Top of the Morning: Samsung Hit with $601M Tax Demand | Telcos to Launch Caller ID Feature

To get your dose of daily business news, tune into Mint Top of the Morning on Mint Podcasts available on all audio streaming platforms.This is Nelson John, and I'll bring you the top business and tech stories, let's get started. 1. States’ Revenue Grants ShrinkIndia’s revenue deficit grants to states have plummeted from ₹1.18 lakh crore in 2021-22 to ₹24,483 crore in 2024-25, with further cuts expected. This aligns with the 15th Finance Commission’s goal of pushing states toward financial self-sufficiency. While overall central transfers to states have increased, direct revenue support has steadily declined. States, benefiting from an 11.1% growth in tax revenues in H1 FY25, are striving to balance finances, but fiscal deficits remain near the 3% cap. The key concern: Can states sustain fiscal discipline without heavy central backing?2. Samsung’s $601 Million Tax DisputeSamsung Electronics faces a $601 million tax demand from Indian authorities for allegedly misclassifying telecom equipment to evade import duties. The Directorate of Revenue Intelligence claims Samsung avoided 10-20% tariffs on Remote Radio Heads (RRH) used in telecom towers. A probe launched in 2021 revealed Samsung imported $784 million worth of RRHs without duties. The company, denying wrongdoing, is weighing legal options. This case is part of India’s broader crackdown on foreign firms, reinforcing its strict tax compliance stance.3. Telcos to Roll Out Built-In Caller IDIndia’s telecom giants—Jio, Airtel, and Vodafone Idea—are testing Calling Name Presentation (CNAP), a feature that will display caller names without requiring apps like Truecaller. Nokia, Ericsson, HP, and Dell are supplying the tech, with initial implementation limited to same-network calls. Spam calls remain a growing issue, with 1.5 lakh complaints in October 2024 alone. However, CNAP faces technical and regulatory hurdles, such as network load and data-sharing rules. If successful, it could significantly curb fraudulent calls.4. Wipro GE’s $1 Billion ‘Make in India’ PushWipro GE Healthcare is investing $1 billion to expand local manufacturing, aiming for 70% of its products to be India-made by 2030 (up from 40-45% now). The company exports medical devices to 70 countries, with the US and Europe as key markets. While the US may impose reciprocal tariffs, Wipro GE remains confident in its diversified supply chain. The expansion includes R&D investment and a new facility in Karnataka. With India’s medtech market growing at 20-23% annually, Wipro GE is betting big on rising healthcare demand and government incentives.5. Banks Poised to Cut Deposit RatesBanks are expected to lower deposit rates from April, anticipating another RBI rate cut during its April 7-9 policy meeting. With inflation cooling to 3.6% in February and credit demand softening, lenders need to adjust rates to protect margins. While banks held off cutting deposit rates after the February repo rate reduction, another cut would leave them with little choice. However, deposit rate reductions take time to reflect in margins, as older deposits remain locked at higher rates. The key question: Which bank will make the first move?