX gained 0.38% and London's FTSE rose 0.13%.
Moreover, the broader markets too succumbed to the selling pressure that was exerted on their larger peers. The midcap index rose marginally by 0.06% and the smallcap index gained 0.30% points. The market breadth on the BSE was in favor of advances in the ratio of 1463:1078 while 119 scrips remained unchanged.
The BSE Sensex slipped by 36.88 points or 0.20% at 18,457.30. The index touched a high and a low of 18,672.65 and 18,453.56 respectively.
The BSE Mid-cap index added 0.06% and Small-cap index gained 0.30%.
On the BSE sectoral front, Capital Goods up 0.50%, Realty up 0.40%, Information Technology up 0.30%, Teck up 0.27% and Power up 0.11% remained the major gainers.
While, PSU down 0.59%, Healthcare down 0.58%, Metal down 0.56%, Oil & Gas down 0.51% and FMCG down 0.44% were the major laggards in the BSE sectoral space. The top gainers on the Sensex were R Com up 5.56%, R Infra up 3.01%, L&T up 1.59%, M&M up 0.70% and Infosys up 0.67%.
On the flip side Tata Motors down 2.35%, BHEL down 1.40%, Hindalco down 1.36%, HDFC down 1.17% and Jindal Steel down 1.12% were the major losers on the index.
India, which already has comprehensive Double Taxation Avoidance Agreements (DTAA) with around 80 countries, has notified the DTAA with the Government of Mozambique for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on May 31, 2011.
Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). Such double tax liabilities are mitigated by tax treaties like DTAA between countries.
Besides facilitating economic cooperation, the DTAA between India and Mozambique provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state. Examples of permanent establishment include a branch, factory, office, place of management, etc. Profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for more than 12 months, according to the official statement issued by the finance ministry.
Under the agreement, the profits derived by an enterprise from the operation of ships or aircraft in international traffic shall be taxable in the country of residence of the enterprise. Moreover, dividends, interest and royalties income will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed 7.5% in the case of dividends and 10% in the case of interest and royalties. Capital gains from the sale of shares will be taxable in the country of source, the release stated.
According to the statement, the nations will also engage in effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards including exchange of banking information and incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries.
The pact will also provide tax stability to the residents of India and Mozambique and facilitate mutual economic cooperation, besides stimulating the flow of investment, technology and services between India and Mozambique. The S&P CNX Nifty eased 4.40 points or 0.08% at 5,545.95. The index touched high and low of 5,604.95 and 5,545.80 respectively.
The top gainers on the Nifty were R Com up 5.45%, R Capital up 4.94%, R Infra up 3.01%, R Power up 2.57% and L&T up 1.91%.
On the other hand, Tata Motors down 2.36%, IDFC down 1.77%, Axis Bank down 1.63%, SAIL down 1.44% and Hindalco down 1.39% were the major losers on the index.
On the Asian front, Hang Seng plunged 1%, Jakarta Composite down 0.38%, KLSE Composite declined 0.12%, Nikkei 225 drifted 0.66%, Straits Times fell 0.59% and Seoul Composite inched down 0.03%.
On the flipside, Shanghai Composite climbed by 0.84%, and Taiwan Weighted advanced 0.61%.
The European markets have opened a flat note with a positive bias as the France's CAC 40 added 0.22%, Germany's DAX gained 0.38% and London's FTSE rose 0.13%.
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