Money market: Rupee in range - bonds volatile
Mumbai: The rupee closed at 43.71/71.50 against the US dollar on Thursday, slightly higher than Wednesday's close of 43.70/71.5.

Forwards market: The 12-month premium closed at 1.45 (1.50) and the 6-month premium closed at 1.67 (1.68) per cent.

G-Secs: The 7.38 per cent 10-year benchmark paper closed at Rs105.60/65 (6.62 per cent YTM) against Wednesday's close of Rs105.60 (6.63 per cent YTM).

Call rates: Ranged between 4.7 and 4.8 per cent (4.50 and 4.60 per cent).

CBLO market: 144 trades aggregating Rs 5132.75 crore were put through in the rate range of 2.1 to 4.70 per cent.
Back to News Review index page  

Service tax exemption on forex payments withdrawn
New Delhi: The existing service tax exemption on taxable services for which payments are received in convertible foreign exchange will stand withdrawn as of March 15. The Finance Ministry has also issued export of services rules, which seeks to spell out the meaning of such exports. These rules will come into force from March 15.

Trade and industry had sought clarity on what constituted 'export of services' for the purpose of service tax. They had also demanded that all facilities and relief available to export of goods be extended to export of services. Currently, taxable services for which payments are received in convertible foreign exchange are fully exempt from service tax.

In keeping with their demand, the Central Government had in Budget 2004 empowered itself to make rules for defining export of services, providing exemption from service tax to such exports and rebate of tax paid on input services or duty paid on the inputs used.

Acknowledging that export of services cannot be defined in the same way as export of goods, since services are not tangible, the Finance Ministry has now held that services are treated as exports if a person outside the country ordered them and such services were delivered outside the country. In other words, the recipient of service who is the principal beneficiary of the service should be outside the country.
Back to News Review index page  

Yes Bank ties up with Swiss firm for private equity fund
New Delhi: Yes Bank has tied up with BTS Investment Advisor of Switzerland for setting up a private equity fund of $30-50 million for investing in the renewable energy sector.

Yes Bank officials said that they considered sustainable finance and investment to be a sunrise sector for India where such activities will increasingly be mainstreamed in the portfolio of banking services.

The 50:50 tie-up will also enable Yes Bank to provide advisory services to investors on sustainable finance and investment in various environment-friendly projects in India.
Back to News Review index page