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Sunday,
September 8, 2002,
Chandigarh, India  
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Mega units
spiral tax losses Haryana,
Ashok Company ink pact Punjab
made party in PSIDC-PNFC case Voltas to
raise AC market share |
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LIC
branches in HP to go online Solan IT
varsity opens on Oct 8 Canada
opens business avenues for farmers In the
wonderland of investment
Back
wages
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Mega units spiral tax losses Chandigarh, September 7 Assuming that exemptions did the trick to attract additional investments to Punjab, there is no official record to show such investment in mega or major projects. On the other hand, there are official reports to indicate how existing units shifted their industry and investment from one area to another to take advantage of area-specific incentives. Primarily the shift was to border areas or rural focal points. The Excise and Taxation Commissioner, Mr Suresh Kumar, said all 1,209 exempted units that have exhausted their exemption on or before June 30, 2002 are expected to pay annual sales tax of Rs 63.54 crore in the current year. And the annual revenue sacrifice on account of varied sales tax incentives is approximately Rs 400 crore. The impact of exemptions to mega units projects the following picture: The very entry of Gujarat Cement has had negative impact on sales tax collections, which are decreasing. This firm got an exemption of Rs 299.86 crore for Ropar unit and has availed of Rs 171.69 crore, as on March 31, 2002. The exemption is from March 14, 1995 to March 31, 2005. For Bathinda unit, the exemption amount is Rs 171.87 crore for the period, February 14, 2001 to February 13, 2016. It has availed of Rs 6.01 crore. There is now apprehension that Punjab may loose Rs 800 crore, annually, once the Refinery is commissioned at Bathinda because it will launch tax-free petroleum products, thereby, giving a shock and setback to smaller players dealing in petroleum products. The Ambuja’s have done the same to the smaller trade. Thus the mega projects are believed to cause unidentified loss of revenue, trade and investment, thereby, hitting the economy. Taking advantage of the exemption policies zealously followed over the years by the Congress and Akalis to keep their vote bank oiled and intact, now 130-odd rice shellers have staked claim to exemptions on the pretext of being export oriented units, though, these units do not fulfill statutory requirements of such exemptions. Unless the department of industries shelves its ‘’liberal’’ policy on exemptions, things would scarcely improve. Punjab has taken some steps, half-way and half-heartedly, in consonance with the national consensus. Yet a lot remains to be achieved and done. Mr Suresh Kumar said, a case study of Guru Gobind Singh Refinery shows that through various notifications and amendments, it has been granted sales tax exemption/deferment upto a period of 15 years and up to 300 per cent of the fixed capital investment. The project cost is estimated at Rs 12,000 crore. Given the pace of implementation (only Rs 155 crore have been spent, since laying of its foundation), the fixed capital investment cost is likely to go up to Rs 15,000 crore by the time it is completed and commissioned. This implies that the refinery would be entitled to claim sales tax exemption/deferment benefit of about Rs 45,000 crore during the next 15 years from the date it goes into commercial production. There are other states having similar refineries (including neighbouring Haryana) where no such magnanimity was shown by the respective governments. Punjab also must move ahead and seek exemption in respect of Central Sales Tax for the refinery. It is believed that present level of sales tax exemption to the refinery would cost the state Rs 3000 crore revenue loss. Can Punjab afford such luxury of exemptions? This calls for close scrutiny of all units that have availed of sales tax exemptions, second look at concessions to mega units and ignoring all pipeline
units. (Concluded)
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Haryana, Ashok Company ink pact Chandigarh, September 7 The delegation also signed MoUs with Ashok Leyland Projects Services, a professional project development organisation with experience in development of industrial infrastructure, including IT, health care, biotechnology, agribusiness, etc. The Hinduja group of Industries has decided to invest in Haryana in a big way as a result of which, they have signed five MoUs with a state official delegation led by Om Parkash Chautala. While addressing the Asian Leaders Association at Birmingham today the Haryana Chief Minister, Mr Om Prakash Chautala, invited investors to invest in the state and assured them of full cooperation. Those present during the occasion, included Sukhdev Singh Dhindsa, Tirlochan Singh Chairman, Minority Commission and CGI, Birmingham.
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Punjab made party in PSIDC-PNFC case
Ropar, September 7 Earlier, the PSIDC had moved the Supreme Court against the high court order directing it to pay six-month salary to about 500 retrenched workers of PNFC. Counsels of the PSIDC in an application moved before the Supreme Court had alleged that the PNFC was wound up on September 27, 2001. The retrenched employees started agitation for the payment of their wages. As a result Mr Parkash Singh Badal on humanitarian view, had declared that salaries should be paid to the employees. He had maintained that employees remained out of work for a long period and it would take some time to release their salaries through the sale of assets by official liquidator. Consequently, a meeting of the Board of Directors of the PSIDC was held and it was decided that the corporation should try to make available requisite funds to the PNFC. It was also decided that the corporation should take up the matter with the official liquidator to ensure that advance being given by the PSIDC to PNFC was fully protected. While the corporation was exploring ways for making payments the official liquidator approached the high court. The high court directed the PSIDC to release funds in terms of the orders of the Chief Minister within four weeks, the counsel for the PSIDC alleged.
OC
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Voltas to raise AC market share Chandigarh, September 7 Mr Soni said the leadership of Voltas in airconditioning arena can be attributed to a host of strength and competitive advantages. He said Vertis, is not only of international standard but also the product of the latest technology. The product offers payback guarantee of two years. Vertis is available in different models and is remote controlled. These ACs are eco-friendly too. Mr Soni said its airconditioners are installed at international airports of Bahrain, All Ain and Hong Kong, the Etisalat Telecommunication and Administrative Building at project at Sharjah and the Central Emergency Hospital, UAE. Voltas has 40 per cent share in central airconditioning, 9 per cent in room airconditioning, 25 per cent in split and 23 per cent in water cooling, said Mr Soni. The company has 450 dealership and service centres in India. Mr Soni said the company plans to diversify into farm products refrigeration.
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LIC branches in HP to go online Shimla, September 7 Stating this at a press conference, here today, Mr K.S. Rana, Senior Divisional Manager of the corporation, said with the MAN becoming operational the branches would go on-line further improving the functional efficiency. He said plans were also afoot to link all the 2,048 branches in the country through a Wide Area Network (WAN). This would enable a policy holder to pay premium and know the policy status from any branch of the country. In addition interactive voice response system were operational in 59 cities all over India and premium was being accepted through the Internet. The policy holder had to register at the web site and indicate the bank account from which the amount was to be debited. For the computer illiterate off-line computer touch screen Information kiosks were being set up in different cities. The division sold 1,55,832 policies with a sum assured of Rs 983.39 crore during the last financial year, indicating a growth of 33.35 per cent. The first premium income was Rs 44.78 crore, about 43 per cent higher than the previous year. A target of 1.79 lakh policies with sum assured of Rs 1236 crore had been fixed for the current year. A remarkable achievement of the division was that there was no outstanding claims in 22 out of the total 23 branches. During 2001-02 1672 death claims amounting to Rs 9.58 crore were settled, besides 71,287 maturity claims amounting to Rs 78.36 crore.
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Solan IT varsity opens on Oct 8
New Delhi, September 7 J.P. University of Information Technology, being set up at a cost of Rs 100 crore, will initially have five courses with two more being added in the coming two years. Chief Minister P.K. Dhumal said here today after meeting Mr Advani. Dhumal said the university would also be having post graduate and post doctoral courses in the next five years and it is also proposed to set up centre of excellence with the main focus on quality education. The IT university has been set up by the Jai Prakash Sewa Sansthan in collaboration with the Himachal Government . As many as 195 students have been admitted in the under-graduate classes. The Chief Minister said the Centre has identified technical institutes in Shahpur, Mandi and Nahan for introducing information technology and electronics maintenance trades and The Government Polytechnic in Sundernagar has been upgraded as polytechnic for handicapped. It will impart technical and vocational training to disabled persons.
PTI
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Canada opens business avenues for farmers Chandigarh, September 7 Mr Anil Manocha Sr. Vice President of the company said that now Canada has opened business opportunities for entrepreneurs and farmers. The Provincial Nominees Programme has immensely helped the prospective business applicant willing to invest in Canada, it’s the world’s most favourable country to invest in. He added that Canada’s regional development strategy is going ahead with a major proposal to encourage new immigrant to settle in Canada’s smaller provinces. The plan is to place a million newcomers in the countries less populated region by 2011.
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In the wonderland of investment Q: I am 68 years of age and in receipt of rental income of Rs 1,25,000 p.a. from a Nationalised Bank and have no other source of income and my tax liability becomes nil after various deductions under section 88 etc. Can I avoid the TDS on the rental income u/s 194-I of the ITA 1961 which is @ 10% of rental income by giving some form etc.? — Chander Kanta, Dharmapur A: Tax is required to be deducted at source at specified rates in respect of some specified types of income. This might cause hardships to some assessees. Therefore, where the ITO is satisfied that the total income of any assessee justifies the TDS at any lower rate or not deduct any tax, he shall, give to the assessee a certificate on the basis of which the assessee can ask the income distributing officer to take the appropriate action. You may apply to your ITO in prescribed form 13, 13C, 13D or 13E (for different types of incomes). The ITO will issue certificate 15 for TDS on dividend and 15AA for other incomes. This will enable you to bypass TDS.
Q: I am physically challenged with lower extremities. I have been recently fitted with artificial limbs. This is costing me around 3.3 lakh. Kindly advise as any provisions existing for taking these treatment charges for consideration under Income Tax deductions/exemptions? Any other concessions available for challenged individuals (apart from the 80U, Rs 40,000)? — Ramachandran S. Sr Engineer/IC/Software Sys. A; Sorry, there is no provision other than the deduction u/s 80U for cases like yours. It is unfortunate but true that our lawmakers are not in close touch with reality. As per Circular 586 dt 13.5.98, an allowance for commuting between the place of residence and place of duty is exempt up to Rs 800 per month. Notification 11100 has raised this limit up to Rs 1,600 per month w.e.f. 1.8.97, for any employee who is blind or orthopaedically handicapped with disability of lower extremities.
Q: My annual salary is 3,00,000. Is investing/insuring in LIC or other private insurance companies a better idea to go into. If yes what is the maximum amount to be put into. — Sekar A: Please realise insurance policies are not investments. These are to cover risk. If you are the only bread-winner of the family or the major earner in your family and in the absence of your income the family would suffer heavily, you must insure to cover for the risk. You may choose a policy for an amount which will earn your family a decent monthly income to sustain them for their upkeep. Go for life cover to insurance companies, PPF/infrastructure for tax rebate and MFs for investments. Do not mix up the three issues. The hybrid product is never as good as the original. You may have a good look at PPF or infrastructure Bonds for saving taxes and debt-based schemes of UTI/MPs for investments. If you do need insurance, go in for term insurance. This is anew product offered by the new players. LIC did not have this very useful product and now, thanks to competition, is contemplating introducing it.
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by Praful Desai Back wages Q: When the dispute is raised after seven years delay, whether payment of only 60% of the back wages, proper? Ans: In S.T.D.D.U.S. Sangh Ltd. v G.P. Sharma, H.C. expressed the view thus: The workman in this special appeal before the H.C. was appointed with the appellant establishment initially on daily basis on October 1, 1977. While he was working on daily wages since 1-10-77, the appointment was given to him on 21-9-83 at the Chilling Plant Centre of Sawaimadhopur and Tonk Zila Dugdh Urpadak Sahakatri Sangh Ltd. for three months, but he was allowed to continue in service until he was terminated by order dated 10-5-84 w.e.f. 12-5-84. Thus he was retrenched from the service without complying with the requirements of Sec. 25 F of the Industrial Disputes Act, 1947. On dispute being raised in the year 1991, reference was made to the Labour Court in January 1992. The Labour Court adjudicated the dispute and has held that there was a clear cut violation of S.25 of the Act, in
as much as no retrenchment benefits were paid to the workman. On 20-7-95, the Labour Court granted the relief of reinstatement and only 60 per cent back wages by saying that the dispute was raised after a period of 7 years. This award was subjected to challenge and the Learned Single Judge has recorded that for the delay of seven years in raising the dispute 40 per cent back wages have been rightly denied. Appellants do not contest in this special appeal the relief of reinstatement as granted but he has submitted that grant of 60 per cent back wages is wrong. Since the dispute was raised after seven years, no back wages should have been granted. The Labour Court, observed the H.C., has applied its mind and looking to the totality of the facts and finding that the retrenchment was void ab initio and illegal, has granted the relief of 60 per cent back wages and 40 per cent back wages have been denied because the dispute was raised after 7 years. In the opinion of the H.C. thus, no interference is called for in the order as the order seeks to render substantial justice. The H.C. agreed with the view taken by the learned Single Judge. The appeal has thus no force and dismissed accordingly. |
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