ISMA urges govt to maintain fuel ethanol import restrictions
Negotiations are ongoing, with Indian commerce officials engaging US counterparts, but no policy changes allowing fuel ethanol imports have been implemented as of this month. ISMA Director General Deepak Ballani, in a letter to Commerce Minister Piyush Goyal, demanded that the government maintain current restrictions on fuel ethanol imports for blending purposes and continue supporting indigenous ethanol production.
Ballani also requested the government reassure stakeholders on "policy stability," thereby encouraging continued investment and farmer-centric development.
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Looking for a low-risk way to grow idle funds? Arbitrage funds might be your smartest move
Advertorial ET Spotlight Every rupee sitting idly in a low interest account loses its edge, especially when inflation and taxes nibble away at potential returns. Keeping your money safe often means letting it pass up on significant gains. Sure, it is not at risk, but it is also not growing in any meaningful way. So what is the alternative when you want your money to remain accessible, but also work a bit harder? The price gap hack: Where smart money moves In the typical Indian household, ' get an FD [fixed deposit], it's safe ' is the standard chant to new investors, and sure, putting ₹1 lakh in a fixed deposit does feel reassuring. But once the initial comfort fades, the reality sinks in: it is barely earning anything! After taxes and inflation, FD returns are meagre. This is where arbitrage funds offer a smarter alternative, a low-risk way to keep your money accessible while capturing gains by buying in one market and selling in another at a slightly higher price. In the stock market, arbitrage funds exploit price differences between two segments: The cash (spot) market , where stocks are bought and sold for immediate delivery at current prices , where stocks are bought and sold for immediate delivery at current prices The futures market, where stocks are bought or sold at a pre-agreed price for delivery at a future date. For example, if a stock is trading at ₹100 in the spot market and ₹105 in the futures market, an arbitrage fund buys it at ₹100 and simultaneously sells it at ₹105, locking in a ₹5 profit per share. There is no guesswork or market prediction involved, just a steady gain from the price gap. Still confused? Think of a friend who buys a smartwatch at a warehouse sale for ₹2,500 and sells it online for ₹2,800, pocketing ₹300 with no risk. Arbitrage funds follow the same logic, and according to data from AMFI (Association of Mutual Funds in India)1, they have often delivered better post-tax returns than savings accounts and short-term FDs, especially for investors in higher tax brackets. Why Axis Arbitrage fund could be your smart parking spot Got some extra cash from a bonus, tax refund, or just a few months of savings you won't need right away? Letting it sit idle can feel safe, but it is also a missed opportunity. That's where Axis Arbitrage Fund steps in, offering a steady, low-risk way to keep your money active while staying why it works: Captures price spreads, not market swings: Instead of guessing where the market is headed, it locks in small gains from price differences between the cash and futures markets. Instead of guessing where the market is headed, it locks in small gains from price differences between the cash and futures markets. Low-risk, short-term solution: The fund uses fully-hedged positions, meaning market volatility has minimal impact, making it ideal for surplus cash you may need in 3–12 months. The fund uses fully-hedged positions, meaning market volatility has minimal impact, making it ideal for surplus cash you may need in 3–12 months. Tax-smart structure: As an equity-oriented fund, it enjoys favourable tax treatment. Gains up to ₹1.25 lakh per year are exempt, and you could save up to 33% in taxes versus short-term debt funds or FDs. As an equity-oriented fund, it enjoys favourable tax treatment. Gains up to ₹1.25 lakh per year are exempt, and you could save up to 33% in taxes versus short-term debt funds or FDs. Built for calm, not chaos: With part of the fund parked in secure instruments like treasury bills and deposits, your investment stays balanced, with equity-style potential and debt-like stability. 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It combines structured, low-risk gains from market price gaps with the calm of stable debt instruments, helping you grow your money quietly without the not, don't worry. There are other smart options. If you want a broader mix, a Multi Asset Allocation Fund or Balanced Advantage Fund might suit you better. For pure debt exposure, you could consider an Ultra Short-Term or Short-Term Debt Fund. Let your money work safely and smartly Not every investment needs to be bold to be effective. Sometimes, the smartest strategy is quiet, steady, and built on capturing small, consistent opportunities. That's exactly what arbitrage funds do, turning market price gaps and stable debt instruments into a low-risk way to keep your idle money in motion. If you are exploring such a strategy, funds like Axis Arbitrage Fund offer a structured, tax-efficient option that balances access, safety, and short-term growth, without the stress of timing the market. References - Disclaimer - Mutual fund investments are subject to market risks, read all scheme related documents Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual fund investments are subject to market risks, read all scheme related documents carefully. (This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@ N.R. 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LIC-owned NBFC stock Paisalo Digital jumps 9% despite weak Indian stock market. Do you own?
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Hyatt faces India tax blow as Supreme Court confirms ‘Permanent Establishment' status
In a crucial ruling with broad implications on how multinational companies are taxed in India, the Supreme Court on Thursday held that UAE-based Hyatt International Southwest Asia, which provides hotel advisory services in India, has a taxable Permanent Establishment (PE) in the country. A bench comprising Justices J.B. Pardiwala and R. Mahadevan upheld Delhi High Court's earlier decision, which had ruled that Hyatt's Indian PE must be treated as a distinct taxable entity. The judgment is significant as it clarifies that multinational companies can be taxed in India if they exercise substantial operational control here, even without long-term employee presence. The court held that a PE should be treated as a separate taxable entity, meaning India can tax profits attributable to the PE even if the foreign parent company incurs overall global losses. The apex court noted that Hyatt's executives and employees made frequent and regular visits to India to supervise operations and implement business decisions. While no single employee stayed beyond the nine-month threshold under Article 5(2)(i) of the India-UAE Double Taxation Avoidance Agreement (DTAA), the assessing officer's findings proved a continuous and coordinated business presence. Hyatt had approached the Supreme Court challenging the September 2024 Delhi High Court Full Bench judgment, which had held that Hyatt's Indian PE was taxable regardless of the company's global profitability. The top court agreed with the High Court's conclusion that Hyatt's role extended beyond high-level decision-making to substantial operational control and implementation in India. Its ability to enforce compliance, oversee hotel operations, and earn profits linked to hotel revenues established a clear and continuous commercial nexus with its Indian operations, satisfying the fixed place PE conditions under the DTAA. Hyatt had argued that under Article 7 of the India-UAE DTAA, India could tax the PE's profits only if the foreign enterprise as a whole was profitable. However, tax authorities maintained that the PE should be assessed as a separate and independent entity, regardless of the parent company's global financial performance. 'The judgment provides a clear conceptual framework for determining PE thresholds—frequent, regular visits by employees, rather than the duration of individual stays, are the key factor. Once continuity of business presence is established, the return or rotation of individuals becomes irrelevant. Operational control, oversight, and income linked to core functions establish the commercial nexus necessary for a PE. This ruling could set a precedent for PE determinations in cases involving frequent employee travel to India,' said Amit Baid, head of tax at BTG Advaya, a disputes and transactional law firm. Under Double Taxation Avoidance Agreements (DTAAs), a Permanent Establishment (PE) is a fixed place of business, such as a branch, office, factory, or dependent agent, through which a foreign company operates in another country. Article 5 of the India-UAE DTAA defines what constitutes a PE, including fixed place PE, agency PE, and service PE. Having a PE in India gives Indian tax authorities the right to tax profits attributable to that PE, treating it like a local entity, irrespective of the parent company's global results. Article 7 allows India to tax only the profits linked to the PE's activities, calculated as if it were an independent enterprise. Foreign enterprises without a PE in India are not taxed here on business profits. The Hyatt PE taxation case originated when Indian tax authorities assessed that Hyatt had enough presence in India to be taxed, as its executives frequently visited and controlled hotel operations, despite no single employee staying long-term. These assessments dated back to 2011 onwards. Hyatt challenged the findings in the Delhi High Court in 2020, arguing that under the tax treaty, India could tax the PE only if the global enterprise was profitable. In January 2023, a Division Bench of the High Court referred the matter to a Full Bench for deeper examination. In September 2024, the Full Bench ruled that Hyatt did have a PE in India because of its continuous operational involvement and held that the PE should be taxed as a separate entity. Hyatt then appealed to the Supreme Court, leading to Thursday's ruling.
