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Hotel baron eyes Holy City
Hindujas may enter car segment
Govt looking into issues raised by Anil Ambani
Sixth pay panel not likely in near future
Traders concerned over imported vanaspati
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Passengers gain as airlines compete
Investor
guidance
Confusion
prevails on Exempt Exempt Tax
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Hotel baron eyes Holy City
New Delhi, May 28 “We will shortly begin work on a 200-room boutique hotel in Bandra-Kurla in Mumbai at an investment of $ 40 million. This will be followed by acquisition of Palace Hotel in Jaipur,” he told PTI. “The Jaipur property will cost around $ 17 million,” he said. Mr Chatwal, who has set up a global hotel empire and operates hotels in the US, Canada, UK, Hong Kong and Malaysia, said this is the ‘right time’ for investments in India. In India, Mr Chatwal’s hotels will be under the brand name, Dream Hotels. “So many airlines are coming up in India. And with some of them starting international operations, I believe there will be a huge demand for hotel rooms in India in the next two to three years,” he said. Mr Chatwal said he is considering opening hotels in Delhi, Bangalore, Hyderabad and Amritsar. “I have visited two sites in and around Delhi. It looks promising. In the next three years, we will be opening at least three hotels in Mumbai, Jaipur and Delhi,” he added. Pointing out the lack of infrastructure facilities in Amritsar, which is now has direct flights to the US, Mr Chatwal said: “Amritsar needs to modernise in terms of infrastructure. The city has great potential for under 100-room hotels and we will be opening our hotel there soon.” “There is ample scope for super luxury hotels in India. We see good potential in areas around Delhi, like Gurgaon and Noida,” said the Faridkot-born Chatwal, who migrated to the US 25 years ago after spending seven years in East Africa. The group recently opened a boutique hotel in Manhattan’s 55th Street and Broadway. “Dream features Serafina restaurant designed by the Rockwell Group that combines Italian cuisine and European allure. It also has an ayurvedic centre designed by Deepak Chopra,” said Mr Chatwal, whose hotels have over 2,800 rooms in Manhattan, making him the biggest private developer in the New York area.
— PTI
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Hindujas may enter car segment
New Delhi, May 28 “We want to be more aggressive in India. We are looking at India more seriously. We are looking at areas like infrastructure, including roads, power, energy and water,” Dheeraj Hinduja, Vice-Chairman of Ashok Leyland, said in an interview to NDTV Profit in London. Talking about expansion plans of the Rs 4,800 crore commercial vehicle major Ashok Leyland, he said the company plans to expand further. However, it would be a different company that would enter into the passenger car segment. “We are open at getting into this (passenger car) segment but it will have to be under a different brand name. Passenger car segment is a competitive segment, and we won’t use Ashok Leyland’s name if we get into this area.” He also said they are looking at expanding Ashok Leyland into neighbouring countries besides broadening its business within India. His elder brother Sanjay Hinduja, Co-Chairman, Gulf International, said healthcare is another area, which the group is focussing on. “We will open a 100-bed hospital in Mumbai shortly,” he said, adding the company is also looking at acquisitions. “We recently acquired a bulk drug company in Hyderabad and are open to more such acquisitions within the country and abroad.” Sanjay said the group is expanding its business in India, Middle-East, Africa and South-East Asia.
— PTI
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Govt looking into issues raised by Anil Ambani
New Delhi, May 28 "Some new issues have been raised by Anil in his complaint to us... the government is aware of its duties and is looking into them," Company Affairs Minister Prem Chand Gupta said here. He declined to give details saying the government was awaiting a final report on the complaints made by Anil. "I can't comment on the matter until I receive the final report," he said, speaking on the sidelines of a function organised by the Institute of Company Secretaries of India (ICSI).
— PTI
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Sixth pay panel not likely in near future
New Delhi, May 28 This was conveyed to all India-level federations and unions of
government employees by Cabinet Secretary B K Chaturvedi. — PTI
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Traders concerned over imported vanaspati
New Delhi, May 28 In a representation to the Finance Ministry, the PHDCCI said, “Domestic vanaspati industry is struggling for its survival after cut in duties on vanaspati and unfair competition from duty-free import of vanaspati from Nepal and Sri Lanka under the free trade agreement and trade treaty.”
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by A.N. Shanbhag Confusion prevails on Exempt Exempt Tax Q: Kindly intimate us the following: 1. Has the committee on Exempt Exempt Tax (EET) submitted its recommendations to the Finance Minister? 2. What is the roadmap suggested. 3. The date of enforcement of EET? — Arvind Agarwal A: 1. The committee on EET has not yet submitted its recommendations to the Finance Minister. As a matter of fact, the government has not even clarified on whether this committee has been constituted. 2. The roadmap is the same as announced during the Budget speech, in as much as, the investments made under the shelter of Section 80C would be generally brought to tax upon maturity. This transition to the EET system from the current EEE system is sought to be made smooth by the recommendations of the committee. 3. Section 88 amendment states, “No deduction from the amount of income tax shall be allowed under this Section to an assessee, being an individual or a Hindu undivided family for the assessment year beginning on the 1st day of April, 2006 (this is assessment date representing April 1, 2005, the calendar date) and subsequent years. In other words, whatever be the changes, these will come into effect from April 1, 2005. The nature of the change and the date of its announcement is under the wraps but whenever it is finally announced, (even if it is after the next Budget), it will be effective from April 1, 2005. Tax on distress sale
Q: We are registered cooperative housing society 1. We have sold a small plot out of our sanctioned layout to our member for Rs 6 lakh only. 2. Value of this plot in 1980-1981 was Rs. 3,500 only as per our balance sheet. 3. Sale deed was executed for Rs 6 lakh but market price as per local body rates was mentioned in the sale deed was Rs16 lakh. Our questions are: 1. Whether we are taxable under capital gain and if we have to pay what is our liability. 2. Plot was transferred in July 2004 and we have not invested in Nabard. Whether we can now deposit Rs 6 lakh in “Capital Gains Account 1988” and save tax for next three years? Whether this account is applicable to cooperative housing society? 3. Is there any other way to save tax? 4. Whether Income Tax dept. will ask tax on 16 lakh. We have sufficient reasons for distress sale at 6 lakh as the plot was encroached and several litigations were going on. — A.Y. Deshpande A:
Doctrine of Mutuality mandates that a person cannot make a taxable profit out of a transaction with himself. A surplus arising to a mutual concern cannot be regarded as income chargeable to tax. For instance, rent receipts from the members to whom the rooms were let out by the assessee-club along with other facilities, would not be assessable to income tax on the doctrine of mutuality — Chelmsford Club v CIT [2000] 109Taxman215 (SC). Therefore, if you have sold your sanctioned layout to your own members and no one else, there is no need to pay tax.
PPF withdrawals
Q: I have a large amount in PPF — as per new Amendment Act, will the withdrawal be taxed. If so, is it beneficial to withdraw the amount? — Adil A:
There is a well-settled principle against interference with vested rights by subsequent legislation unless the legislation itself is made with retrospective effect expressly or by necessary implication. It is fervently hoped that this diktat will not be applied on old accounts. We would like you to make your full contribution for the current year as soon as is possible. In this one case, the Budget proposal has not yet become an Act. A committee has been appointed to work out the procedure to ensure smooth transition.
Pension plans
Q: 1. In new budget proposals, what is the change in PPF, if any? For example, whether withdrawal during continuation of PPF a/c is taxable ? What about maturity amount, if TDS or any tax will be imposed? What about interest of PPF? As Section 80 L has been withdrawn, so please make clear all these and related PPF issues. 2. What is the change in pension plans u/s Sec 80 CCC (1)? Is saving under it up to Rs. 10,000 p.a. inclusive of Rs 1 lakh , as allowed from this year or in addition to that , so one can save Rs 1,10,000? — R. C. Saluja A: The taxability of PPF (as indeed of other instruments such as Life Insurance Policies, ELSS etc.) is going to be decided by a committee that will submit its report to the government. We empathise 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 that they come out with clarifications. 2. The deduction of Rs. 10,000 u/s 80 CCC is included in the overall ceiling of Rs 1 lakh. The author may be contacted at wonderlandconsultants@yahoo.com
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