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Finance panel report ready
PM seeks road map for unorganised sector
SE Asia giants get 47 pc of Idea
Opec approves cutting oil production |
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Ranjit Singh, CEO, TechBooks
HP moots waste disposal plant at Nalagarh
INTACH for shift to rural tourism
Exports register 26 pc growth
Aviation Notes
Investor guidance Graphic: Industrial Growth by Sector for October & April-October
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Finance panel report ready
New Delhi, December 11 “We have completed the report and have sought time from President A P J Abdul Kalam to submit it,” he said on the sidelines of a seminar on e-Commerce organised by Foundation of Public Economics and Policy Returns. The tenure of the five-member Commission, constituted on November 1, 2002, comes to an end on December 31, 2004. Mr Rangarajan said he earlier expected that the report would be submitted on December 13 but the President has other engagements on that day. He refused to divulge details, saying they would be known once the report is out. Besides, suggestions on distribution of net proceeds of taxes between the Centre and states, the terms of reference of the Commission include review of financial situation of the Union and state governments and recommending a plan to restructure public finances and restore budgetary balance. Earlier addressing the seminar, Mr Rangarajan said despite having a pride of place in India, IT companies exported bulk of their products. “The leading IT companies are 100 per cent export-oriented,” he added. He said it is high time that Indian industry and service sectors accorded greater importance to IT in their operations. — PTI
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PM seeks road map for unorganised sector New Delhi, December 11 Chairman of the Commission Arjun Sengupta told newspersons that the Prime Minister has asked the commission to formulate a Charter of New Deal for bringing about growth in the sector. The Commission is expecting to submit the report by the middle of next month and would hold extensive consultations and discussions with state governments, NGOs and other institutions in an attempt to eliminate ‘Inspector Raj’. In addition, the Commission will come out with ways and means on a myriad issues affecting the sector, including enhancement of productivity and skill improvement. The Commission would also examine the legalities creating obstacle in smooth functioning of the vendors, leading to entry of unscrupulous elements who encourage corruption, he added. Mr Sengupta met the Prime Minister at his Race Course Residence and this was the first meeting of the Commission with Dr Singh. “The Commission does not propose to bring forth a big report but would outline only feasible and implementable schemes,” he said. The terms of reference of the Commission include review of the status of the unorganised sector, identification of the constraints faced by them and suggesting a legal and policy environment that will govern the sector for promoting growth and employment.
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SE Asia giants get 47 pc of Idea
Mumbai, December 11 Under the terms of the definitive agreement entered into with Idea, the two together as a consortium, would acquire the entire stake from Cingular Wireless, and simultaneously infuse additional capital into Idea, a joint press note said here today. Earlier today, the consortium, structured as a 60:40 joint venture with STT (holding 60 per cent) and TMI entered into agreements with Idea and its three largest shareholders—Cingular Wireless, Tata Industries and the Aditya Birla Group. On completion of the transaction, the Consortium will become the single largest shareholder with a 47.7 per cent stake. The transaction is anticipated to be completed in the first quarter of 2005. The Indian shareholders will continue to collectively own a majority 51 per cent stake.
— PTI
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Opec approves cutting oil production
Cairo, December 11 Oil prices fell by 4 per cent on Friday to the lowest level since July despite the cartel’s agreement to wipe out 1 million barrels per day (bpd) of excess supply from January 1. Top Opec producer Saudi Arabia said it was not worried by the price fall. “Don’t panic,” said Saudi Oil Minister Ali al-Naimi. “I tell you it will go up on Monday.” Saudi Arabia had already enforced its cut of 500,000 barrels per day — 5 per cent of current production — by reducing nominations to customers, he added. US prices have dropped by more than $15, or 27 per cent from record highs less than seven weeks ago. Opec’s own reference crude basket has fallen even faster and was valued at $34.29 even before Friday’s fall on international markets.
— Reuters
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TechBooks plans BPO centre in Chandigarh Chandigarh, December 11 The company has its headquarters in Virginia, USA, and specialises in servicing the publishing outsourcing verticals such as Cambridge University Press, Blackwell, Hall, Pearson and Tata McGraw Hill. Mr Ranjit Singh, CEO, TechBooks, while talking exclusively to The Tribune during his brief visit to Chandigarh for exploring expansion opportunities, says they expect $ 50 million turnover this year. “We have three development centres in New Delhi, employing over 2,500 skilled professionals ranging from science professionals, doctorates, English scholars and QuarkXPress professionals. However, due to spill over capabilities, we would like to start our Chandigarh operations at the earliest. We would be here at the start of next fiscal as City Beautiful is blessed with pretty good infrastructure and education base. Initially we would start with 500 seats with Rs 15 crore investment,” discloses Mr Ranjit. He rues that Punjab, unlike some other states, has not been very aggressive in pursuing IT and ITeS firms to invest in the state. “Punjab has to have more international flights, better roads and good Net connectivity. It is lagging behind in these aspects,” he says. Mr Ranjit, a UK-educated electrical engineer and a management graduate, says that 2005 is going to be the year of acquisitions in the BPO sector. “We are just beginning to see the tip of the iceberg. Only big players would survive,” he says and adds that they too plan to acquire a BPO firm, without divulging any further details on the issue. The TechBooks CEO says that the market for content outsourcing is unlimited and English, as a language, now comprises just 70 per cent of the offshored work. “The rest 30 per cent lies in other languages, especially French, which holds a lot of potential,” he says.
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HP moots waste disposal plant at Nalagarh Shimla, December 11 The Chief Minister, Mr Virbhadra Singh, discussed the proposal with the Group Chairman and Managing Director of Waste Two Energy Holdings Ltd, UK, here today. He was accompanied by Mr Barry Ralph, Director Technology, and Mr Rahul Kapoor, Managing Director (India). The Chief Minister said the government would welcome the setting up of a plant based on the latest scientific technology so as to ensure a clean environment. “With rapid urbanisation and industrialisation, the quantum of garbage has also increased tremendously, leading to problem of its proper disposal,” he said. He said the proposed plant to be set up at Baddi would serve the industrial areas of Nalagarh, Baddi, Kala Amb, Mehatpur, Una, Solan, Shimla and Bilaspur. Mr Virbhadra Singh said the plant would have a capacity of treating 1,000 tonnes of garbage per day, while producing value-added products. “Though as per estimate, the state produces only 450 tonnes of garbage every day for disposal but in times to come this was bound to increase,” he stated.
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INTACH for shift to rural tourism
Shimla, December 11 She strongly feels that there is a need to shift focus from the saturated tourist destinations of Shimla, Kulu-Manali and Dalhousie to lesser-known places, especially in the tribal districts of Kinnaur and Lahaul-Spiti.
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Exports register 26 pc growth New Delhi, December 11 Announcing this at the Review Meeting convened by him on Export Performance and the new DEPB Scheme here today, Commerce and Industry Minister Kamal Nath Commerce and Industry, said in November 2004 alone India exported over $ 6 billion worth of goods, that is an average of $ 200 million a day. Mr Nath announced a target of $ 75 billion was set for the current financial year 2004-05 and the export target would be $ 88 billion for the next financial year.
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Aviation Notes by K.R. Wadhwaney IT is indeed laudable that the Airports Authority of India (AAI) has again recorded a massive revenue of Rs 2,630.59 crore for the year ending March 31,2004. After tax deductions, it has shown a profit of Rs 314.96 crore. Since its inception (after international and national units were merged into one) in 1995, it has contributed Rs 310 crore to the government by paying several taxes. Apart from making huge profits during the last decade, the AAI’s achievements in other areas have been far from satisfactory. The physical health of several airports continues to be feeble. In fact, many are mere air-fields and not airports. Even two international airports, Delhi and Mumbai, have yet to be upgraded. International terminals at these busy airports lack facilities. They look ‘village terminals’ in comparison to the terminals at Singapore, Bangkok, Kuala Lumpur and several other airports in the east. The Indira Gandhi International Airport (IGIA) has two runways — main and subsidiary. They are grossly inadequate to handle ever increasing traffic. After two decades, the AAI is now contemplating to have another runway. “The airport at Delhi has reached a saturation point,” said Minister of State for Civil Aviation Praful Patel. For the last decade, the airport has been congested and the AAI has failed to take measures to be passenger-friendly organisation. The minister told the Lok Sabha that there was no truth that an additional airport in Greater Noida was coming up. He also said that there was need for another airport. If so, where is the need to have a brand new airport? Why not suitably upgrade the Amritsar Airport? It already handles international flights and Amritsar can be a great hub. This will be possible only when the AAI decentralises its functioning instead of placing all its eggs in the Delhi basket. The AAI stands for country and not for Delhi only! The AAI must learn to look beyond the Delhi window. Air-India plans to initiate a new international flight from Amritsar. Indian Airlines has already been operating flights from Amritsar regularly. There is a scope for plenty of more flights to operate from Amritsar, Ludhiana, Jalandhar and Amritsar are fast growing cities. They are -gold-mine for traders — Indians and foreigners.
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Investor guidance by A.N. Shanbhag Q: I am on a personal family visit to the USA, and read your paper regularly. Nice job done for NRIs. Is the current limit of Rs 1 lakh, applicable to residents only and not to NRIs on their income in India from dividends, LTCG on investments prior to their leaving India? The tax on LTCG has been removed. Here again is this not applicable to NRI on the IA income in India on shares held in India?— S Puri A: The limit of Rs 1 lakh is not applicable to NRIs. However, dividends are tax-free in the hands of the investor, whether he is an NRI or Resident. Also (eligible) LTCG is tax-free in the hands of the investor, regardless of status. Gain on shares
Q: I am Col T.S. Singha (retd). I want you to clarify regarding the accounting of Long Term Capital Gain on shares sold through stock exchanges after October 1, 2004.If I had LT Capital loss up to 30 Sep 2004,but had earned LT capital gain on shares sold after 01Oct 2004,whether LT capital loss can be carried forward to next F.Y. or it first has to be set off against LT capital gain though the same is totally exempt from income tax? What happens to LT capital loss on shares sold after 01 Oct 2004?Can these losses be carried forward to next FY? Similar clarification is required on the accounting of ST capital gain/losses. — Tirath Singha A:
LT gains arising out of securities sold on a recognised stock exchange in India after 30.9.04 are exempt. The question of setoff of these gains against carried forward losses or the losses earned during the current year does not arise. Since LT losses are negative gains, the losses earned after 30.9.04 are also exempt. In other words, no setoff against capital gains earned during the current fiscal prior to 1.10.04 is possible. You may, therefore, carry forward the LTCL to the next year. ST gains arising from sale of securities on a recognised stock exchange in India after 30.9.04 shall be charged to tax @10% flat. These can be set off against ST losses, either earned during the current fiscal or the carried forward ST losses. However — note this carefully — the ST gains cannot be setoff against LT losses. Prior to the amendment of FA04, the ST gains were charged to tax at the rate applicable to the assessee which was mostly 30%+ and LT gains were charged at the rate of 20% or less. Therefore, it was not in the interest of the revenue to allow the setoff of LT losses against ST gains. FA04 has reversed the situation. The exchequer gains if LT losses are setoff against ST gains. Yet, the provisions are not changed, perhaps due to an oversight of the authors of the legislation.
Sibling pact
Q: 1. We are two brothers and no sister. My elder brother is in Central Govt. service and I am working in a private organization. 2. Our parents breathed their last this year within a gap of four months. 3. By virtue of nomination and succession, we are acquiring whatever they had in savings and fixed deposit in the banks which would be in the tune of Rs 2 lakh for each of us. 4. The ancestral house will also be mutated in our names. Kindly let us know our requirement of fulfilling statutory requirements, including income tax. — Gautam Chatterjee A: You should have an agreement in writing between you and your brother spelling out the family arrangement necessitated by the demise of your parents. This would be an important document for transferring the assets in individual names or joint names. This will also suffice the purpose of income tax. I suggest you prepare this agreement with the help of a practitioner in the field.
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Forex reserves UB Group PHDCCI chief Bank of Punjab Beopar mandal Vat on flaps |
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