 |
Sunday,
January 26, 2003, Chandigarh, India  
|
NBFCs below 25 lakh net fund debarred
VSNL net dips 61 pc
PNB branch interconnected
|
|
||||||||||||||||||||||||||||||||
| In the wonderland of investment Q: I am an advisor of an insurance company. The company says that an HUF cannot propose an Individual under pension plan introduced by them. According to them, perhaps it is not allowed.
Is tenant a defaulter?
Q: We carry on business of purchase and
sale of timber and other related goods at Karnal being a dealer
registered under the Haryana General Sales Tax Act, 1973 and the Central
Sales Tax Act, 1956. We buy timber mostly from the places situated
outside the State, which is disposed of by way of local sales.
Why ad hocism continues in AAI
Exide
net rises 64 pc
Banking
mirage
Steeling for a CDR surge
|
|
NBFCs below 25 lakh net fund debarred Chandigarh, January 25 In a press note issued here today, it has directed that the NBFCs (other than those exempted from the provisions of Section 45-IA of the RBI Act, 1934), which have not achieved the minimum net owned fund of Rs 25 lakh by January 9, 2003, are not entitled to continue the business of a non-financial institution beyond that date. It has clarified that they will not be allowed to do business, even if their application for ‘Certificate of Registration’ is pending with the RBI and the final decision is yet to be conveyed. The RBI has also clarified that under Section 58-B ($A) of the RBI Act, if any person contravenes the provisions of sub-Section (1) of the Section 45-1A, he will be punishable with an imprisonment for a term of one to five years and a fine between Rs 1 and 5 lakh. It may be noted that the RBI has already cancelled the registration of more than 1,000 companies in Punjab and debarred them from accepting deposits and advancing loans under the Non Banking Finance Companies Regulation Act. Officials of the RBI said these companies, spread all over Punjab, especially in Jalandhar, Ludhiana and Amritsar, had been directed to repay the deposits taken from the public, worth crores of rupees, within three years of the date of cancellation of their registration. Otherwise, they would be persecuted as per the Act, the bank said while issuing the warning. It said it had already initiated legal action against more than five companies, involved in financial operations in the violation of the Act. The RBI had registered 140 companies under ‘A’ category — authorised to accept deposits for 12 to 60 months at the maximum rate of 12.5 per cent and 403 companies under ‘B’ category — authorised for hire, purchase and leasing activities but not to accept deposits. Officials said only the companies with a capital base of Rs 3 crore and a sound track record would be registered. As per the provisions of the Act, they would have to keep at least 15 per cent of their deposits in government-approved securities and five per cent as cash in their hand. They would have to submit their balance sheets to the RBI on regular basis.
|
|
VSNL net dips 61 pc New Delhi, January 25 VSNL said today PAT was also lower due to an extraordinary tax provision of Rs 35.8 crore pertaining to previous two quarters. The company’s operating profit stood at Rs 261.2 crore during the period ended December 31 last against Rs 555.2 crore, while operating income was Rs 1048.3 crore against Rs 1738.6 crore. VSNL has seen a significant increase in the contribution from value added services to the company’s bottomline. Value added services to the total revenue increased to 26.12 per cent for the quarter from 14.38 per cent during previous Q3.
UNI |
|
PNB branch interconnected
Chandigarh, January 25 |
|
In the wonderland of investment Q: I am an advisor of an insurance company. The company says that an HUF cannot propose an Individual under pension plan introduced by them. According to them, perhaps it is not allowed. Can you please clarify this section for investment by HUF. Which specific schemes as per you is eligible for this investment.
— Brijesh Dalmia A: U/s 80CCC deposits by an individual (and not an HUF) out of his income chargeable to tax to an approved annuity plan of LIC, other insurers or UTI/MFs for receiving pension from the Fund will be allowed a deduction up to Rs 10,000. Where any amount paid or deposited by the assessee has been taken into account for this section, a rebate on this amount shall not be allowed U/s 88. This is as far as deduction U/s 80CCC is concerned. How can an insurance company object to a pension plan for an individual depending on the source of funds? The Karta will decide in the matter. It is not HUF which is being covered it is an individual who may or may not be a coparcener. Now, as per the ITA, the tax concession is not offered to the holder of the instrument (=name of the first or the joint holder) but to the contributor to the instrument (=from whose account the payment for the purchase of the instrument is made). This is the tenet which is used for buying shares in the name of minors, or the various instruments of NSO, or instrument U/s 80CCC or et al. Q: I am a senior citizen and am president of Nellore Social Aid Trust rendering service to poor orphan girls, in helping them get married and also helping poor meritorious students in pursuing studies. On behalf of the trust I had deposited Rs 2.5 lakh in UTI’s MIP-97 II scheme under cumulative option. While subscribing itself I gave UTI Form-15H but they slapped Rs 4,637 as TDS. When I approached them, they advised me to get the refund from the IT Department. When I approached them, I did not get any response but was told that I should file the returns I am afraid I will not get even a fraction of my investments at a later date. I have become a victim of UTI. Yet UTI now comes with another ‘Regular Income Scheme’ having defrauded those who trusted. — President, Nellore Social Aid Trust, Madras A:
Kindly note that: 1. Form-15H can be filled only by resident individuals. It is not meant for use of any Trust, private or public. 2. The same money in bank deposits would have also attracted TDS. 3. The only way you could avoid TDS was by obtaining a certificate from your ITO addressed to the income paying authority (in this case UTI) that TDS need not be applied or it may be applied at lesser than the normal rate. 4. Having not done so the only way available to you is by filing tax returns and asking for the refund. Writing a letter to the Department cannot produce any results. 5. UTI has paid Rs 4,012 on an investment of Rs 2,000; more than satisfactory returns even during these days of soft interest rates. 6. Fraud is quite a serious word. All that UTI has done in your case is to hand over a part of your income to the exchequer as per the legal requirements. There was no ‘profit’ to UTI. 7. Thankfully, wise investors have decided to once again put their faith in UTI as is evinced by the net inflow of over Rs 300 crores in one month. 8. Ignorance to law as well as the size of returns appears to be the cause of your misery. This is harmful to your physical as well as financial health. |
rc
by Praful R. Desai Is tenant a defaulter? Q: When rent was sent by M.O. and tendered to the landlord who refused, can it be now said that the tenant is a defaulter? A: The answer was given by the Sikkim H.C. in M/s Hariram Bagillal Sarda v Shri Ashok Kumar Singhi (2002 (2) RCJ 221) as under: It is now an admitted fact that the tenant sent the rent for four months from September to December 98 by M.O. on 28-12-98 and the same was tendered to the landlord/respondents by the postman on 1-1-99, when the landlord refused to accept the same. The plaintiff/respondent has deposed in his statement on oath that the mode of payment of monthly rent was that rent was to be paid within seven days of the current month. Thus, according to him, rent was to be paid in advance. In cross-examination, he has admitted that he had nothing to show that rent was ever paid within seven days by the tenant. On the other hand, a partner of the appellant firm has deposed that the mode of payment was that rent of the current month would be paid within the 10th day of the next month, though he used to pay sometimes for two months and sometimes three months at a time. In the cross-examination, he has stated that he never paid monthly rent in advance; and there was no mutual agreement either verbal or in writing between the parties to pay rent in advance. The allegation made in the plaint that the tenant did not pay rent of the suit premises from the month of September to December 98, in spite of several verbal requests is inconsistent with the fact that the landlord refused to accept the rent for four months sent to him by M.O. On appreciation of evidence, the H.C. held that rent was payable by the tenant by 10th day of the succeeding calendar month. As such, the tenant was not in arrears of rent for four months on 1-1-99, when the landlord refused to accept the rent. As such, the H.C. reversed the finding of the trial court that the tenant was a defaulter in payment of rent for four months. In the result, the H.C. allowed the appeal and the decree of the trial court was aside and the suit was dismissed.  |
sti
by A.K. Sachdeva Q: We carry on business of purchase and sale of timber and other related goods at Karnal being a dealer registered under the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956. We buy timber mostly from the places situated outside the State, which is disposed of by way of local sales. Sales tax being chargeable at first point of sale is realised from the buyers and deposited along with the periodical returns. Kindly clarify what will be nature of a transaction where a consignment of timber purchased from out of Haryana is directly sold to another registered dealer within the State? Also let us know if such a sale is exempt from payment of tax and if so the procedure for claiming exemption may be explained in detail.
— S.K. Timbers, Karnal Ans: As per provisions contained in clause (B) of sub-section (2) of section 6 of the Central Sales Tax Act, 1956 a subsequent sale in the course of inter-State trade or commerce that is effected by way of a transfer of documents of title to the goods during their movement from one State to another attracts complete exemption from tax. Sale directly to another registered dealer of the goods during their movement from one State to another, which are purchased in the course of inter-State trade or commerce, when made by transferring the documents of title surely constitutes a transaction the one defined in the aforesaid provisions. As far as documentations prescribed in law is concerned, a dealer can claim benefit of tax exemption on subsequent sales only by transferring the documents of title to them. Further a certificate in form E-I from the first seller and a certificate in form-C from the person ultimately buying the goods also have to be obtained for being furnished at the time of assessment with the assessing authority. Q: We had obtained transit challans in form ST-38 (inward) from the assessing authority in the month of October 2002, which were valid upon December 31, 2002. While placing orders with the suppliers, we issued these forms to them prior to December 31, 2002 for being carried along with consignments. Some of the forms had been used before the date of their expiry while some are still lying with the suppliers as certain consignments could not be dispatched. The question, therefore, is if the forms that came to be issued to the consignors before December 31, 2002 could still be used for bringing goods? — S.K. Gupta, Panipat Ans: Sub-Rule (3) of rule 43 of the Haryana General Sales Tax Rules, 1975 governing the procedure for use of the transit-challan forms plainly lays down a challan bearing a period of validity shall not be considered invalid for reason alone of being in use before or after the period of validity if either of the earliest or the last date put on the original foil of the challan in use lies between the period of validity. Obviously, therefore, a transit challan ST-38 in a given case if comes to be issued to the consignor prior to the date of expiry which was December 31, 2002 and the goods happened to be dispatched subsequently no exception can be taken to the genuineness of the documents. |
co
by K.R. Wadhwaney Why ad hocism continues in AAI THIS
is not the first time a foreign aircraft (Lufthansa) has strayed into prohibited Indian airspace and it will not be the last time. The unintentional lapse of flying in the vicinity of the Prime Minister’s residence is indeed serious. But such serious mistakes will continue to take place because security in the air and also on the ground has been lax. These kinds of instances occur with regularity because there is complete ad hocism prevailing in the Airports Authority of India (AAI). Indiscipline is also existing in the vital unit of the Air Traffic Controllers (ATC). There are instances when ATCs have allowed foreign aircraft to land before national carriers. Following this error, the authorities have decided not to allow more than four aircraft on hold over the runway. The rest of the flights will now be held at three points which are several miles away from the IGIA. These preventive measures, according to airport sources, will be rigidly adhered to until the Republic Day parade. Once the parade passes off peacefully, officials will go to deep slumber again. It is believe that the Special Protection Group (SPG) was in a spin when they spotted an aircraft entering the no-fly zone. But the SPG officials heaved a sigh of relief as the plane undertook the U-turn. Minister for Civil Aviation Shah Nawaz Hussain should explain as to why he kept lid over this serious mishap for over two months? Why was this matter not brought for discussion by the Cabinet Committee on Security? The matter will be discussed at the next CCS meeting. What interest the minister has in allowing an ad hocism to continue in the AAI? Why are retired persons continuing the job? Are they indispensable? Is there any dearth of competent officials? Like in the AAI, the minister had also recommended the name of Joint Secretary Anurag Goyal for the post of the Managing Director of Air India. But the Prime Minister is said to have allowed the existing MD J.N. Gogoi to continue for another three months after he retires in January. |
cr
Banking mirage THE
grapevine has it that notwithstanding the Securitisation Bill, it will
not be easy for banks to recover bad monies and that the great
excitement at the banking stock counters is being stage-managed by the
former ‘PSU Bull’ who is desperate to recoup his PSU losses.
Beware.
The whisper doing the rounds is that there are a couple of large corporate houses following in the footsteps of a premier term lending institution by funding film projects. Given the recent box-office track record, one can almost sense regret ahead.
Steeling for a CDR surge The
buzz in market circles is that the CDR mechanism will revive the
fortunes of the beleaguered steel sector and projects that had got
mired in a time and cost overrun induced paralysis. Keep an eye out on
the Ispats and Essars at the bourses. |
bb
Oscar Tea traders PNB Intl Card SBP 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 | | 122 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
