TMS Ep437: Tesla in India, TCS on int'l credit card, markets, angel's share
Can Tesla finally come to India? How will TCS on credit card spend abroad affect you? Will markets turn around in the short term? What is an angel's share? All answers here
Team TMS New Delhi
Tesla CEO Elon Musk has been trying to drive on to Indian roads for some years now. But, he has been hitting a speed bump of import duties. India, now the world’s third-largest vehicle market, refused to agree on Tesla Inc’s request to lower the import duty on cars, which can be as high as 100 per cent. While the government insisted Tesla to make in India, the electric carmaker wanted to test the market first with imports.
With automaker changing its approach recently, the deadlock may not last long. Tesla is now open to manufacture in India. Does this mean you could soon get behind the wheel of a Tesla? What challenges will Tesla have to overcome before that can happen?
If the latest rounds of negotiations work out, a proposed Tesla Model 2 could be your next all-electric ride. Moving on, last week the Finance Ministry had announced the inclusion of international credit card transactions under the Liberalised Remittance Scheme. Now it will attract a 20% tax collected at source, or TCS from July this year. Amendment of the Foreign Exchange Management (Current Account Transaction) Rules has raised concerns from several quarters that have been sending money abroad. Finf out how the 20% TCS on foreign remittances will affect you.
The revision of Liberalised Remittance Scheme last week was aimed at prudent foreign exchange management and prevent by-passing of the LRS limits in international transactions. Meanwhile, equity markets in India witnessed downbeat sentiment last week as concerns over a looming US debt default made investors jittery. As Q4 earnings now come to a wrap, will equities shrug off the volatility and stage a turnaround in the near term?
The ongoing US debt ceiling concerns and worries about higher interest rates for a longer period and a looming recession are going to keep investors on tenterhooks this week. India and the UK, on the other hand, are back on the negotiating table to thrash out contours of Free Trade Agreement. But a tussle is brewing between the whisky makers of both the nations. It is over ‘angel’s share’. What is it? And why whisky makers are sparring over it? Listen to this episode of the podcast to know more.
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First Published: May 21 2023 | 7:03 PM IST