Excluding the impact of GST that kicked in from July 1, the company earned a profit of Rs 8.60 bn
Company News : Homegrown auto major Mahindra & Mahindra (M&M) today reported 19.79 per cent decline in its standalone profit after tax (PAT) to Rs 765.96 crore for the first quarter of the current financial year as sales were hit by GST transition.
Mahindra & Mahindra Ltd posted an about 20 per cent fall in quarterly profit on Friday, missing estimates, as sales growth in passenger vehicles slowed ahead of the transition to a new nationwide tax.
The company had posted a profit after tax (PAT) of Rs 954.95 crore during April-June period of last financial year.
Excluding the impact of the Goods and Services Tax that kicked in from July 1, the company earned a profit of Rs 8.60 billion.
Analysts on average had expected a profit of 8.93 billion rupees, according to Thomson Reuters data.
Revenue from operations during the first quarter of 2017 -18 stood at Rs 12,335.56 crore, up 3.29 per cent from Rs 11,942.9 crore the year-ago period, M&M said in a regulatory filing.
The company’s vehicle sales were at 1,12,293 units during the first quarter. It sold 81,270 tractor units during the period under review.
Elaborating on the quarterly performance, M&M said the automotive industry was impacted due to impending transition to Goods and Service Tax in the first quarter of 2017-18.
Passenger vehicles sales were adversely impacted in anticipation of a price reduction in the new tax regime and reported a nominal growth of 4.4 per cent, it said. Read more
Pension Fund Regulatory and Development Authority has issued broad guidelines
India’s pensions regulator in India has allowed members of the Employees’ Provident Fund (EPF) option to move their retirement savings to the National Pension System (NPS) giving effect to a proposal mooted by the government two years ago in the Union Budget for 2015-16, an offcial statement said on Tuesday.
“With the NPS gaining momentum vis-a-vis other retirement products and a number of queries being raised on the transfer of amounts from recognised Provident/Superannuation Funds to NPS, Pension Fund Regulatory and Development Authority (PFRDA) has clarified the process through a circular dated March 6, 2017,” a Finance Ministry statement here said.
As the rules, a member looking to transfer funds from EPF to NPS must have an active NPS Tier-I account, which can be opened either through the employer where NPS is implemented or online through eNPS on the NPS Trust website.
The amount transferred from a recognised Provident Fund or superannuation fund to NPS would not be treated as income of the current year and, as such, would not be taxable.
“Further, the transferred recognised Provident Fund/Superannuation Fund will not be treated as contribution of the current year by employee/employer and accordingly the subscriber would not make Income Tax claim of contribution for this transferred amount,” the statement said.
How to go about it
The subscriber must approach the concerned PF office where their account is, through her or his employer and request to transfer their savings to an NPS account.
“The recognised Provident Fund/Superannuation Fund Trust may initiate transfer of the Fund as per the provisions of the Trust Deed read with the provisions of the Income Tax Act, 1961,” it added. Read more
Remove fear of harassment among taxpayers, PM tells officials
Prime Minister Narendra Modi, on Thursday, asked the tax officials to remove fear of harassment from the minds of taxpayers and focus on five pillars of administration — revenue, accountability, probity, information and digitisation(RAPID).
Inaugurating the two-day Rajasva Gyan Sangam here, Prime Minister asked the officials to “move towards digitisation” in a bid to make tax administration better and efficient and work towards bridging the “trust deficit”.
Modi also suggested that officials should endeavour to remove “fear of harassment” from the minds of assesses and emphasised that their behaviour should be “soft and sober”, Minister of State for Finance Jayant Sinha said while briefing reporters about the meeting. Read more.