Top headlines: Earnings chill for Dec quarter; FPIs seek Budget clarity

Officials suggested that the Centre wants a firm commitment from Tesla on local manufacturing of electrical vehicles in line with its Make in India vision. More on those stories in our top headlines this morning.

Tesla gets an India offer, but with a caveat 

Just days after Elon Musk tweeted that his company was “working through a lot of challenges” with the Indian government, officials suggested that the Centre wants a firm commitment from Tesla on local manufacturing of electrical vehicles in line with its Make in India vision. Along with that, it wants an investment plan of the company ahead of any discussion on tax sops.  Read more

Market approval for Covishield, Covaxin to come with riders 

The subject expert committee’s recommendation for regular market approval to Covishield and Covaxin, if accepted by the regulator, could be subject to some conditions, the government has indicated. There is lack of clarity at present on whether the market authorisation for the vaccines means these would be available at chemist shops for the general public to buy and if the vaccine makers would be allowed to sell them freely. Read more

Early birds hint at subdued earnings growth in Dec quarter 

Corporate earnings in the December 2021 quarter (Q3FY22) have started on a muted note for India Inc with lower than expected growth shown by early-bird companies. The combined net profit of 140 early-bird companies is up 10.4 per cent year-on-year (y-o-y) during October-December 2021, growing at its slowest pace in the last five quarters.  Read more

Corporate tax this fiscal likely to exceed Budget estimates

After two years of shortfall, corporate tax collections in 2021-22 (FY22) are set to cross budgeted targets by quite a margin. The Revised Estimates (RE) for corporation tax in the current fiscal year could be around Rs 6.5 trillion, Business Standard has learnt. Read more

FPIs look to Budget for clarity on REIT, InvIT taxation rate 

The Union Budget may provide clarity on the tax to be paid on interest income earned from investments in real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs) by foreign portfolio investors (FPIs). Several FPIs have taken a conservative view and have started paying a higher tax of 20 per cent for such income. Read more