 |
|
USA targets Chinese clothes,
RBI releases report on money market
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Karnataka for ONGC projects as per MoU
Two teams qualify for MS Imagine Cup
EU adopts framework to handle financial crises
J.B. Chemicals profit up
Kingfisher may gain from home delivery of tickets
|
|
USA targets Chinese clothes, imposes quotas
Washington, May 14 The administration’s action will impose limits on the amount of cotton trousers, cotton knit shirts and underwear that China can ship to the USA. Announcing the decision yesterday, US Commerce Secretary Carlos Gutierrez said a government investigation had found that a surge in shipments from China since global quotas were eliminated on January 1 was disrupting the domestic market. The decision was made by the Committee for the Implementation of Textile Agreements (CITA), an inter-agency group led by the Commerce Department. “Today’s action by CITA demonstrates this administration’s commitment to levelling the playing field for US industry by enforcing out trade agreement,” Mr Gutierrez said in a statement. The US Government will now request formal consultations with Beijing, but the quota will be imposed regardless by the end of May, officials said yesterday. “In the event a mutually satisfactory agreement cannot be reached by the conclusion of the consultations period, the quota will remain in place through the end of 2005,” the statement added. BEIJING:
China said on Saturday it opposed a US decision to restrict booming imports of Chinese trousers, shirts and underwear, saying that the move violated WTO agreements and it urged Washington to reconsider. China reserved the right to adopt measures within the WTO framework, Commerce Ministry spokesman Chong Quan was quoted as saying.
— PTI, Reuters
|
|
RBI releases report on money market
Mumbai, May 14 In its suggestions, the group said the RBI might migrate from OF (owned fund) to capital funds (sum of tier I and tier II capital) as the benchmark for fixing prudential limits for the money market (call/notice) for scheduled commercial banks. The RBI might, however, continue with the present norm associated with co-operative banks (aggregate deposit), primary dealers, PDs (net owned fund) and non-banks (30 per cent of their average daily lending during 2000-01). Banks and PDs with appropriate risk management systems in place and balance sheet structure may be allowed more flexibility to borrow in the money market. Upon realising the money market into a pure inter-bank one, larger freedom in lending should be afforded to banks and
PDs. Consequent upon coming into effect of the FRBM Act 2003, the technical group, headed by RBI economist Deepak
Mohanty, said that there would be a need to broadbase the pool of securities to act as a collateral for the repo markets. The maturity period of certificate of
deposits (CDs) should be reduced to seven days. — UNI
|
|
|
Karnataka for ONGC projects as per MoU
New Delhi, May 14 A ministerial delegation from Karnataka, led by Chief Minister N Dharam Singh, today met Prime Minister Manmohan Singh and demanded his intervention to ensure the implementation of the ONGC project as per the MoU signed between the state government and the public sector giant. The delegation, which met Dr Manmohan Singh for 45 minutes, requested him not to involve GAIL and HPCL with the LNG project, as had been proposed by the Petroleum Ministry. The Rs 3,590 crore Mangalore-Bangalore LNG pipeline is of importance to the state and implementing the project with other joint venture partners would lead to severe managerial problems and have an impact on the success of the project, the delegation said. The project should be as per the MoU signed, they said. The five individual mega projects signed by Karnataka with the ONGC were Rs 7,475 crore petroleum and aromatics plant, Rs 3,590 crore 2000 MW LNG-based power project, C-2 and C-3 re-gassifiction plan, Mangalore-Bangalore LNG gas pipline and distribution of infrastructure and MRPL retail outlets for petro products involving a spending of Rs 572 crore.
|
|
Two teams qualify for MS Imagine Cup
Chennai, May 14 With a theme of ‘Breaking down boundaries’ the annual contest, in its third year and conducted in Pune, Delhi and Chennai, attracted over 6,000 students across India and the students were encouraged to conceptualise technology solutions to help address emerging issues, a statement said. In Chennai, nine teams presented their solutions and two teams have been selected to compete in the Indian national finals, which will be held in June. The India winners will then contest in the world finals to be held in Japan in July, for a total prize of $ 50,000. Along with the Imagine Cup, Microsoft also conducted ‘Student Project Program Expo’ in Chennai. Under the Student Project Program, over 30,000 students from 1,500 technical institutes across 400 Indian cities designed solutions on Microsoft technologies as part of their annual project submission.
— PTI
|
|
EU adopts framework to handle financial crises
Luxembourg, May 14 The rules improve communications among European Union finance ministries to promote more effective and rapid cooperation when facing financial market turmoil that can spread swiftly across the borders and continents. “This is an agreement on how to cooperate in case of a crisis in a bank or other financial institution. It’s not the creation of a new institution or a new European supervisor,’’ a treasury official from one member state said. Financial scandals at US energy trading group Enron in 2001 and Dutch retailer Ahold in 2003 rattled several markets by shaking investor confidence.
— Reuters
|
|
J.B. Chemicals profit up
Mumbai, May 14 The board has recommended a final dividend of Rs 1.40 on an equity share with a nominal value of Rs 2, thereby taking the total dividend paid out this year to 120 per cent, the company said here.
JBCPL has achieved net sales of Rs 358.09 crore against Rs 300.75 crore in the previous year, registering a growth of 19.06 per cent. For the quarter ended March 31, the company achieved a net profit of Rs 11.44 crore against Rs 10.49 crore in the same period last fiscal.
— PTI
|
||||||
|
|
Kingfisher may gain from home delivery of tickets
Kingfisher
has begun its operations in style. Its ‘mentors’ are optimistic that soon they will steal a march over some of the established carries because they are following their own path and strategy without stepping on one’s toes. “Our product is new, official adding: “We have faith in our customers”.
According to analysts, Kingfisher entered into flying umbrella after carefully evaluating the market. Its start on May 9 on the Mumbai-Bangalore-Mumbai sector was sedate and serene. But by the time new month begins, it will be flying on new sectors. Kingfisher has adopted an extremely simple pricing structure so that irrespective of the fare that a customer buys at, the rules, regulation and cancellation policy remain the same. “This is a paradigm shift in the way airline pricing works,” says a press note. Announcing that airline is a full-service ‘value carrier’, the tickets can be bought through usual sources. But what has given it an edge is that it has started with ‘the home delivery system’. The new fleet of A-320 has several amenities to make flying comfortable for regular flyers. As some other operators are also expected to fly on domestic routes, the skies may get crowded. But Kingfisher has already established a fine rapport with Indian Airlines in regard to ground handling, engineering and aircraft maintenance support. The two airlines have entered into several other agreements, which will provide much-needed revenue to the IA, while Kingfisher will effect sufficient saving in keeping ‘overhead expenses in check?
Controversy persists The war of words continues unabated. Each is blaming the other. The
in-depth and dispassionate study reveals that no one has adhered to the rules of ‘sportsmanship’. Seller has brought about political pressure to the extent that the US President George Bush had a word with India’s Prime Minister
Manmohan Singh. If French Ambassador Dominique Girard’s ‘remarks’ might have been ‘out of tune’ in ‘diplomatic climate’, so was Mr Bush’s talking to Mr Manmohan Singh. Indeed it is the buyer’s prerogative to decide what product is advantageous to the airline. But can Air-India Chairman V. Thulasidas keep his hand on his heart and say that Air-India’s decision for opting for Boeing was based ‘totally on commercial considerations’? As repeatedly said, both Air-India and Indian Airlines have competent and experienced pilots and engineers to determine which product is suitable for national carriers. They, along with CMDs, should be given free hand to select aircraft. Unfortunately this is not possible in this country where politicians want to have finger in every pie.
|
Rs 70,000 yearly cap on PPF account
Q: I and my wife are having independent salaried incomes and independent PPF accounts. Our minor son has a PPF account (my wife as a guardian). Our minor daughter has a PPF account (myself as a guardian). Please inform the legality of the following cases:
(A) I deposit Rs 60,000 in my PPF account and Rs 10,000 in my son’s account. My wife deposits Rs 60,000 in her PPF account and Rs 10,000 in daughter’s account. Can there be an objection that total deposits to my account together with both my minor children’s account are Rs 80,000 in a year? (B) What if grandparents of children also gift some amount by cheque to the childrens’ PPF accounts, will it violate any law? — Mr Thapar
A:
Notification GSR 908(E) dt. December 6, 2000 requires the ceiling on the aggregate contributions to be Rs 70,000 to accounts of self and all minor children of whom he is a guardian. If one exceeds this and the irregularity comes to the notice of the account office, it will return the excess contribution without any interest to the account holder.
As per the Income Tax Act, contributions by the assessee to PPF accounts of the spouse and children, major or minor, married or otherwise, dependent or not, are eligible for the rebate. As a matter of fact, a parent may contribute even in the name of married daughter and still claim rebate. Such contributions are construed as gift. At its maturity, if the account is closed and the funds are reinvested, clubbing provisions becomes applicable in the case of spouse and minor children. If the child is a major at this stage, there is no clubbing. In your case, the contributions by individual parents and their child for whom they are the guardians, respectively, do not exceed Rs 70,000 and the deduction under Section 80C will be available. (It is always preferable if you contribute to the account of the child for whom you are the guardian.)
The contributions by the grand parents do not attract any tax deductions but are considered for ceiling of Rs 70,000 for guardian and the child. Hence the contribution by grandparents will be returned without interest by the PPF office. Please note that from FY 05-06, the PPF may not be a good investment if no tax deductions can be claimed and the withdrawals fall under the EET category. The tax payable on the withdrawal will be applicable to both the principal contributed and the interest earned. Wait till the new system of EET is clearly defined (which has not yet been done even when the Budget was passed in the Lok Sabha and became an Act.)
Capital assets and tax
Q: My Pension is Rs 9,000 p.m. I constructed a house with pension benefits costing Rs 7.5 lakh in September 2002 on a plot purchased in 1990 for Rs 36,000 and sold it for Rs 8 lakh in January 2005. I also purchased a booth for Rs 6 lakh in September 2003 and sold it for Rs 6.50 lakh in January 05. Kindly advise how much tax is payable on my property gains for the year 2004-05?
— Gurminder Singh
A:
Your query lacks clarity to a large extent. If the following does not satisfy you need, please revert, but this time be explicit. The definition of a capital asset includes property of any kind and land held by the assessee is a capital asset and a building held by the assessee is also a capital asset. Suppose the land is held for more than 3 years and the superstructure is of recent origin, it is not possible to say that by construction of the building, the land which was a long-term capital asset, has ceased to be a long-term capital asset, and it continues to remain as an identifiable capital asset even after construction. The land and the superstructure can be assessed separately as ‘long-term capital asset’ and as ‘short-term capital asset’ for the purpose of capital gain. If the land was purchased in FY 90-91 and sold in FY 04-05, the indexed cost will be Rs 94,945. If the sale price of the land is Rs 94,945 and that of the house is Rs 7,05,055 you will earn a short-term capital loss of Rs. 44,945 which can be setoff against the short-term profit of the booth.
The fact that you have applied pension benefits for the purchase benefits to construct the house is inconsequential. The booth purchased and sold is also a short-term asset and the difference will be chargeable as your income for FY 04-05.
Keyman policy
Q:
This is in regard to the Keyman policy under Section 37(i). Please guide me who can take the policy (specifically trust and charitable house). If yes, then under what legal provisions.
— Mukund Shah
A: The keyman policy is the one issued by insurance companies to entities which have a key person on whom the business depends. You are requested to check with the individual insurance companies about the eligibility of particular entities for the policy. The law relating to key man insurance is that the premiums paid are tax deductible but not the maturity amount. Hence, these were being misused/abused by assigning them to the keyman once the premium paying term is over and thereby making it completely tax-free. Reportedly, the IRDA is coming down hard on this practice and such misuse would be brought to a stop. Exempt Exempt Tax
Q:
I would like to know the would be impact of EET on ELSS ( if there is any ). Secondly will EET cover ELSS?
— Rina Trivedi
A:
This question applies also to other constituents of the new Section 80C i.e. PPF, LIC policy proceeds etc. There is no clarity on the issue yet. The taxability is going to be decided by a committee which will submit its report to the government. We emphasise with the investors that it is indeed unfair that the government declares its intention to tax Section 80C investments at maturity, but does not specify which ones and to what extent. Even in the recently passed finance Bill, there is no clarity on the subject. We will have to wait till such time when they come out with clarifications.
The author may be contacted at wonderlandconsultants@yahoo.com
|
bb
Forex reserves
decline Dividend Agrotech Foods Service drive NFL gets award |
| 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 | |
Video
