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Tata Motors sales double
Gold bounces back on seasonal demand
SEBI bars 3 from trading
No joint branding with Nissan: Leyland
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A-I to save Rs 900 cr on fuel
Aviation Notes
Investor Guidance
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Tata Motors sales double
New Delhi, January 2 The auto major's total passenger vehicle sales and distribution in the domestic market recorded a 49 per cent jump at 14,654 units compared to 9,838 vehicles in December 2008, the company said in a statement. The company's exports jumped 161 per cent at 3,454 vehicles in December last year compared to 1,325 vehicles in December, 2008. "The growth in December, 2009, has come over low sales in December, 2008, impacted by the downturn in the automobile industry during that period," the statement said. The company sold 3,610 units of the world's cheapest car Nano in December. It sold 4,228 units of the Indica range, a decline of 37 per cent over December, 2008. Indigo recorded sales of 5,106 units, a growth of 205 per cent. The company sold 1,710 units in the Sumo and Safari range, registering a growth of 21 per cent. In the commercial vehicles segment, December sales in the domestic market stood at 33,519 units, up 138 per cent compared to 14,056 vehicles. The light commercial vehicles saw sales of 18,217 units during the month, a growth of 97 per cent. The medium and heavy commercial vehicles segment witnessed sales of 15,302 units, registering a growth of 218 per cent over December 2008. Cumulative sales of Nano stood at 17,534 units. The cumulative sales of commercial vehicles in the domestic market in the nine months of this fiscal were up 31 per at 255,168 units.
— PTI |
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Gold bounces back on seasonal demand
New Delhi, January 2 Silver also recovered by Rs 100 to Rs 27,200 per kg on increased offtake by industrial users. Marketmen said a pick-up in demand by retailers and jewellery makers for the marriage season pushed up both gold and silver prices. Standard gold and ornaments shot up by Rs 135 each to Rs 16,950 and Rs 16,800 per 10 gram, respectively, while sovereign gained Rs 50 at Rs 14,000 per eight-gram piece. The precious metal fell Rs 125 in the previous session. In a similar manner, silver ready recovered by Rs 100 to Rs 27,200 per kg and weekly-based delivery by Rs 10 to Rs 26,780 per kg. However, silver coins remained steady at Rs 33,400 for buying and Rs 33,500 for selling of 100 pieces.
— PTI |
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SEBI bars 3 from trading
Mumbai, January 2 “SEBI has passed an order...restraining Deven Patel, Tejas Patel and Smitaben N Shah from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market, directly or indirectly, for a period of three years,” the market regulator said. It also asked the Bombay Stock Exchange and the National Stock Exchange to remit the unlawful gains to the tune of Rs 2.36 crore made by these three players and withheld by the stock exchanges to it within 15 days. SEBI will then transfer the amount to the Consolidated Fund of India.
— PTI |
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No joint branding with Nissan: Leyland
New Delhi, January 2 Ashok Leyland and Nissan had announced three JVs in 2007 for making light commercial vehicles (LCVs), powertrains and developing technology and setting up of a plant near Chennai, envisaging a total investment of Rs 2,300 crore. "There will be no joint badging. Some products in the value segment will bear Ashok Leyland name, while those in the niche segment will have Nissan badge," Ashok Leyland managing director R Seshasayee told reporters here. He said Ashok Leyland and Nissan would sell their respective products through their own networks. The two companies has formed a JV, Ashok Leyland Nissan Vehicles Pvt Ltd in which the Indian partner has 51 per cent stake and the rest is held by Nissan to manufacture LCVs. Seshasayee said due to land acquisition problems, there had been a delay in setting up of the manufacturing plant, as a result of which the partners had decided to start producing LCVs from their respective plants. "Land issues have not been sorted out. We have decided to split our product range into two plants. Some will roll out from our Hosur plant and some will come from Renault Nissan's facility at Oragadam near Chennai," Seshasayee said.
— PTI |
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A-I to save Rs 900 cr on fuel
Mumbai, January 2 "We have saved Rs 146 crore on account of fuel-savings programme so far. By the time we get software (to facilitate better fuel management), we expect around Rs 800-900 crore in savings," Air-India chairman and managing director Arvind Jadhav told reporters here. The fuel efficiency programme envisages vital changes in A-I's operational techniques, equipment settings, use of fuel management, flight planning, engine maintenance and cabin weight management. Jadhav said the airline was currently implementing certain fuel efficiency initiatives, which did not require much technology. Once the required software was in place, it would lead to better fuel efficiency management.
— PTI |
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Aviation Notes Air-India took all possible security exercises on board the flight before deciding to continue to fly to Jaipur with a “stowaway” recently instead of returning to Medina (Saudi Arabia). Both cock-pit and cabin crew need to be complimented for taking spot-decision after examining all pros and cons instead of subjecting passengers to inconvenience and sustaining heavy losses. The decision showed a clear understanding between two crews. Habib Hussain (Moradabad), posing as a ground-staff, had hoodwinked the local security personnel and sneaked into the aircraft. He hid himself in the aircraft. As soon as seat-belt sign was removed from the screen, passengers started using toilet when the “stowaway” was found hiding himself in the toilet. He had to be pulled out. The harassed cabin crew interrogated Habib. He was subjected to rigorous frisking by purser and other members of the crew. The commander was properly briefed. When he got fully satisfied that there was no risk involved, he decided to continue to Jaipur instead of returning to Medina. The facts were that Habib had gone for Haj after selling all his movable and immovable property in the village near Moradabad. He spent all that he had taken there. He ran short of funds. He started working there. When he wanted to come back, the employer did not give him the passport. He tried various options, but failed. He had no way except to return through dubious mean. Habib Hussain is now being questioned by several security agencies at Jaipur. There are several extraordinary “stowaway” cases in the history of civil aviation. The one most unique is that two Punjabi youths sneaked into the British Airways aircraft's undercarriage at the Indira Gandhi International Airport (IGIA) some years ago. One was thrown out when the aircraft was descending near the Heathrow airport while another was pulled out from the aircraft on landing. He was virtually frozen. But he survived and was questioned by the local police for days together. There is hardly a day when the national carrier does not plunge into an avoidable trouble. Its most pampered and indisciplined team of pilots took leave without obtaining proper sanction from the management. As a result 28 flights from Kerala to West Asia had to be cancelled. Hundreds of passengers, particularly many professionals going for their recruitments, were subjected to harassment. Many of them were in tears for the fear of losing their jobs. Many were going to West Asia for their maiden interview. Apart from causing problems to paying customers, Air-India has sustained enormous losses for not operating 28 flights. It is surprising that the carrier should have had no back-up plan. No wonder, the national carrier no longer wears the tag of world-class airline. India's central multi-modal logistics hub, brain-child of the Minister of State for Civil Aviation Praful Patel, has run into heavy weather. The Planning Commission is reported to have raised certain technical objections. The civil aviation, according to the minister, will have a shining year that has just begun. Patel is reported have predicted that India will turn the corner. Many analysts predict that India will continue to struggle. Air-India's position is likely to be worse than this year. On December 12, British Airways completed 80 years of operations to India. On the occasion, area general manager (Asia, the Pacific and Africa), provided details since the inaugural flight on December 12, 1929. BA was then known as Imperial Airways. Its De Havilland DH-66 Hercules had touched down Delhi when flying from London to Karachi. The airline operates 45 flights from five Indian cities.
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Investor Guidance Q : I have been an NRI since 1998 and now I am engaged in post doctoral research work in the USA. My father and I, a senior Indian citizen, have a joint savings bank account, FD and Post Office Monthly Scheme A/C in India. My father is the first holder in most of the accounts and he regularly submits tax return for those in which he is the first holder. As my yearly income from stipend for junior/senior fellowship in India and the interest from the joint accounts was well under the tax slab, I did not submit the return for those in which I am the first holder. Moreover, all these FD and MIS accounts are from my father’s contribution. Kindly advise: 1. Whether my father and I can continue all these joint accounts? 2. Whether I have to submit IT returns for those in which I am the first holder? (I have no other income in India). 3. If I remit Rs 5,000 to 10,000 per month for maintenance and medical purpose of my retired senior citizen father suffering from hypertension, cardiac and eye defect, will it be taxable to me and my father? And will it require any written document other than copy of Bank Draft/Cheque. — Mithun A : 1. GSR 592(E) states NRIs are not eligible to open savings RD/TD/MIS account or purchase KVPs and NSCs from July 25, 2003. All of these are essentially post office investments. The accounts opened prior to all these dates are allowed to run up to their maturity but no extension or renewal can be made. As and when the irregularity comes to the notice of the authorities, the money will be returned to you without any interest. In case of bank accounts, you are not allowed to hold resident accounts. Your account should be redesignated as NRO account. 2. There is no need to file tax return if your income for the year is less than the tax threshold of Rs. 1.60 lakh. 3. This will be treated either as a gift by you to your father or your household expenses. In either case, income tax is not applicable. To safeguard against any hassles, it is advisable to follow proper gift procedure. All that is required is an offer by the donor and acceptance thereof by the donee in black and white. The donee should request the donor for a gift and then the donor should remit the amount to the donee. Alternatively, the donor can offer the gift. In either case, it is necessary for the donee to accept the gift in writing (maybe through a thank you note). Only then it would be considered as a gift in India. It is preferable to mention the relationship between the donor and the donee. Note that the department has a right to inquire into the genuineness of the gift. Interest on PPF
Q : I read in a newspaper that the interest on Public Provident Fund is calculated quarterly. I asked the Editor to confirm. Despite reminders I did not get reply. Will you tell me this is true? If yes when it became in force? — Dinesh R Mistry A :
To the best of our knowledge, PPF interest is calculated yearly only. We are not aware of any change introduced therein. Long-term capital gains
Q : My question is regarding saving long-term capital gains tax by investing in bonds u/s 54EC. I am aware that the limit is Rs. 50 lakh per financial year. However, I have read that since the investment has to be made within six months of sale, if such six-month span over two financial years, one can actually invest Rs. 1 crore. For example, consider a sale effected in January, 2010, that generates long-term gain of Rs 80 lakh and the investments are made of Rs 50 lakh in February, 2010, in REC Bonds and Rs. 30 lakh in April 2010 in NHAI bonds. In this situation - 1) Could you please explain how to file the ITR for FY 2009-10? I assume Rs. 50 lakh would be shown under Sec 54EC. What about the Rs. 30 lakh amount as it is invested in FY 2010-11. Do we still show them in returns for FY 2009-10? 2) Does Rs. 30 lakh need to be kept in special “Long-Term Capital Gains” account after April 1, 2010, or it is only needed to be kept if it is going to be utilised for purchasing residential property? — B M Chitre A : The returns for FY 09-10 are filed on or before 31st July. You can take credit for investment made for the exemption u/s 54EC, even if it is made up any time between 1st April and 31st July, even if this period belongs to the next FY. The real problem arises when you intend to invest after 31st July but within 6 months of the date of sale. In practice, you are allowed to make the claim in your returns for the FY during which the sale has taken place as long as you do make the investment later. There is no need for you to deposit the funds in the Capital Gains Accounts Scheme available with head post offices and some scheduled banks. Recognized PF
Q : In a previous Q&A, it was stated that payment of accumulated balance in Recognized Provident Fund (RPF) is taxable under Rule 9(1) of Schedule IV (A) to the ITA unless the employee renders continuous service with his employer for 5 years or the discontinuance is due to causes beyond control of employee. For example, say a person joins the RPF & contributes to the PF (with employer contributing same amount) between FY 2000 - 2009 i.e. 11 years. Let’s say he withdraws the accumulated balance in the financial year ended March 31, 2010. Now, as he has rendered continuous service for 11 years, the accumulated balance, including contributions of both employee and employer till FY 2009 is exempted. This is irrespective of the fact that the employee has claimed deduction u/s 80C for his (employee’s) yearly contributions. My main queries are whether there no minimum holding period for annual contributions of self. Secondly, no such rule seems to exist with respect to statutory PF. Do the above not apply to statutory PF? — Shiraj Dej A : For provident funds, it is not practicable to impose a minimum holding period for each contribution. If there were such a restriction, the employee will not be able to collect the entire balance amount in his PF account at his retirement. Same is the case for LIC policies, ULIPs, PPF, NSCs etc., where the investor will not be able to collect the entire redemption proceeds. As a matter of fact, in the case of PPF, the last contribution can be made any time during the 16th financial year, even on the last day! Then the whole account matures the very next day and though the last contribution does not earn any interest, it is eligible for the rebate. Mutual funds
Q : 1. If a resident individual has investments in mutual funds abroad ( which is allowed), then as per the new DTC will he have the shelter of tax slabs for any Capital Gains (short term or long term) arising out of the funds? Or will he be treated as an NRI without said shelter? 2. You have mentioned the rules under the DTC for residential property where presumptive rent is fixed at 6 per cent. Is the same ruling applicable for Commercial property as well? — K.J.Govadia A : 1. A resident cannot become an NRI in respect of his investments in a foreign country. These capital gains earned abroad do receive the same treatment as the capital gains earned on investments made in India. The code has not changed this position. 2. The income from any house property shall be computed under the head, income from house property, notwithstanding that the letting, if any, of the property is in the nature of trade, commerce or business. The income from commercial property will be the actual rent received or 6 per cent of the ratable value of the premises, whichever is higher. The authors may be contacted at wonderlandconsultants@yahoo.com |
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