Thursday, March 18, 1999
today's calendar
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B U S I N E S S | Thursday, March 18, 1999 |
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Bank of Tokyo, Hyatt Hotel
‘evade taxes’
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Each has to make money —
it’s business Exxon merges with Mobil. Citicorp marries Travelers. Daimler Benz gobbles up Chrysler. Bank America takes over Nations Bank. World Com eats MCI. Corporations are getting bigger and bigger, and their influence over our lives continues to grow. |
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Thapar
Overseas plea on ‘Kohinoor’ rejected
Intel
to slash prices of Pentium III Microworld
launches solution How
to prop up Haryana finances |
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Bank of
Tokyo, Hyatt Hotel ‘evade taxes’ NEW DELHI, March 17 (UNI) — The Income Tax Department has detected that the Bank of Tokyo-Mitsubishi has allegedly evaded taxes to the tune of Rs 50 crore in its Indian operations. Besides, Hyatt Hotel has been found to have evaded taxes to the tune of Rs 3 crore and Samsung Electronics to around Rs 1 crore, a senior IT department official told UNI here today. The offices of the three companies have been surveyed and irregularities detected, the official said. Notices have also been issued to these companies, who have not been complying to tax deduction at source (TDS). This comes close on the heels of the around Rs 50-100 crore evasion on TDS by Suzuki Motor Company (SMC) officials and nominees in the Rs 8,500 crore Maruti Udyog Limited (MUL). The IT departments of Delhi, Gurgaon and Faridabad are working jointly to crack down on major corporate houses who are evading taxes by not declaring the income of their foreign employees in Indian operations. Regarding the investigations of Suzuki employees, the official said summons have already been issued to all senior directors, including MUL chairman Yoshio Saito on suspicion of tax evasion via under-declaration of their foreign income received in Japan. “We were to commence questioning today, but so far, no one has reported to us.” It has been established that Suzuki officials working with MUL are getting two salaries — one paid by MUL in Indian rupees and the other paid by SMC in Japan. As per the Indian income tax law, foreigners working in India have to file a declaration of any income earned by them abroad with their Indian employer. The Indian employer is then responsible for deducting tax at source on the total income of the foreign employee. Though some of the Japanese employees have been declaring some foreign income to MUL, no such declarations were being filed prior to 1995. Further, it was also found that there was gross under-declaration of the foreign income by these employees. The official further stated that despite having asked Mr Saito to be available in office for questioning, he quietly left for Japan the same day. He had come to Delhi to attend the MUL board meeting on Monday and was originally supposed to be here till tomorrow. The surveys were conducted
under Section 133-A of the IT Act. — UNI |
PNFC plant
on death-bed NANGAL, March 17 — “If the Punjab National Fertiliser Corporation Ltd (PNFC) plant here remains closed for another six to eight months, it will decay due to the coercive chemicals in it. There will be a loss of Rs 300 crore and more than 1500 employees will be rendered jobless,” said Mr Mehandiratta, General Manager works of the unit here. The plant has stopped production for the last two months. The Punjab Government has declined to pay Rs 1 crore asked by the PNFC management to keep the plant in working condition. The PNFC unit, first of its kind in northern region and second in India, manufactures soda ash and ammonium chloride fertilisers as co-products. The project was completed at a cost of Rs 65 crore. It became operational in 1985 producing 60000 tonne per annum each of soda ash and ammonium chloride. However, the removal of subsidy from one of its products ammonium chloride fertiliser, after the Budget provisions in 1994, made it unviable in the market. The authorities in PNFC, however, contend that the withdrawal of subsidy from ammonium chloride fertiliser was unwarranted. For changing the
production process of the unit, Rs 15 crore is needed,
says Mr Mehandiratta. Since PNFC is a sick unit, no
financial institution is ready to render any loan to it.
If the government waives all the liabilities from this
project and another Rs 15 crore loan is given to PNFC, it
can start producing detergents or glass, Mr Mehandiratta
added. |
How to prop
up Haryana finances CHANDIGARH, March 17 — The Haryana Government needs to take steps to check the deteriorating public finances, says the PHD Chamber of Commerce and Industry (PHDCCI). The usual tool for raising tax revenue at the State level in India is the sales tax. The government should reduce the multiplicity of tax rates to only three (excluding special rates on bullion and special, alcohol and petroleum products). The three new rates can be decided upon the basis of the present spread of rate categories and concentration of commodities around a particular rate. This will prepare the ground for the introduction of VAT principles into the sales tax system, ensuring at the same time some additional revenue as well as higher buoyancy of the tax. In the case of stamp duties and registration fees, there seems to be a case for reducing the tax rate, but this has to be combined with better tax administration to curb evasion. Under reporting transac tion values are believed to be widespread and necessary measures (in the context of the relevant Act as well as purely administrative enforcement) need to be introduced. There is a case for levying a special surcharge on the land revenue for the area under rice cultivation. Haryana is a water-scarce State that spends large amounts of public funds on supplying water for irrigation as well as other uses. In these circumstances, rice being a water-intensive crop that also increases soil salinity, is not one that would be normally grown on a large scale in the State. Highly subsidised irrigation has created this distortion in the cropping pattern. The surcharge should partially correct this distortion. Alternatively, the market fee on the sale of rice could include a similar surcharge, with the market boards acting as the collection agent for the state governments, suggests paper. Another tax that raises
little revenue nowadays is entertainment tax. The main
tax base in this case is the admission charges in the
cinemas. The falling popularity of movie theatres has
thus meant steep fall in the revenue from this tax. Video
theatres and home viewing of cine-videotapes have
replaced cinema theatres. Cable television has also
contributed to the dwindling revenue from this tax. |
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NEW DELHI, March 17 (PTI) — Both the precious metals, silver and gold, continued to follow international trend on the bullion market today when lost further significant ground on stockists selling. Marketmen said U.S. support to French Prime Minister statement on Monday to sell some of the gold reserves to reduce the debt burden on Latin American developing countries influenced the market sentiment. They said prices slashed this week as it dropped by $5.50 on Monday, $3.25 on Tuesday and some $2.85 today, thus pushing down to $284.15 an ounce. In Hong Kong, gold dropped by $2.85 an ounce at $284.15 after touching $280 level on stockists selling and silver lost 7.5 cents at 505 cents an ounce. Silver .999 (ready)
further dropped sharply by Rs 90 at Rs 7580 per kilo and
weekly delivery by Rs 80 at Rs 7620 per kilo. Silver
coins, however, remained unchanged at Rs 10,400/10,500
per 100 pieces. Standard gold and ornaments disclosed a
further hefty loss of Rs 40 each at Rs 4340 and Rs 4190
per 10 gram respectively. Sovereign was traded at
previous level of Rs 3750 per pieces of eight gram. |
Each has to
make money — it’s business Exxon merges with Mobil. Citicorp marries Travelers. Daimler Benz gobbles up Chrysler. Bank America takes over Nations Bank. World Com eats MCI. Corporations are getting bigger and bigger, and their influence over our lives continues to grow. America is in an era of corporate ascendancy, the likes of which we haven’t seen since the Gilded Age. Charles Derber, a professor of sociology at Boston College, believes that, contrary to the lessons our civics teacher taught us, it is undemocratic corporations, not governments, that are dominating and controlling society. In his most recent book, “Corporation Nation” Derber argues that the consequence of the growing power of giant corporate multinationals is increased disparity in wealth, rampant downsizing and million-dollar CEOs making billion- dollar decisions with little regard for the average American. A couple of years ago, Derber wrote “The Wilding of America” in which he argued that the American Dream had transmuted into a semi-criminal, semi-violent virus that is afflicting large parts of the elites of the country. That book tried to call attention to the extent to which violent behaviour could be understood as a product of oversocialisation. “The problem was not that they had been underexposed to American values, but that they could not buffer themselves from those values,” Derber told us. “They had lost the ability to constrain any kind of anti-social behaviour — because of obsessions with success — the American Dream.” At the time, Derber was interviewed on a Geraldo show about paid assassins — people who killed for money. “It was scary to be around young people who confessed to killing for relatively small amounts of money — a few thousand dollars,” Derber said. “They said things like — ‘you have to understand, this is just a business, everybody has to make money.’ I pointed out on the show that this was the language that business usually uses.” At the same time, Newsweek ran a cover story titled “Corporate Killers”. On the cover, Newsweek ran the mug shots of four CEOs who had downsized in profitable periods and upped their own salaries. “These corporate executives tended to use the same language as the paid assassins on the Geraldo show, I feel fine about this because I’m just doing what the market requires,” Derber explains. With the hitmen parallel fresh in his mind, Derber began writing “Corporation Nation”. In it, Derber points to the parallels between today and the age of the robber barons 100 years ago — the wave of corporate mergers, the widening gulf between rich and poor (Bill Gates’ net worth - well over $50 billion - is more than that of the bottom 100 million Americans), the enormous influence of corporations over democratic institutions, both major parties bought off by big business, and a Democratic President closely aligned with big business (Grover Cleveland then, Bill Clinton today). Derber says that one good way to again build a populist movement to attack corporate power is to study the language and tactics of the populists of 100 years ago. He has, and he makes clear in his book that the original conception of the corporation was one of a public — not private — entity. We the people created the corporation to build roads, and bridges, and deliver the goods. If the corporation didn’t do as we said, we yanked their charter. The corporate lawyers quickly got their hands around that idea, smashed it, and replaced it with the current conception of the corporation, a private person under the law, with the rights and privileges of any other living and breathing citizen. Thus, a quick transformation from “we decide” to “they decide”. Derber is a bit too modest
to say it, so we will: perhaps the best way to rebuild a
strong, vibrant and populist movement is to get this book
into the hands of people who care about democracy. The
corporations have us on the run, but we should pause for
a moment or two, find a quiet place, and read this book.
— TWNF |
Guidelines
for Himachal entrepreneurs SHIMLA, March 17 — Mr P.K. Dhumal, the Chief Minister here today released a compendium entitled “guidelines for entrepreneurs on environmental related clearances” published by the State Pollution Control Board. Mr Dhumal said that these guidelines were overdue and would prove to be an immensely useful document for the prospective entrepreneurs desirous of making investments in Himachal Pradesh. Mrs Rajwant Sandhu,
Chairperson of the State Pollution Control Board said
that the publication of “guidelines to entrepreneurs
on environmental related clearances” was an attempt
by the state board in a direction to disseminate the
information relating to the procedures for obtaining
clearances from the State Pollution Control Board under
the provision of the environmental legislations. These
guidelines were not only aimed at the procedural
simplification but also to make the functioning of the
State Board more accountable, transparent and responsive
to the needs of the people. |
Intel to slash prices of Pentium III NEW DELHI, March 17 (PTI) — US microprocessor giant Intel Corporation plans to slash the price of its recently-launched Pentium III processor by 20 per cent soon, a top company official has said. “Pentium III (P-III) is our most aggressively marketed chip and this would also follow the same pricing strategy as the earlier ones,” Director South Asia, Intel Corp, Atul Vijayakar told PTI. Intel’s P-III was available in 1,000 unit quantities for 696 $ and $ 496 in the 500 and 450 MHz versions respectively. Intel launched P-III processor, the first microprocessor designed for Internet access, had earmarked $ 300 million for its advertising campaign after the processor’s worldwide launch on February 26. Intel would also launch P-III’s 550 MHz version in the second quarter of 1999, he said. The company’s P-III xeon processors in 500 and 550 MHz version was slated for launch within two weeks, he said. Intel’s mobile p-III
processors were also slated for launch in the second half
of the current year. |
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MUMBAI, March 17 (PTI) — Microworld Software Ltd today launched “Omnigate”, a comprehensive messaging solution designed to reduce communication costs of corporates. Microworld Chief Executive Officer Govind Rammurthy said the software solution aimed to converge different communication media such as, e-mail, Fax, pager and mobile telephony in order to rationalise costs to the user. Omnigate, developed in
alliance with a Swedish company Advox, provides
individual internet e-mail address for everyone with
multiple alias addresses, virus screening, text messages
to mobile phones or pagers and fax using the internet
backbone, he added. |
‘Tiny
rally’ LUDHIANA, March 17 —
The Ludhiana Small Scale Manufacturers Association today
held a Laghu udyog bachao rally” here in protest
against the delay in the announcement of new industrial
policy for the tiny sector, separate and simplified
labour laws for this sector, curbing of Inspector Raj,
removal of sales tax barriers, octroi etc. |
Thapar
Overseas plea on ‘Kohinoor’ rejected CHANDIGARH, March 17 — The plea of Thapar Overseas Ltd, Ludhiana, for injunction to Satnam Overseas Ltd, New Delhi, from using trade mark “Kohinoor” was today declined by Justice V.K. Jhanji of the Punjab and Haryana High Court. The appellant had filed a case before the Addl District Judge, Ludhiana, against the respondent for restraining Satnam Overseas from selling spices under the trade mark “Kohinoor”. Justice Jhanji observed that it is not the case of the plaintiff that “Kohinoor” has been granted registration under the 1958 Act in respect of spices and there is an infringement of their registered trade mark by the defendants. The plaintiff has only applied for registration of trade mark “Kohinoor” for spices. He observed that it is
admitted case of the parties that trade mark
“Kohinoor” in respect of “rice”
stands registered in the name of the defendant.
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French
Ambassador to visit Chandigarh CHANDIGARH, March 17 — Mr Claude Blanchemaison, French Ambassador to India, will deliver the keynote address on “France-Europe-India: Perspectives” at the Punjab annual session of the CII here on March 19. A session on “Business opportunities in select African countries” is also being organised concurrently by the International Trade Committee of the CII under the chairmanship of Mr Alok Dutta, Managing Director, Eicher International Ltd. The session which will be
addressed by the High Commissioners of Mauritius, Zambia,
Nigeria, South Africa and the Counsellor, Uganda High
Commission, will also focus on joint ventures, technology
transfers and marketing arrangements between Indo-African
countries. |
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MUMBAI, March 17 (PTI) — Barring a few side stocks, equities drifted further downwards pushing the sensex down by over 71 points on the stock market on sustained selling pressure from operators as well as Indian financial institutions (FIs). Some operators, however, heavily accumulated shares of a few scrips like BPL, Finolex Cable, Godrej Soaps, Apollo Tyre, ICICI, BASF, Ranbaxy and Raymond in a bid to get the “havala” difference after the settlement was over, dealers said. Foreign Institutional Investors were reportedly net buyers in a select few shares like Britania, Ranbaxy, BASF, Pentafour Software and some others. FIs led by UTI were said to have sold shares of high-priced scrips like Satyam Computer, ITC and several pharmaceutical counters. They reportedly picked up shares of some low-priced scrips. The DSE sensitive index opened marginally up at 3749.15 but dropped sharply to the intra-day low of 3670.09 after the mid-session before closing at 3672.71 as against yesterday’s close of 3744.18, netting a fall of 71.47 points. The DSE-100 index dipped by 32.24 points to 1618.16 from previous close of 1650.40. As expected, operators and FIs pressed heavy sales in a number of shares as the current settlement was left with only one session in the light of a holiday tomorrow on account of “Gudi Padva”. The pressure was also expected since the current account happened to be the last settlement of the financial year 1998-99 that had compelled the players to square up their positions, dealers added. In the gainers’ list, Finolex Cable, ICICI, Videocon International, BPL Ltd, Tata Chem and Godrej Soaps hit the circuit filter after exhausting the daily limit. The last trading session on Friday is likely to witness volatile activity which depends on movements on the National Stock Exchange (NSE) that is open for trading on Thursday. The BSE-200 and the Dollex were quoted substantially down at 372.04 and 146.02 compared with previous close of 378.21 and 148.48 respectively. The volume of business set yet another record in the current month at Rs 2569.23 crore. Earlier on March 8 the turnover had risen to a high of Rs 2527 crore. Pentafour Software remained the most active scrip with a volume of Rs 552.07 crore followed by Satyam Computer Rs 343.84 crore, ITC Rs 266.58 crore, SBI Rs 124.33 crore and Tata Tea Rs 121.70 crore. Pentafour Software Firmed
up by 14 to 1213.50, while Satyam Computer dropped by
59.20 to 1557.75, ITC by 16.75 to 997.75, SBI by 14 to
209, Tata Tea by 25.25 to 465, Hind Lever by 50 to 2180,
Novartis by 34.25 to 946.50 and Ril by 5.60 to 131.60. |
NEW DELHI, March 17 (PTI) — Sluggish market conditions continued to exert pressure on the auto industry and resulted in 3 per cent fall in passenger car sales during the 11 months of the current fiscal as compared to last year sales. During April-February 1998-99, all passenger car companies together sold 338,805 vehicles as compared to 350,523 sold in the same period last year and 386,937 units during the fiscal 1997-98, industry sources said. Market leader Maruti Udyog Ltd (MUL), which has a market share of over 80 per cent in the car market, sold 271,578 cars in the 11 months of 1998-99 as compared to 320,487 sold during 1997-98. Hindustan Motors and Telco could sell only 14,798 units and 1203 units, respectively, during the period as compared to 22,676 and 1736 units in the fiscal 1997-98. The March sales figures are not likely to make any change in the current trend as consumers normally avoid buying any vehicle during the end of the fiscal. Daewoo Motors Ltd, which has a 2.6 per cent market share, sold 8,967 units of its “Matiz” car during the 11 months of the current fiscal as against 10,109 units sold during the fiscal 1997-98. During February 1999, Maruti sales were 25,177 units followed by Hyundai (2157), Ind Auto (1701), Hindustan Motors (1109) and Daewoo (713). The luxury car segment witnessed a 10.6 per cent fall in sales during April-February 1998-99 as all companies sold 38,594 vehicles as compared to 43,216 units sold in the same period last year. During the 11 months of the current fiscal, Maruti sold 15,116 Esteem models which was 39.2 per cent of the total cars sold in this segment. Honda City had a 21.4 per cent of market share in the luxury car segment with the company Honda Siel selling 8272 units during the period. Daewoo sold 5149 Cielo
models and General Motors sold 3129 Opel Astra models
during April-February 1998-99 and captured markets shares
of 13.3 per cent and 8.1 per cent, respectively, sources
said. |
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| Forex rates MUMBAI, March 17 (PTI) — The following were interbank forex and RBI rates (in rupees per unit): US $ Rs 42.41/42 Stg £ Rs 68.90/92 Euro Rs 46.55/57 Jap Yen (100) Rs 35.59/61 The RBI reference rate was Rs 42.42. Commodities |
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