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| Monday, June 5, 2000, Chandigarh, India  
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Sales of Telco, M&M, Swaraj Mazda go up
What new cess in
Punjab means WTO to hit 50
Punjab items |
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refund of deposit CHANDIGARH, June 4 — Mrs Leela Singh, a resident of Jubbar in Solan district, has alleged that Union Bank of India’s, Solan branch has not repaid her Rs 50,000 invested under the Deposit Reinvestment Certificate scheme on maturity. 
NEW DELHI, June 4 (PTI) — Leading players in the commercial vehicles segment like Telco, Mahindra & Mahindra and Eicher posted positive sales growth in April 2000, while sales of Ashok Leyland and Hindustan Motors
nose-dived during the month. Overall, the commercial vehicles sales continued their growth drive as total sales rose by 10.5 per cent in April 2000 at 8,658 units over 7,883 units sold in the same month last year. However, three-wheelers’ sales fell marginally by 1.5 per cent at 12,874 units in April this year as against 13,064 units sold in the same month a year before, according to data compiled by the Society of Indian Automobile Manufacturers (SIAM). Telco retained its leadership in the commercial vehicles segment during April 2000 as its sales grew by a 14.5 per cent at 5,646 vehicles in the reference month as compared to 4,928 units sold in the same month of 1999. However, sales of Ashok Leyland slipped down by 29 per cent as the company sold only 1432 vehicles in April 2000 as compared to 1847 units sold in the same month last year. Light commercial vehicles makers like Eicher, Mahindra and Mahindra and Swaraj Mazda recorded over 50 per cent sales growth during the month but Telco registered sales growth of 2.9 per cent during the month in this category. Telco sold 1,901 light LCVs in the reference month as against 1,846 units sold in the same month last year. Eicher, with sales of 332 vehicles in April 2000 registered a growth of 50.9 per cent as against 243 units sold in the same month last year. M&M and Mazda recorded sales growth of 69.5 per cent and 64.4 per cent respectively. Sales of M&M jumped to 617 vehicles in the first month of the current fiscal as compared to 364 units sold in April 1999 while Swaraj Mazda sold 301 vehicles during April 2000 over 183 units in the same month last year. In the three-wheelers segment, Bajaj Auto dominated the scene as the company sold 10,863 vehicles in April 2000, a growth of 1.5 per cent, over 10,703 units sold in the same month last year. Other players like Bajaj Tempo and Scooters India registered negative sales growth of 18.9 per cent and 11.4 per cent respectively. Bajaj Tempo managed to sell only 1,014 vehicles in April 2000 as against 1,236 units sold in the same month last year while sales of Scooters India too fell to 996 units during the month from 1,125 units sold in April 1999. Fiat Uno Fiat India Limited (FIL), formerly known as Ind Auto Limited, is phasing out its 999cc Uno, powered by the FIRE (fully integrated robotised engine). The company will replace the 999cc Uno with its recently launched 1242cc version of the small car, which has a souped down but Euro-III complaint Siena engine as its heart, senior company officials told UNI here. “We have decided to phase out production of the old Uno and replace it with the new Euro-III version. The exercise has already begun and production of fire-powered Uno would be completely discontinued shortly,’’ the officials added. The company has launched the 1.2 litre Uno in three versions —1.2 EL non AC, 1.2 EL AC and the fully-loaded 1.2 ELX AC — priced upwards of Rs 3 lakh. Powered by a central fuel injection 1242cc engine, the 1.2 Uno delivers 62BHP to provide the Uno range with the most high-performance engine in its
class.
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Government drops Rs 950 crore World Bank project NEW DELHI, June 4 (PTI) — The government has dropped a Rs 950 crore project to be funded by the World Bank to modernise the Indian statistical system due to high cost and need for massive manpower at a time when efforts are being made for downsizing the administration. “We have withdrawn the project from the Committee of Secretaries as the corpus of the project was too high and it required an additional staff of 6,000. It certainly requires a re-look,” Arun Shourie, Minister of State for Planning and Programme Implementation, told PTI in an interview. The World Bank aided project was supposed to purchase new equipment for data collection which would require an additional staff of 6,000, Shourie said adding that “it is not modern equipment but adoption of scientific techniques of collecting data which is required.” The decision to withdraw the project was taken about two weeks back, he said. The World Bank teams had visited India and negotiations were at an advanced stage with the Ministry of Statistics prior to Shourie’s appointment as Minister. However, no funds had been disbursed by the Bank for this project. The Government has set up a National Statistical Commission (NSC) under the chairmanship of a former RBI Governor Dr C Rangarajan, to recommend measures for improving the statistical system in the country. Shourie admitted that the Indian statistical was plagued by outdated methods of collecting data, and lack of cohesion among leading statistical institutions — the National Sample Survey (NSS) and the Central Statistical Organisation (CSO) — which called for drastic measures to modernise the system. NSC is likely to submit final report by the end of this year, Shourie said adding that the terms of reference for the commission included a critical examination of the deficiencies of the present statistical system. The 11-member NSC comprises leading economists and statisticians including Prof S Tendulkar of Delhi School Economics, V R Panchamukhi of RIS and the NCAER Director General, Dr Rakesh Mohan. The commission will also review the existing organisation of the statistical units of the government and make recommendations on their staffing and training requirement. Elaborating on the shortcomings of the present data collection methodologies, Shourie said that more than 40 per cent of the gross domestic product (GDP) was not estimated directly and there was a possibility of wide fluctuations in annual estimates. Similarly, estimates of agricultural production, land holdings and poverty reflected wide discrepancies among different surveys. “There is nearly 57 per cent discrepancy in the number of land holdings in Punjab as reflected in the land holding survey and the agricultural census,” Shourie said, adding that all these required a close review.
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What new cess in
Punjab means CHANDIGARH, June 4 — The Punjab General Sales Tax (Fourth Amendment) Act 2000 has abolished additional tax under the Act. In lieu of this the Punjab Government has imposed a cess under the newly introduced the Punjab Social Security Act, 2000, on ad-valorem basis at the rate of 10 per cent on all sales and purchases of goods made under the Punjab General Sales Tax Act, 1948. The implications of this substitution is as under:- According to Mr P. C. Garg, a tax expert, this will imply that the units which have been given exemption under the Punjab General Sales Tax Act will now also be liable to pay this cess. Earlier declared goods which were liable to tax at the rate of less than 4 per cent in Punjab were also subjected to additional tax on sale in Punjab whereas now cess is not leviable on declared goods in view of the specific provision under Section 3 of the Punjab Social Security Act, 2000 although tax in Punjab on such goods is less than 4 per cent. According to Section 8(2A) of the C.S.T. Act, 1956, if under the State Act goods are taxable generally at a rate which is lower than 4 per cent, the tax payable under the C.S.T. Act shall be calculated at the lower rate. As additional tax is considered part of tax for all purposes, so when there is a tax lower than 4 per cent in Punjab on any goods the rate of tax on inter-state sale of these goods was increased by the additional tax. But now as additional tax has been abolished the goods which are taxable at a rate lower than 4 per cent in Punjab, the inter-state sale of those goods will not be liable to cess. According to Section 8(2)(b) of the Central Sales Tax, 1956 the rate of tax in the case of goods other than the declared goods, shall be calculated at the rate of 10 per cent or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher, if no ‘C’ Form or ‘D’ Form has been obtained. So the additional tax was leviable on inter-state sale of goods on which Punjab sale tax (including additional tax) was higher than 10 per cent. But now no cess will be leviable on inter-state sale of goods on which Punjab sale tax is higher than 10 per, cent adds Mr Garg.
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WTO to hit 50
Punjab items FEROZEPORE, June 4 — Dairy is not the only area in Punjab, which has been hit by the lifting of quantitative restrictions on the import of 1,429 items. Scores of other farm and small industry products in the state may meet the same fate on account of the government’s deal with the World Trade Organisation (WTO). Going by the list of the items, which will have a free run in the Indian market, small manufacturers and producers of at least 50 products in the state are likely to be squeezed out. However, sources in the Punjab Industries Department revealed that the number of small producers to be affected in higher. The left parties somehow put it beyond 200 and are chalking out a strategy to meet the subsequent challenges, like closing down of small units. Since the imported goods will be cheaper and superior in terms of quality, the fate of local producers hangs in balance. As an immediate fallout of the WTO deal, multinational companies have already hit the domestic milk market and allied industry, affecting its business prospects. Among the range of farm products to be imported are wheat, rice, broken rice, Basmati rice, potatoes, cauliflower, cabbages, dried egg yolk, cheese, butter, ghee, mushrooms, meat and varieties of fish. Likewise, the consumer goods in the list of the items include ceiling fans, sewing machines, sanitaryware, cut marble, cookers and kitchen stoves, television sets, footwear, track suits and bicycles. Since these products are manufactured in different parts of Punjab, the small scale industry in the state is bound to suffer. Ironically, their imported equivalents are cheaper. Failure on the part of the small industry to compete with multinational might also render the manual labour working in the sector unemployed. This has given a handle to the left parties to beat the government with. This CPI is chalking out a strategy to meet the challenge politically. The state party Secretary, Mr Joginder Dayal, said that the industry of more than 200 products will be affected in Punjab. |
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Refused
refund of deposit CHANDIGARH, June 4 — Mrs Leela Singh, a resident of Jubbar in Solan district, has alleged that Union Bank of India’s, Solan branch has not repaid her Rs 50,000 invested under the Deposit Reinvestment Certificate (DRC) scheme on maturity. I had made a DRC (#9013290) of Rs 50,000 with the branch on 29.10.98 for six months. As I wanted to renew it further for six months I sent it to the Branch Manager for renewal. Later on I was told that the DRC has been renewed and it would be sent back to me soon, but it never reached me. Subsequent inquiries revealed that a loan of Rs 40,000 was taken against the DRC and credited to the loan account of Floritech India, Solan. This was done without my notice and without my consent, she says. Mrs Singh adds that she had given guarantee for Floritech India but “immediately on finding of their involvement in unfair trading I had withdrawn my guarantee on 16.11.98”. |
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Cashing in on IT talent Bangalore: The talent crunch in the Indian Information technology (IT) industry appears to have prompted U.S.-based Global Systems Technology (GST) Inc. to consider setting up subsidiaries in half a dozen Indian cities to increase productivity and embellish the Indian
brand. GST is now setting up its subsidiaries in Bangalore, Delhi, Mumbai, Chennai, Hyderabad and Thiruvananthapuram. “Considering the fact that the Indian IT industry is pushing its fantastic software engineers into software management training activities, which they are not trained for, we have decided to set up these subsidiaries with training programmes which improve productivity by, at least, 40 per cent,” Chris Knudson, consulting analyst, GST, told IANS. The company’s efforts in training Indian IT companies to achieve higher levels of software process maturity have met with success so far, with Wipro, Infosys and Satyam being the best examples. In fact, India has the largest number (five) of capability maturity model (CMM) and SEI 5 level companies in the world. “I cannot name the client, but he told us that the effective application of the CMM through our training had helped him save 500 manhours in a year,” says Knudson.
— IANS IT in Rori Chandigarh: Haryana Chief Minister Om Parkash Chautala’s younger son Abhay Chautala, fresh from a record-smashing win in the Rori Assembly byelection, has ambitious information technology (IT) plans for his constituency. The 37-year-old junior Chautala, a champion volleyball player in his younger days who was a self-confessed “dull student,” says he wants to harness the power of IT to transform the villages in his constituency. “We have to make our farmers in small villages conscious of the relevance of IT to our day-to-day life,” he said. “I intend to turn each of the 90 villages of Rori into a model village,” Abhay Chautala said. “I propose to link each of the villages through the Internet so that the predominantly rural peasantry of the constituency can reap the benefits of the Internet revolution. We will provide the software so that farmers get to know where they would get the best prices for their agricultural produce”.
— IANS Code for Press MUMBAI: The Securities and Exchange Board of India (SEBI) has drawn up a framework for evolving a code of conduct for market intermediaries and corporates to ensure fair dissemination of information, says its senior Executive Director
L.K.Singhvi. The code of conduct for these groups, and at a later stage for presspersons, who are privy to the activities of corporates, would help prevent dissemination of information only to a privileged few against the interests of investors at large, Singhvi told PTI here. The regulator had also decided to prevent information dissemination at select gatherings of analysts and high networth individuals and institutions. A preliminary framework of the code evolved at a meeting of SEBI’s committee on insider trading here on Saturday will be sent to associations of industry and market intermediaries in 10 days to get their feedback. “We have high respect for the fundamental right of freedom of the Press, and we don’t want to hamper this in any way. So, we are planning to convene a round table meeting of editors to discuss the issue of unconfirmed reports in newspapers,” he said. The code, to be implemented through stock exchanges, also envisages ensuring confidentiality of
corporate developments by intermediaries such as merchant bankers, mutual funds, financial institutions and market operators. The committee will take a final decision on the issue at its next meeting to be convened after getting feedback from the industry and the intermediaries.
— PTI Muslim women NEW YORK: For many Muslim women, the information superhighway might as well be a country lane, but some of their leaders are starting to consider how the Internet might help their far-flung communities communicate. “It’s not too late for women in Muslim societies to use the Internet and the new technology,” says Asma Khader, who
coordinates the group Sisterhood is Global the Jordan. About 100 women — some wearing traditional head scarfs, some in business suits and some in sundresses on a sweltering Manhattan day — gathered for the forum at New York University, one of dozens of events planned around next week’s United Nations meeting on the global status of |
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by R.N. Lakhotia Q: My husband who was a teacher died in an accident. I am getting Rs 2000 per month as family pension. I have two minor children. I am serving as a teacher and paying income-tax on my salary. Kindly let me know whether the whole amount of family pension is to be added to my annual income or one third of it as my two children are minor. Clause under which relief is given may be given. — Kashmira Kaur, Nawanshahr. Ans:
The entire amount of family pension will be added to your income. No relief will be permissible in respect of the minor children. It is, therefore, suggested to you that you should show the amount received towards pension income in the Income-tax return to be filed by you. Q: Interest on bank, NSCs etc is exempted
up to Rs 15000 as per 80L. My interest on NSCs only is Rs 13026 for the period 1-4-99 to 31-3-2000 so, whether I am entitled for exemption
up to Rs 15000 or Rs 12000 and Rs 1026 will be added in my income. Please clarify. — Inder Pal
Choudhary, Ans: The total interest which would be exempted for you u/s 80 L will be to the tune of Rs 12,000. The balance interest would, therefore, be liable to Income-tax. Q: I am working as an Assistant (H.O.) in Thermal Power Project, Panipat. In the Thermal Colony, the Technical staff has been allotted free accommodation whereas in the cases of ministerial staff, house rent is recovered from their salary. At the time of submission of Income Tax statement 10 per cent of the basic pay and plus of all allowances except ADA is added on the total sum of taxable income. Kindly clarify: i) If this rule is applicable on ministerial staff who are not provided free accommodation and H.R. recovery is being effected from their salary. — Jai Pal Deswal, P.T.P.S. Colony Ans: The rules relating to computation of the value of the perquisite in respect of rent free residential accommodation is the same for Assistant as also members of ministerial staff. The general rule for computation of perquisite of this perquisite would be at the rate of 10 per cent of the salary. In addition to this the excess of the fair rental value over 50 per cent will be added to the salary on account of perquisite. After computing the perquisite in this manner in the case of the employees from whom recovery is being made for the accommodation, please deduct the amount recovered by the employer from the amount computed as above and then the resultant amount alone will be added as a perquisite. Q: Clarify on the following income-tax matters & oblige. 1. Why is the medical allowance of Rs 250 p.m. to Punjab Government employees not exempted from income-tax as an employee spends this amount on him/her and his/her family as medical expenses? 2. Rural Area Allowance @ 6 per cent of the basic pay is admissible only to those Punjab Government employees who are posted in rural areas (i.e. in villages and not in the cities/towns). Why is this allowance taxable? 3. House Rent Allowance to Punjab Government employees has been granted as per classification of cities/towns on population criterion. Most of the employees are getting HRA @ 5 per cent of the Basic Salary. If these employees pay the House Rent equal to this allowance or less or more
(up to 10 per cent of basic pay) why is the exemption not allowed? —
Ashok Kumar, Moga Ans: The medical allowances received by an employee of the Government would become fully taxable even when the employee were to spend the entire amount. This is because of the fact that under the Income-tax law only those allowances would be completely exempt which are specifically mentioned in the Income-tax Rules. Medical allowance does not figure as an exempted allowance. It is suggested that the employee be granted medical reimbursement instead of medical allowances. You should make representation on this point to the concerned higher authorities. Similarly, rural area allowance would become fully taxable. In respect of house rent allowance, it is the intention of the Government that
up to 10 per cent of the salary should be paid by the employee himself. Hence, there is no complete exemption in respect of house rent allowance @ 5 per cent received by the employees working in Punjab Government.
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by J.C. Anand ICE stocks may do well DURING the last week, the stock market moved up and both the old economy and the new economy shares made a sample gains. The Sensitive Index was up by 370 points (8.29 per cent) but this week the gains may be restricted only to the ICE scrips. NASDAQ is booming, and as the Indian stock market in the ICE scrips tails the NASDAQ, the top ICE stocks are expected to do well. A weekly column has a distinct advantage over a fortnightly column because a close watch can be kept on the market trends as well as on the accuracy of the recommendations made in the column regarding shares. Vikas WSP, which was the primary recommendation made in this column last week quoting them around Rs 290, closed on last Friday at Rs 511.20 on the National Stock Exchange, registering a gain of about 76 per cent in one week. Even now it has hit the upper freeze band, and it is expected to move
up moderately. Traders make gains when they toe the market trend but the long-term investors make gains when they follow the contrarian approach. In other words, investors make their purchases when the share prices dip and book profit when the share prices soar. I expect the market to move up by the middle of July when the first quarter results of the corporate sectors would be announced. Good monsoon, encouraging industrial growth rate and higher exports are bound to push up the stock market Indexes. I have no hesitation in recommending investment in Coastes of India on a long-term basis. This company, once the leader in printing inks in India, had gone sluggish during the last two years. But it has a great future and is expected to perform very well during the next two years and after. The company has now been taken over by the Dainippon Ink and Chemicals group of Japan (through a subsidiary), which is the global leader in the sector with over 30 per cent control over the global market. The new foreign collaborator has already acquired 51 per cent equity, and made an offer for more from the shareholders at a price which was 40 per cent above the present market price of the scrip. The company has an equity capital of Rs 6.89 crore and a book value of Rs 130.4 (on the basis of March 31, 1999 results). For the financial year 1999-2000, the company has declared a dividend of 40 per cent. The EPS is about Rs 14. The scrip is now quoting around Rs 112-115. It is an excellent long-term investment, with little prospect of any slide in the market price of the scrip. The foreign collaborator has plans to bring to India some of its best products and brands as well as to make substantial expansion in its productive capacity. At the annual general meeting held in Calcutta last week, the Managing Director indicated that the new management will take a closer look at the Asia-pacific region for export of its products.
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Inflation dips Income tax Microsoft Supreme Indus Assocham |
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