India's banking sector is stressed and the Centre is in no position to bail it out, says Nobel Laureate and economist Abhijit Banerjee.
Money Knocking At Your Door: The Income Tax Department has made a windfall gain of ?10,000cr ($1,406m) from the advance pricing agreement (APA) programme that allows MNCs to negotiate how profit margins for India operations are to be calculated for tax purposes for five years in return for avoiding rigorous scrutiny of transaction details.
Introduced in 2012, the scheme was tweaked in 2015 to allow such negotiated profit margins applicable for the past four years as well, allowing companies tax certainty for a total of nine years. Extending the agreed profit margin for past years has led to many MNCs revising their past year profit margins upwards, as per government sources. Livemint
Extra Crunch: Nobel Laureate and economist Abhijit Banerjee at the 13th Jaipur Literature Festival said that India's banking sector is stressed and that the Centre is in no position to bail it out. He added that this would imply a long process of attrition, that's going to be costly.
Read more of his comments on the Indian economy here.
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