OPINION, P8 BACK PAGE, P22 BAN STAYED Action in Singapore and Dubai will hit tax evaders badly Certain tax provisions will hurt IBC deals of stressed assets—these must be fixed quickly FIVE-YEAR PLAN Supreme Court allows ‘Padmaavat’ to be screened across India EDITORIAL INTERNATIONAL, P16 Apple plans new US campus, to pay $38 bn in foreign cash taxes MUMBAI, FRIDAY, JANUARY 19, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 261, 22 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,260.29 ▲ 178.47 NIFTY: 10,817.00 ▲ 28.45 NIKKEI 225: 23,763.37 ▼ 104.97 HANG SENG: 32,121.94 ▲ 138.53 `/$: 63.86 ▲ 0.03 `/€: 78.15 ▼ 0.09 BRENT: $69.34 ▼ $0.04 GOLD: `29,891.00 ▼ `203.00 BHARTI AIRTEL Q3 RESULT GST COUNCIL MEET A fresh look at invoice Cut in IUC charges takes a toll filing, some rate cuts IN THE NEWS Banks fuel bull run; Sensex, Nifty hit new peaks CONTINUING THEIR winning run for the second straight day, benchmark equity indices Sensex and Nifty hit fresh closing peaks of 35,260 and 10,817, respectively, with banking counters leading the rally on Thursday amid reports that the government might increase FDI limits for banks, reports PTI. The BSE Sensex rose 178 points, or 0.51%, while the NSE Nifty advanced by 28 points, or 0.26%. Sustained FII inflows and a fresh spell of buying by domestic institutional investors too kept the momentum going. Biosimilars: Biocon collaborates with Sandoz BIOPHARMA MAJOR Biocon on Thursday said it has entered a global partnership with Sandoz, a Novartis division, to develop, manufacture and commercialise multiple biosimilars in immunology and oncology for patients worldwide, reports fe Bureau in Bengaluru. According to a regulatory filing, both companies will share responsibility for endto-end development, manufacturing and global regulatory approvals for various products and will have a cost and profit share arrangement globally. FE BUREAU New Delhi, January 18 CONCERNED OVERAtrendof falling revenue, the Goods and Services Tax (GST) Council on Thursday resolved to bring in a clutchofanti-evasionmeasures but refrained from resuming the suspended system of three comprehensive returns, in order not to add to the compliance burden the taxpayers are vexedabout.Italsoreducedthe tax rates on as many as 29 goods, including old and used cars, SUVs and other vehicles, drinking water in 20-litre bottles, LPG supplied to households by private distributors, bio-diesel, bio-fuel buses, a clutch of pesticides and diamonds & precious stones. Also, the taxes have been cut/waived or the input tax credit system tweaked for 53 services, as a result of which legal services to government andwork contracts to the public sector could become cheaper, along with viability gap funding of airports built under regional connectivity scheme, certain reinsurance services etc.The new rates will take effect from January 25. 28% to 18% ■ Old and used SUVs/medium motor vehicles; biofuel-buses 28 to 12% ■ Old and used motor vehicles; 20-litre water bottles; sugar-boiled confectionery; biopesticides 18% to 5% Exempted from GST ■ Air and sea freight services to outside India; legal services to govt 18% to 12% ■ Crude and natural gas mining & exploration services; works contract services by subcontractors on govt projects; common effluent treatment plants services ■ Articles of straw, basketware and wickerwork 3% to 0.25% return for compositionscheme dealers to check tax evasion ■ GSTR 3B may continue postFY18, to be complemented by uploading of supply invoices With anti-evasion steps on top of the Council’s mind,compliance with the e-way bill system,meanttotracktransportof goods worth over `50,000,will be a must for inter-state commerce starting February 1 (15 stateswill have the system running by then for transport within theirstates aswell). While a proposal to merge ■ Tax cuts for E&P activities, metro and railway projects, subcontractors where main contractor is entitled to lower GST the three detailed forms (GSTR 1, 2 and 3) has been put in abeyance, the Council veered closertoaproposalunderwhich businessescouldcontinuetofile summaryreturnofGSTR3Band paytax/claimcreditsonthebasis ofself-assessmentevenafterthe current end date of March 31. Continued on Page 2 Three N-E states to go to polls on Feb 18, 27 ASSEMBLY ELECTIONS in Tripura will be held on February 18, while Meghalaya and Nagaland will go to polls on February 27, the Election Commission announced on Thursday, reports PTI. Chief election commissioner AK Joti said the counting in the three states will be held on March 3. The terms of the Meghalaya, Nagaland and Tripura assemblies are ending on March 6, March 13 and March 14, respectively. Will GST collections also go up? Finance minister Arun Jaitley takes the escalator for a pre-Budget meeting with state finance ministers in New Delhi on Thursday EXPRESS PHOTO: RENUKA PURI QuickPicks HDFC Bank market cap crosses `5-lakh-crore mark HDFC BANK on Thursday attained a market valuation of `5 lakh crore, becoming the third company to achieve this milestone after RIL and TCS, reports PTI. At close of trade on Thursday, the company's market capitalisation (m-cap) stood at `5,00,360.08 crore. With this, the company also became the first bank to cross `5 lakh crore m-cap mark. Shares of the bank ended 2.15% higher at `1,931.80 on BSE. During the day, it jumped 3.31% to `1,953.75 — a 52-week high. PAGE 11 ■ Yes Bank Q3 profit rises 22%, P10 Tata Steel unit prices its dollar bonds to raise $1.3 billion ABJA INVESTMENT Co (ABJA), a Singapore-based subsidiary of Tata Steel, has priced its dollar bonds having two different tenors on Thursday to raise a total of $1.3 billion, bankers close to the deal confirmed to FE, reports Bhavik Nair in Mumbai. ABJA priced its 5.5-year bonds at 4.45% to raise $300 million, while it priced the 10-year bonds at 5.45% to raise $1 billion, according to sources. The initial price guidance on the 5.5year and the 10-year bonds stood at 4.875% and 5.875%, respectively. PAGE 6 RENEWABLES PUSH Govt to set up $350-m solar fund PRESS TRUST OF INDIA New Delhi, January 18 THE GOVERNMENT WILL set up a $350-million solar developmentfundforfinancingsolar projects,minister of power and new and renewable energy Raj KumarSingh said onThursday. Over the years,the minister said, renewable energy has become cheaper and is set to replace conventional energy, whichisahealthydevelopment. India has one of the fastest growing renewable energy programmes in the world and the country would achieve its target of 175 GW of installed renewableenergycapacitywell before 2020,he said. The minister said that the THE COUNTRY’S LARGEST telecom operator BhartiAirtel got hit hard during the October-December quarter by POWER PLAN ■ Renewable energy is set to replace conventional energy, minister of power and new & renewable energy RK Singh said ■ India would achieve its target of 175 GW of installed renewable energy capacity well before 2020, he said International Solar Alliance (ISA) would help mobilise sufficient funds for solar energy projects. Continued on Page 2 Usage per customer (minutes) 471 507 518 575 Q4 FY17 Q1 Q2 FY18 Q3 Blended ARPU (`) 11,05,839 7,83,809 4,72,385 4,37,142 4,94,546 Volume (million MB) Usage per customer (MB) 1,331 2,611 4,087 5,349 Q4 FY17 Q1 Q2 FY18 Q3 158 154 145 123 Q4FY17 Q1FY18 Q2FY18 Q3FY18 FARM SUBSIDIES IN CASH Telangana to give `8,000/acre PRABHUDATTA MISHRA New Delhi, January 18 ■ Diamonds and precious stones ■ RCM to FE BUREAU New Delhi, January 18 Volume (million minutes) 2,25,109 Services Goods DATA 4,21,912 PROPOSED REDUCTION IN GST RATES VOICE 3,81,236 Final decision on Nilekani proposal soon; govt worries about evasion, talks of need for measures like e-way bill Oct-Dec net down 11% sequentially at `306 cr; IUC cut impacted revenues by `1,062 cr, Ebitda by `338 cr and ARPU by `16 THE TELANGANA GOVERNMENT has drawn up a scheme underwhichfarmersinthestate will be given `4,000 per acre twice ayearto coverthe costs of major inputs such as fertilisers, seeds and pesticides. The first tranche of the largesse, to be made available to all farmers irrespective of the size of their holdingsorincomelevels,willbe disbursedduringMay1-15this year,aheadofthekharifseason. AGRI PROFILE ■ Gross cropped area: 62.88 lakh hectare ■ Gross irrigated area: 31.64 lakh hectare ■ Number of farm holdings: 55.54 lakh ■ Marginal & small farmers: 47.68 lakh ■ Average farm size: 1.13 hectare The move is being flagged as an alternative to costlier debt waivers announced by some other states. “Wehavefoundthatfarmers spend about `4,000 per acre in buying fertiliser,seeds and pesticideseachseason—kharifand rabi.Withfreepowerforagriculture provided by the Telangana government, only labour and machinerycostswillnowbeleft for farmers to bear,” said a state government official. Continued on Page 2 the 57% cut in the mobile termination rate for domestic calls effected by the Telecom RegulatoryAuthority of India (Trai), with its net profit and revenue missing Bloomberg consensus estimates. Net profit at `306 crorewas sequentially down 11% while revenue at `20,319 crore was down 7% compared with the preceding quarter. The company’sEbitdathoughat`7,587 crore, down 5% sequentially, was ahead of estimates. Margins expanded to 37.3% compared with 36.8% in the previous quarter. Continued on Page 2 Motobahn P15 How Maruti made Swift work of competition Maruti has opened bookings for the third-generation Swift, which will be launched at the Auto Expo next month. What made the car lead the segment for 13 years in a row?
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