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MTNL asks DoT for more spectrum
IFFCO to buy Oswal’s
Orissa fertiliser plant for Rs 2,180 cr
Metro Bank licence cancelled
IT industry may take part in Bangalore fair |
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NRI can remit up to $ 1,00,000 per annum
Sensex may touch 8,500 mark shortly
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MTNL asks DoT for more spectrum
New Delhi, September 18 “We will need spectrum for all our expansion plans...we need spectrum even for this year’s plans to give four lakh GSM connections. For our 3G service we would of course need it. We have applied to the Wireless Planning Coordination wing of the DoT,” A K Arora, ED, MTNL (Delhi) said. “After five lakh GSM
connections, we are supposed to get additional spectrum, which we will get and we are pursuing it with them,” he said replying to a query that due to the pending spectrum policy, the fresh allocation of spectrum might be freezed by the DoT. Spectrum is air wave on which voice and data travel. It is scarce and has multiple uses by important users like defence and the Railways. MTNL’s current fiscal targets include giving about 5.5 lakh new wireless connections in Delhi. It plans to start 3G services in 2006-07 in which it is targeting 20 lakh subscribers and for that also it needs spectrum. The existing GSM capacity of its network is 6.25 lakh in Delhi. Earlier, BSNL had also sought spectrum for 3G services from the DoT. The government may freeze all fresh allocation of spectrum till the policy is finalised. A working group, including GSM (global system for mobile communications) and CDMA (code division multiple access) operators, would be set up to resolve all differences between the two sides. Most of the operators, both GSM and CDMA, have already exceeded the stipulated limit of packing subscribers in the given spectrum, according to a recent report from TRAI. Meanwhile, national long -distance service provider VSNL is seeking implementation of the carrier access code (CAC) regime that will give customers freedom to choose the service provider/carrier for making ISD and STD calls. Customer access mechanisms like the carrier access code (CAC) regime, which allows customers to freely choose their long distance carrier should be implemented at the earliest, Mr Subodh Bhargava, Chairman VSNL, said. Way back in 2002, the telecom regulator had ordered that access providers should immediately make provisions for enabling CAC, in spite of which the concept still remains on paper and not even a single access provider having implemented it. As of now, VSNL, BSNL, Bharti, Reliance Infocomm provide both ISD and STD services. Basic and cellular service providers have to modify their networks, enabling subscribers to pick the STD/ISD operator of their choice. VSNL has made several representations to the government bodies to introduce carrier access code at the earliest as the stand-alone ILDO business model is getting unviable in the current integrated operators model.
— PTI
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IFFCO to buy Oswal’s Orissa fertiliser
New Delhi, September 18 As per the agreement, Rs 1,915 crore will be paid to financial institutions. ‘’A token amount of Rs 250 crore has already been paid to Oswal,’’ sources told UNI here today. This investment by IFFCO, is besides the $ 1 billion that the cooperative has earmarked for investment in India and abroad. A three-member team of IFFCO, led by Director K.L. Singh, has reached Paradeep to take the process further, they said. The acquisition also includes the purchase of Oswal’s township in Paradeep on an ‘’as it is’’ basis. The company’s facilities include a DAP and complex fertilisers plant with an annual capacity of 20 lakh tonnes, a phosphoric acid plant and a railway siding facility. On full capacity utilisation, the production cost of phosphoric acid at the plant will be $ 415 to 420 per tonne, much lower than the global cost of $ 445 per tonne. The agreement will be formally announced after a general body meeting of the Abhay Oswal-promoted company on September 24 and the Board of Directors’ meeting on September 25. IFFCO has called a meeting of its Board of Directors on September 28. However, the nod of Board had been taken before the acquisition, they added. A total of 17 banks and financial institutions, including the IFCI, IDBI, ICICI and SBI, hold stakes in Oswal Chemicals and Fertilizers Ltd. Lead banks and financial institutions have already been informed by the two companies.
— UNI
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Metro Bank licence cancelled
Surat, September 18 The apex bank has cited the bank’s negative networth, no recovery, no asset base, among others, as the reasons for its decision to revoke its licence. ‘Like in the case of most other co-operative banks, the bank was also caught in financial mismanagement.
— UNI
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IT industry may take part in Bangalore fair Bangalore, September 18 The IT industry seems to have won a major battle in the war of attrition with the Karnataka Government with the state Chief Secretary B K Das announcing a series of short-term measures to improve the infrastructure in the city. The measures are aimed at reducing the woes of the IT industry with the government announcing road improvement measures in central Bangalore, Airport road, Hosur - Sarjapur road and Koramangla. Though the meeting has cleared part of the air between the IT sector and the government, further progress is expected with Chief Minister N Dharam Singh expected to meet
captains of the IT industry on September 20 and again on September 23. The IT industry is, however, being cautious with both BCIC and the BFIT saying they will go back to their respective groups and only then announce whether they will participate in the IT fair or not. BCIC secretary Sampath Kumar while talking to TNS said BCIC head and Mphasis chairman Anant Koppar were satisfied with the meeting. The IT sector has agreed to support the long-term infrastructure development projects in the meeting held recently. The IT sector claimed that it was contributing 25 per cent to the Gross Domestic Product (GDP) of the state.
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by S.C. Vasudeva NRI can remit up to $ 1,00,000 per annum
Q. I am an NRI and a senior citizen having a matured Public Provident Fund account with State Bank of India. How can I transfer the outstanding balance of Rs 5.5 lakh to my country of immigration. — H.S. Bal A. In accordance with Regulation (3) of the Foreign Exchange Management (Remittance of Assets) Regulation, 2000, a non-resident is allowed to remit an amount not exceeding $ 1,00,000 per calendar year out of balances held in NRO account. The matured amount in PPF account may be transferred to NRO account for the purpose of remittance to the country of immigration. The amount of Rs 5.50 lakh is much less than the permitted amount of $ 1,00,000 and, therefore, can be transferred without the permission of the Reserve Bank of India.
Agricultural income Q. Upto the financial year 2004-05, the agriculture income had been taken into account for rate purposes only. Please let me know the procedure to be followed as per financial Act 2005 for the financial year 2005-06. Is the agricultural income totally exempted from income-tax or otherwise how to deal with it. — Gurmal Singh A. There is no change in the provisions of the Act with regard to the agricultural income. The same continues to be included for rate purposes for the financial year 2005-06.
Dearness allowance Q. Whether salary includes dearness allowance or not for the purpose of calculating taxable house rent allowance in term of Section 10 (13A) of the Income Tax Act in case of Haryana Government employee where dearness allowance counts for gratuity but does not count for pension. — Jagmindar Aggarwal A . The salary would include dearness allowance for the purpose of computing the taxable house rent allowance in terms of Section 10(13A) of the Act provided the terms of employment so provide for the inclusion of the dearness allowance for the said purpose.
Recurring deposits Q. I want to clarify whether the interest earned on recurring deposits in case of bank’s recurring deposit and post office recurring deposits are to be added in income while making tax calculations. Please clarify separately both recurring deposits status. — D.K. Goyal A. The interest income earned on recurring deposits both with bank’s and post office are taxable under the provisions of the Act.
Tax liability Q. Please inform where I should invest in order to save my tax as I am working in a pharmaceutical company wherein in year 2004-2005, my income after deduction is Rs 1,05,600. I have PPF contribution of Rs 11,763. Sir, my query is in order to get tax benefit in coming year 2005-2006. — Sunil Aeri A. Your total taxable income after deducting the PPF contribution would be Rs 93,837. On the basis of the provisions contained in the Finance Act 2005, no tax would be payable by you for the financial year 2005-06. In view thereof, there is no necessity for you to make any further investment in any of the tax saving instruments.
PPF account Q. In the application form of the PPF account, it is mentioned that we can extend our account without any loss or profit after the initial period of 15 years. What does that mean? Does it mean that we will not get any interest after 15 years if we extend the same account? For how long can we extend our PPF account? I mean maximum time limit to continue my account. In case if I change my PPF account from one city to another or from one bank to any other bank or post office, will I loose any interest of that transaction period in shifting the account? In case I close my account after 15 years, can I open a fresh account after that? — Dr Sandeep Sharma A. The extension of account without any loss or profit means that interest will continue to be allowed for the extended period and there will be no loss on account thereof. 2. The rules as notified do not indicate any time limit as the words used are “The account can be extended at a time for a period of 5 years”. 3. The change of PPF account from one city to another or from one bank to another or one post office to another should not lead to any loss of interest as the interest is credited at the year end (March end) and normally the accounts are transferred in the month of April). There should not be any problem for opening of the new account after closing the first account.
Readers are welcome to send questions for tax advice. These should be brief, to the point and not exceed 100-150 words. The letters should be sent to Tax Advice C/o The Tribune, Sector 29, Chandigarh-160020 or emailed to: |
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by J.C. Anand Sensex may touch 8,500 mark shortly
The Sensex continues to scale up defying correction syndrome. Last Friday, the Sensex rallied by 97 points to a new peak of 8,380.96 points. Some analysts expect Sensex to touch 8,500 points shortly. In any bull market there are some underpriced stocks with good prospects for further rise. One such scrip is that of Gujarat Alkalies and Chemicals Ltd. It is a multi-product company manufacturing 23 products and is the largest but the lowest cost producer of caustic soda in the country: the other products are chloromethane, hydrogen peroxide, phosphoric acid, sodium cyanide and caustic potash group of products. Its equity capital is Rs 7,344.77 lakh and has premium reserve of 23,423.18 lakh and the “General Reserve” of Rs 18,134.20 lakh. Its net profit for the year ended March 31, 2005 was Rs 12,498.82 lakh. It has an EPS of Rs 20 and book value of Rs 70 per share. It paid dividend at 15 per cent. Total dividend pay-out (including the dividend tax) was only Rs 1,256 lakh. The amount transferred to reserve was Rs 10,400 lakh. The company is expanding its production in caustic soda and hydrogen peroxide in a big way. Gujarat Alkalies and Chemicals Ltd is expected to show even better results for the current year. It is a very well-managed PSU of the state of Gujarat. Its market price at present is about Rs 161 per share of Rs 10. The scrip is likely to move up significantly during the next six months or so. Another scrip recommended by Motilal Oswal Securities Ltd is that of Punjab Chemicals. The company has been manufacturing high quality agro-chemicals for the international market. Now, it has also moved into pharmaceutical intermediates and has acquired a controlling stake in Alfa Drugs. According to this analysis, its postmerger equity capital is expected to be around Rs 6.5 crore with an EPS of Rs 26 during the current year. Its current price is around Rs 278 or so per share. It is a long-term investment with good prospects for appreciation. Another share which is in the limelight is Gujarat NRE Coke which has made some recent investments in Australian colliery firms. The company is also expanding its coke capacity by about 40 per cent. Its P/E ratio is about 11.5 and is quoting between Rs 145-150 per share. This script is also a good long-term investment in view of high and rising crude and coal prices. Coke is a necessary requirement for steel plants. |
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Max to exit telecom L&T-Dubal deal Spice Nepal |
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