Page 5 - Digi Note : 23rd-28th November (General Awareness)
P. 5
This will consider companies with effective control in India a resident
liable to pay tax in the country.
The norms will affect companies in sectors like pharma, energy,
manufacturing, software.
Busting four myths about the Pay Commission
(Article of the Week)
In the market, the normal reactions to the 7thPay commission have
been that it will be a burden on the reserves. Let’s demystify the myths
regarding the recommendations.
Myth 1: Fiscal numbers will go awry
No, the nos. Shall not go up due to the GDP rate increasing every year,
Moreover If GST is kept at 16% it shall lead to generation of revenue.
Myth 2: Fiscal deficit will go up
This depends on the Global crisis and the investment pattern of FIIs
and FPIs.
Myth 3: Capital expenditure will get compressed
Incorrect. The years subsequent to the submission of the fifth and
sixth Pay Commissions witnessed a significant jump in Plan Capital
Expenditure.
Myth 4: Consumption will get a boost
No doubt consumption increases with increase in income,
nonetheless, our study indicates that higher income on account of
Pay Commission translates more into Higher household savings than
consumption
liable to pay tax in the country.
The norms will affect companies in sectors like pharma, energy,
manufacturing, software.
Busting four myths about the Pay Commission
(Article of the Week)
In the market, the normal reactions to the 7thPay commission have
been that it will be a burden on the reserves. Let’s demystify the myths
regarding the recommendations.
Myth 1: Fiscal numbers will go awry
No, the nos. Shall not go up due to the GDP rate increasing every year,
Moreover If GST is kept at 16% it shall lead to generation of revenue.
Myth 2: Fiscal deficit will go up
This depends on the Global crisis and the investment pattern of FIIs
and FPIs.
Myth 3: Capital expenditure will get compressed
Incorrect. The years subsequent to the submission of the fifth and
sixth Pay Commissions witnessed a significant jump in Plan Capital
Expenditure.
Myth 4: Consumption will get a boost
No doubt consumption increases with increase in income,
nonetheless, our study indicates that higher income on account of
Pay Commission translates more into Higher household savings than
consumption
