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PHDCCI recipe for making Punjab
manufacturing hub BSNL switches to GSM for fixed wireless service Airtel hits 74 pc FDI ceiling |
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AIR list to be expanded ADAG will complete Dadri project: Anil Hindustan Paper pays Rs 15.2 cr dividend
The market bounces back
Revenue stamp only for receipt above Rs 5,000
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PHDCCI recipe for making Punjab New Delhi, August 6 The Punjab Government had recently sent a proposal to the Centre for setting up a manufacturing region, with all the incentives of SEZs, running into several kilometres in Ropar and Ludhiana. Although several industrialists were keen as such a region was available near Chandigarh, the state government could not find enough land to meet the criteria for setting up a manufacturing region. For giving impetus to manufacturing and the economy of central Punjab — Ludhiana region — a civil airport be made operational within three years of the 11th Plan. This will give a boost to agri-business exports, hosiery, light engineering and automotive components, a study by the PHDCCI said. In the first two years, 2004-06, exports have increased by over 20 per cent per annum in dollar terms and the important commodities of export are textile yarn, fabrics, made-up articles and readymade garments (exports 2004-05 $12875 million), drugs, pharma and fine chemicals (exports 2005-05 $3720 million) & engineering goods, including automotive components (exports 2004-05 $ 16425 million). These industries be given special attention both for increasing the share of exports during the 11th Plan by at least 20 per cent per annum and also for catering to the domestic market. Among other areas that require attention serious constraint is skills. The private sector should be encouraged to establish and operate demand-driven technical training centres through financial and other incentives, under a carefully designed industry-managed, and government-supported, quality control and accreditation system. Technological competence in industry is critical both for development as well as competitiveness in the market place. R & D activities form a necessary component of technology-improving policies. Hence, R & D activities should be supported by the state and the Government of India be requested to give special allocation to ensure R & D excellence of select Punjab industries for catering to competitiveness in the international market. The study observed that the government’s support and policies to supply power at a lower cost is most desirable. The availability of power is critical in Punjab. Emphasis should be on addition of capacity to generate more power. This can be done if Punjab ties up with HP and Uttaranchal as both these states have capacity to produce hydel power in abundance. This would need taking up the issue with the Government of India. Further, thermal plants may be established at coal pitheads in Chhattisgarh. Electricity duty essentially needs to be reduced from 10 per cent to 5 per cent. Public-private partnership is the key to attract private investment into power projects. PPPs are best implemented through standardised arrangements that constitute a stable policy and regulatory regime where private capital derives greater comfort and seeks the least possible risk premium. Punjab suffers from locational disadvantage being away from the ports which substantially adds to the cost of raw material import and export freight in comparison to manufacturing units located near the ports. Therefore, the endeavour of Punjab Government should be to neutralise this disadvantage. In addition to making freight subsidy available for exports, efficient and economical power compared to other states is desirable.
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BSNL switches to GSM for fixed wireless service New Delhi, August 6 BSNL is already providing fixed wireless terminals (FWTs) in urban as well as rural areas. These FWTs are being provided under CDMA technology. It is not yet clear if BSNL would completely switch to GSM for its FWP service for its future rollouts or it would simultaneously offer both GSM and CDMA-based fixed wireless services. Recently, Airtel started providing fixed phones using GSM technology under their licence areas and is targeting fixed line customers with very aggressive tariffs, BSNL said in a letter to its field units. This proposal was discussed during a management meeting held on July 27. It was decided that BSNL too should introduce fixed telephones under GSM technology as a product in the market. BSNL has asked its field units to communicate the requirement for fixed cellular terminals (GSM) in order to provide fixed telephone lines in GSM coverage area on demand.— PTI
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Airtel hits 74 pc FDI ceiling
New Delhi, August 6 Company spokesperson confirmed that FDI in Bharti stands at little less than 74 per cent, but said there was no dilution in stake by the Indian promoters. Only difference is that the Department of Telecom has changed the counting pattern and takes into account both direct and indirect. Bharti Telecom, promoted by Mr Sunil Mittal, continues to be the single largest shareholder in Bharti Airtel with 45.38 per cent stake. Vodafone and SingTel have 5.62 per cent and 15.60 per cent, respectively, direct stake in Bharti Airtel, while the FIIs hold 22 per cent and rest is held by NRIs, OCBs, Indian MFs, Indian FIs, Indian Insurance companies and banks etc.
— PTI |
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New Delhi, August 6 Finance Minister P. Chidambaram is keen to prescribe a few more transactions to be reported in AIRs, ministry sources said, adding that the new transactions would be prescribed shortly. At present there are seven transactions which are reported in the AIRs — investment of at least Rs 2 lakh in mutual funds, Rs 5 lakh of investment in RBI bonds, cash deposits with banks exceeding Rs 10 lakh, credit card payments exceeding Rs 2 lakh annually, investments in bonds and debentures exceeding Rs 5 lakh, investment in shares over Rs 1 lakh, sale and purchase of property beyond Rs 30 lakh. Finance Minister P Chidambaram had earlier said 17,52,652 high-value transactions have been reported under AIR for the period 2004-05. Of the 6,60,000 separate parties reported, only 1,84,980 parties have quoted PAN. Meanwhile, the Tax Department has recovered Rs 3,002 crore of arrears in direct taxes and Rs 566 crore of indirect taxes up to June 30, 2006, against the target of Rs 11,741 crore and Rs 2,450 crore, respectively, this fiscal. — PTI
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ADAG will complete Dadri project: Anil
New Delhi, August 6 "We are fully committed to building the 8,000 MW world's largest gas-based power project at Dadri... international competitive bidding for awarding EPC contracts are at an advanced stage," Mr Ambani said in a statement this evening. The statement comes within days of Anil meeting Union Petroleum Minister Murli Deora seeking a review of elder brother Mukesh Ambani's group company RIL's proposal to supply gas for the Dadri project, which the ministry had rejected last month on the grounds that the prices offered were not competitive. The ministry officials had disfavoured a review of the proposal to supply gas to Anil's group company RNRL. Anil said the land acquisition for the project was completed in line with the state government's power policy, which was open and transparent for all companies. Over Rs 150 crore have already been invested in the project, he said, adding the project has made substantial progress. "All vital clearances, including clearance from the Ministry of Environment and Forests (MoEF) are in place," he said.
— PTI |
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Hindustan Paper pays Rs 15.2 cr dividend New Delhi, August 6 Mr Santosh Mohan Dev, Union Minister for Heavy Industries and Public Enterprises, received the dividend cheque from Mr Raji Philip, CMD of the company. While asking for a navratna status for the corporation, he said, “HPC is now seeking to establish a greenfield 3 lakh tpa mill in north India besides overseeing Rs 550-crore scheme for revival of non-operational mill under the Nagaland Pulp & Paper Company Ltd., Tuli, Nagaland, by doubling the installed capacity to 66,000 tpa.” |
by J.C. Anand The market bounces back The bull has been riding the market vigorously during the past fortnight. Sensex has crossed 11,000 points a number of times during intra-day trading. The market indices have been moving forward despite some adverse news, such as a hike in the interest rates by banks in India and in many other countries. The European Central Bank has hiked the interest rates by .25 per cent, the Bank of England has hiked its interest rate by an identical margin to 4.75% and the Reserve Bank of Australia has raised its interest rate from 5.75 per cent to 6 per cent. The apex banks in Japan and in some south Asian countries have done the same. The bullish trend in the market was kicked up by the RBI’s latest “Industrial Outlook Survey” issued on July 24. Painting a bullish picture of the economy, the RBI stated that the business environment was favourable. Production is continuing with its momentum and this is likely to continue in 2006-2007. Inflation rate is likely to stay at 5-5.5%. Presenting the quarterly review of the monetary policy on July 25, the RBI Governor held on to his GDP growth forecast at 7.5-8%. The quarterly results announced during the fortnight were, in general, very good. ABB’s second quarter and half-yearly results were impressive. Its net profit for the half year was — Rs 12320.82 lakh (as against Rs 7111.33 lakh for the corresponding period last year.) HLL’s 2nd quarter net profit was up by 35 per cent L&T’s annual results as well as quarterly results were good. Mahavir Spinning Mills’s first quarterly net profit was Rs 37.47 crore (as against Rs 28.95 crore for the corresponding period last year). Nahar Spinning’s first quarterly net profit was almost double at Rs 826.34 lakhs (as against Rs 435.23 lakh for the corresponding period last year). There were also some bonus issues news. The ONGC has announced a bonus issue in the ratio of one for two shares. L&T has put forward a proposal for the issue of bonus shares in the ratio of 1:1, which will be approved by the shareholders on August 25. Even after its equity capital doubles at Rs 55 crore (approximately) its free reserves will stand at nearly 80 times its equity capital. At the end of June, 2006, its total order backing stood at Rs 27,453 crore. Order booking was up by 90% for the quarter. Gujarat Alkalis and Chemicals is being disinvested by the Gujarat Government. The Modi Government has taken an in-principle decision to disinvest its 40 per cent stake in the company. The Tata group and Aditya Birla group and Reliance Group company, IPCL, are reported to be among interesting parties in taking it over. The company is fairly priced even now when it has moved up from Rs 140/- to Rs 180/- for an equity share of Rs 10/- face value. The market is still unpredictable. This week’s trading will indicate its direction.
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by S.C. Vasudeva Revenue stamp only for receipt above Rs 5,000 Q. I solicit your expert advice on the levy of tax in the shape of a one-rupee revenue stamp. My queries are: (i) Whether the stamp is required on receipt for Rs 500 also or it is only for amounts exceeding Rs 500 and upto which value? (ii) Whether the stamp is required for amounts received only in cash or also for receipts through a cheque etc. (iii) Some employers make payments of salary etc. to their employees through a payment advice to a bank for crediting the same to their respective bank account. Some employers get signatures (against a revenue stamp) of listed employees against their respective names for the amounts transferred to their bank accounts. Is stamp mandatory in such cases? (iv) Banks do not insist on a revenue stamp on cash receipts or withdrawal payments, but they do in case of payments (in cash or even on credit to a saving bank account) on redemption of a fixed term deposit or bonds or Post Office saving instruments. Is it Ok in the latter case. (v) Many a time signature is not done partly covering the stamp, but a stamp is fixed nearby and crossed simply. Is it Ok? (vi) Is using a one-rupee revenue stamp a statutory obligation? What is the implication if the stamp is not used in a receipt? — Lalit Bharadwaj, Panchkula A. The answers to your queries are as under: (i) In view of the amendment of Schedule I, to the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. This amendment has come w.e.f. 10.09.04. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act: “Receipt” include any note, memorandum or writing- (a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or (b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or (c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or (d) which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person. (ii) In view of the above, the cheque received would also be covered for the affixation of the stamp. (iii) The definition of receipt would definitely cover the cases referred to by you. (iv) The withdrawals from bank account is not in the nature of receipt as defined herein above. However, the payment on a maturity of fixed deposit would definitely be covered. (v) In my opinion, such receipt is not perfect. (vi) The instrument which is not duly stamped is inadmissible as an evidence. Rebate on HRA
Q. I have taken house rent receipt from my wife to save Rebate income tax on HRA as our house stands on our joint name. Is it wrong or right? If right, then quote the section which allows to take rebate on HRA and if wrong what is the next course of action for me. — V.K. Preenja, Amritsar A. In accordance with explanation to Section 10(13A) of the Income-tax Act 1961 (the Act), the exemption in respect of house rent allowance is not available if the residential accommodation occupied by the assessee, is owned by him or the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him. It is evident from your query that you have not paid any house rent which is to be considered for allowing the exemption. In case you have claimed such exemption in earlier years, you should revise your tax return and pay the tax and interest thereon voluntarily to save any penal action. Section 80 DDB
Q. I have undergone coronary artery byepass graft surgery in August 2005 from a renowned heart hospital and incurred an expenditure of Rs 2.10 lakh. I seek your advice whether the whole or part of this amount can be deducted from my current income under Section 80C or in any other section of Income-tax Act. It may please also be clarified if this ailment falls within the purview of “Specified Diseases” of Section 80DDB of the Act as prescribed in rules 11DD(1) of the Income-tax Rules 1962 for deduction of amount actually paid for medical treatment. If so, what type of documents are required to be attached with the Income tax return. — S.K. Malhotra, Jalandhar A. The diseases covered under Section 80DDB of the Act read with rule 11DD of Income-tax Rules 1962 are as under:- (i) Neurological diseases where the disability level has been certified to be of 40 per cent and above,- (a) Dementia; (b) Dystonia musculorum deformans; (c) Motor neuron disease; (d) Ataxia; (e) Chorea; (f) Hemiballismus; (g) Aphasia; (h) Parkinsons Disease; (ii) Malignant cancers; (iii) Full blown acquired immuno-deficiency syndrome (AIDS); (iv) Chronic renal failure; (v) Hematological disorders; (i) Hemophilia; (j) Thalassaemia” Unfortunately, coronary artery bye pass graft surgery is not covered under the above provisions. No deduction would thus be allowable of such an expenditure against your total income. Rebate to HUF
Q. I represent a HUF in capacity of a Karta. My HUF has a PPF account in the SBI for the past 15 years and have been claiming exemption for the same in income tax return of the HUF. Now that the PPF account of HUF has completed 15 years, the SBI as per the latest amendments has refused to extend it for a further period of 5 years. Further, the post office, too, has refused to issue NSC for the HUF. Kindly suggest under what scheme shall I invest to claim exemption under Section 80. — Rakesh Kumar, Ludhiana, A. You can continue to purchase National Saving Certificates from the funds of your HUF. The National Saving Certificates, however, would be issued in the name of the Karta and deduction thereon shall be allowed in the assessment of HUF. You may also purchase life insurance policy in the name of any member of the HUF. The payment of such premiums would also be deductible under Section 80C of the Act. |
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