|
|
|
|
Global
Crisis
A General Motors vehicle is seen at a car dealership in Toronto on Saturday. General Motors Corp is slashing its first-quarter North American production by 60 per cent compared with the same period this year, in response to a collapse in the US vehicle demand. — Reuters
Manmohan meets industry leaders
|
|
Aviation Notes
Meltdown hits pharma units in Himachal
Investor Guidance
IRCTC, Cox and Kings join hands
|
|
Car-makers see a bleak drive in ’09
The world's largest carmaker Toyota Motor Corp was set to report a loss of about 100 billion yen ($1.11 billion) for October-March, according to Japanese media on Saturday, and is expected to cut its earnings forecast again. Top premium car maker BMW of Germany, which also sells Mini small cars and Rolls-Royce limousines, is putting up financial aid to its German dealer network for at least 100 million euros ($132.7 million), according to the WirtschaftWoche weekly. Pressure may also be renewed if OPEC ministers meeting on Wednesday cut output sharply, as expected, and manage to reverse the sharp fall in oil prices. A renewed rally in petrol prices at the pump will deal further misery to the global car sector which employs 50 million people directly and indirectly. The car industry has been floored by a combination of high energy and raw material prices as well as a blow to consumer confidence from the financial crisis. ''I do not see a rapid issue to the crisis in the automobile industry,'' said Carlos Ghosn, chief executive at French maker Renault and its Japanese ally Nissan Motor. Liquidity needed
Ghosn said the crisis was above all financial and the sector depended a lot on credit. ''If the financial markets remain what they are we will all be having problems,'' he said, adding the carmakers needed financing at ''reasonable'' interest rates of 4 to 5 percent for two to three year terms in 2009. French President Nicolas Sarkozy has summoned Ghosn and Christian Streiff of PSA Peugeot Citroen for a meeting on Monday after he had promised to help the sector if makers promised not to transfer any jobs abroad. Renault, PSA and carparts group Faurecia are shedding several thousands of job in France to face the sales and output drop. Ghosn said the current situation was much more serious than the car industry crises of 1992-1993, which took five years recovery time.
— Reuters |
|
Manmohan meets industry leaders
New Delhi, December 13 Although India's financial system has so far remained unscathed by the global financial turmoil, waning demand for goods from two of the worst-hit economies, the US and Europe, has eroded exports, in turn stifling manufacturing output. Besides Tata group chairman Ratan Tata and HDFC chief Deepak Parekh, another member of the commission Ashok Ganguly was among those who met Dr Singh at his residence. Details of the deliberations were not known immediately. India's industrial production fell 0.4 per cent in October — the first decline in over a decade. Exports, too, have fallen over 12 per cent in October. Manufacturing activity is expected to pick up during December, which is when the government announced a stimulus package that among other things included a four per cent excise cut (barring petroleum goods). The Prime Minister had in November convened a meeting with top businessmen to understand the impact of the global slowdown on the industry. In July, Tata-led Investment Commission had submitted a report on boosting investments and had identified energy, textile and garments, automobile, food and agro-processing as thrust areas, besides recommending fiscal sops for promoting investments in it. Manufacturers, including vehicle and steel makers, have since announced production cuts to overcome the effects of the slowdown.
|
|
Entrust IGIA security to one agency
by K.R. Wadhwaney The ‘blues’ of Delhi (Indira Gandhi International Airport) will remain unsolved regardless of expenditure (Rs 1,000 crore) incurred on the category III-B advanced Instrument Landing System (ILS). The twin problems continue to persist. Often the system is not operative because of one or the other snag and sometimes the commanders don’t have the required training in landing in foggy season when visibility is awfully inadequate. Analysts are of the firm view that over-keeness of continuing with operations in poor visibility will cause serious problems to country's dwindling civil aviation scenario. The situation, according to them, can be effectively handled if the Indian government puts its foot down on the continuation of 'curfew'of night flying in the USA and Japan for about 30 days of December-January when fog is dense. The analysts scream that the safety of the passengers is far more important than a comfortable sleep of handful of people in the USA and Japan. They further argue that the sleep is a birth-right of all human beings regardless of where they live. The Americans and Japanese cannot be more equal than others. India is one of the important hubs of the civil aviation sector. The leading aircraft manufacturers are selling their products. They have huge set-ups here. The new director-general of civil aviation, Naseem Zaidi, is just back from the International Civil Aviation Organisation (ICAO) after undergoing deputation there. He should prevail upon the ICAO that it is not in fitness of things that there should be two sets of rules in operation — one for Americans/Japanese and another for others. Zaidi's task will have the needed strength only when the minister of state for civil aviation Praful Patel supports him. This is the time for India to 'bite' instead of continuing to 'play the role of a second fiddle'. Security
Delhi and other international airports in the country are mere 'forts' on paper. There are weak zones and unguarded areas at the IGIA. This shocking state of affairs will continue to exist as long as sensitive security operations are entrusted to more than one agency. Worldwide, at busy airports like in the USA, Europe and airports in the East, one security agency works and guards against all eventualities. Unfortunately, there are 2-3 agencies working at the IGIA. Instead of one command, there are different voices. As a result, there are more unauthorised persons loitering about even around sensitive areas. The IGIA needs one 'trouble-shooter' for security and another one for over-all functioning of the airport, which is known as 'sleepless township'. The 'Mumbai terror' happened because of over-lapping agencies. The hotel managements also erred. They should have had their security to frisk clients and check baggage. Had they done it, such a large quantity of ammunition could not have been smuggled into two prestigious hotels. |
|
Meltdown hits pharma units in Himachal
Solan, December 13 Though no unit is catering solely to the exports, renowned groups like Ranbaxy, Wockhardt, Cipla and Promod are facing reduction in export orders. According to an estimate, on an average the decline in the market is to the tune of 15 to 25 per cent. This is attributed largely to the overall shortfall in demand from the US and African countries that are the major buyers. With the manufacturing cost of pharmaceuticals being lower in India, markets here serve as a major source of bulk drugs. While demand for the off-patent drugs is the highest in US markets, the African countries usually buy the drugs based on old molecules from the domestic markets. “With a drastic cut in the supply orders from the US, our margins have declined by as much as 10 to 20 per cent in the last about four months. We are, however, able to sustain because our unit is not a dedicated export-oriented unit,” quipped a top executive of a renowned pharmaceutical unit at Baddi. The bigger units having a large manufacturing areas in the Baddi-Barotiwala-Nalagarh areas are the ones to have added export products to their production. The area that acquired the sobriquet of being the pharmaceutical hub of the nation saw advent of pharmaceutical industry after the 2003 central industrial package promising a 10-year tax holiday. The concessions have, however, been curtailed time and again further adding to the market slump. “The decline in supply has been as much as 15 per cent and this was mainly on account of rollback of export orders by the US. We are hopeful of the situation improving once the new policy comes into effect,” observed J.S.Channa, CEO, Promod, who is running a unit catering to exports in the Baddi-Barotiwala-Nalagarh area.
|
|
Rebate on home loan interest after possession
by A.N. Shanbhag Q: I had booked a house under construction in 2005/06 and had made the full payment to the builder and the EMI started. The builder had intimated that the possession will be given in Dec’08, but now he has changed the date to Jun’09. The property registration was done only in 2007. Will this delay in getting possession any way affect the opportunity for me to claim tax rebate on interest income? I can understand I can claim the rebate on interest only after getting the possession. I remember reading somewhere that there is a 3 year time on the builder frame for giving the possession. Just wanted to be clear on this point. — Bindu A : You are right in observing that the tax rebate can be availed of only after obtaining possession. There is no time frame as such in the law for handing over the possession, that would be as per the agreement signed with the builder. For the interest that is paid by you prior to obtaining possession, tax deduction on the same can be availed of in five equal installments beginning from the year in which you take possession. Note that in the case of self-occupied properties, the total limit on current year’s interest as well as the installment of past interest is capped at Rs. 1.50 lakh. Rebate on donations Q : I am a senior citizen and central government pensioner. My income for this financial year will not exceed Rs. 2,25,000/- in spite of enhanced pension due to the pay commission salary revision. So I am not filing returns this assessment year. However, for the next financial year my annual income is likely to exceed this ceiling. My intention is to give away the income over and above this figure as donation to charitable institution under section 80G that allows 100% exemption from taxable amount rather than investing in speculative portfolios. My question to you is: What is the maximum amount of donation that is allowable under this head? What are institutions that are approved by the government as charitable? — R B Manian A : Sec. 80G offers deduction on donations. The deduction in certain cases is limited to 10% of your gross total income as reduced by other deductions and capital gains. Further, the amount is limited to 50% of the amount donated. Either or both these limits may or may not be applicable to the specific donation of your choice. For example, a donation to the National Defence Fund need not be limited to 10% of the net income and moreover 100% of the donated amount is deductible. However, for a donation to say Jawaharlal Nehru Memorial Fund, though the 10% rule is not applicable, only 50% of the amount donated is deductible. And further on, for a donation given to any temple, mosque, gurudwara, church or any other place of worship for renovation and repair, both limits of 10% and 50% are applicable. Hence, it would be best to check from the institution itself that you are planning to donate to as to the maximum amount of deduction that may be claimed. Gift to wife Q : I have gifted some money to my wife (house wife, no income) which I received from my last employer as gratuity etc. She has in turn invested this money in LIC Pension Plan and Ulip Plan. Do I have to club my present salary with return on LIC pension plan of my wife? If so, then will I have to pay income tax on return on pension plan. So the purpose of giving tax for tax saving has no meaning. Please guide. — D N Maurya A :
The money that you have gifted to your wife would be tax-free for you as well as her in view of the fact that cash gifts between relatives are tax-free as per provisions of Sec. 56. However, as per Sec. 64, the return on funds transferred without consideration to spouse will be clubbed in the hands of the donor spouse. Now, if such return itself is tax-free, the clubbing loses its teeth. For example, the return from ULIP is tax-free and hence even if it is to be clubbed in your hands, the amount retains its tax-free nature. The return from pension plan however is taxable and the tax will have to be borne by you. Resident status Q : I had been deputed in the UK from my Indian company from 1st April 2008 to 5th Oct 2008. Now I am back in India. I have stayed for more than 182 days outside India for the purpose of employment. Does this make me a NRI for FY08 for tax purpose? My companies interprets the law as - being a citizen of India, who “leaves India” in any previous year for the purposes of employment outside India,... On the quoted word “leaves India”, they argue that I am now in India and I have not “left” India. According to them I should be outside India for more than 182 days and should be out of India as on 31st March 09; only then I would be an NRI !! This I believe is absurd. How should I convince these guys? They are asking me to pay global tax in India for the income earned in the UK! — Hussain K A : The provisions of the law are reproduced as under. As per Sec 6, a resident is defined as - (1) An individual is said to be resident in India in any previous year, if he- (a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or (c) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year. (Explanation.-In the case of an individual,- (a) being a citizen of India, who leaves India in any previous year [as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted ; It needs to be noted that the Explanation (a) above while containing the words “leaves India” also go on to mention that this has to happen “in any previous year”. This means that during the course of the previous year, if a person who is a citizen of India were to leave India for the purposes of employment such that he is not in India for a period of 182 days or more in that year, then he will be an NRI. The rule of 182 days anytime during the previous year is prevalent and widely accepted. In fact, if a person were to make multiple trips which when taken together end up making the person spend less than 182 days in India, then too, he is eligible for the status of NRI. Therefore, the fact that you were in India as at the end of the year is irrelevant to determine your residential status. As explained above, the sole determinant of a person’s status is the number of days spent in India during the course of the previous year. The authors may be contacted at
wonderlandconsultants@yahoo.com |
|
IRCTC, Cox and Kings join hands
New Delhi, December 13 This unique train breaks all state boundaries and will traverse through multiple states in India, thus showcasing India in totality. The train will carry nearly 100 passengers in 15 coaches and will have two bars and two restaurants. It will have an ultra modern kitchen and a boutique. |
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
Top European car makers warned of a bleak 2009 as signs grew that the deep crisis facing the auto sector went far beyond the US industry's life-or-death struggle.
Paris, December 13