The Indian equity markets are trading absolutely flat in the late morning session as investors were quite cautious at present with buying interest remaining stock specific. Sensex seesawing between red and green while NSE Nifty trading in the narrow range with negative bias. On sectoral front shares from power, capital goods and FMCG were attracting buyers. Select consumer durables and metal stocks too were trading higher. Bank and reality pared all its early gains and currently registered as leading losers. While IT, healthcare, automobile and oil stocks are also pulling the markets down. Stocks like Reliance, Infosys, DLF and TCS were major laggards to the bourses. The broader indices midcap and smallcap were trading flat. On the global front, Asian markets slipped in red after positive opening. Back home, the market breadth favoring positive trend; there were 1,286 shares on the gaining side against 1,100 shares on the losing side while 88 shares remained unchanged.
The BSE Sensex is currently trading at 16,142.93, up by 1.26 points or 0.01%. The index has touched a high and low of 16,237.41 and 16,057.53 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.07% and 0.30% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 0.60%, Power up by 0.55%, CG up by 0.49%, CD up by 0.43% and Metal up by 0.02%. While, Bankex down by 0.81%, Reality down by 0.69%, IT down by 0.61%, HC down by 0.52% and Auto down by 0.33% were the top losers on the index.
The top gainers on the Sensex were Jaiprakash Associates up by 3.19%, Jindal Steel up by 2.26%, BHEL up by 1.71%, Tata Power up by 1.60% and Bharti Airtel up by 1.24%.
On the flip side, Sun Pharma down by 2.40%, DLF down by 2.25%, M&M down by 1.49%, TCS down by 1.22% and Cipla down by 1.11% were the top losers on the Sensex.
Meanwhile, the Ministry of Finance is expected to introduce new scheme to refund services tax to exporters on the line of duty drawback scheme for tangible imports used to produce goods. The new scheme to refund services tax to exporters is based on the structure recommended by a panel headed by Panning Commission member Suamitra Chaudhary, which will allow quick return of service tax to big exporters such as Bajaj Auto, Reliance Industries, Welspun.
The draft of services tax refund scheme is ready and will be introduced after finance ministry receiving comments from the industry. In his Budget speech, the Finance Minister Pranab Mukherjee had announced that government is planning to have such scheme. The ministry of finance repays tax paid on 17 services consumed in exports and two services are exempted.
The new service tax refund scheme, drafted by the apex indirect taxes body CBEC, will repay service tax to exporters on the same lines like the duty drawback scheme for goods or choose for refund on actual basis after export of goods. However, exporters have to mention the aim of exports on the shipping bill at the time of exports. The rates of duty drawback are fixed by an expert panel every year based on the changes in the tax rates in the annual budget. The tax will be funded by Indian Customs EDI System via customs houses.
The experts from industry have welcomed this move of government, as this would reduce the detailed paperwork, audit and follow up for tax refund. The issue of service tax refund has been a major concern with hundreds of crores locked up in tax refunds. The ministry of finance has been trying to make the service tax refund less cumbersome and faster, however the ministry's efforts have been failed to satisfy the industry. The present system is cumbersome for the smaller exporters and exporters' body has given several representations to government for simplifying the existing system.
The department of commerce had appointed a committee to look into transaction costs of exports suggested that service tax paid on input services used by the exporters be repaid on the lines of duty drawback. The committee pegged the transaction costs at 7-10% of the India's exports. It also noted that the embedded tax and duties paid on inputs dent the competitiveness of Indian exporters.
The services which are eligible for the new service tax refund scheme are banking and other financial services, port services, transport of goods by road and railways, general insurance, technical testing and analysis, storage and warehousing, business exhibition services and specialized cleaning services.
The S&P CNX Nifty is currently trading at 4,839.85, lower by 5.80 points or 0.12%. The index has touched a high and low of 4,868.35 and 4,817.60 respectively. There were 22 stocks advancing against 28 declines on the index.
The top gainers of the Nifty were IDFC up by 3.70%, Jaiprakash Associates up by 3.28%, Reliance Infra up by 3.13%, RCom up by 2.91% and Jindal Steel up by 2.27%.
On the flip side, Sesa Goa down by 4.60%, Axis Bank down by 2.82%, Sun Pharma down by 2.53%, DLF down by 2.43% and GAIL India down by 1.99% were the major losers on the index.
The BSE Sensex is currently trading at 16,142.93, up by 1.26 points or 0.01%. The index has touched a high and low of 16,237.41 and 16,057.53 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.07% and 0.30% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 0.60%, Power up by 0.55%, CG up by 0.49%, CD up by 0.43% and Metal up by 0.02%. While, Bankex down by 0.81%, Reality down by 0.69%, IT down by 0.61%, HC down by 0.52% and Auto down by 0.33% were the top losers on the index.
The top gainers on the Sensex were Jaiprakash Associates up by 3.19%, Jindal Steel up by 2.26%, BHEL up by 1.71%, Tata Power up by 1.60% and Bharti Airtel up by 1.24%.
On the flip side, Sun Pharma down by 2.40%, DLF down by 2.25%, M&M down by 1.49%, TCS down by 1.22% and Cipla down by 1.11% were the top losers on the Sensex.
Meanwhile, the Ministry of Finance is expected to introduce new scheme to refund services tax to exporters on the line of duty drawback scheme for tangible imports used to produce goods. The new scheme to refund services tax to exporters is based on the structure recommended by a panel headed by Panning Commission member Suamitra Chaudhary, which will allow quick return of service tax to big exporters such as Bajaj Auto, Reliance Industries, Welspun.
The draft of services tax refund scheme is ready and will be introduced after finance ministry receiving comments from the industry. In his Budget speech, the Finance Minister Pranab Mukherjee had announced that government is planning to have such scheme. The ministry of finance repays tax paid on 17 services consumed in exports and two services are exempted.
The new service tax refund scheme, drafted by the apex indirect taxes body CBEC, will repay service tax to exporters on the same lines like the duty drawback scheme for goods or choose for refund on actual basis after export of goods. However, exporters have to mention the aim of exports on the shipping bill at the time of exports. The rates of duty drawback are fixed by an expert panel every year based on the changes in the tax rates in the annual budget. The tax will be funded by Indian Customs EDI System via customs houses.
The experts from industry have welcomed this move of government, as this would reduce the detailed paperwork, audit and follow up for tax refund. The issue of service tax refund has been a major concern with hundreds of crores locked up in tax refunds. The ministry of finance has been trying to make the service tax refund less cumbersome and faster, however the ministry's efforts have been failed to satisfy the industry. The present system is cumbersome for the smaller exporters and exporters' body has given several representations to government for simplifying the existing system.
The department of commerce had appointed a committee to look into transaction costs of exports suggested that service tax paid on input services used by the exporters be repaid on the lines of duty drawback. The committee pegged the transaction costs at 7-10% of the India's exports. It also noted that the embedded tax and duties paid on inputs dent the competitiveness of Indian exporters.
The services which are eligible for the new service tax refund scheme are banking and other financial services, port services, transport of goods by road and railways, general insurance, technical testing and analysis, storage and warehousing, business exhibition services and specialized cleaning services.
The S&P CNX Nifty is currently trading at 4,839.85, lower by 5.80 points or 0.12%. The index has touched a high and low of 4,868.35 and 4,817.60 respectively. There were 22 stocks advancing against 28 declines on the index.
The top gainers of the Nifty were IDFC up by 3.70%, Jaiprakash Associates up by 3.28%, Reliance Infra up by 3.13%, RCom up by 2.91% and Jindal Steel up by 2.27%.
On the flip side, Sesa Goa down by 4.60%, Axis Bank down by 2.82%, Sun Pharma down by 2.53%, DLF down by 2.43% and GAIL India down by 1.99% were the major losers on the index.
All the Asian equity indices were trading in the red; Shanghai Composite was down by 0.39%, Hang Seng was down 1.02%, Jakarta Composite was down by 1.74%, KLSE Composite was down by 0.90%, Nikkei 225 was down by 1.05%, Straits Times was down by 1.31%, Seoul Composite was down by 1.69% and Taiwan Weighted was down by 0.41%.
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