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Cloud of uncertainty looms over SAFTA
British probe reveals flourishing trade in shahtoosh
Savings account with Rs 5
Swaraj Mazda to make buses
TRAI directive to BSNL
GPI Textiles to invest Rs 200 cr
KVPs cannot be purchased on behalf of Hindu undivided family
New terminal, not renovation, need of hour
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Cloud of uncertainty looms over SAFTA
New Delhi, November 19 The representatives of all these countries have, however, agreed at the two-day SAARC summit held in New Delhi, to continue the talks to work out the solutions. India is looking at a great opportunity in SAFTA, showcasing the success of the Indo-Sri Lanka free trade agreement. When the seven-member nations of South Asian Association for Regional Cooperation (SAARC) — Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka — had signed SAFTA in Islamabad on January 1, 2004, all hopes were that it would become effective January 1, 2006. But, several members have been dragging their feet in arriving at a consensus on details that were left to a committee of experts (CoEs). That has not happened. Nepal and Bangladesh have also asked to take steps to prevent damages to the small and medium scale manufacturing sector. Nepal Finance Minister Madhukar SJB Rana has asked India to take steps to compensate the potential losses to the small countries. Prime Minister Manmohan Singh and Union Commerce and Industry Minister Kamal Nath are taking keen interest to implement the agreement on time. According to official sources, Bangladesh is insisting that the least developing countries (LDCs) should be compensated not only for “the loss of customs revenue,” when tariffs, as envisaged in SAFTA agreement, are lowered but also for loss of revenue on several internal taxes, VAT and duties already levied on domestically manufactured items. The agreement provides that “LDCs may face loss of customs revenue due to the implementation of the trade liberalization programme (TLP).” The speakers at the SAARC business summit said Pakistani exporters would have to brace for a good deal of competition from India, especially, as far as exports to the region, and especially Bangladesh, are concerned. They will have to lower their cost of production on a large number of items, improve efficiency, and offer a greater variety of consumer products. Freight is an element that already goes against them. It roughly costs Rs1,000 for one-tonne freight from India to Bangladesh, overland, compared to something like $60 or Rs3,600 for shipping from Pakistan to that country. All seven countries have already tabled, but not finalised, their sensitive lists, they need to protect or safeguard from imports from the region and the competition under SAFTA, said sources. The lists are long and contain all imaginable items that may be hit by perceived competition. Pakistani list comprises 1,210 items, on import of which it will not lower its tariffs or give concessions. Bangladesh and LDCs have tabled longer lists, on which they don’t wish to lower their tariffs, as of now. Questioning the rationale of SAFTA benefits, Prof Arvind Panagariya, associated with the World Bank said: “India-China free trade agreement can offer more benefits to the country than SAFTA. It can be and should be pursued, later.”
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British probe reveals flourishing trade in shahtoosh
London, November 19 According to the British police, the wool is concealed in legal consignments and taken through Nepal to Delhi. It is then put in cold storage to protect its quality. The finished cloth is taken to Srinagar where it is spun and then the finished product is transported back to Delhi. Individual carriers then smuggle it out in their luggage. Head of the Metropolitan Police's Wildlife Crime Unit Andy Fisher said despite global ban on the shawls, they knew that poaching was going on. In August Swiss customs confiscated nearly 500 shawls estimated to be worth £1.7 million. Wealthy British women are sold products from the finest wool in the world by individuals who keep them at their homes. It fetches up to £15,000. Earlier this year, shahtoosh was offered on the Internet as well. The offer disappeared after the International Fund for Animal Welfare discovered its posting.
— UNI
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Savings account with Rs 5
Kolkata, November 19 There would be no incidental charges if the balance fell below the minimum balance or the account became inoperative, a bank statement said here today. A savings bank account holder could also use cheque book and ATM card facilities by keeping Rs 250 as minimum balance, it said. The bank will also introduce a basket of other facilities for customers including 8 am to 8 pm banking service, more ATM outlets and centralised banking solutions in a phased manner. — PTI
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Swaraj Mazda to make buses
Chennai, November 19 The company, which made Rs 37 crore profit last year, has also chalked out plans to increase production capacity (of various vehicles) from the present 12,000 units per year to 36,000 units. For all these developments, they will pump in an investment of Rs 260 crore over the next three years. This was stated by Mr Yash Mahajan, Vice-Chairman and managing director of Swaraj Mazda Ltd, here after the launch of new luxury
buses. — PTI
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TRAI directive to BSNL
New Delhi, November 19 The directive comes following TDSAT upholding the petition of cellular operators against the two state owned companies that their billing was unfair with the private operators having to pay a higher interconnection charge due to different billing system. TRAI said the billing system has to be the same and has asked BSNL and MTNL to implement CDR-based billing within a period of 90 days. “The Authority hereby directs BSNL, MTNL and other service providers to maintain reciprocity in the billing by way of adopting the same method for making and receiving the payments, i.e., if CDR-based billing is used for making payments then the same should be used for receiving payments and if MCU-based billing is used for making payments then the same should be used for receiving payments,” the regulatory body in a letter to the two PSUs and cellular firms said.
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GPI Textiles to invest Rs 200 cr
Ludhiana, November 19 "So far, we were outsourcing bedsheets. But now, with an aim to attain vertical integration, we will be manufacturing bedsheets in our own unit. An investment to the tune of Rs 200 crore towards weaving, dyeing and stitching units at our plant in Himachal Pradesh is on the cards," said Mr Sanjeev Kumar Bhudhiraja, Vice-President, Marketing, GPI Textiles, while talking to The Tribune here today. The bedsheets manufactured would be exported to Europe and the USA. He also said that the company expected a turnover of Rs 150 crore from the new project within first year of its operations. At later stages, we would also like to explore markets of Australia, New Zealand and Middle-East, he said. Mr Budhiraja said imposition of anti-dumping duty on bedsheet from Pakistan by the European Union was also likely to push up bedsheet trade from India. The company, that recorded a turnover of around Rs 250 crore last year, is currently engaged in manufacturing cotton yarn, which it sells to 17 countries through its own network. Talking about the technologies used, Mr Budhiraja said the state-of-the-art technology had helped company emerge one of the most successful players in yarn manufacturing.
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by A.N. Shanbhag KVPs cannot be purchased on behalf of Hindu undivided family
Q: I purchased KVP on behalf of HUF, being the karta, on September 18, 1999. They stand matured on September 18, 2005, but postmaster said that KVP cannot be purchased on the name of HUF and he is not making the payment. I want to know is there any notification regarding that and are they correct? If yes, from which date HUF can’t purchase KVP? Was there any such restriction at the time when I purchased it? Please clear it with notifications, circulars, rules, and to whom I shall approach ?
— Gurpreet Singh, Ropar A: KVPs were not available to HUFs. The new notification has nothing to do with your situation. The postmaster should not have issued the certificate to the HUF in the first place but unfortunately, the law protects the postal department for such mistakes. It is required to return the original investment to the subscriber, as and when the default comes to the notice of the post office.
Tax on encashed leave Q: I have encashed 10 days of leave while availing LTC. I am in the Air Force. There is a provision of encashing maximum of 60 days leave during service while availing LTC by the Central Government employees. Tax at the rate of 30 per cent has been deducted. Had I encashed this after my retirement, it would have been tax free. How can I save income tax on this? Secondly, what is the holding period for long-term capital gains of units of a MF scheme, which is debt-based or which is not purely equity-based? — Arvind Kumar A: You have encashed a part of the leave to your credit while in service. This is fully taxable as salary and the normal deductions offered by Chapter VI-A (Section 80D, 80C etc.) can be used to save tax.
Sponsoring parents Q: My son and daughter-in-law immigrated to Canada permanently in October 2004. Both are working in a firm there. My wife and myself want to visit Canada in March 2006 for three to four months. I am a retired bank officer and my wife is a government teacher. Please advise us what formalities my son has to do at his end to sponsor us and what formalities do we have to complete at our end for applying for Canadian visa. Is there any tax involved if my son spends the money? — S. K Passee, Jalandhar City A: It is suggested that you approach the Canadian Embassy and they will let you know exactly what formalities and procedures are to be followed. Each country has different requirement and we strongly advise getting the same directly from the embassy rather than any travel agent. Senior citizens visiting their children normally do not face much difficulty in getting a visa. The format of the sponsorship letter and other documents, such as employment letter of son from his employer etc, may be required. To reiterate this, information is best ascertained from the embassy directly. If your son were to spend any amount, there would be no tax either on you or him.
NRI share quota Q: I purchased 25 shares of State Bank of Travancore from my brother in a friendly deal and sent them for transfer to my name. The shares were allotted in NRI quota in January 1998 and were in physical form. The company has sent back the shares stating that RBI clearance is required. I inquired with a financial advisers and they told me that if the shares are dematted and sold through a broker, permission is not required. However, the RBI official in Delhi said that an application on plain paper signed by both buyer and seller should be given in RBI Office, Trivandrum as the SBT headquarters are there. Can you please give me the correct procedure to proceed further? — John Thompikottu A: The relevant part of Rule 9(2) of the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000, is reproduced hereunder for your benefit: (iii) A person resident outside India holding the shares or convertible debentures of an Indian company in accordance with these regulations, (a) may transfer the same to a person resident in India by way of gift; (b) may sell the same on a recognised stock exchange in India through a registered broker. If this transaction falls within these two criteria, you do not need RBI permission. In case the permission is required, an application on plain paper signed by both buyer and seller should be submitted to the proper office of RBI.
Pension plan Q: I have two queries: 1 Under new section, Rs 1 lakh is to be deducted from the net income to find out the tax implication if the person invests up to Rs 1 lakh in specified securities. Is the premium which we pay for the pension plans also counted towards that Rs 1 lakh limit or is that in addition to the limit. 2. Are there any deep discount bonds available at present? If yes which? Where would I find them and how could I subscribe. — Sandeep Sharma A: i). The contribution to pension plan schemes up to Rs. 10,000 u/s 80CCC are included in the overall ceiling of Rs 1 lakh along with the contributions to avenues u/s 80C. ii). The authorities have changed the tax provisions on these bonds so adversely that none of the institutions I know of have launched any new schemes in the recent past. |
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by K.R. Wadhwaney New terminal, not renovation, need of hour
Better late than never. It is good that a Rs 30-crore facelift will be given to the 1B terminal to reduce congestion at the Indira Gandhi International Airport (IGIA). According to reports, the entire project will be completed within eight months. The boarding blues of the passengers travelling by private airlines will be ‘softened’.
Many seasoned analysts, who have been connected with the growth of the IGIA, however, do not approve of this facelift. They believe that it is a ‘penny-wise, pound-foolish exercise’. They maintain that a new airport with a new terminal for international passengers should have been constructed on the land available in the vicinity of the existing terminal building. This exercise would have reduced congestion for both international and national passengers because the existing international terminal could then have been utilised by the private airlines for domestic operations. According to government plans, the international concourse would be given a face-lift at an additional cost of Rs 10 crore. This terminal is so congested that no face-lift or renovation would help with so many new foreign airlines starting operations. Analysts believe that ‘renovation or facelift’ is not the need of the hour. The need is a brand new terminal with ultra-modern facilities as established in Kuala Lumpur, Singapore, Hong Kong, China and Tokyo.
Bias towards govt carriers The playfield in the aviation sector is grossly uneven. It is tilted towards foreign carriers. Indian carriers are neglected. The foreign airlines get preference in air and on ground in comparison to national carriers, Air-India and Indian Airlines. British Airways has decided to increase its weekly flights from 35 to 42 from different Indian cities. In sharp contrast, Air-India cannot even secure a befitting convenient landing and taking off slot at Heathrow Airport. For years, Air-India has made fervent appeals which, after patient hearings, are merely spiked. Indian carriers, national and private, have to put up with inconvenient timings of landing and takings-off worldwide because of night flying curfew in the US, Europe and Japan. Even in the event of buying aircraft, there is an undue interference from the US and French governments. As a result national carriers cannot take independent decision. Shockingly, India stays as ‘orphan’ in this vital aviation arena even after about 60 years’ of Independence. Several smaller countries have stolen a march over India. The recent British Airways’ ‘indifferent respect’ to the Minister of State for Aviation Praful Patel takes the cake. The minister had completed all travel formalities and was about to board a flight for the (Washington) USA/from Mumbai Airport when he was asked to produce passport for his identification. The BA official said that it was a routine check but the minister thought: “It was a passenger unfriendly exercise”. The matter was, of course, resolved immediately but it left a big scar. If the minister in charge of Civil Aviation in his own
city, Mumbai, can be asked for his identification, one can imagine what must be security drills for ordinary passengers |
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