Around 200 companies, including Colgate Palmolive, L Oreal, and McDonald s India, have received notices from state tax authorities demanding taxes under the pre-GST regime. The states are seeking about ₹30,000 crore in taxes for the FY11-FY15 period, claiming that value-added tax (VAT) should be levied on the transfer of intellectual property rights (IPRs). Some companies argue that they have already paid service tax on these transactions.
It has also formed higher highs and higher lows patterns, and it is trading above all important moving averages. The structure of the counter becomes so lucrative for long-term investors.
Stocks that were in focus include names like Shoppers Stop which was down more than 12%, Escorts Kubota rose more than 2% to hit a fresh high and Mastek closed with gains of over 4% on Friday.
Tata Communications reported a 30% fall in net profit at Rs 382 crore for the first quarter ended June. Revenue from operations, however, jumped 11% to Rs 4,771 crore.