OPINION, P2 MIND & GAMES IDEA EXCHANGE ACROSS THE AISLE, P CHIDAMBARAM Scientists are gaining a more refined, and surprising, understanding of the effects of loneliness and isolation on health Page 10 ‘It is not a battle of influence. This is an issue of Iran interfering in our internal affairs’ Page 4 Now,return to governance THE SURPRISING EFFECTS OF LONELINESS ON HEALTH Vol II No. 346 Follow us on Twitter & Facebook. App available on App Store & Play Store Saud Bin Mohammed Al-Sati WWW.FINANCIALEXPRESS.COM LEISURE DAN PARENT MUMBAI SUNDAY, DECEMBER 17, 2017 12 Pages, `8 SPOTLIGHT HOMES BEYOND BORDERS FINANCIAL EXPRESS ON SUNDAY PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE GST COUNCIL To plug revenue leaks, e-way billing preponed ● Implementation moved ahead from March to Feb 2018 FE BUREAU New Delhi, December 16 Buying property overseas is not a luxury any more, as more Indians are finding international property markets more lucrative and transparent than in India Page 7 WORDS WORTH INDIA & CHINA: THE GAME IS ON China’s India War: Collision Course on the Roof of the World is a rigorous introduction to the defining relationship of the 21st century, one that will make or mar the Asian century Page 5 AMID RISING CONCERNS of revenue leakage, the GST Council on Saturday decided to bring forward the mandatory date for implementation of the interstate e-way bill mechanism to February 1 next year for all states. The council also decided that states will put in place the mechanism forintra-state goods transport by June 1. Under the e-way bill provision, the transporter of goods is required to generate a bill electronically on the GST Network portal for carrying goods worth more than `50,000.The mechanism had earlier been deferred by the council till March next year to ease compliance burden on taxpayers and to allow time for development of hardware and software required forits rollout. The states were allowed to continue with the existing system in the meantime. “The rules for implementation of nationwide e-waybill system forinter-state movement of goods on a compulsorybasiswill be notifiedwith effect from February 1, 2018. This will bring uniformity across the states for seamless inter-state movement of goods,” the government said in a statement. It added that the mechanism would be ready for trial run byJanuary16.However, states were allowed till June 1 to QuickPicks Shareholders approve CESC restructuring scheme CESC, THE RP-Sanjiv Goenka group flagship, has got its shareholders' approval for the company's proposed corporate restructuring by way of a demerger scheme of its multiple businesses, reports fe Bureau in Kolkata. In a stock exchange filing on Saturday, the company said the resolution for the approval of the scheme was passed by the shareholders with the requisite majority. According to the filing, the voting on Friday saw 100% of the votes being cast in favour of the proposed corporate restructuring of CESC. PAGE 12 ODD & EVEN READ TO LEAD Archie Comic artist tells us how comics still stay relevant in this digital age Page 8 ROHNIT PHORE MOVING AHEAD ■ The council decided that states will put in place the mechanism for intra-state goods transport by June 1 ■ Under the e-way bill provision, the transporter of goods is required to generate a bill electronically on the GST Network portal for carrying goods worth more than `50,000 ■ Traders had said bill’s absence was hindering inter-state movement implement the mechanism for movement of goods within the state. The government said the deadlinewas brought forward as traders and transporters had pleaded that absence of e-way bill was causing undue hardship in the inter-state movement of goods. “Once implemented, it (eway bill) would help the government check evasion of taxes,but on the flip side it would add to the compliance burden of tax payers.Further,the government should ensure that the IT systems are completely ready before such implementation,”Abhishek Jain, partner, EY, reacted to the news. “We were hoping that e-way bill would be deferred for some time and possible alternatives would be explored. It is now important to ensure that all states have common e-way bills and suggestions made by industry for simplification are taken into consideration. If implementation of this system is not done properly, it could lead to significant supply chain bottlenecks and somewhat dilute the objective of ‘one nation, one tax,” Pratik Jain, leader, indirect tax, PwC,said. “The sudden meeting of the council signifies that the issue of e-way bills is very serious and there is a concern over potential revenue leaks in the absence of a nationwide uniform tracking platform for goods. Businesses hope therewill be no technology issues in generating e-way bills; a testing window of two weeks appears to be very small,” said MS Mani, senior director, Deloitte. `90k cr for roads, highways in NE PRESS TRUST OF INDIA Shillong, December 16 PRIME MINISTER NARENDRA Modi on Saturday announced `90,000 crore for improving roads and national highways in the north-east in the next two to three years to facilitate better connectivity.The Prime Minister dedicated to the nation a 271km, two-lane national highway connecting Tura in western Meghalaya and Shillong.Meghalaya was his second stop after Mizoram. “Over the next two-three years, an investment of about `60,000 crore is proposed under the SpecialAccelerated Road Development Project in the northeast and an investment of `30,000 crore under Bharatmala is proposed for development of national highways in these states,”Modi said. He said the central government has sanctioned around 4,000 km of national highways across the north-east at a cost of `32,000 crore.The PM said over Prime Minister Narendra Modi at an exhibition of farm produce in Aizawl on Saturday 1,200 km of NHwas constructed at an expenditure of nearly `14,000 crore during the last three years alone. Earlier in Mizoram, he an- nounced that the state had become the third power-surplus state in the north-east after Sikkim and Tripura, as he inaugurated the 60-MW Tuirial hy- dropower project.He added that Mizoram will soon become the gateway to south-east Asian countries after linking projects with Myanmar. UIDAI suspends eKYC licence of Airtel,its payments bank PRESS TRUST OF INDIA New Delhi, December 16 IN ITS STRONGESTACTION yet, theUIDAIhastemporarilybarred Bharti Airtel and Airtel Payments Bank from conducting Aadhaarbased SIM verification of mobile customers using eKYC process,as well as e-KYC of payments bank clients.The action follows allegations of Bharti Airtel using the Aadhaar-eKYC-based SIM verification process to open payments bank accounts of its subscribers without their‘informed consent’. UIDAI also took strong objection to allegations that metricnationalID Action follows such payments Aadhaar though allegations of bank accounts are opening payments the efficient and being linked to repaperless eKYC (or bank accounts of ceive LPG subsidy. electronic Know UIDAI, in an in- subscribers without Your Customer) their consent terim order, “susprocess of UIDAI. pended e-KYC liAlso, Airtel Paycence key of Bharti ments Bank will Airtel Ltd and Airtel Payment not be able to open a newaccount Bank Ltd with immediate effect”, withAadhaare-KYC. However,acsources said. counts can be opened through alThis essentially means Airtel ternate methods,if available. would not be able to, in the inWhen contacted, an Airtel terim,carry out‘electronic-verifi- spokesperson said:“We can concation’ or link mobile SIMs of its firmthatwehavereceivedinterim customerswiththeir12-digitbio- order from the UIDAI regarding Koda, ex-coal secy get jail in coal scam temporarysuspensionofAadhaar linkede-KYCservicestilltheirsatisfaction on certain processes relatingtoAirtelpaymentbanksonboarding of customers. We are engaging with the authority and are hopeful of an earlyresolution. We are also undertaking to complete the said actions on priority and have commenced thorough checks of ourprocess flows.Being complianttoallguidelinesisparamount to us. In the interim, any inconvenience to our customers is regretted.” Continued on Page 12 Small towns on radar of big brands PRESS TRUST OF INDIA New Delhi, December 16 FORMER JHARKHAND chief minister Madhu Koda and formercoalsecretaryHCGuptawere Saturdaysentencedtothreeyears in jail in a coal scam case bya special court,which said “white collar crimes” were more “dangerous” to society than ordinary crimes. AK Basu, former Jharkhand chief secretary, and Vijay Joshi, a close aide of the former CM,were also awarded jail terms ofthreeyearsforindulgingincorrupt practices and hatching a criminalconspiracyintheallocationofRajharaNorthcoalblockin JharkhandtoKolkata-basedcompanyVini Iron and Steel Udyog. Special CBI court judge Bharat Parashar also imposed fines of `50 lakh, `25 lakh and `1 lakh on VISUL, Koda and Gupta,respectively,in the scam. Joshi will also have to pay a fine of `25 lakh and Basu `1 lakh,the PTI SHINMIN BALI Mumbai, October 16 Sentenced to three years; get bail to appeal in HC court said.“White collar crimes are, in fact, more dangerous to society than ordinary crimes. Firstly, because the financial losses are much higher,and,secondly because of the damages inflicted on public morale,” the judge said in his order. The convicts were granted statutory bail for two months to enable them to file appeals in the Delhi High Court challenging the verdict. With the sentencing, Koda would be barred from venturing into electoral politics. Rahul takes charge Newly-elected Congress president Rahul Gandhi greets his mother and predecessor Sonia Gandhi during an event held in New Delhi on Saturday, as former PM Manmohan Singh looks on. In his first speech after assuming charge, Rahul exhorted the youth to transform India's 'grand old party' into a 'grand old and young party'. Sonia Gandhi expressed confidence that a 'fearless' Rahul will reinvigorate the Congress, even as her daughter Priyanka GandhiVadra said Sonia would be in fray for the 2019 LS polls from Rae Bareli PTI AS TIER-1 CITIES get more expensive, cluttered and competitive to do business in,tier-2 cities are where brands are heading to capture an untapped market. Theenthusiasmfornon-metros is not without reason.As per KotakWealth Management's The Indian Ultra HNI: Optimism Uninterrupted report, smaller cities are playing a considerable role in thegrowthofthenumberofultra HNIs.Thisisgoodnewsforluxury retailbrands,amongothers,looking at non-metros for expansion. AnEYreportalsofindsanewclass ofcitiesdefinedbytheirrisingcumulative household income. ON TUESDAY ‘Big Shops, Small Towns’ Indian aspirations feeding pre-owned luxury car market Used luxury car segment growing at 22-24%, compared with 7.7% growth in new passenger vehicle segment DEEPAK KUMAR Mumbai, December 16 THE INDIAN BUYER is synonymous with aspiration and car buyers are no different.Everyone wants to be seen with glitzy wheels, which is being made possible with used cars.This has resulted in a thriving pre-owned luxurycarmarket in India,which is speeding itswayto become the fastest growing segment in the overall used car space. Industry experts say while sales volumes in the used car market are growing at a CAGR of 18-20%, the used luxury car segment is growing faster,at 2224%. Contrast this with the 7.7% growth seen in the new passenger vehicle segment during theApril to Octoberperiod in 2017, and it drives home the shift.Sales of used luxury cars in India are clocking 30,00035,000 units a year now, equalling sales of new luxury cars at around 35,000 units. While sales of used luxury cars in India today are on a par with new luxury cars, in mature markets, pre-owned luxury cars outsell new luxury cars 2.2 times. This has made players in the industry optimistic of fur- Many purchases in the segment come from enthusiasts who love trying out different brands ther growth in the used luxury car segment in India. They see the price differential as a keydriver of this growth. Big Boy Toyz, a company that deals in multi- brand used luxury cars in India, claims to sell some models at as low as 50% of the price of the newcar.JatinAhuja,founderand managing director,Big BoyToyz (BBT),says volumes for the company have grown by 40% in the previous financial year.He adds, “Three to four years back, preowned luxury car sales were about 50% of the newluxurycar sales. But today, used luxury car volumes in the country are on a par with the brand new ones.” A vast number of purchases in this segment come from petrolheads, read car enthusiasts, who love trying out different brands of cars and don’t like settling with one. Ahuja says around 75% of BBT’s buyers are passionate drivers, who love the experience of driving high-end cars.He adds that tier-2 cities are opening up to the concept of buying second-hand luxurycars, which has helped sales. Vikram Pawah, president, BMW Group India, which launched the BMWPremium Selection, the company’s preowned cars business in 2011, says most buyers are from tier-1 and tier-2 cities, adding,“With the rise in disposable income, theyare not hesitant to spend on luxury products and services. Luxury for them is an indulgence and theywant to associate with top brands to make a statement or simply to reward themselves for their achievements. Theyare newto theworld of luxury and represent an untapped market potential for pre-owned premium cars.” Currently, due to the high ticket size of luxurycars,most of the market is organised. Rajat Sahni, CEO (used cars) at Car Dekho, says the organised segment share has around 65% market share, with the remaining being customer-to-customer.With a majority of luxury car OEMs coming up with their own certified pre-owned programmes,the pie is onlygoing to get bigger,adds Sahni. While the used car sales are growing, analysts say the high amount of discounting in the new luxury car market may pose a majorchallenge forthe players. The discounting,as per analysts, is because of the rising competition in the country’s luxury car space. Many new OEMs have joined India's luxury car race. WhileVolvo set up shop earlythis year, Lexus is mulling setting up an assembly plant in India. But pre-owned luxury car sellers remain unfazed. Their take is that the new luxury cars sold today will only add to their own portfolio in two-threeyears' time. Sahni claims optimistically,“In two years,I feel that the used luxury car market is going to growto 1.5 times the newpremium car sales in India.”
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.