 |
|
Bring in zero customs duty on raw goods, says TEMA
$1-m US compensation for Tata arm
TCS IPO may be India’s largest ever
Pharma sector Emami Limited Alembic Ltd
Market suffers from pre-Budget syndrome
Capital loss in MF can be set off against gain in property
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Bring in zero customs duty on raw goods, says TEMA New Delhi, June 27 Union Minister of Communication and IT Dayanidhi Maran has already declared he would encourage manufacturing of telecom equipment within India on a priority basis. This would create more employment and lower the prices of the handsets in the domestic market. According to the estimates of the Department of Telecom, the industry can easily have Rs 38,000-crore annual turnover from its present level of Rs 15,000 nearly. It laments major telecom operators are still importing handsets and equipment from other countries, though Indian companies are already producing world-class equipment and handsets. According to the Telecom Equipment Manufacturers Association of India (TEMA): “With one of the largest markets after China, highly skilled manpower and lower wages, India has all the ingredients to emerge as a destination for MNCs to invest in this sector. The industry has the potential to add up 4.8 million jobs by 2008.” At present, there are nearly 150 players in the industry. But due to 5 to 20 per cent differences in customs duties on finished and intermediate products, the industry is using only 40 per cent of its capacity. Further, domestic manufacturers have to pay 10-12 per cent sales tax, besides octroi and local taxes, industry representatives say. Mr N.K. Goyal, president, TEMA, says, “We are not asking for any protection but a level-playing field. As per the agreement with the previous government, we just demand zero per cent excise and customs duty on the raw material and capital goods on the pattern of finished products.” It will encourage telecom operators to purchase from domestic players and prompt industry leaders to invest in India. “It will also create employment opportunities and bring down the cost of products by at least 70 per cent, he said. For instance with the development of local industry, the cost of landline instrument has already come down from “Rs 1500 to Rs 250, switching instrument from Rs 25,000 to Rs 2,500 per line and of microwave radio from Rs 26 lakh to just Rs 5 lakh.”
|
|
$1-m US compensation for Tata arm
Washington, June 27 A check of $ 9,99,587 was sent by the state administration to Tata America International Corp., the US-based subsidiary of Tata India, that had won the $ 15.2 million Department of Workforce Development Contract last year to upgrade state computer processing unemployment claims, ‘Indianapolis Star’ newspaper reported. The company had originally sought $ 1.74 million for eight weeks of work, it said. The company was hired for a four-year contract under a politically-sensitive deal signed by the top aides to then governor Frank O’Bannon before his death in September. But, the new government of Governor Joe Kernan cancelled the deal after determining that the project was too large for Indiana companies to compete for, the report said.
—
PTI
|
|
TCS IPO may be India’s largest ever New Delhi, June 27 In terms of sheer size and volume, the public issue is expected to exceed the Rs 2,200- crore IPO of Reliance Petroleum of 1993, the largest IPO so far on the Indian bourses, analysts said. A total of 55.4 million shares with a face value of Re 1 will be on the offer. This includes a fresh issue of 22.7 million equity shares from TCS and an offer for sale of 32.6 million equity shares by Tata Sons (the holding company of the Rs 58,500-crore Tata group) and certain other shareholders. Merchant banking sources said on an assumption of a trailing P/E ( price-to-earnings) multiple of 25-28, the prices of the TCS shares is likely to be in the range of Rs 800 to 900. P/E is the ratio of a company’s share price to earnings
pershare.
|
|
Philippines plans to do away with imports from India
New Delhi, June 27 DTI Secretary Cesar V Purisima said the consumers have been pressing for quality drugs at affordable costs. So, the department had decided to work with local and multinational drug manufacturers. President of Philippine International Trading Corporation (PITC), the government’s trading arm, Anthony Abad is already in the process of negotiating with local pharmaceuticals and multinational corporations (MNCs) for the supply of less expensive medicines, according to the Manila Bulletin. Emami Limited
Home-grown FMCG company Emami Limited would now make a foray into ayurvedic products with an initial investment of Rs 30 crore. Emami Ltd would launch a wide-range of over-the-counter (OTC) ayurvedic medicines throughout the country beginning from November, said Director, Emami Group of Companies, Aditya Agarwal. “We are aiming to tap the Rs-5,000 crore odd market of ayurvedic medicines which already has established players like Dabur, Baidyanath, Zandu, Ranbaxy and Himalaya Drugs,” Mr Agarwal said The products would initially be launched in northern and central India, followed by other parts of the country, he said.
Alembic Ltd
Pharma major Alembic Ltd has decided to split its business operations into three main strategic business units (SBUs) for sharper focus on formulations and contract research. The decision comes almost two years after the company launched a revamp exercise to prepare for the post-patent regime 2005 onwards. Though initially Accenture was brought in 2002 to suggest a revamp strategy, the recently-concluded internal restructuring has separated the company’s business operations into three SBUs — Formulations, Alembic API and Contract Research under BioArc Research Solutions, the Baroda-based drugmaker added.
— Agencies
|
by S.C. Vasudeva
Capital loss in MF can be set off against gain in property
Q. I want to know the following: (1) Are bank IPO’s exempt from Capital Gain Tax purchased after March 1, 2003, and held for more than a year? (2) Can Capital loss booked in shares and units of mutual funds be set off against capital gain in property. I mean immovable assets. Aman A.
(1) The capital gain on IPO’s is exempt, if it qualifies as an eligible equity shares as prescribed under Section 10(36) of the Act. The eligible equity shares under Section 10(36) of the Act are: i) Any equity share in a company being a constituent of BSE 500 Index of the stock exchange, Mumbai, as on March 1, 2000 and the transaction of purchase and sale of such equity shares are entered into on a recognised stock exchange, in India. ii) Any equity share in a company allotted through a public issue on or after March 1, 2004 and listed in a recognised stock exchange in India before March 1, 2004 and the transaction on sale of such shares is entered into on a recognised stock exchange in India. (2) Capital loss booked in shares and units of mutual funds can be set off against capital gain in property provided both the loss and the gain are long term.
Section 88
Q. My gross income is Rs 1,70,680 and the net taxable income after standard deduction (Rs 30,000) comes out to be Rs 1,40,680. Please clarify whether I will be entitled to a rebate of 15 per cent or 20 per cent on savings under Section 88 (PPF, NSC’s etc.) Alka, Chandigarh A. For assessment year 2004-05, rebate is allowed @ 20 per cent if the gross total income of an assessee (before allowing deduction under Chapter VI-A) is equal to or less than Rs 1,50,000. Since your total income is less than Rs 1,50,000 (it is presumed that you have no income other than the salary of Rs 1,40,680) you will be entitled to a rebate @ 20 per cent on the amount of savings under Section 88 of the Income Tax Act, 1961.
Salary & pension
Q. I am an ex-serviceman drawing pension (basic pension only) and I am re-employed with a nationalised bank. My question is whether I am eligible to take the benefit of standard deduction on both incomes, i.e. defence pension & the salary from the bank. If yes, how much standard deduction is eligible on my pension and under which Section? C.S. Dhanjal, Khanna A.
The standard deduction under Section 16(i) of the Act can be claimed from pension and salary incomes received from the bank. However, the aggregate amount of standard deduction cannot exceed the limit prescribed under Section 16(i) of the Act. The deduction allowable as per the provisions of the Act is 40 per cent of the salary (salary from the nationalised bank and pension, in your case) or Rs 30,000, whichever is less, if the aggregate salary i.e. (salary + pension) does not exceed Rs 5,00,000. If it exceeds Rs 5,00,000, then the standard deduction under Section 16(i) of the Act shall be limited to Rs 20,000.
Capital gains
Q. I received the payment during the last fiscal on maturity of ULIP from UTI along with a calculation sheet, showing L.T.&S.T. Capital Gains. Please let me know if these are taxable and at what rates. Further, can the L.T. Capital Loss incurred in the repurchase of US-64 units by UTI be adjusted against the said L.T. Capital Gain and if losses are in excess, what is the procedure to carry over to the next year. Tarsem Jain, Patiala A.
The long term (LT) and short-term (ST) capital gains on maturity of ULIP are taxable in your hands as income. The amount paid/transferred by UTI to LIC as insurance premium will not be taxable in view of the provisions of Section 10(10D) of the Act. Long term capital gain will be taxed @ 20 per cent and the short-term capital gain will be taxed @ 10, 20 or 30 per cent depending upon the slab in which you get covered. Further, the loss incurred in the repurchase of US-64 cannot be set off against the income under the head capital gain. This is so because as per the provisions of Section 10(33) of the Act, income arising from the transfer of units of US-64 is not taxable. If the income is not taxable, the loss also would not be adjustable.
|
bb
Kisan call centre Tax-free zones Poultry co-op MTNL’s service AICTE nod |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
