 |
| Monday, December 11, 2000, Chandigarh, India   
|
DR S.S. SIDHU, President of the Foundation for Aviation and Sustainable Tourism (FAST),, in the international conference on aviation and tourism-2010, suggested for greater attention from the government to help promote these two vital industries. He opined that aviation and tourism were the world’s largest industries in terms of gross output, capital investment, employment, value-addition and tax contribution to the exchequers.
THE share market has been inching up. During the last week, Sensex as well as Nifty were up by 3 per cent. In fact during the last one month and a half, the Sensex has improved by about 300 points. Last week’s gain were made in the face of postal strike and Ministry of Companies Affairs, probe into the probable cartelisation of cement companies. |
|
|||||||||||||||||||||||||||||||||||||
Tin containers industry
faces crisis Cut income tax
to 30 pc: FICCI Videocon eyes insurance SBI starts 7-day banking
|
|
Plus 8 pc growth over-optimistic: experts NEW DELHI, Dec 10—The Prime Minister, Mr Atal Behari Vajpayee’s projections of an 8 to 9 per cent growth rate in the coming years is over-optimistic and may be difficult to achieve if the current trends are any pointer, experts say. Mr Vajpayee had in the mid-term review of the Ninth Plan (1997-2002) in September set a target of 9 per cent growth in the next Plan period and again last week reiterated the figure of 8 to 9 per cent growth at a meeting organised by the World Economic Forum and CII. The projections are based on the strong macro-fundamentals of the country. India will continue, for the eighth year in succession, to grow at over 6 per cent. This was coupled with modest inflation, comfortable foreign exchange reserves and outward looking policies. A tough Budget for 2001-02 to push up growth to 8 per cent has also been hinted. “It will definitely be a forward looking Budget and go beyond the mere arithmetic of numbers to deal with issues and policies which can put us on high growth path” the Prime Minister has told members of his trade and industry council. There are few experts in the economic arena who share the Prime Minister’s optimism. To begin with the next generation of reforms required to drive the country into the high growth path will require difficult decisions and are bound to be resisted by the states and political parties. The recent glut of paddy in the country is a case in point where Punjab, Haryana and Andhra Pradesh forced the Centre to deviate from its stated guidelines and buy sub-standard quality foodgrains. Coalition politics also ensure that it is difficult to force any bitter pill down the throats of the allies. The recent petro price hike for example was rolled back partially following the tantrum thrown by the Trinamool Congress leader, Ms Mamata Banerjee. The government is also on a tough wicket as the new generation reforms will require several legislations, which may not pass muster of the Opposition parties. The Congress which was supporting the reforms process has now decided that the policies of the eighties were best for the country. The Managing Director of the World Economic Forum, Mr Claude Smadja, who was in the Capital recently, was however, of the opinion that nothing short of a miracle could give India its promised growth rate of 8-9 per cent. The reason for this pessimism are many. To begin with the fiscal deficit, including the states’ deficit, revolves around 11-12 per cent, the foreign direct investment flows have not been very encouraging, and subsidies and losses of public sector units are mounting. On the infrastructure, especially roads, Mr Smadja said nothing much had been achieved. “It takes eight days for a truck to get from Delhi to Mumbai and four days for turning over a ship in Mumbai port. In Singapore it takes less than a day.” Railways were faced with 35 per cent deficit capacity and rapidly deteriorating infrastructure while in the power sector state electricity boards were bankrupt, owed $3.5 billion in debt and continued to make losses. India’s per capita energy consumption at only 25 per cent of international standards was dismal and it would be impossible to create 8-9 per cent growth with such a deficit in power generation. A senior economist with a leading chamber of commerce and industry said no doubt, Mr Smadja’s criticism were legitimate. But the fact is that the Indian economy has achieved its highest growth rates during the late 1980s and most of the 1990s in an environment of mounting deficits. The industry has suggested that one way to achieve higher growth is by stepping up the reforms process. This can begin with privatisation of more and more public sector enterprises. The government should exit from sectors like hotels, airlines and automobiles. The Managing Director of Reliance Industries , Mr Anil Ambani, is more forthcoming on the deficiencies of the reforms process. The government should not drag its feet on the privatisation process and implement what the industry has suggested. He is of the opinion that education, research, communications, intellectual property rights and human resources management should emerge as key areas of attention to leverage knowledge for growth. Planning Commission member Montek Singh Ahluwalia has suggested that sustained investments and growth in the infrastructure sector is essential to achieve an overall economic growth rate of over 8 per cent. Development of the infrastructure sector is the only way to achieve 8 to 9 per cent GDP growth. According to industrialist Rahul Bajaj, creation of quality and reliable infrastructure in roads ports, airports, telecom and power should be accorded highest priority. Mr Percy Barnevik, Chairman of Investor AB of Sweden, says India has the potential to grow at 9-10 per cent provided it took advantage of information technology.  |
Satellite system in aviation soon DR S.S. SIDHU, President of the Foundation for Aviation and Sustainable Tourism (FAST),, in the international conference on aviation and tourism-2010, suggested for greater attention from the government to help promote these two vital industries. He opined that aviation and tourism were the world’s largest industries in terms of gross output, capital investment, employment, value-addition and tax contribution to the exchequers. To this, Director-General of Civil Aviation H.S. Khola said India was already trying to minimise human errors in civil aviation so that the rate of incidents was further reduced. The latest versions of aircraft with ultra-modern gadgets are already safe in flying even in hazardous weather. What is required is to minimise human error so that flying becomes much safer than has been the case at present. The 10-year study on accidents reveals that a majority of crashes are on account of human failures. With a view to reducing quantum of accidents, pilots are being provided further training in safety measures and maximisation of advance technology system are undertaking. Minister of State for Civil Aviation Chaman Lal Gupta, in his address, said India was on the threshold of aviation revolution. “We have already undertaken steps to provide upgraded infrastructural facilities with the objective of accelerating integrated development of civil aviation”, said Mr Gupta. The aviation analysts, however, feel that these measures are understandable but work on completion of projects should be undertaken on war-footing to reduce the gulf. “If there is delay in completing projects because of usual red tapism, the gulf will increase as development in the aviation is taking place at a rattling pace”, said three officials. In addition to providing better facilities to passengers on both domestic and international sectors, the authorities are endeavouring to improve navigational and communications systems. Soon, satellite-based system will be put into operation instead of depending upon ground-based navigation and surveillance systems. The Government, according to the Minister, is seriously contemplating of buying small size aircraft. But no one knows when will this “consideration” become reality in buying any version of aircraft. The government is understood to have signed agreement with 15 countries. The capacity has been increased. But what good this agreement will be if the two national carriers are unable to increase their expansion because of acute shortage of aircraft? The mere deployment of Central Industrial Security Force personnel at airports will not improve security of airports and safety of passengers. What is importants is that the system has to be upgraded. Even now, many undesirable persons are seen roaming about in the sensitive areas of Indira Gandhi International Airport. This is because needless passes are issued to touts of travel agents, some of whom are highly unscrupulous.
|
sti
Q: We are registered as a dealer under the Punjab General Sales Tax Act, 1948 and the Central Sales Tax Act, 1956. For the assessment year 1999-2000 we have been issued with a notice initiating assessment proceedings. It has been alleged that certain inter-State transactions were neither returned nor accounted for in the account books and for this purpose the assessing authority relies upon some
extraneous information. We, however, refuting this allegation have filed an objection before the assessing authority which has been rejected. Our main grievance is that unless the information obtained by the assessing authority is disclosed to us no best judgement assessment can be framed. Kindly advise in this regard.
S.K. Trading Co, Sangrur Ans: It is a well established principle of law that the information which comes into the possession of the assessing authority from extraneous source cannot be used unless the person sought to be proceeded against is confronted with the same. It is one of the principles of natural justice also as has been held by the Punjab and Haryana High Court in the case of S. Sant Singh V. The Assessing Authority, and others, (1971) 28 STC 567. On somewhat similar facts it was observed “it has been well settled by their Lordships of the Supreme Court that even for the purpose of making a best judgement assessment the material and the basis of that assessment should be disclosed to the assessee who should be afforded an opportunity to rebut the same, if he can. This is the requirement of the principles of natural justice and before a party is burdened with any amount of tax a fair opportunity has to be afforded to him to dispel the doubts or the information that has been gathered at his back”. It was further ruled “If he was (the assessing authority) was of the opinion that the petitioner was withholding his books of account and not co-operating in the making of the assessment order, he should have at least placed before him all the material that he had collected on the basis of which he wanted to make the best judgement assessment or this material could have been conveyed to him in the notice asking him to rebut the same if he could”. Having regard to this legal position, the rejection of the objection filed by the queriest is invalid. Q: We are engaged in the execution of works-contract in the State of Himachal Pradesh being a dealer registered under the provisions of the Himachal Pradesh General Sales Tax Act, 1968 and the Central Sales Tax Act, 1956. Kindly let us know how the tax liability is to be commuted on the turnover relating to supply of material involved in the execution of works contract? Narender Thakur, Bilaspur Ans: It has not been stated as to what kind of goods are used in the execution of works contract and therefore it is difficult to give a precise answer to this question. However it may be mentioned here that a contractor can claim deductions from the gross turnover on account of use of tax free and tax paid goods in the execution of the works contract. Tax liability arises only on those goods which are generally leviable to tax under the provisions of the Himachal Pradesh General Sales Tax Act, 1973. It is also important to note here that it is the transfer of property in goods which is taxable on account of execution of works contract. No tax can be levied under the statutory provisions on labour and supply of skill involved in the works contract. |
sti
Charitable Trust Q: Please advise whether the registered office of a Charitable Trust could be transferred to other place in the same city of a state and whether to other state in India in case of transfer of ownership of the place (House) presently a registered office and works office. If so, what is the procedure. 2. Whether the settler of a trust who is at present not trustee could be the trustee. 3. Whether the works office that is presently at the registered office, could be at other place. 4. Whether the return of the Income Tax which is presently furnished in a particular ward at Chandigarh could be filed anywhere or with any I.T.O. at Panchkula (Haryana). The change is desired as Settler and Managing Trustee have their interest in Panchkula, Haryana State and have little interest in Chandigarh (UT) except registered office there, Panchkula (Haryana) have all the offices of Income Tax from I.T.O. to C.I.T. level and office of the state government Haryana.
— Pyara Lal Gupta, Panchkula Ans: The registered office of a Charitable Trust can be transferred to another place in the same city or a state. The same can also be transferred to another state in India by making a proper resolution to the effect of transfer of registered office thereby the change of address can be effected. A person who was a settler of the trust and not a trustee can be appointed as a trustee even now. The works office of the Trust which might be at a registered office now could also be altered to other place. Thus, there is no problem in shifting the registered office of the trust. Q: I have purchased KVP worth Rs one lakh during January, 1995. On maturity i.e. during July, 2000 Maturity Revised (5˝ years) I will get Rs 2 lakh. I am a teacher & earning Rs 98,000 P.A. which is exempted from Income-tax. Please suggest that on Maturity of my above KVP, the interest earned by me will be accounted or exempted during 2000-2001. If accounted then How Much? — Uma Sharma, Kathi, Kinnaur Ans: In the Income-tax return to be filed by you the yearly accrued interest on Kisan Vikas Patra must be shown as income of the year. This is the correct procedure. However, if you have not shown it as income in your different Financial Years then you should show the entire income in the current Financial Year when the Kisan Vikas Patra gets matured. |
A bonanza for tourists NEW DELHI: A “Palace on Wheels” through the hills of Himachal in the midst of mountains and valleys is both exquisite and affordable for the middle-class today. Drawing inspiration from the famous “Palace on Wheels” tourist package in Rajasthan, the Indian Railways and the Himachal Pradesh Tourism Corporation have come out with a four-day five-night package through the hilly state targeted specially for middle-class domestic tourists. A joint venture between the state tourism corporation and the Northern Railways, the four begins in Delhi with a special II-AC coach attached to the Kalka mail, taking the tourists to Kalka, from where the Shivalik Express, a toy train takes them to Shimla. The tour through Himachal Pradesh from Shimla, handled by HPTC, takes the travellers to Narkanda, with Naldehra and Chail en-route. It ends with the toy train bringing the passengers back to Kalka and then Kalka to Delhi by the same train. All of it, costing less than Rs 6,000. The package, since it was introduced a year ago, is gradually attracting tourists to the state and increasing HPTC’s revenue too. —
PTI Site to create
lakhpatis NEW DELHI:
A new portal that gives its members a chance to become lakhpatis by expanding membership base for shopping is being launched next week. The portal, ShopenEarn.com, to be launched on December 13 by Jaipuria Advance Technologies, registers users for Rs 2,150 and according to company Director Vaibhav Jaipuria, clients can make as much as Rs 6,78,000 in less than two months. The demonstration of the site attracted thousands of people at the IT World, 2000, which concluded here yesterday. A member can continue making money or withdraw from the chain anytime. —
UNI Camera to look
into body WASHINGTON: Cameras which can be easily swallowed like pills to help doctors get a better view of the patients’ body without resorting to invasive procedure have reached clinical stage of trial. The new procedure, reports the Wall Street Journal, instead uses tiny cameras encased in sImagin. It can help patients avoid two common tests — endoscopy and enteroscopy — which require them to be sedated so that scopes can be intested down their throats into the small intestine. “It is very futuristic”, said BlairLewis, Associate Clinical Professor of Medicine at Mount Sinai School of Medicine in New York, who is conducting the US trials. “As somebody who is in the field and does this all the time, it certainly blew me away”. —
PTI Wooden toys
for the West CHENNAI: Indian made wooden toys are the latest forex spinner of Indian toy manufacturers according to Funskool. The company’s recent range of “Jenka” series of wooden toy games accounted for the lion’s share of its Rs 8 crore exports to the overseas market during the last fiscal, mainly to Europe and the USA, Raphael Kuriyan, Chief Executive of Funskool told PTI here. Indian made wooden toy games were finding very good acceptance among the children of all ages in the West mainly because of the environment-friendly aspect of the same as well as the fact that these toys were made from scientifically treated plantation wood like rubber and as such no deforestation was involved in the business he said. Indian exporters could also successfully expose the fact that wooden toys exported from other countries like China were mostly made of forest wood. “This helped us to achieve a definite edge over other exporting countries” he said. —
PTI |
|
Tin containers industry
faces crisis SANGRUR, Dec 10 — The tin containers’ industry in Punjab is passing through a major crisis of marketing its product as big consumers like Vanaspati Ghee Mills prefer to buy tin containers from Chandigarh. The big consumers prefer to purchase tin containers from Chandigarh due to 1 per cent sales tax on the interstate sale of tin containers manufactured in Chandigarh, whereas 4.4 per cent first stage levy of sales tax is imposed on tin containers manufactured in Punjab. This difference makes the tin containers, manufactured in Punjab, costlier. Mr Deepak Maghan, President of the Punjab Tin Containers Manufacturers Association said here today that in these circumstances the industry might collapse any time in the near future.
Cut
income tax to 30 pc: FICCI NEW
DELHI, Dec 10 (PTI) — FICCI today asked the government to limit the
effective personal income tax to 30 per cent reduce corporate tax to 25
per cent in three years, abolish minimum alternative tax (MAT) and
dividend distribution tax. In its pre-Budget memorandum, the chamber has also asked for introduction of value-added tax at the earliest, amend the Central VAT (Cenvat) credit norms and service tax. The chamber also called for tax concessions to life insurance, e-commerce and housing sectors to ensure faster growth in those segment, lowering of income and wealth tax, while bringing in commercial agriculture under the tax net. |
|
Videocon eyes insurance NEW DELHI, Dec 10 (PTI) — Videocon Group today said it had firmed up plans to enter insurance, close on the heels of plans to enter the aviation sector via a last-minute bid for 26 per cent stake in Indian Airlines. The company is talking to three multinational insurance majors — all from France — for a possible joint venture in the 74:26 and a decision is likely to be announced early next year, a senior official said. “We have decided to get into non-life insurance since insurance is going to be one of the major pillars of the new economy in future. This is our second diversification decision after bidding for IA,” Chairman of Videocon International V.N. Dhoot told PTI here. Denying that entry into these two sectors would tantamount to unrelated diversification into non-core areas, Dhoot said “our mainstay is consumers and providing excellent service to them. Both the insurance and the aviation sectors are service oriented”. He said the company was talking to Banque Paribas, Allian AG and Axa Insurance — all French insurance majors — and the possible JV structure would be finalised over the next three months. “But most likely it will be 74:26 with Videocon holding the majority stake and we are quite willing to bring in the minimum Rs 74 crore investment needed for the venture,” he said. SBI starts 7-day banking CHANDIGARH, Dec 10 — State Bank of India today introduced seven-day banking at its Sector-30 branch here. Facility was inaugurated by Dr R.S. Khandpur, Director, Centre for Electronics Design and Technology of India. Speaking on the occasion Mr T.S. Bhattacharya, General Manager (CB) said the branch will remain open between 11 a.m. and 2 p.m. on Sundays. Mr K.K. Mehra, DGM, Zonal Office, Punjab, (Chandigarh) informed that this branch offers all latest schemes like MODS, CLTD etc. to its customers.
|
bb
Inflation rises IT school |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 120 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
