Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARD :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« Service Tax »
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST
  GST Network simplifies returns filing process
 Why is the successful roll-out of the e-way bill necessary?
 How service tax became revenue lifeline for the Govt
 Three simple tricks to save income tax without investing fresh funds

GST may initially be a complex tax mechanism to navigate
June, 05th 2017

Given the government’s stance about anti-profiteering, one-off gains for any particular sector from GST should be ruled out, says Vishal Kapoor CEO, IDFC Asset Management Company in chat with ET Wealth.

With Sensex and Nifty at new highs, what are your short- and long-term views on the equity market?

Our long-term view on the market is constructive. There have been several positive fallouts of the three years the Modi government has been in power, including structural reforms, government spending to accelerate growth and benign inflation.

These, combined with an improving global macroeconomic scenario, are a big positive for equity investors. However, given the elevated levels of valuations across market segments, short term volatility cannot be ruled out.

How are you positioning your portfolios in the current market? Will you deploy fresh money at these levels?
Our portfolios are positioned for growth as we believe we are in the middle phase of a multi-year rally. Cash positions across our portfolios are at a ‘normal’ level. Currently, none of our funds has taken any tactical call to raise cash. Our team is focused on generating stock level investment ideas that can be winners, and we see a flow of good ideas being discussed.

How has IDFC Mutual Fund changed its style of investments with the appointment of new fund managers in the past year?
We have a clearly defined an investment thesis and strategy for each of our funds. Our fund managers are implementing a process led, clearly segmented strategy for each fund, based on the underlying thesis.

We review and refine our processes continually, and are happy to have augmented our team with fresh talent. Our current underlying theme is to invest in growth oriented companies, with a focus on companies that benefit from growth in domestic consumption.

Given the new GST rates, which sectors seems positive to you and which are you looking to invest in?
GST may initially be a complex indirect tax mechanism to navigate. Although the expectation was that several sectors would benefit from lower GST rates, the reality may be a bit more nuanced. With the government being very vocal about the anti-profiteering clause, significant one-off gains for any particular sector should be ruled out.

However, over the long-term, organised players should be able to gain market share from unorganised players and benefit from a level playing field. Organised retail, media, and specific local and regional themes like radio and the aftermarket for auto components are segments where the benefits of GST implementation are likely to be more immediately visible.

What are the negative factors to watch out for in the domestic and global markets?
While the global growth momentum has rebounded since 2016, risks can arise from shifts in the economic and policy landscape in the US. There could also be some pressure from China due to its inherent reliance on credit and investment growth, high leverage of the corporate sector and widespread excess capacity, as it tightens its monetary policy and shifts to a more sustainable consumption-l ..

However, the cyclical and structural upturn in the Indian economy due to strong growth prospects, record low inflation, narrow current account and fiscal deficit should be robust enough to withstand such an impact.

What’s your view of the bond market and how attractive is it to invest in it now?
The RBI is likely to be on a prolonged pause for the foreseeable future, as it remains focused on achieving 4% CPI target on a sustainable basis. While the near-term inflation may undershoot RBI’s inflation target of 4.5% for the first half of 2016-17, its mainly driven by base effects while cyclical factors such as rural wage growth and minimum support prices, have started to rise.

One-off events such as the implementation of GST and increase in the house rent allowance under the Seventh Pay Commission, could add to the long-term inflation.

For investors, it is important to tune out the noise regarding potential rate cuts or hikes by the RBI. Instead, they must focus on the mental underlying point: that the yield curve today is steep enough to provide lucrative ‘carry’ and hence offers adequate protection against any moderate rate hike cycle that one can encounter down the road.

There is more than a 100 bps spread between overnight and three-year AAA rates. This carry buffer provides adequate protection against any modest rate hikes that the RBI may contemplate later on in the cycle.

What is your advice for investors who have missed out on the current rally in the stock market?
While headline index levels are at record levels, investors must recognise that individual stocks may not necessarily reflect an all-time high valuation.

The investment process is dynamic, and while risks should be taken into account, it’s important to be open to opportunities that keep emerging. Both growth expectations and interest rates have a bearing on valuations, so investor shouldn’t just consider absolute levels.

Several investors have been using every correction as an investment opportunity. Many have chosen to average out their entry point by using tools such as the systematic transfer plans or through SIPs in mutual funds. ..

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions