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 New Delhi, March 6
Hertz, the world’s premier car rental company, has decided to launch its services shortly in Punjab and Chandigarh. At present, its services are available in eight cities in India through Carzonrent. Coke loses ground in USA
Pak traders celebrate Holi
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Handloom exports need streamlining
Review excise policy, Haryana CSC to hire 3,500
professionals
INVESTOR GUIDANCE
Aviation Notes
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Hertz to launch services in Punjab soon
New Delhi, March 6 It will enable customers to avail of chauffeur driven and self-drive cars on rent at competitive prices at their door step. Initially, the company will start its operations in Ludhiana, Amritsar and Jalandhar and expand later to other cities in the next phase. Mr Rajiv Vij, CEO, Carzonrent, the sole licensee of Hertz in this country, claimed that customers will now be able to avail any of the Hertz’s services from these locations.” Hertz has also tied up with the Taj group of Hotels and is offering tour packages along with advanced booking of hotel rooms at the concessional rates. A number of MNCs, banks and call centres are availing of its services for its employees. With the expansion of services in these four cities, Hertz’s world class services will be made available in the 8th state in India. Hertz is currently on the lookout for the right kind of partners for this project. The company is focusing in the North India as there is tremendous scope for providing car rental services in this region. “The rising income of the urban middle class, good roads and motorable distance of 300-400 Km between most of the cities like Delhi-Chandigarh, Delhi-Manali, Shimla, Ludhiana and almost all places to Uttaranchal offer us a good market to push our products.” He maintained that domestic tourism is growing and busy corporate executives now wished to take weekends off with their families to tourist locations at a distance of 300-400 Km from their residence. Hertz offers them packages for all these requirements. Hertz, at present, has a network in Delhi, Bangalore, Hyderabad, Chennai, Mumbai, Kolkata and Pune. One can take its services from various points in these cities. Its fleet include various models like the WagonR, Indica, Santro, Esteem, Ford Ikon, Opel, Mitsubishi Lancer and Qualis. The tariff rates for self-drive varies between Rs 1,500 and Rs 2,835. One can take the chauffeur driven cars per day between Rs 1,250 and Rs 6,000. Hertz plans to build a network of operations in 32 cities of business and tourist importance in the country. The company also intends to establish its presence at all major domestic and international airport arrival lounges to serve the international inbound and domestic business and leisure travellers.” Mr Vij said at present the company had a fleet of 600 cars and desired increasing it to about 5,000 cars over the next three years. “We are planning to invest about Rs 200 crore in this venture. In addition, the company will expand its network in other cities through the franchise route.” While for Jalandhar and Ludhiana, Hertz will appoint one master franchisee, it will also appoint one local franchisee for each of these locations separately. The franchisee will benefit from Hertz brand power, besides the loyal customer base and marketing alliances. The NRI population of Punjab will particularly benefit from the Hertz self-drive services. About the market potential, Mr Vij observed at present there are over 1.50 lakh taxis in the country and the market is dominated by the unorganised sector that is unable to provide the desired services even to the not-so elite class customers. The NRIs, foreign tourists and corporate sector offer a ready market for the car rental services. In Doaba region where large number of NRIs visit their homes annually our brand is quite familiar and “most of them would like to use our service,” he added. |
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Coke loses ground in USA
Atlanta, March 6 Coca-Cola, the world’s largest soft drink maker, saw its share of the $63.8 billion (US) carbonated soft drink market drop 0.3 per cent to 44 percent in 2003, according to data compiled by industry newsletter Beverage Digest and analyst John Maxwell. PepsiCo’s share rose 0.4 per cent to 31.8 per cent. The United States is the largest market for the soft drink giants, but Coca-Cola, in particular, has struggled in recent years in the face of an economic slowdown and increased competition. Atlanta-based Coca-Cola scored a coup in 2002 with the introduction of its Vanilla Coke soft drink, which boosted its sales and market share. The brand, however, slumped in 2003, losing 0.3 per cent market share. — Reuters |
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Pak traders celebrate Holi
New Delhi, March 6 “Playing Holi here is truly overwhelming... the experience is simply moving... We have been coming to India on trade visits and have explored the enormous opportunities to enhance bilateral trade,” said leader of the visiting Pakistani delegation for the grand ‘Made-in-Pakistan’ show, Sheikh Maqbool Ahmed at a ‘holi milan’ organised by their local hosts FICCI. Exulted by the vibrancy of the festival, Ahmed, whose face was smeared with colourful `gulal’ said the event will prove to be a boost to the increasing friendship between the people of the two countries. Ahmed, Vice President of Federation of Pakistan Chambers of Commerce and Industry, was speaking to reporters in an emotion-choked voice at the ‘Milan’. The bonhomie was palpable as colours were splashed all around and there was Sufi music in the background and the businessmen from the two countries applied colour on each other.
— PTI |
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Gail issue priced at
Rs 195 a share
New Delhi, March 6 in the past six years and said retail investors would get shares at a discounted price of Rs 185.25. Allotment for the issue, which closed yesterday after it was oversubscribed by over nine times, would start from tonight, government said in a statement here. Retail investors bidding for amount up to Rs 50,000 crore would get the shares allotted at 5 per cent discount which compares favourably from the last closing price of Rs 214.70 a share at BSE. As much as 52.5 per cent of the 84.56 million share offering would be allotted to retail bidders, employees (5 per cent of the issue size) and non-institutional bidders. The government had fixed a floor price of Rs 185 per share for the public issue through the book building route but its record of being the biggest in six years would be shortlived as it has already opened the mega issue for sale of 10 per cent equity in the ONGC. — PTI
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Handloom exports need streamlining
Panipat, March 6 Handloom is the most important sector of the city about 25,000 handlooms industries, about 65 industrial units in the city exporting wide range of handloom products including durries, mats, table covers, bedsheets, curtain and carpet to various developed countries as Canada, Japan, Germany and Australia. When The Tribune contacted number of exporters and manufacturers of the handloom products were of the view that in the era of globalisation where quality of the product and low price are must to capture the domestic and international market. All the persons involved in the handloom sectors have been functioning independently and not organised. In spite of stiff competition, the city does not have any government lab to check the quality of the products. The process of quality test is time consuming as the sample of the products has to be sent to Delhi and other places for the test. Therefore, there was no check on the quality of product of individuals which would be affecting business at national and international market. Besides it, the small-scale and medium scale industries were on the verge of closure due to lack of basic amenities, increasing pressure of high quality products and imposition of tax on them. Expressing views Mr Balraj Singh Malik, an exporter Twoan International said that there was a need to set-up a body, which will maintain the co-ordination among all the handloom industries including exporters, manufacturers of small and medium scale industries. Lack of co-ordination, the quality and standards has suffered a lot. Surender Singh Hooda, an exporter, Surya Udya Textile Fabrication Unit, said that in the era of globalisation lack of any organisation to control the export and maintain the quality standards of the products many of the exporters have now become quantity conscious instead of quality conscious. If any buyer at international market rejects the products of one exporter, it will also affect the business of the other exporters. The Vice-President of the Handloom Association Panipat, Mr Prem Bajaj, said that 50 per cent of the handloom industries here have been producing product for the domestic market while rest for the international market. Many of the small and medium scale industries have been closed due to heavy tax and imposition of VAT. |
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Review excise policy, Haryana govt told
Karnal, March 6 The HRANI has also warned that if the policy is not reviewed, it will not serve (IFL) in the state from the next financial year. A decision regarding this was taken at a meeting of hotels and restaurants owners at Gurgaon, early this week. The President of HRANI, Colonel Manbeer Choudhary (retd), said the state government has enhanced the licence fee on IFL by 100 per cent and sales tax by 150 per cent under the new excise policy, which is against the promotion of the tourism industry. As per the details, the licence fee applicable to the restaurants, hotels and clubs to serve hard liquor in Punjab has been fixed at Rs 2 lakh, Haryana Rs 5 lakh for IMFL and Rs 10 lakh for IFL, Chandigarh Rs 1.5 lakh, J & K Rs 1.5 lakh, Uttaranchal Rs 2.5 lakh, Himachal Pradesh Rs 1.2 lakh and Rajasthan from Rs 3 lakh to Rs 5 lakh depending upon the category of hotels. Lashing out at the government for drafting a flawed excise policy, Colonel Choudhary said, “The hotels and restaurants of Haryana are hard pressed under double taxation, both excise duty and sales tax, that will hit the tourism industry”. He said the Union Government has already provided certain relaxations under the ‘Exim Policy 2002-2007’ so as to promote tourism. Colonel Choudhary said, “The new excise policy of the state, particularly with reference to the sale of IFL, is in contravention to the exim policy of the Union Government that needs to be reviewed”. Instead of promoting the hoteliers and restaurants of Haryana to attract foreign currency, the new excise policy will become a hurdle in this way. He said the state government has also adopted double standards on supply of liquor and beer to the private bars and the bars owned by the tourism development corporation. The tourism corporations can open any number of liquor bars in the state by depositing just Rs 1 crore, whereas, the private bars have to pay Rs 5 lakh and Rs10 lakh to seek licence for each bar for sale of IMFL and IFL. Further, Colonel Choudhary has criticised the government for not including a representative of the HRANI in the district level committees constituted to finalise the eligibility for grant of fresh licences to the private bars. |
| CSC to hire 3,500
professionals
New Delhi, March 6 The company plans to increase its employee strength to about 5,000 in the next two years of which about 1,000 will be hired this year. Currently, it has three centres in India— two in Noida and one in Indore. Talking to mediapersons here today, after the appointment of a new management team, Dr Arun Maheshwari, Managing Director, President and CEO of the company, said the company has decided to expand its operations in the North and the South by opening new centres one each in Hyderabad and Noida. The aim is to tap the potential of IT professionals from all over the country. It has already its presence in North and Central India. He said the CSC had also appointed a new management team to expand its operations in India.” We are aiming to become number three IT company in India at the earliest. There is no shortage of work or financial resources to expand our work, but the real challenge is how to recruit required skilled manpower. Our growth in India is constrained by the shortage of IT professionals.” Regarding the performance of the company, Dr Maheshwari said during the past three years, the CSC’s operations in India had grown by more than 70 per cent per annum and the growth this year was expected to be even
higher. The annual revenue of the company, he said, was expected to cross $ 70 million this year as against $ 40 million achieved during the last fiscal. The CSC was recently rated the “8th Best IT Employer in India by a leading research agency, IDC.” The CSC in India has displayed substantial domain expertise in the property and casualty insurance, life insurance, banking and health care industries. Dr Maheshwari claimed that the company was among the first to offer BPO and IT infrastructure services in India. Unlike other IT companies, he said, CSC has long-term contracts with its clients for maintenance and other services. |
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INVESTOR GUIDANCE by A.N. Shanbhag Q: If person A acquires some shares at a price of Rs. 10 and after 4 years gifts those shares to his married daughter. Price of said share at the time of gift was Rs. 40. The daughter sells the shares at a price of Rs. 80 after two years. I want to know 1. How the capital gains will be worked and who will be liable. 2. What will be the acquisition cost of share for the daughter at the time of gift 3. If a basket of shares are involved for sell in a FY whether capital gain for some share can be worked out on indexation basis and others on without indexation basis. 4. If a housewife has total income from interest and capital gains and is below taxable limit is she liable to pay capital gains tax? — P.Badlani A : 1 & 2 The daughter has sold the shares and it is she who is liable for paying tax. Her cost of acquisition is the cost to her father and her date of acquisition is the date of the gift. Even if her holding period was less than one year, provisions of long-term capital gains will be attracted. The indexation will be from the date of gift. 3. The amounts of long-term capital gains are always worked out at 20 per cent with indexation. The assessee has a right to pay tax @ per cent without indexation or 20 per cent with indexation on this amount of capital gains. He has the option scrip by scrip. As a matter of fact, he can opt for 10 per cent on a part and 20 per cent on the other part, even within the same scrip. There are a few situations where it is beneficial to do so. 4. No, she need not pay the tax, unless, she is an NRI. Let me elaborate. If her total income (after deductions under chapter VI-A) plus capital gains (long-term or short-term) is less than Rs. 50,000 she need neither pay tax nor file tax returns. If her income is over Rs. 50,000, she has to file tax returns, in spite of the tax liability being nil by virtue of her enjoying tax rebate of Rs. 5,000 u/s 88C available to female Resident citizens. Even over this level, she may claim benefit u/s 88 by contributing some amount to avenues under its umbrella and bring her tax liability to nil level but she will have to file tax returns. The tax rebate u/s 88 is not available in case of long-term capital gains. If she is a senior citizen, she can enjoy some additional tax rebate. Capital gain
Q : I would like to know why are you comparing the amount of Rs 77,236 with Rs 90,000 and why not directly considering Rs 90,000 as capital gain without indexation and having Rs 4,000 as deduction to arrive at Rs 86,000 and tax of 10 per cent thereon.. — Kishore
Matta A : The capital gain is always to be computed with indexation. It is the tax on this amount of capital gains that gives the option to pay tax @10 per cent without indexation or @20 per cent with indexation. The available free space of Rs 4,000 is to be occupied by the capital gains. Therefore, you have to subtract Rs 4,000 from Rs 77,236 to arrive at the capital gains on which tax is payable. After arriving at this figure, ascertain the corresponding figure without indexation and pay tax @10 per cent thereon.
Bonus shares
Q: I purchased some shares on a cum bonus basis of a listed company with full payment in April 03.The broker did not credit the shares to my account before record date. He gave it in June. The bonus shares were credited in August. The company, however, advertised that bonus shares were credited to record date holders in June. I sold the original shares in July .Can I claim a short term capital loss? As for long term cap. gain ,my holding for 12 months would be from June or August? — Dinesh
Goyal A : I wish you had given the exact dates and not just the months in which the transactions took place. I presume you have got the bonus shares credited to your account in spite of receiving the original shares after the record date. In any case, the date of acquisition of the original shares is the date as recorded in the broker’s memo to you and the date of acquisition of bonus shares is the record date. Sec. 94(7) was inserted and made applicable if the following conditions are satisfied - Any person buys or acquires any securities, shares, or units within a period of 3 months before the record date (date fixed by a company or MF for entitlement of to receive dividend or bonus shares) and sells or transfers these within 3 months after such date. Yes, the dividend or income received or receivable, by such person is exempt. But the loss arising to the taxpayer on account of purchase and sale of securities shares or units to the extent such loss does not exceed the amount of dividend or income, shall be ignored for computing the income chargeable to tax. |
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AVIATION NOTES by K.R. Wadhwaney
“Charity begins at home”, it is said. United States is free to streamline security functions at its airports. But why should it extend ‘US sovereignty to Indian and other foreign airports’? Already officials and pilots associations in Britain and Germany are up in arms at this voluntary programme and, if it is made mandatory by US, there will be more turmoil in civil aviation than it has been existing at present.
The Central Industrial Security Force (CISF) has beefed up security net-work at international airports (Mumbai and Delhi) from where planes take-off for different points in US. The security personnel are patrolling around airports and immigration officials are extra vigilant to check and recheck documents. Our security is tight and methods on international”, said officials. Why should then US interfere or post its own Marshals’ at Indian airport? Post September 11, 2001, the refrain in US rightly was: Freedom Attacked”. The truth of the matter is that terrorists took full advantage of ‘vulnerability and complacency’ of security at US airports and translated their ghastly attacks successful. It was no fault of any foreign airport. Why should then new airport security programme be insisted upon Indian and other foreign airports? The Indian airports are already following stringent measures in implementing security procedures keeping in mind ‘the threat perception of airlines and what is unacceptable’. The International Civil Aviation Organisation (ICAO) guidelines and parameters for airport security are being adhered to rigidly. Air-India, for example, undertakes special measures in frisking of passengers outside the aircraft door. In view of it, why should US Homeland Security officials demand to scrutinise passports and other documents at the point of check-in and prevent passengers from boarding their flights on the basis of suspicion? As a safety measure, Air-India is already carrying sky marshals on certain sensitive flights. As it is, passengers bound for destinations to US are made to report to airports about three hours in advance. If now the security measures are made more cumbersome with needless interference from foreign agency, the aviation industry ex-India will be further
adversely affected. |
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SBI function SBP cell Forex reserves |
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