 |
Sunday,
January 13, 2002, Chandigarh, India  
|
15 govt officials owned Enron stocks
VAT:
issues remain unresolved
More stations to be airlinked with Gulf
Family pension to widow |
|
|||||||||||||||||||||||||||||||||||||||
MIS
scheme
UTI Bank net up 55.27 per cent
|
|
15 govt officials owned Enron stocks Washington, January 12 The stockholders included Defence Secretary Donald Rumsfeld, senior presidential adviser Karl Rove, Deputy EPA administrator Linda Fisher, Treasury Under-Secretary Peter Fisher and US Trade Rep. Robert Zoellick. Army Secretary Thomas White, who was not included in the watchdog analysis of administration officials, was Enron’s Vice-Chairman before his assuming his Pentagon post and owned between $ 50 million and $ 100 million worth of stock. In addition to the Bush officials who owned Enron stock, at least two officials had professional ties to Enron, according to an analysis of financial disclosures by The Center for Public Integrity. White House Economic Adviser Lawrence Lindsey served as a consultant to Enron when he was the Managing Director of Economic Strategies Inc., a consulting firm. Zoellick also served on the advisory council, earning $ 50,000 a year. The report did not specify which officials sold their stock before Enron’s financial collapse in December, but at least two, Rove and White, have disclosed that they did. Enron shares, which traded as high as $ 83 last year, are now worth less than $ 1. White, whose stock was valued between $ 50 million and $ 100 million, announced that he sold his stock before taking his post with the Army last year. Rove sold his shares, worth between $ 100,000 and $ 250,000, early last year to comply with federal ethics rules. Bill Allison, Managing Editor of The Center for Public Integrity, said there are other companies that have ties as far-reaching as Enron — but probably not very many. “This is a fairly revealing look at how many administration people, who are in decision making positions, had a significant interest in Enron,” Allison said. “The company obviously has powerful ties.” In Congress, 71 Senators and 187 House members received political contributions between 1989 and 2001, according to an analysis of federal election documents by The Center for Responsive Politics. Of the 10 House members who received the most money from Enron, six were Democrats and most were from Texas. Other government officials have also had strong financial ties to Enron. Before John Ashcroft became Attorney General, Enron executives donated more than $ 50,000 to his fund-raising committees in his unsuccessful campaign for Senate re-election in 2000. Ashcroft has stepped aside from the Justice Department investigation of Enron. Senate Minority Leader Trent Lott’s re-election campaign accepted $ 1,000 from Enron Chairman Kenneth Lay in May 1999, according to Federal Election Commission records. Enron gave another $ 1,000 in September, 1999, to Celebration 2000, Lott’s leadership political action committee, a group that helped other candidates. Lay resigns from Compaq board Kenneth Lay, Chairman and Chief Executive of the beleaguered Enron Corp, has resigned form the Board of Directors of Compaq Computer Corp, another Houston-based corporate giant. Lay, 59, resigned effective December 31, the computer maker said yesterday. He had been a Compaq Director since 1987, before the 1980s start-up became a worldwide computing powerhouse. Lay also has resigned Board memberships of Dallas-based software developer i2 Technologies Inc and Indianapolis-based pharmaceutical maker Eli Lilly & Co.
AP |
|
VAT: issues remain
unresolved ON the indirect tax regime a sort of revolution is in the offing. States will start VAT from April 1, 2002. Due to some problems it could not be started in April, 2001. Although definite date of VAT launch has been announced with big fanfare but all contentious issues remain unresolved. Although 18 states have agreed to initiate VAT and prepared draft bills for legislation, the preparatory process is on a low key. Even the Centre is vacillating on basic issues. Central to the VAT system is the abolition of C.S.T. The states are apprehensive on this as they will lose revenue. They get 60 per cent of their revenue through sales tax. The states collected Rs 74,000 crore by way of sales tax in 2000-01 of which Central Sales Tax was Rs 9,500 crore. Earlier the Centre was inclined to compensate states on loss of C.S.T. revenue but had to backtrack due to its own tight fiscal regime. The Centre has proposed two alternatives to do away with C.S.T. The states may be given 51 items for levying service tax to compensate for the loss of C.S.T. There are 200 items identified for service tax and remaining have to be taxed by the Centre. The government is also thinking of levying Vatable entry tax in place of C.S.T. This is not in spirit with VAT. Tax burden of C.S.T. has to go. The Central Government has set up a council to sort out the issues arising out of the VAT introduction. But no concerns has been evolved on capping revenue neutral rate (RNR). It is proposed to be 12.5 per cent with a floor rate of 10 per cent as sales tax to G.D.P. ratio varies between 2 per cent in the North and 6 per cent in the South. This rate is much higher and capping should not be more than 8 per cent. Discussion paper prepared by Punjab needs major overhaul. There should not be any exemption on VAT and all entities covered under sale tax should come under VAT. If set-off is not allowed against C.S.T, Punjab’s industry would be a major loser. Units which sell goods in Punjab will get set-off and hence their product will be cheaper. If the same goods are sent outside they would be costlier. For such goods there will be a cascading effect of C.S.T. Inputs coming to Punjab will bear the burden of C.S.T. and finished goods going outside will have additional burden. So tendency will arise when the states will try to develop their own similar industry. There are large number of specific industrial processes where Punjab has much advantage. The draft paper prepared by Punjab is beset with procedural hassles. Preparation of invoice return is too complicated asking or meaningless details. Business entities are already dealing with sales tax department and switching to VAT is only a change of mode and not intentions. Most irritating aspect of the proposed VAT pattern is whole hog official interference. For the same products different manufacturers use varying quantity and quality of inputs like raw materials. A strong brand has no comparison with unbranded and weak branded items. So it has to be ensured that no questions are raised on manufactures detail. Then department can keep updated data on various items being manufactured in the state. Trade association can also be helpful in this regard. Most regrettable part is the provision of prosecution. Sometime Punjab had made this provision in the general sales tax which had to be later withdrawn. This needs withdrawal. While switching over to VAT, Punjab has to take care of two aspects. Firstly its own pattern should be simple and workable. Secondly it has to ensure that C.S.T. get abolished. Punjab is a consuming state for most of the common goods of consumption. With C.S.T. in place it is a resource transfer from consuming to producing states. Even Punjab’s industry is a consumer of inputs coming from other states. |
Family pension to widow Q: Whether widow of deceased casual labourer putting in service of nearly 10 years is entitled to family pension? Ans: Gujarat H.C. was dealing with this question in the case of Miniben Rambhai v Superintendent Engineer [2001-II-LLJ-1639]. The H.C. observed at the outset, in the facts and circumstances, widow is found entitled to the family pension, in view of the documentary evidence produced on record which has remained unchallenged. Deceased Ramabhai Laxmanbhai had also put in services of nearly 10 years and he was in service as casual workers in the PWD since 21-11-79 and remained so till he died on 1-8-1990. The respondent No. 2 Executive Engineer passed an order for the grant of gratuity on 5-12-1991, a copy of which is annexed. The deceased admittedly was a casual worker for a long period of more than 9 years and thereafter, he was put in fixed salary of Rs. 750 and he continued in the same post and position till he died on 1-8-91. The reliance is placed on Government Resolution dated 17-10-88 of the R & B State of Gujarat. It is not disputed that minimum amount of family pension, when the deceased Ramabhai Laxmanbhai died was fixed at Rs. 632/- Pursant to the Government Resolution, it is also not disputed that the unskilled labourer working temporarily or on casual basis for more than 5 years, but less than 10 years were in the consolidated monthly salary of Rs. 750 on the basis of casual labourer. The reliance is also placed on the decision of this Court in SCA No. 4949 of 81 rendered on 23-6-2000. The copy of the said judgement is examined and it supports the case of the present petitioner. In absence of any affidavit-in-reply, or counter and considering the relevant resolutions of the Government, the petitioner is entitled to the family pension as per the Govt. Rules. The amount of gratuity had already been paid. In the facts and circumstances of the case the H.C. directed the respondents to consider the case of the petitioner for family pension in the light of the G.R. and to fix the family pension as per the rules, the right of family pension available to the petitioner and fix from time to time within a period of 8 weeks from today. Petition in that way was allowed by the
H.C. |
MIS scheme Q:
I retired from Government service on 28/2/2001. I have received my
pensionary benefits during March, 2001. I gave a gift cheque of Rs
5,05,000/- to my son during 4/2001 out of the sum received as
pensionary benefits. My son gave a gift cheque to his mother during
6/2001. His mother deposited the cheque of Rs 5,05,000/- in the Bank.
After some time, she deposited Rs 5,04,000/- in the post office
through an agent under MIS scheme for 6 years. The mother of my son is
receiving a sum of Rs 3990/- p.m. as interest. Kindly advise whether:- 1. This amount of interest is required to be included in the income tax return of my wife or my son or mine and under which rule. 2. Income Tax return is required to be submitted to Income Tax Office by my wife when the amount of interest is less than Rs 50,000/- p.a. and she has no other source of income. 3. PAN number is required to be obtained by my wife or not.
— Sohan Singh, Patiala Ans: The interest income under Post Office Monthly Income Scheme received by your wife will be required to be clubbed or added with your income. This is because of the provisions existing in section 64 of the Income-tax Act, 1961 which prohibit direct or indirect transfer to the wife. In your case although you have not made a gift to your wife but definitely she had received the gift by way of indirect transfer by you. Your wife is not required to file separate income-tax return as the amount is to be clubbed with your income. She need not obtain separate PAN.
Overseas remittance Q: I am a retired person from bank. I am not getting any pension except Rs 1000/- p.m. as ex-gratia benefit. My daughter in USA is sending me $ 150 p.m. for maintenance of us both through cheque (International M.O.) which is encashed through my banker by credit to my saving account. Kindly advise if I am required to show the remittance received from my daughter. I am senior citizen having no other income. Since I have phone connection I submit the Income-tax Return showing therein the ex-gratia benefit i.e. Rs 12,000/-. I do not consider $ 150 (Rs 7000/-) as income. — M.H. Sindu, Chandigarh. Ans: The overseas remittance received by you every month from your daughter in foreign currency is fully exempt from income-tax. It is a gift to you by your daughter. While filing your income-tax return you need not consider the amount sent by your daughter as your income.
House rent Q: I am Punjab Government pension holder and getting B-pension @ Rs. 3592/- p.m. and my wife is still in service and getting pay Rs 7500/- and HRA @ Rs 1135/- p.m. In Chandigarh I have a house in my name. Can I take house rent from my wife by giving a receipt for the sum of Rs 2500/- p.m. which will include in my pension. If so kindly intimate the provision thereof so that I my show the concerned office of my wife who are not admitting the same. — Dev Raj Gupta, Chandigarh. Ans: Your wife can make payment of rent to you and thereby enjoy the benefit of tax exemption in respect of house rent allowance received by her as per the provisions contained in Section 10 (13A) of the Income-Tax Act, 1961. |
UTI Bank net up 55.27 per cent Mumbai, January 12 Total income increased to Rs 394.04 crore in the reporting quarter as against Rs 265.85 crore in Q3 of last year. Provisions and contingencies, which includes provision for non-performing assets as well as standard assets made by the bank sharply increased to Rs 47.51 crore (Rs 2.91 crore in the corresponding quarter of last year). Sonata Software Sonata Software Ltd has posted a 81.26 per cent decline in net profit at Rs 1.56 crore for the third quarter ended December 31, 2001, compared to Rs 8.34 crore in same period of previous fiscal. Sonata President and Managing Director B. Ramaswamy said the results were in line with the guidance issued earlier. J&K Bank J & K Bank has recorded a 41 per cent increase in its net profit for the quarter ending December 31, 2001, compared to the corresponding period last year. While the net profit during the period was Rs 174.79 crore, the bank has registered an increase of 33 per cent in its total income and a 35 per cent increase in it’s total business. Agencies,
TNS |
|||||
Hidden bull THE grapevine has it that there is a hidden bull in the latest stock market rally. The buzz is that it could be a DSE broker known to be close to a ‘wannable’ IPO issuer. Surely, you don’t need tele-connectivity to guess who might be involved! Wrong number A public sector player’s claims, notwithstanding, it seems, there are few takers for its cellular phone services in the metros. Why? Well, simply put, its service is nearly as ‘good’ as its landline service has been!
Tyre puncture A south based tyre manufacturing company whose closed door management style has long raised eyebrows now finds itself in a bit of a soup if the grapevine is to be believed. Apparently, a Mumbai based broking firm which had accumulated its stock is now negotiating a sell-out to a competitor. Watch this space! |
bb
Seminar ICICI yatra Journeymart PNB branch |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
