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Reliance, Haryana SEZ pact likely on June 12
Oil price hike next week
M&M in Spain
Mittal adamant on bid
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Reliance, Haryana SEZ pact likely on June 12
Chandigarh, May 27 A spokesman for HSIDC said the agreement is likely to be signed with Reliance Ventures Ltd, a 100 per cent subsidiary of Reliance Industries Ltd, on June 12. The state Cabinet had approved the Reliance-HSIDC SEZ on May 3. The agreement would include the transfer of about 1,500 acres of land at Garhi Harsru, Gurgaon, to the joint venture company being formed by HSIDC and RVL for the development of the SEZ, he added. He said the location for the proposed SEZ has been finalised after a detailed feasibility study conducted jointly by the officers of he HSIDC and RIL. The SEZ would be spread over a contiguous area extending from the existing Garhi Harsru SEZ of HSIDC and to Gurgaon and Jhajjar districts. The decision to merge the two projects has been taken to maximise the investment and achieve economies of scale, the spokesman said, adding that this would also help in avoiding multiple administrative set ups and undesirable competition. The HSIDC spokesperson said the Union Ministry of Commerce has accorded in-principle approval to RIL for setting up this SEZ in Haryana. The proposed SEZ would be the largest such project in the country being designed on the pattern of the renowned Special Economic Zones in China and Dubai. He said this multi-product SEZ would open new avenues for domestic and Foreign Investment in Haryana and generate employment opportunities for about 2 lakh people and income for the residents of the state. The project would involve a direct investment of about Rs 25,000 crore on the development of infrastructure over a period of 10 years and would catalyse a much higher investment. He said the total cost for which the land was proposed to be transferred to the SPV, would include the cost of land acquisition, interest capitalised as holding cost at the rate of 9 per cent per annum and the administrative cost at the rate of 15 per cent of the total cost of acquired land. — PTI ADAG embraces new logo New Delhi: Within a year of its birth as a result of demerger of Reliance Industries, Anil Dhirubhai Ambani Group today went in for a ‘corporate identity’ makeover and embraced a new logo and signature tune in line with its customer interface. On the eve of the launch of the new corporate identity, Group Chairman Anil Ambani made a passionate appeal to all employees through webcast that: “Starting today, we will have opportunity to get closer to our new identity, to reflect on the philosophy behind it, and to celebrate the spirit of teamwork that lies at the heart of it.” Besides, the group will have a new signature tune.
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Mumbai, May 27 The proposed hike in petro prices is aimed at offsetting losses of oil PSUs, which are losing over Rs 160 crore a day due to the government's freeze on raising retail prices of fuel. "The unprecedented hike in international crude prices has forced us to revise the fuel prices. But, this hike will not be big and will be made after ensuring that weaker sections of the society are not much affected by this," Mr Deora said. Speaking at the inaugural function of the Lube Oil Base Stocks (LOBS) project at BPCL's refinery here, Mr Deora said the government was exploring various options, including duty cut on these products. "We have held discussions with all political parties, including the Left and the BJP. They have also made a few suggestions, which would also be considered," he said, adding that the Cabinet will take the final decision in this regard next week. Asked what has been the Left's stance over the issue, Mr Deora said: "The Left has made it clear that weaker sections should not be affected by this hike and we are working on this." About reduction in the duty charged on petrol and diesel, he said, "The Finance Minister is sympathetic to the issue. But, duty cuts will definitely hamper the country's budget, which is made considering these revenues." — PTI
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Mumbai, May 27 M&Ms debut was led by the Mahindra Goa, the Mahindra Pik-Up and the Bolero Pick Up range of vehicles. The vehicles, which represent the best of M&Ms lifestyle and SUV product range internationally, are scheduled for retail sales in the Spanish markets in June. Speaking on the occasion, Mr Anand Mahindra, Vice-Chairman and Managing Director, said, ''The sophisticated markets of Europe are very important in M&Ms global aspirations. We are committed to this region and have established our subsidiary 'Mahindra Europe' to look after your interests." — UNI
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London, May 27 Arcelor yesterday announced that it had agreed to buy Russia's Severstal to create the world's biggest steelmaker, in a 13 billion-euro deal giving Severstal Head Alexie Mordashov a 32 per cent stake in Arcelor. But Mittal said his bid offered better value to Arcelor's shareholders and would create a stronger industrial group. ''We are determined to complete our approach to Arcelor. It is in the interests of all shareholders and all the parties involved, in both financial and industrial terms,'' he told French daily Le Figaro today. —UNI
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Private players ink pacts against rules
by K.R. Wadhwaney Despite a slight dip in passengers load, owing to sharp competition, both national carriers, Indian and Air-India, have been showing signs of improved physical health. Indian, for example, is optimistic of achieving the highest profit of about 100 crore during the 2006-07 fiscal year. This indeed augurs well for the national carriers. Regardless of physical health of two airlines, the Minister of State for Civil Aviation Praful Patel is vigorously pursuing the idea of merger. He has been encountering road blocks en-route merger, but his enthusiasm and determination remain unfazed. He genuinely believes that future of the airlines lies in one entity. Amidst this uncertainty and inclement weather, both airlines are busy enacting on ‘image building’ exercises. To insist that the hostess should adhere to ‘weight norms’ and upgrade inflight service, catering and facilities are laudable moves. But it is difficult to fathom as to why the money is being wasted on redesigning dresses of cabin crew unless, of course, the Indian management is certain that the merger will not come about. It is wonderful that government is planning to offer sops for airlines to increase their operations via small airports. While offering concessions, the government, particularly Directorate-General of Civil Aviation (DGCA), should see to it that the playing field is level for all operators. The in-depth study shows that the government has been partial to private airlines since the opening of skies in 1990s. Some of the private carriers are ‘smart operators’ who know how to circumvent rules which, according to them, are meant to be broken. Aware that many bilateral agreements between the US and India and between Europe and India are unutilised, some Indian-based private operators are entering into collaboration with the US-based airlines to start operations although they do not meet the government’s stipulated rules. To help private airlines to settle down in rough Indian skies is one thing but to allow them to break rules blatantly is quite another. Money muscle should not be allowed to dominate the Indian airline market.
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Exemption u/s 54 F permissible if plot sold before possession
by A.N. Shanbhag Q : I was allotted a residential plot by HUDA in June,2001 for a total price of Rs 10,84,211 which is being paid in installments as per details given below: 1) Earnest money of Rs 100,000 on 11/01/2001. 2) Allotment money of Rs 1,71,053 on 10/07/2001 3) Four installments of Rs 1,35,526 each during 6/2002, 6/2003,6/2004 and 6/2005. 4) Balance two installments of Rs 1,35,526 each shall be paid during 6/2006 and 6/2007. I have not been given the possession of the plot so far but it is expected by the end of 2006 or early 2007. The present market price of the plot is approximately Rs 90 lakh. I want to sell this plot and buy one built the house or two flats by investing the whole sale proceeds and investing any additional money if required. Please tell whether exemption under section 54 shall be available if the plot is sold before getting the possession? What will be the tax aspects if the plot is sold immediately after getting the possession of the plot? — K.K. Jain A: What you have purchased is the right to possess the plot and the cost of this right is the amount paid by you so far. The date of acquisition is the date on which the plot was allotted to you (June, 2001). If you sell this right before taking possession you will earn long-term capital gains. You can claim exemption u/s 54F (not Sec 54) if you purchase a residential house (only one and not two) within 1 year before or 2 years after the date of sale of the right in the plot. Alternatively, you may construct a residential house within 3 years after the date. In the case of exemption u/s 54F, the assessee should not own more than one house on the date of earning the capital gains. The new house has a lock-in of 3 years. Sale within this period entails the loss of the exemption claimed earlier and the corresponding capital gains is treated as taxable LTCG during the year of sale. If you sell the plot after taking possession, it will attract the provisions of short-term capital gains. Cheque clearing
Q: I deposited a local clearing cheque towards PPF subscription in the
SBI, Ludhiana on 4th March, 2006 (Saturday) which was realised by the bank (SBI) on 6th March, 2006 (5th March being Sunday). The bank is not allowing me interest on said subscription amount for the month of March 2006. The bank says that since the subscription amount has been credited to my account on 6th March i.e. after 5th March, I am not entitled to interest thereon for the month of March 2006. According to the bank, only cheques realised on or before the 5th of the month are eligible for interest for the relevant month. However, I understand that a depositor is entitled to interest for the month on subscription cheques deposited with bank on or before the 5th of the relevant month irrespective of the date of clearance of cheques. If I am correct, please provide me the number and text of the relevant rule of the PPF scheme to enable me to present it to the bank in support of my entitlement. Note:- I have no proof to show that the challan and cheque was tendered by me on 4th March as the bank issues no acknowledgment at the time of handing over of the cheques and asks the depositors to drop the cheques. The challan is returned to the depositor only after the realisation of cheque and is stamped with the date of realisation of cheque i.e. 6th March and there is no mention of date of deposit of cheque by the depositor. Please advise. — Arun Kumar, A: Rule 4 clarification 3 vide Ministry of Finance (DEA) letter No. F.3(9)-PD/72 dt 4.9.72 states “When the deposit is made by means of a local cheque or draft by the subscriber, the date of tender of cheque at the Accounts Office will be treated as the date deposit provided that the related cheque is honoured on presentation for encashment.” You will do well by approaching the head office asking them to take corrective action. NRE account
Q: My son and daughter have advanced a lakh of rupees to a builder from their NRE account for a flat with the understanding that in case if they don’t want it the builder will return the advance. Can they put it back in their NRE account or they have to get RBI permission for that. And if so how? 2. In case they keep the offer and if there is a price rise before completion of the building and they are successful in disposing the same can they repatriate the amount to the USA where they live. — S. Moorthy A : 1. Yes, they do not lose the right to repatriate the amount if they change their mind. 2. They can repatriate the original amount invested in forex immediately after the sale and also the capital gains arising out of the sale after paying proper tax thereon. Negative salary
Q : In the assessment year 2005-06, I left job from my previous organisation and joined the new organisation. When I resigned from my previous organisation, I paid 37 days salary in lieu of notice period to my previous organisation. I didn’t get any compensation regarding this from my present organisation. Now my query is that while calculating my taxable income will I deduct the amount which I paid to my previous organisation in lieu of notice period or not from my total income of the year? — Aman Manchanda, Chandigarh A : What the employee is returning to the employer cannot come under the head ‘Salaries’ since he is not the employer’s employer. This amount represents application of his income and therefore, it is not deductible. He has merely applied this income to discharge a liability and therefore, it is not tax deductible. There is another view that can be submitted. The salary earned flows out of the contract between employee and employer and so is the penalty paid for early release. Therefore, it can be viewed as a negative salary. In such ambiguous cases, the TDS is always applied on the safe side leaving the employee to claim the excess TDS, if any, through filing the returns. The first view expressed above is accepted by almost all the accountants. The author may be contacted at wonderlandconsultants@yahoo.com |
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