Sunday, April 25, 1999
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B U S I N E S S | Sunday, April 25, 1999 |
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Rs 15 crore subsidy for
fruit storages Amex offers personal loans
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Wockhardt
on rating watch MUMBAI, April 24 — The Crisil has put the debt issues of Wockhardt and Merind Ltd on rating watch “with developing implications”.
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Rs 15
crore subsidy for fruit storages LUDHIANA, April 24 — To encourage the cultivation of vegetables, flowers and fruits in Punjab, the State Government had chalked out a plan to expand the marketing net work. A subsidy amounting to Rs 15 crore had been earmarked for the creation of vegetables preservation chambers in the cold storages during the current financial year. This was announced by Mr Gurdev Singh Badal, Agriculture Minister, Punjab, while addressing a state-level seminar organised by the Horticulture Department at PAU, Ludhiana, here yesterday. He said in future no licence would be required from the department for setting up a new cold storage. A vegetable preservation storage was also being set up in Amritsar for marketing of vegetables, fruits and flowers to Arab countries. The minister claimed that extension work undertaken by the department had brought the state on top in production of kinnows and grapes. At present 2.7 lakh tonnes of kinnows are being produced from 27,500 hectares and 0.67 lakh tonnes of grapes from the 2500 hectares. Those who addressed the
function included Dr Kuldip Singh Sandhu, Director
Horticulture Department and Dr G.S. Kalkat, Vice
Chancellor of PAU. |
Amex
offers personal loans NEW DELHI, April 24 — American Express Bank (Amex) has announced an expansion of its personal financial services portfolio. PFS, the retail banking unit of Amex, has launched personal loans, with a balance transfer facility. The scheme offers loans upto Rs 10 lakh which is the highest offered by any bank in India. The tenure of the loans ranges from 12 to 48 months. The loans are targeted
at professional, businessmen, traders, salaried
individuals and companies. The loans will be available
for personal use such as marriage, medical aid,
education, professional or business use such as office
equipment, office renovation and commercial
property.Company officials said that for the first time
traders and businessmen will have the benefit of a
getting a personal loan without collaterals. |
Leather sector for roll back of ST hike JALANDHAR, April 24(PTI) — The recent sales tax hike on leather sector from 2 to 4 per cent in Punjab is likely to backfire as the State would lose business to competing market in national capital Delhi where tax rate was still 2 per cent, leather traders including hide and skin merchants claimed here today. “We have urged Chief Minister Parkash Singh Badal that the sales tax hike, effected at a time when the leather sector was facing a recession, would severely affect the trade which employs a large number of people from Scheduled Castes and Backward Sections,” President of Hide and Skin Merchants Association Manohar Lal Mahey told reporters here. He said a delegation of Punjab Leather Federation and Leather Merchants Association met senior Punjab Ministers Balramji Das Tandon and Manoranjan Kalia last Tuesday to impress upon the government the immediate need of rolling back the hike. “The purpose of larger revenue collection would not be served by hiking tax on the sector as it would only result in loss of business to Delhi and other leather trade centres,” the merchants said. Leather processing and
trade in Punjab is concentrated at two large centres
— Jalandhar and Amritsar — and two smaller
markets — Phillaur and Malerkotla, Hides and Skins
from Jammu and Kashmir, Himachal Pradesh and Rajasthan
come to Punjab for further trading and processing. |
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MUMBAI, April 24 (PTI)
— The Crisil has put the debt issues of Wockhardt
and Merind Ltd on rating watch “with developing
implications”. This follows Wockhardt’s
decision to demurrage its non-pharmaceutical businesses
and consolidate the pharmaceutical businesses of the two
group companies to exploit synergies. Wockhardt’s
plans to spin off its non-pharmaceutical businesses, like
parenterals, agrochemicals and nutrition products, into a
separate company is proposed to enable the healthcare
major provide better focus to its businesses. |
International
Tractors
posts 125.6 pc growth CHANDIGARH, April 24 — When giants of the Indian tractor industry are faltering in the face of the great recession, a Hoshiarpur-based tractor manufacturer has progressed leaps and bounds. The International Tractors Limited, manufacturers of Sonalika tractors, has registered an envious growth rate of 125.6 per cent in the last financial year. According to sources in the tractor industry, the production figures of the industry for the first 10 months of the last financial year show that the production of the HMT declined by 1687 tractors over the corresponding period of the previous year. While the public sector undertaking manufactured 14,752 tractors during the period of April to January of 1997-98, it could make only 13,065 tractors during the same period of 1998-99, showing a negative growth of 11.4 per cent. Another giant of the industry, Escorts, also reported a decline of 2566 units in its production during this period, registering a negative growth of 6.8 per cent. During the same period Sonalika increased its production by 2638 tractors, showing an increase of 127.4 per cent, which however, slightly fell to 125.6 per cent if the production figures of February are also taken into account. Other manufacturers which reported an increase in their production during the first 10 months of the just-concluded financial year include Mahindra and Swaraj. Mahindra increased its production by 1477 tractors from 53,975 tractors to 55,452. Swaraj reported an increase of 6467 tractors upto January in the last financial year. The production of Massey remained almost static during the first 10 months of the year. Eicher, too, recorded higher production by 434 tractors. The tractor industry as
a whole registered an increase of 7059 units in the first
10 months of the year, showing an overall growth rate of
3.5 per cent, which further increased to 4.1 per cent if
the production during February is also taken into
consideration. |
Punseed records 60 cr loss BATHINDA, April 24 — The loss of Punjab State Seed Corporation (Punseed) has touched Rs 60 crore even since it came into existence in the State. Official sources said that though at present, Punseed was fetching profit on account of preparation and selling of certified seeds of various varieties of crops grown in Punjab by it the loss was mounting every year due to non-returning of loans and its interests. Official sources said that Punseed suffered a loss of Rs 1 crore on account of no sale of wheat seed in the year 1984. Due to loss the Punseed could not return the loans taken from various banks and its capacity to purchase various crops to make seeds further reduced considerably. Again the Punseed suffered loss of crores of rupees after 1990 when the department purchased the sunflower and sorgum crop from the market at inflated rates for making seeds and it could not sell its seeds in the market at a rate fixed by it as the then prevailing rates of certified seeds of these two crops were very low. Mr Ashok Dheer,
Chairman, Punjab State Seed Corporation, when contacted
on phone while admitting that department had suffered a
loss of Rs 60 crore so far said efforts were being made
to make it a profitable venture. |
Bank of
Punjab
net Rs 32.42 crore CHANDIGARH, April 24 — Bank of Punjab’s profit before depreciation and taxation for the financial year ended March 31, 1999 stood at Rs 53.12 crore. Net profit of the bank being Rs 32.42 crore. The overall deposits rose from Rs 1321 crore as on 31.3.98 to Rs 1766 crore as on 31.3.99, a growth of 34 per cent. The advances increased from Rs 519 crore to Rs 842 crore showing a growth of 62 per cent. The bank has shown good results inspite of the sluggish economy. The Board has further recommended a dividend of 14 per cent for the year ended 31st March, 1999. The bank has a strong network of 50 branches all over India and plans to open branches at Chennai, Hyderabad, Bangalore, Calcutta in addition to new branches in Delhi, Haryana, Punjab and Chandigarh during the current fiscal year. Bank of Punjab is among
the first few banks to have attained Y2K compliance.
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ICICI Bank to pay 12 per cent CHANDIGARH, April 24 (PTI) — The deposits of the ICICI Banking Corporation stood at Rs 6,072.94 crore as on March 31, 1999, compared with Rs 2,629.02 crore on March 31, 1998, a growth of 131 per cent during the year. The total advances and investment stood at Rs 3,387.60 crore compared to Rs 1,398.94 crore last year, recording a growth of 142.50 per cent. The bank has recommended
a dividend of 12 per cent, subject to approval of the
shareholders at their annual general meeting scheduled to
be held on June 14, 1999. |
McDowell net up 50 pc NEW DELHI, April 24 (PTI) — United Breweries flagship company McDowell has recorded a 22.5 per cent growth with profits before taxation of Rs 269 million in the just-ended financial year. Net profits after tax during the year were more than 50 per cent higher than the previous 18-month period. The company’s profits in the 18-month accounting period ending on March 31 last year were Rs 215 million. An investment programme
had commenced at its distilleries where projects costing
Rs 300 million had been initiated with a view to improve
both yield and quality with commensurate saving in cost,
a company release said. |
Q: We are registered as a dealer under the Haryana General Sales Tax Act, 1973 as also under the Central Sales Tax Act, 1956. We deal in retail sale of medicines and pharmaceutical preparations in the State of Haryana. Our annual gross turnover is around Rs 7.50 lakh and that the business activities are restricted within the State. No tax liability arose during the last three consecutive years either under the provisions of the Haryana General Sales Tax Act, 1973 or the Central Sales Tax Act, 1956 as entire sales made were of tax paid items for which necessary certificates in form ST-14 had been submitted by us. Kindly let us know if there is any statutory provision under which the registration certificates issued to us by the assessing authority could be surrendered for cancellation? What happens is that we are unnecessarily required to obtain ST-14 certificates from about 100 parties for the purpose of getting our sales tax assessment finalised before the assessing authority. — R.R. Goindi Prop of Rattan Medicose, Ambala City Ans: The procedure for cancellation of registration certificate is laid down under sub-section (8) of section 19 of the Haryana General Sales Tax Act, 1973 which, inter alia, says the Commissioner shall cancel the registration certificate of a dealer whose gross turnover during each of three consecutive years fails to exceed the taxable quantum. Similarly, sub-section (3) of section 6 of the Act ibid stipulates “every dealer who has become liable to pay tax under this Act, shall continue to be so liable until the expiry of three consecutive years during each of which the gross turnover has failed to exceed the taxable quantum ........... and on the expiry of this latter period his liability to pay tax shall cease”. The taxable quantum as per clause (f) of section 7 in relation to a trader whose business activities are restricted within the Haryana State is Rs 5.00 lacs. having regard to these provisions, the queriest still continues to be liable to pay tax in terms of sub-section (3) of section 6 of the Act as the gross turnover is presently stated to be around Rs 7.50 lakh. It is a different matter the entire sales effected are of the items taxable at the first point and that no tax is payable at the hands of the dealer on payment of tax at the appropriate stage being proved. Therefore even if the tax liability of the queriest during the last three years has been NIL, it does not entitle him to have his registration certificate cancelled. According to the existing provisions of law, cancellation of registration certificate under sub-section (8) of section 19 of Haryana General Sales Tax Act, 1973 is not permissible. Q: In relation to the assessment year 1994-95 some additional tax demand was raised by the assessing authority which is the subject-matter of an appeal under section 20 of the Punjab General Sales Tax Act, 1948. We have also submitted an application seeking entertainment and hearing of the appeal without pre-deposit of the disputed amount of additional tax with a request that the assessing authority may be restrained from giving effect to the demand notice. The assessing authority, however, has issued summons under the provisions of the Punjab Land Revenue Act holding out a threat that in the event of failure to deposit the amount of tax as per demand notice, recourse shall be taken to arrest and attachment of the assets. Kindly advise in this context. — Sunil Kumar, Ludhiana Ans: It
is by now a well settled principle of law that so long as
an application for stay of the recovery proceedings is
pending adjudication before the appropriate appellate
authority, it is not open to the assessing authority to
take recourse to coercive methods. An identical case has
been decided in the matter of Indian Oil Corporation v.
State of Punjab, reported as 96 Sales Tax Cases 90 by
Hon’ble the Punjab and Haryana High Court wherein it
was pointedly observed by their lordships that if stay
application is pending consideration before the appellate
authority, the assessing authority has no right to
proceed with the recovery by way of resorting to coercive
methods. It was further held that the right of appeal is
a statutory right and that this cannot be allowed to be
taken away in any manner. Therefore, the step taken by
the assessing authority during the pendency of the stay
matter when the appeal against the disputed amount of tax
is under consideration is wholly contrary to the
principles laid down by the High Court. |
Q: I want the following clarifications:- (A) Can the sale proceeds of the old house located in urban area be invested within three years for purchase of residential plot in urban area without paying capital gain tax. (B) Can the sale proceeds of the agricultural land located in rural area be invested within three years for purchase of new house located in urban area without paying capital gains. (C) Can the sale proceeds of the agricultural land located in rural area be invested within three years for purchase of residential plot located in urban area without paying capital gains. — Iqbal Singh, Jalandhar Ans: The sale proceeds of old house located in urban area if invested in purchase of residential plot in urban area will not result into saving of capital gains. As regards utilisation of the sale proceeds of agricultural land in rural areas for purchase of new house in urban area would be valid one for saving capital gains provided the person deriving such capital gains does not own any other residential house property. In case such a person owns a residential house property, he cannot save capital gains by investing agricultural land proceeds in a house. No saving of capital gains can be effected by utilising the sale proceeds of agricultural land located in rural area by purchase of merely a residential plot in urban area. Q: I plan to get a house building advance of Rs 5 lakh @ 16 per cent p.a. interest and then buy a built up house by adding my savings to the advance amount. It is learnt that the government has allowed a number of concessions in this regard. Kindly inform what concessions on principal amount of loan return instalments and on payable interest are admissible if i) I self - occupy the house ii) give it on rent? — D.V. Garg, Patiala Ans: In the respect of returning the loan instalment upto a maximum of Rs 10,000 you are entitled to tax rebate from your income @20 per cent. Similarly, in respect of interest payment for residential house property a total deduction which is allowed in one year is Rs 30,000. If the loan is taken after 1.4.1999 the amount of deduction is Rs 75,000 p.a. This is the limit in respect of a residential house which is self-occupied. However, with regard to house property which is given on rent, the entire amount of interest payment will be allowed as a deduction in computing the income from property. Q: I am a retired permanent government servant. I am a senior citizen of age 69 years. Kindly let me know my Income Tax liability if any on my total income of Rs 1,50,000 i.e. Rs 65,000 from pension and Rs 85,000 from house property for year 1997-98 assessment year 1998-99. — Gurnam Singh, Chandigarh Ans: From
your pension income you will be entitled to standard
deduction equal to 1/3rd of the pension amount.
Similarly, in respect of your rental income from property
you will be eligible to receive full deduction in respect
of actual payment of house tax as also 1/4th of the
annual value (rent received - house tax= annual value)
towards repairs. The deduction in respect of repairs will
be available to you, irrespective of the fact whether the
repairs are incurred by you or not. |
Reverting to original post Q: When an employee is reverted to substantive post from post held on ad hoc basis, would it be necessary to give him an opportunity of hearing before passing order of reversion? Ans: The S.C. expressed the view thus in Punjab State Electricity Board Vs. Baldev Singh (1999-I-LLJ-196). The employee was posted to higher post purely on ad hoc basis but was ordered to work to the substantive post held earlier by him. According to the employer, while in reverting him, the question of giving him an opportunity to be heard did not arise. Trial court held that strictly speaking no show cause notice was necessary before passing an order. Appellate court reversed the order finding that the reversion to his substantive post without giving him an opportunity of hearing amounts to punishment and hence the order was invalid. The H.C. in second appeal concurred with the view of the appellate court and hence the petition to the S.C. The S.C., after hearing the parties and examining the materials on record observed that it has no hesitation to hold that in the facts and circumstances of the case the question of giving an opportunity of hearing to the plaintiff before passing the order does not arise. The S.C. added, since the plaintiff’s appointment/promotion to the post of Assistant Lineman was purely on ad hoc basis and the higher authorities directed to discontinue such ad hoc appointment, the competent authority passed the impugned order posting the plaintiff against his substantive post of charge IV Mate. The plaintiff had not acquired any right to the post of Assistant Lineman and further, the impugned order cannot be held to be penal in nature. In that view of the
matter, the S.C. held that the question of giving an
opportunity of hearing does not rise. In that view, both
the lower appellate courts have committed serious error
in interfering with the judgement of the Trial Court.
Consequently, both the orders of the lower appellate
courts were set aside and the plaintiff’s suit was
dismissed. |
THOSE who thought big and operated small have emerged winners in the world of Indian publishing over the past few years. Even as big groups such as Penguin India have had to trim their lists and for the present seem to have fallen back in the race to sign on new authors, their smaller cousins seem to be scoring at will, netting several big names, including the biggest of them all: Booker winner Arundhati Roy. These small publishers — among them, IndiaInk, Kali for Women, Katha, Ravi Dayal and Full Circle — have stood out for the sheer quality of their publishing. Some, like Ravi Dayal, have been around for a couple of decades, while others like IndiaInk are just three years old. IndiaInk, launched by journalist Tarun Tejpal and photographer Sanjeev Sath, made a dramatic entry into the business with Arundhati Roy’s blockbuster, “God of Small Things.” It is now three titles old, the latest being Anjana Appachana’s “Listening Now.” Kali for Women publishes only gender-specific books, but the point is that all its titles are well edited and designed. Katha has taken upon itself the difficult task of publishing classy translations of regional literature Full Circle, managed by the husband-wife team of Poonam and Shekhar Malhotra, deals specifically with “spiritual and inspirational” literature. An imprint of the 40-year-old Hind Pocket Books, Full Circle has published works of the Dalai Lama, Osho, Deepak Chopra and Paula Horan, among others. —IANS Marketing war With the World Cup fever gripping the country, the marketing was in the consumer electronics industry has hotted up and advertising and sales promotion spendings are touching dizzy heights. Sporting events as prestigious as the World Cup would normally cause a 100 per cent increase in sales volumes if India is participating and 15 per cent growth in case there is no domestic participation, says Videocon’s N. Gupta. While Videocon International has announced a Rs 25 crore adspend, Samsung and Philips have budgeted an expenditure of Rs 6.5 crore and Rs 12 crore respectively. Musical condom A GERMAN inventor has come up with a product he says is guaranteed to help couples make beautiful music together — the musical condom. For couples planning their millennium baby, or just for people looking to strike a chord of ecstasy, the new invention is designed to fill a hitherto unfathomed market niche, according to its creator, retired building engineer, Karl Ernst Wiegand. The 79-year-old Dortmund man said that he got the idea late one evening when he was sitting with friends around a barbecue grill. “We were sitting there after a good meal and good drink, chatting and talking. And suddenly, somebody suggested the idea. Everyone else laughed and I did too at first. But then I got to thinking and it made a lot of sense.” Next morning, Wiegand sat down at the desk in his study and began drawing up plans. A year later he held a finished product in his hand — the patent musical and talking condom. It looks like any other condom, except that the tip contains a sound module encased in foam rubber. Hail, hail, the gang’s all here, for he’s a jolly good fellow and The Wedding March are among the initial selections being offered — eight in all, so far. But Wiegand said that the potential repertoire is limitless. Deadly flight A 17-YEAR-OLD girl landed a one-engined plane safely in Lin, Austria, after the pilot, her father, died at the controls, the Austrian press agency APA reported. The TB-10 aircraft, on a flight from Vilsbiburg in southern Germany, was approaching the runway at nearby Vilshofen, when the father collapsed with a heart attack. The girl, who does not have a flying licence, radioed for help and two aircraft were sent up to escort her to an airport in neighbouring Austria with a longer runway, the agency said. Rescue and fire brigades in Linz stood by as she brought the small plane down safely. Her father was pronounced dead on arrival. —
Agencies |
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| Silver falls NEW DELHI, April 24 (PTI) — In thin trading, silver prices declined on the bullion market today on scattered selling by stockists and closed with fresh losses. The quotations: Silver .999 (ready) 7725, delivery 7740, coins buyer 10,500 and seller 10.700. Standard gold 4360, ornaments 4210 and sovereign 3750. Personal Point Infoquest |
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