India will push for removal of tax concessions in the tax treaty with Mauritius, which has agreed to begin talks for revising the double taxation avoidance agreement, Central Board of Direct Taxes chairman Prakash Chandra said.
The India-Mauritius tax treaty provides that capital gains arising in India from the sale of securities can only be taxed in Mauritius, and since the island nation does not tax capital gains, it leads to zero taxation. Talks on the treaty were last held in 2008 but had failed following Mauritian government's insistence to continue with the existing agreement. India is estimated to lose over $600 million a year in revenues on account of the DTAA with Mauritius.
Shares of GTL and GTL Infrastructure plunged after multiple rumours of promoters pledged shares being sold and sell-off due to margin funding pressure.
Last week there were reports that the GTL Infrastructure, which was seeking to raise about $300 million from institutional investors, has scrapped its fund raising plans due to adverse market conditions.
However, the company management has announced that its pledged shares have not be sold.
Shares of Spicejet , KS Oils, Delta Corp , Lanco Infra and Nitin Fire Protection were also witnessing sharp sell-off.
At 10:20 am; National Stock Exchange's Nifty was at 5257.65, down 108.75 points or 2.03 per cent. The broader index touched a high of 5377.40 and low of 5195.90 in trade so far.
Bombay Stock Exchange's Sensex was at 17495.67, down 374.86 points or 2.10 per cent. The 30-share index hit a high of 17925.17 and low of 17314.38 intraday.
BSE Midcap Index was down 3.67 per cent and BSE Smallcap Index moved 3.81per cent lower.
Amongst sectoral indices, BSE IT Index was down 3.06 per cent, BSE Power Index fell 2.80 per cent and BSE Metal Index declined 2.80 per cent.
Reliance Communications (-7.83%), Reliance Infrastructure (-6.49%), HCL Tech (-5.21%), Grasim (-4.65%) and IDFC (-4.23%) were the major Nifty losers.
Shares of Reliance Communications and Reliance Infrastructure were under pressure after reports that the duo will be replaced by Sun Pharmaceutical and Coal India from the Sensex beginning August 8.
Hero Honda (0.48%) was the only gainer.
Market breadth was negative on the NSE with 1835 gainers against 407 losers.
Meanwhile, the Asian markets were mixed. Nikkei 225 was up 0.21 per cent and Strait Times moved 0.64 per cent higher. Hang Seng fell 0.06 per cent and Seoul Composite moved 0.36 per cent lower.
Source : ET