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THURSDAY, 13 FEBRUARY2020 30 pages in 2 sections MUMBAI (CITY) ~9.00 VOLUME XXIV NUMBER 129 THE MARKETS ON WEDNESDAY Chg# Sensex 41,565.9 349.8 Nifty 12,201.2 93.3 ECONOMY&PUBLIC AFFAIRS P21 COMPANIES P2 Nifty futures* 12,228.5 27.3 Dollar ~71.3 ~71.3** Euro ~77.9 ~77.8** LOOKING FORWARD TO AIR INDIA’S JEWELS TO FIND Brentcrude ($/bbl)## 55.9## 54.0** Gold (10 gm)### ~40,421.0 ~40.0 FIRST INDIA VISIT: TRUMP PLACE IN NATIONALMUSEUM *(Feb.) Premium on Nifty Spot; **Previous close; # Over previous close; ## At 9 pm IST; ### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE SRINATH NAMED TATA TRUSTS CEO; JHAVERI Taxresolution Bill’s Retail inflation hits near TO JOIN DORABJI TRUST 6-year high; IIP contracts ambit setto widen INDIVJAL DHASMANA continued to decline at a reduced New Delhi, 12 February MACROECONOMIC WOES rate in December. It shrank 0.1 per (In % YoY) cent in December from 5 per cent Cabinet approves changes to include litigation across forums A slim revival in industrial pro- in November. Manufacturing duction in November had prompt- declined 1.2 per cent in December DILASHA SETH EYEING HIGHER sion issues, under the ed Finance Minister Nirmala from a growth rate of 2.7 per cent in New Delhi, 12 February scheme. Sitharaman to see green shoots of the previous month. Srinath Narasimhan (left), a Tata group MOP-UP This means that high- recovery. But this has turned out It was only mining which veteran, was on Wednesday appointed CEO aking the direct tax Key features of the profile cases like Vodafone to be a temporary blip — factory redeemed IIP numbers, rising by of Tata Trusts with effect from April 1. He dispute resolution DirectTax Vivad se and Cairn Plc, which are output has again contracted by 0.3 5.4 per cent, against 1.7 per cent in joins at a time when group trusts are facing scheme attractive, Vishwas Bill, 2020: pending in arbitration, per cent in December. November. litigation with the I-T department over M the Union Cabinet are eligible for the The retail inflation rate, how- Before November, IIP had con- their tax status. The trustees also on Wednesday expanded its | Scheme open till scheme. Queries sent ever, rose to a 68-month high of tracted three months on the trot. appointed Pramit Jhaveri, former CEO of Citi scope to cover litigation pending June 30 to the two companies 7.59 per cent in January, even as Note: Base year is 2011-12 Source: MoSPI Capital goods continued to India and former vice-chairman of in arbitration forums and debt | Complete waiver did not elicit any the rate of price rise in food decline at an accelerated rate in banking, capital markets and advisory for recovery tribunals (DRTs). The of interest and response. items declined. However, the per cent in December. December. Production of these Asia-Pacific at the American bank, as a scheme will also include cases penalty for Javadekar said food inflation rate remained ele- The index of industrial pro- items fell 18 per cent in the month, trustee of the Sir Dorabji Tata Trust with related to revision and small-val- the decision had been vated at 13.63 per cent. The con- duction (IIP) fell from a growth rate from a contraction of 8.6 per cent in effect from Wednesday. 3 > ue search disputes. settling tax disputes pending taken on the basis of sugges- sumer price index (CPI)-based of 1.8 per cent, as the manufactur- the previous month. This will The Cabinet also reduced the at various levels, if payment tions received from various stake- inflation rate stood at 7.35 per ing sector slipped into negative ter- impact industrial production in the disputed amount by half for those made by March 31 (cases in holders. “After the Union Budget, cent; food inflation was at 14.19 ritory again. Electricity generation coming months. Turn to Page 19 > COMPANIES P2 assessees who got favourable arbitration include Vodafone, the finance minister held discus- DRL to buy Wockhardt’s orders but the income-tax depart- Cairn Plc) sions with stakeholders and ment challenged those. | Additional 10% of tax amount sought suggestions from them. branded bizfor ~1,850 cr The move On the basis of their suggestions, will have to be paid after that Dr Reddy's Laboratories has entered into a ECONOMY comes a week there are now new amendments BUSINESS STANDARD BEST B-SCHOOL PROJECT AWARD definitive agreement with Wockhardt to PAGE 4 after Finance | Fortax arrears pertaining to to be made in this session of PHOTO: KAMLESH PEDNEKAR acquire select divisions of its branded CABINET OKAYS Minister interest and penalty, 25% of Parliament,” he said. generics business in India, Nepal, Sri Lanka, INFUSION OF Nirmala disputed penalty/interest Disputes related to search and (From left) Bhutan, and Maldives, and a manufacturing ~2.5KCR INTO 3 Sitharaman will need to be paid by seizure cases where recovery is G Teja of Vinod plant for ~1,850 crore. The business is valued introduced the below ~5 crore will also be taken PSU INSURERS March 31; 30% if payment Gupta School at 3.8 times the annualised revenue. Direct Tax made after that up under this scheme. The whole of Management Vivad se purpose, Javadekar said, was to at IIT-Kharagpur Vishwas Bill, 2020, in the Lok enlarge the scope of the Bill. (1st runner-up), LPG price sees biggest Sabha to resolve disputed tax cas- Amit Maheshwari, managing Kapil Gavali of hike in sixyears es, amounting to ~9.3 trillion, giv- plete waiver of interest and penal- partner, Ashok Maheshwary & NITIE, Mumbai ing effect to the Budget ty will be given if tax dues are paid Associates LLP, termed it a wel- (winner), and State-run OMCs sharply hiked the price of announcement. by March 31. An additional 10 per come inclusion. “Including revi- second runners- non-subsidised liquefied petroleum gas by The scheme offers waiver of cent of the disputed amount will sions, arbitrations, and DRP pro- up Ayush Trivedi a steep ~144.5 per cylinder due to a spurt in interest, penalty, and prosecution have to be paid after that. ceedings will help in garnering of SCMHRD, benchmark global rates. The price was for settling tax disputes. It was ear- Union minister Prakash more revenue. There was no good Pune, and Vivek increased to ~858.50 for a 14.2-kg cylinder, lier limited to cases pending before Javadekar, briefing the media reason to keep these proceedings Sathiamoorthy from ~714 earlier. This is the steepest hike in the commissioner (appeals), the after the Cabinet meeting, said it out of the purview of the scheme, of XIME, Chennai rates since January 2014, when prices had Income Tax Appellate Tribunal, had decided to cover disputes if the intention is to garner rev- gone up by ~220 per cylinder to ~1,241. high courts or the Supreme Court pending in DRTs, arbitration, tri- enue and reduce litigation.” > as of January 31, 2020. Now, a com- bunals, and courts, besides revi- Turn to Page 19 > SOLVING REALWORLD PROBLEMS AT INDIA INC P21 ON DoTmaysendAGR SPECIALS THURSDAY PERSONALFINANCE: demandnextweek Take some risk in a soft interest rate scenario 8 > Move likely if telcos’ plea not taken up by SC The other option is to go for instruments with a higher lock-in period, which MEGHA MANCHANDA IN ATIGHT SPOT give better returns, write BINDISHA SARANG New Delhi, 12 February & SANJAY KUMAR SINGH | On Oct 24, SC rejected telco’s The Department of Telecommunications appeal against govt definition of STRATEGY: (DoT) plans to send out letters to Bharti adjusted gross revenue (AGR) Secondtimelucky? 20 > Airtel and Vodafone Idea, seeking pay- Bisleri is banking on a new recipe for ment of dues, if the industry’s modifica- | Telcos filed a modification plea in SC growth of its soft drinks business but low tion plea on the adjusted gross revenue last month, seeking extension of Jan initial offtake, intense competition and (AGR) issue is not taken up by the 23 deadline to pay AGR dues; the plea Supreme Court this week. The gaps in distribution may make the going is yet to come up for hearing expectation is that at least the tough, writes SHUBHOMOYSIKDAR first tranche of the total esti- | AGR definition has been a mated dues of ~1.47 trillion long-standing issue should be paid immediately, between DoT, telcos > RESULTS RECKONER based on a self-assessment | Cellular Operators method. Association of India says Quarter ended Dec 31, 2019; common sample While the DoT had earlier components of AGR which of 1,620 companies (results available of 1,922) said it would not take any coercive govt was trying to include SALES action if telcos missed the January were in contravention 23 deadline as the SC had agreed to of the Telegraph Act and the Dec 31, ’18 19.5% ~17.54 trillion hear their application requesting Dec 31, ’19 0.5% ~17.62 trillion for modification of the order, offi- recommendations of telecom regulator PROFIT BEFORE TAX cials believe the time has come for the companies to start paying up the Dec 31, ’18 -14.5% ~1.43 trillion dues linked to AGR. “Companies cannot Dec 31, ’19 33.1% ~1.91 trillion manipulate our order (on no coercive inition of AGR and had asked the tele- action) like this and not pay at all,” an offi- com companies to pay up the licence NET PROFIT cial told Business Standard.