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Retail
The retail sector stands to benefit from indirect sops like higher outlay for the rural sector and a people-friendly
income tax regime that would result in higher consumption. Our key expectations from the FY2011 budget include:
The industry has constantly advocated that 100% foreign direct investment (FDI) should be allowed in single-brand
retailing. Currently, FDI of up to 51% under single-brand retail trading and 100% in the cash-and-carry wholesale
format is allowed under the automatic route. Additionally, FDI may be allowed in diluted form in multi-brand
retailing If this happens it would retailing. happens, expedite growth of the organised format in the country leading to lower prices,
improved product quality and a wider choice of products would be available to the consumers.
Alacrity in the introduction of GST and in an efficient manner will result in elimination of double taxation arising
from both value added tax (VAT) and central sales tax (CST) along with bolstering profitability of the retailers.
Overall, the Union Budget is expected to be Neutral for the sector.
Budget Expectations
Head Current Status Wish List Potential Impact
FDI limits
No FDI allowed in
multi-brand retailing and
up to 51% allowed under
single-brand retailing.
To allow 100% FDI in single
brand and least partial FDI
in multi-brand retailing.
Will expedite growth of the organised format in the
country leading to lower prices, improved product
quality and a wider choice of products available to the
consumers. Positive mainly for Pantaloon Retail.
GST Double taxation arising I d i f GST i Will b l fi bili f h il P i i f ll
from Both VAT and CST.
Introduction of in a
speedy and efficient manner.
bolster profitability of the retailers . Positive for all
Retailers.
TOP Pick:
Pantaloon Retail
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Retail
The retail sector stands to benefit from indirect sops like higher outlay for the rural sector and a people-friendly
income tax regime that would result in higher consumption. Our key expectations from the FY2011 budget include:
The industry has constantly advocated that 100% foreign direct investment (FDI) should be allowed in single-brand
retailing. Currently, FDI of up to 51% under single-brand retail trading and 100% in the cash-and-carry wholesale
format is allowed under the automatic route. Additionally, FDI may be allowed in diluted form in multi-brand
retailing If this happens it would retailing. happens, expedite growth of the organised format in the country leading to lower prices,
improved product quality and a wider choice of products would be available to the consumers.
Alacrity in the introduction of GST and in an efficient manner will result in elimination of double taxation arising
from both value added tax (VAT) and central sales tax (CST) along with bolstering profitability of the retailers.
Overall, the Union Budget is expected to be Neutral for the sector.
Budget Expectations
Head Current Status Wish List Potential Impact
FDI limits
No FDI allowed in
multi-brand retailing and
up to 51% allowed under
single-brand retailing.
To allow 100% FDI in single
brand and least partial FDI
in multi-brand retailing.
Will expedite growth of the organised format in the
country leading to lower prices, improved product
quality and a wider choice of products available to the
consumers. Positive mainly for Pantaloon Retail.
GST Double taxation arising I d i f GST i Will b l fi bili f h il P i i f ll
from Both VAT and CST.
Introduction of in a
speedy and efficient manner.
bolster profitability of the retailers . Positive for all
Retailers.
TOP Pick:
Pantaloon Retail
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