GST – What Next?

Much awaited “one nation, one tax, one market” came to reality with RS passing the GST bill last week. The next steps include Get the CAB (constitution amendment bill) approved by at least 50% states Create a GST council Concluding the Center GST and State GST rates with cabinet approval Training, documentation, digital (IT) readiness…

How will GST work in India

Let us begin with the understanding of how taxes are applied before VAT came into picture. Consider this flow of a product: Manufacturer -> Retailer -> Consumer Say the initial price is 100 and sales tax is 10%. Then Manufacturer sets the price at 100 +10% =110. (Tax is 10) Say Retailer adds 390 as…

When oil price falls

Currently the oil price is around $80 per barrel. In the past, whenever there is a fall in crude oil prices, Organization of Petroleum Exporting Countries (OPEC) led by Saudi Arabia used to cut production to ensure that supply fell and the respective prices were maintained. This time it did not happen. For some reason…

So what is FDI all about?

FDI – Foreign Direct Investment. FDI in simple terms is a company from a country investing into the business of another country. Example, Wal-Mart trying to invest into the retail markets in India. FDI can be done as investing into production, joint ventures, acquisitions or expanding the existing operations into another country. Why India seeks…

RBI – What is repo rate?

Recently, we see the headlines in Economic times that RBI may increase the repo rate by 25bps. So what is it? bps stands for ‘base points’. 1 bps= 0.01 % So an increase in 25bps means at increase of 0.25% What is a Repo Rate? The rate at which the RBI lends money to commercial banks is…